1

ACKNOWLEDGEMENTS|:

I with my group members wish to express our sincere gratitude to Ms. Samreen Malik
our productions and operations management mentor for providing us an opportunity to do
project work in our own selected sector and by our choice we chose Dubai Islamic Bank
Pakistan Limited. We sincerely thank our instructor for her guidance and encouragement
in carrying out this project work. We also wish to express my gratitude to the officials
and other staff members of Dubai Islamic Bank who rendered their help during the period
of our project work. We also thank the executives and the operations manager of the
Dubai Islamic Bank who took time especially for us from their busy schedule and helped
us in making our project successful.
It simply couldnt be possible without the above mentioned highly respected and
esteemed individuals.

EXECUTIVE SUMMARY:
The Dubai Islamic Bank is the first one to implement the principles of Islam in the field
banking as it falls under the category of service sector. The problem observed in DIBPL
is that the software used which is from India is of pathetic quality due to which the
operations of DIBPL are likely to be affected by it. It offers a variety of product and
services to its clients which includes home finance, auto finance, the issuance of sukkuk
bonds and many more.
The main focus of DIBPL is to assist their clients financially in the best possible ways in
different walks of life whether it is for child education, home financing, to buy a new car
or child marriage.
The female workforce in DIB is less as compared to male workforce and the turnover rate
has increased pretty much over the last couple of months. Thus, Dubai Islamic Bank
Pakistan has to work on the above mentioned areas so that thee vacuum can be removed

History
Dubai Islamic Bank being the world's first Islamic bank combines the best of traditional
Islamic values with the technology and innovation that characterize the best of modern
banking. Since its formation in 1975, Dubai Islamic Bank has established itself as the
undisputed leader in its field. It also has set standards for others to follow the trend
towards Islamic banking which gathers momentum in the Arab world and internationally.
Islamic banking Dubai is one of the world's fastest-growing economic sectors,
comprising close on 200 institutions responsible for assets estimated at more than $200
billion. Different Islamic banking sectors of Dubai for helping customers in easy banking
includes

Johara Banking

Business Banking

Corporate Banking

Investment Banking

Real Estate finance

Sharia Board

Electronic Banking Service (Online Banking, Mobile Banking, Calculator, Phone

Banking)

Retail Banking

Private Banking

Dubai Islamic Bank Pakistan Limited

4

Dubai Islamic Bank Pakistan Limited (DIBPL), commenced operations in 2006. Since
then, DIBPL has undertaken major initiatives to expand its branch network across the
country. Under its consumer banking division, the bank is offering state-of-the-art Sharia
compliant products that effectively compete with those being offered in the market by
conventional banks. It also has expertise in providing Retail, Private, Small and Medium
Enterprises, Corporate, Investment Banking and Advisory services.
The Bank launched Pakistan's first Islamic Visa Debit Card and introduced financial
products covering Home Financing, Auto Financing, and Depository products.
DIBPL has also introduced Priority Banking and Internet Banking, both of which are
being recognized as benchmark products in their respective categories. Besides regular
banking services, the Bank is committed to bringing foreign investment to the country.
DIBPL's corporate wing has actively pursued foreign investors and convinced world
renowned giants from the GCC to be part of Pakistan's economy .DIBPL is 100% owned
by Dubai Islamic Bank PJSC (Public Joint Stock Company) and its nominated
shareholders. The parent company is a listed company in Dubai.
and Dubai Islamic Bank can progress in the future.

Introduction to Islamic Banking

An Islamic Banking is a financial institution that operates with the objective to
implement and materialize the economic and financial principles of Islam in the banking
arena.
The Organization of Islamic conference (OIC) defined an Islamic Bank as a financial
institution whose statutes, rules and procedures expressly state its commitment to the
principles of Islamic Shariah and to the banning of the receipt and payment of interest on
any of its operations.
According to Islamic Banking Act 1983 of Malaysia, an Islamic Bank is a company
which carries on Islamic Banking business. Islamic Banking business means banking
business whose aims and operations do not involve any element which is not approved by
the religion Islam.
The Dubai Islamic Bank (DIB) is an Islamic bank in Dubai, established in 1975. It is the
first Islamic bank to have incorporated the principles of Islam in all its practices and is
the largest Islamic bank in the UAE.
DIB is a public joint stock company, and its shares are listed on the Dubai Financial
Market. The bank currently operates 62 branches in the UAE. Adnan Chilwan is the
Bank President while HE Mohammed Al Shaibani is the Chairman of the Board of
Directors.
DIB is involved in local and international partnerships, having established DIB Pakistan
Limited, a wholly owned subsidiary which has a network of 175 branches across 62
major cities in Pakistan. DIB also has a representative office in Turkey, and has received
a preliminary banking license by the Central Bank of Jordan to operate as an Islamic
financial institution, through a new entity - Jordan Dubai Islamic Bank.

Dubai Islamic bank owns Dubai Islamic Bank Pakistan Limited (DIBPL). This bank is
based in Pakistan and is one of the leading banks specializing in Islamic banking. The
bank commenced operations in 2006.
Dubai Islamic Bank's CEO is Junaid Ahmed who was previously part of the Dubai
Islamic Bank International division. He has been serving as CEO of DIB Pakistan since
2010.
The area that we have chosen to work on is the operations department. It relates to all day
to day operations, how they are being carried out, what problems they have to face and
how other departments are affected by it.
PROBLEM STATEMENT:
Though the current operations of the Dubai Islamic Bank are running in a smooth order
but due to low quality softwares imported from India and no backup system the
operations of Dubai Islamic Bank faces jolts and they needed to be recovered fast so that
it can work efficiently.
RESEARCH OBJECTIVES:
Pakistan being Muslim country is a favorable ground for growth of Islamic banking. As
per Islamic teachings Interest (Riba) is haram, as such it was a solid ground after
independence to practice and preach Islamic banking. But, there was no setup available.
After independence our country was arrested with lot of teething problems, as such much
attention were given to those issues, leaving the basic banking requirement as per Islamic
norms and ethics. Lately, it was realized that Islamic banking is neglected altogether in
Islamic state. Therefore, all attentions were diverted to form system in our country to
formalize Islamic banking. Up to 2002 frame work and other critical issues were dealt
with by the stakeholders. From 2002 to 2010 substantial growth was witnessed.
Although, the share of growth is 5% but it is expected that it will reach around 15% in
next 2 to 3 years time. During this transition Islamic banking is facing lot of challenges,
7

at the same time it invites lot of opportunities for scholars and stakeholders to explore the
new dimension of banking and utilize it as per the need of our country. The objective of
Research study is to identify the opportunities for Islamic banking in Pakistan. The main
areas of Research Paper are hereunder:
Is Islamic banking having the potential to grow and contribute in the economy of
Pakistan?
Are there investment opportunities in Islamic Banking?
Is Islamic banking ready to cope up with the changing circumstances around the globe?
Is Islamic banking catering the needs of banking and non banking customers?
Is Islamic banking getting support from regulators?
Is HR (Human Resource) of Islamic banks capable enough to accept the challenges of
Islamic banking and explore ways to meet the challenges?
Is product being offered by Islamic banks are sufficient enough to attract customers?
Is Islamic banking has all the capabilities for product development?
Identify ways to utilize funds in Riba free Islamic State
Propose how to set right direction to focus growth of Islamic Banking coming years.
Literature Review In literature review I will try to focus the concept, scope, ideology,
principles of Islamic banking,
METHODOLOGY:
The method that we employed in getting insight about the working and operations of the
Dubai Islamic Bank Pakistan is the qualitative technique in which a formal interview was
conducted with the high executives of the institute. A series of questions was asked and
8

the detail answers were given in a specific time period. The sample size was small and
the branch which we targeted for our project is situated in Gulberg Main Boulevard.

OPERATIONS MANAGEMENT TOOL:

Six sigma is a strategy designed to improve the quality of process outputs. The Six Sigma
program accomplishes this by identifying and removing the causes of defects (errors) and
by minimizing the variability present in manufacturing and business processes.
This strategy relies on particular quality-management methods, such as statistical
analytics, and creates a special infrastructure of employees within an organization (e.g.,
"Black Belts," "Green Belts") who are experts in these methods. Each Six Sigma project
in an organization follows a defined sequence of steps and has quantified financial targets
such as reducing costs or increasing profits. Among the tools used in Six Sigma are
process mapping, trending charts, calculations of potential defects, ratios, and
statistics. Best practices for work within a team are also used.

10

Main Purpose of Islamic Banking

History of Islamic Banking in Pakistan
1947
The inception of Pakistan as the first Islamic Republic created in the name of Islam.
While the world is now recognizing the significance of Islamic finance industry, in
Pakistan, as early as in 1948, Mr. Muhammad Ali Jinnah emphasized the virtues of
Islamic principles and in his address at the inauguration of the State Bank of Pakistan
(SBP), said:
.

I shall watch with keenness the work of your Organization in evolving banking

practices compatible with Islamic ideas of social and economic life. We must work
Our destiny in our own way and present to the world an economic system based on true
Islamic concept of equality of manhood and social justice1.
1980
CII presents report on the elimination of Interest genuinely considered to be the first
major comprehensive work in the world undertaken on Islamic banking and finance.
1985
Commercial banks transformed their nomenclature stating all Rupee saving accounts
as interest-free. However, foreign currency deposits in Pakistan and foreign loans
continued as before.
Procedure adopted by banks in 1985 was declared non Islamic by the Federal Shariat
Court (FSC). The Government and some banks/DFIs made appeals to the Shariat
Appellate Bench (SAB) of the Supreme Court of Pakistan.
1997
The Shariat Appellate Bench of the Supreme Court of Pakistan rejects the appeals
and directs all laws on interest banking to cease. The government sets up a high level
commission, task forces and committees to institute and promote Islamic banking.
11

Vision statement
To be the leading Islamic Bank providing Sharia compliant financial services, by
creating value for all stakeholders.
Mission statement
To provide diversified Sharia compliant financial services and products through the best
of innovation, talent and operational excellence while ensuring consistent growth and
profitability.
Value

Trust
Communication
Innovation
Caring
One Team

12

Management Team

Junaid Ahmed (CEO DIB Pakistan)

Wamiq Rizvi (Chief Operating Officer)
Sheikh Mashhood-Ur-Rehman (Head of Information Technology)
Iqbal Ahmed Zuberi (Head of Country Operations)
Irfan Johar (Head of Internal Audit)
Syed Iftikhar Ul Haq (Head of Consumer Assets)
Khurram Munawar (Head of Credit Risk Management)
Zahid Mansoor (Head of Treasury)
Naveed Malik (Head of Distribution)
Ali Jaffer (Company Secretary & Head of Legal Affairs)
Muhammad Salim Yousaf (Chief Financial Officer)
Naveed Lodhi (Head of Compliance)

13

Organizational structure:

Board Of Directors
CEO
Head
Of
Audit

Head
Of
Compliance

Head
Of
Operation
s

Head
Of
Treasury

Head
Of
Consume
r

Internal
audit
division

Shariah Board
14

Head
Of
Corporat
e

Head
Of
Finance

Hea
d
Of
HR

Risk
Management
division

Head
Of
Information
technology

Our Shariah Board members are widely acclaimed as leaders in the field of Islamic
Finance. A humble introduction to each member is given here.
Dr. Hussain Hamid Hassan (Chairman and Shariah Advisor).
Dr. Muhammad Qaseem.
Dr. Ajil Jasimal Nashim.
Products and Services
Products
All the products offered by DIBPL are purely Islamic in nature. Dubai Islamic Bank
offers following products.

Current Account
Saving Account
Fixed Deposit
VISA Debit Card

Current Account
Dubai Islamic Current Account is a non-remunerative checking account designed for
account holders who need to transact frequently. It specifically appeals to businessmen
and salaried individuals who need to make frequent payments and deposits in their
account. The Dubai Islamic Current Account is an ideal low cost option for such
customers. Based on the Wadia contract, the Dubai Islamic Current Account offers users
safe keeping of their cash deposits against DIBPLs guarantee to provide the depositor his
funds on demand. However, the depositor permits DIBPL to use or invest his money in
its Sharia compliant investments and is neither entitled to investment profit nor does the
account holder bear any risk of loss.
The Current Account is offered in currencies like Pak Rupees, US Dollar, UK Pound,
EURO, Japanese Yen and UAE Dirhams (only for cash deposits, cash withdrawals are
not allowed).
All entities including individuals, corporations, firms, societies, clubs, government
organizations, statutory bodies, public and private institutions can open a Dubai Islamic
Current Account with as low as PKR 1000.
15

Saving Account
Dubai Islamic Savings Account is a great investment option for depositors who wish to
earn Halal returns on their savings. Thats not all, it allows you the flexibility to
withdrawn your funds whenever required. By investing in the Dubai Islamic Savings
Account, the depositor (fund provider or Rabbul-Maal) authorizes DIBPL (fund manager
or Mudarib) to invest his/her funds on the basis of unrestricted Mudaraba contract
according to the principles of Sharia. DIBPL invests these funds in its Common Mudarba
Pool with other deposits and the shareholders equity. The profit on the Common
Mudarba Pool is distributed amongst the shareholders and depositors on the basis of
agreed upon weightages which take into consideration the tenor, amount of deposit and
profit payment frequency of the account.
The Dubai Islamic Savings Account is offered in Pak Rupees and US Dollar. All entities
including individuals, corporations, firms, societies, clubs, government organizations,
statutory

bodies, public and private institutions can open a Dubai Islamic Savings

Account with a balance as low as PKR 1000. For US Dollar Savings Account, daily
balance throughout the month must remain above US $500 to be eligible for profit
payment.
Fixed Deposit
Dubai Islamic Fixed Deposit Account offers the ideal mix of long and short term benefits
to depositors seeking attractive and Halal returns on their savings. With a history of high
profit payouts Dubai Islamic Fixed Deposit Account is an excellent investment vehicle
for depositor. By investing in the Dubai Islamic Fixed Deposit Account, the depositor
(fund provider or Rabbul-Maal) authorizes DIBPL (fund manager or Mudarib) to invest
his/her funds on the basis of unrestricted Mudarba contract according to the principles of
Sharia. DIBPL invests these funds in its Common Mudarba Pool with other deposits and
the shareholders equity. The profit on the Common Mudarba Pool is distributed amongst
the shareholders and depositors on the basis of agreed upon weightages which take into
consideration the tenor, amount of deposit and profit payment frequency of the account.
16

VISA Debit Card

VISA Debit Card of Dubai Islamic Bank provides the following benefits to the customers
Global Acceptance
Convenience
Unlimited number of Supplementary Cards
ATM Cash Withdrawal
Funds Transfer across Accounts
Balance Inquiry
Global Customer Assistance Services
Zero Loss Liability
Free renewal
Services
DIBPL offers following services to its customers:
Internet Banking
SMS Banking
Locker
Phone Banking
Problem Resolution Unit
Corporate Banking
Consumer Financing
Al-Islamic Saving & Takaful Plan
Internet Banking
DIBPL Branch Banking customers can easily make their monthly rental payments by
using Dubai Islamic Internet Banking facility to internally transfer the rental amount
from their personal account to the dedicated account.

17

SMS Banking
Now, Dubai Islamic Bank Pakistan Limited brings banking services at your fingertips.
Free yourself from the hassle of visiting the branch and enjoy the convenience of Dubai
Islamic SMS Banking.
SMS Banking Features
You can select your desired services from a variety of options available
You can block your account, in case of stolen or lost cell phone
24/7 customer service helpline
Automated help messages on your cell phone
Locker
DIBPL is pleased to offer locker services to its customers. Our customers can lease a
locker for the safekeeping of their valuables for complete peace of mind. Customers are
required to pay a security deposit at the time of locker issuance. This security deposit is
refundable once the customer discontinues the service. In addition to the security deposit,
an annual rental is payable in advance depending upon the size of the locker.
Phone Banking
Dubai Islamic Bank Pakistan Ltd. offers a state-of-the art 24/7 Phone Banking service
which provides quality services and financial solutions to esteemed customers. Our
highly trained Phone Banking Officers are available round the clock to assist and provide
you the services.
Problem Resolution Unit
DIBPL is fully committed to providing a World Class experience to its Customers.
However, it needs support to further improve its services. If you come across any
problem or query, have a complaint or a suggestion, you can contact Dubai Islamic Phone
18

Banking
Corporate Banking
The world of finance belongs to those who shape it. DIB has taken a leading role in
shaping the dramatic transformation that UAE has experienced in the last two decades.
Now, with the same vigor, the Bank comes to assist businesses in Pakistan.
DIBPL provides a wide range of services specifically designed to assist Pakistani
businesses. You can benefit from our
Cash Management Services
Trade Related Services
Investment Banking Services
Cash Management
DIBPL Cash Management offers comprehensive end-to-end Sharia compliant solutions
to meet your cash flow requirements. With our help, you can reduce turnaround times for
your accounts receivables, better manage your payables, and benefit from our valueadding MIS reports. GL reconciliation would have never been easier for you.
Collections
DIBPL is an expert at facilitating the collection of sales proceeds and converting your
Receivables into Funds Available. You are provided the facility of maintaining a single
concentration account collections from all over Pakistan (cash/ cheque/ pay order/
demand draft) will be credited to this main account via DIBPL's real time online branch
network.
Bulk & Data Processing
DIBPL has formed project-to-project alliance with National Institutional Facilitation
Technologies on processing and collection. DIBPL will perform the role of the financial
institution while National Institutional Facilitation Technologies will provide the
expertise in the area of bulk processing. National Institutional Facilitation Technologies
19

has 10 years of experience in this area and has previously done such projects for Sui
Southern Gas Corporation and Lahore Electric Supply Company successfully.
Payment Product
The product facilitates clients in managing their outflow of funds. The outflows can be
through Pay Order/Demand Draft or by way of electronic cheques issued at the clients
office.
Depository Services / Liquidity / Funds Management
In DIBPL's suite of Shari'a approved Investment Depository Products, your organization
will certainly find just the right combination of attractive returns and enhanced liquidity
that it requires. Enhance your funds management like never before.
Foreign Exchange Remittances
The Cash Management Group at DIBPL is adept at handling outward/inward
remittances through State Bank of Pakistan. Be it money transfers within Pakistan or
outside, DIBPL will have a product to meet your needs safely and efficiently. The
Bank's extensive network of correspondent banks in all major countries of the world is
all that your business will require.
Cash-In-Transit Services
DIBPL can arrange for its clients a secure pick up of cash from the customers door step
for deposit at DIBPL's nearest branch.
Trade Related
DIBPL offers a range of solutions to help customers in their trade transactions. The
Banks rapidly expanding local network befittingly complements the extensive experience
it has acquired in managing correspondent relationships across the globe. DIBPLs Sales
and Service Outlets have the infrastructure in place to ensure that customers documents
are processed accurately and in the fastest possible time. DIBPL trade professionals look
20

forward to sharing with you their trade related knowledge.

Import Mudarba
Import Mudarba is a product, used to finance a commercial transaction which consists of
purchase by the Bank (generally through an undisclosed agent) the goods from the
foreign supplier and selling them to the customer after getting the title to and possession
of the goods. Mudarba financing is extended to all types of trade transactions i.e., under
Documentary Credits (LCs), Documentary Collections and Open Account.
Wakala Istithmar Facility (Exports)
A unique structure tailor-made for the exporters of the country, the Wakala Istithmar
facility which has been developed under the direct guidance of Sharia to meet the
working capital requirements of exporters and local manufacturers speaks volumes about
our Sharia expertise and edge in bringing new Sharia compliant products to the market
for promotion of Islamic banking and ridding those who desire Halal income from
interest-based financing.
Wakala cum Istisnaa Facility (Local Supplies)
Istisnaa is a contract for manufacturing or construction whereby the manufacturer sells
to the buyer, goods of specific description, at a fixed price, which the manufacturer shall
make from raw material of its own and deliver to the buyer at a future date. Istisna cum
Wakala is a two-leg short-term trade finance solution which enables a manufacturer to
fulfill his payment obligation under a documentary credit presentation and allows time
for the goods to be cleared, manufactured and stocked. Once the goods are delivered to
the buyer, the customer then sells the goods, in its capacity as the agent of the bank to
creditworthy and trusted buyers and realizes the sale proceeds on behalf of the Bank.
Such finances are offered in conjunction with L/Cs to corporate customers under Wakala
Istisna facility.
Guarantee
21

A guarantee is issued by DIBPL (the guarantor) on behalf of its customer (the applicant)
in favor of a third party (the beneficiary), for fulfillment of specifically defined
contractual and/or financial obligations of the applicant. If the obligations are not
fulfilled by the applicant, the guarantor will pay up to a certain amount to the beneficiary
on non-performance of the obligations by the applicant. Exchange Regulations for
Guarantees in Pakistan are governed under Chapter XIX of Foreign Exchange Manual
(FEM) of the State Bank of Pakistan. Internationally, (ISP-98) International Standby
Practices 1998 of International Chamber of Commerce (ICC) Publication No.590 also
apply.
Investment Banking
With its team of seasoned professionals, DIBPL has become the Investment Bank of
choice for local and regional clients in a short span of time. DIBPL leverages the regional
expertise and local knowledge to create an efficient blend of solutions for our customers.
DIBPLs Investment Banking provide its clients with a unique combination of expertise,
broad range of investment banking/financial services and access to top regional decision
makers. DIBPL derive strength from our team that has unrivalled experience in dealing
with the largest M&A, Advisory and Fundraising transactions in the country
Consumer Financing
Home Finance
Auto Finance
Business Finance
Home Finance
Dubai Islamic Home Finance is the key to your dream home and we are eager to put this
key in your hands. Using the Musharaka cum Ijara model, the Bank enters into a
partnership with you and helps you in fulfilling your dream of owning a home quickly,
conveniently and in a fully Shariah compliant manner. Whether you want to buy,
renovate or simply wish to switch from your present home finance with any other bank,
22

DIBPLs would be the best Shariah compliant alternative. Currently Dubai Islamic Home
Finance is offering three product variants
Home Purchase
Purchase of undivided Share (Home Renovation)
Purchase of undivided share of property from other bank (Balance Transfer)
Auto Finance
Dubai Islamic Auto Finance offers a world class auto finance facility that enables you to
get a car quickly, conveniently and in a fully Sharia compliant manner. Using Musharaka
cum Ijara model to finance your car, steer yourself towards peace of mind and fulfillment
of your desire
Business Finance
Dubai Islamic Business Finance is a sharia compliant term finance facility which
provides a complete solution for fulfilling the financial needs of your business. Using the
Shirkatul Melk cum Ijara model, Dubai Islamic Bank Pakistan Ltd. (DIBPL) enters into a
shirkatul melk relationship with you by purchasing an undivided share of your residential
property and subsequently leases to you this undivided share in the property against
monthly rentals thus helping you in fulfilling your business needs conveniently and in a
fully Shariah compliant manner. This product is available for new as well as those who
already have a business finance facility from another bank and wish to bank the Islamic
Way.
Features
There are so many reasons that make Dubai Islamic Business Finance the right choice. It
is 100% Shariah Compliant an customer can select from Financing amount of Rs.
500,000 and financing up to Rs. 20 million. DIBPL offers Fastest processing time and
affordable monthly payment plan. Customer
value.
23

can finance up to 70% of your property

Al-Islamic Saving & Takaful Plan

Dubai Islamic Bank Pakistan Limited (DIBPL) is proud to introduce Al-Islamic Saving &
Takaful Plan in collaboration with Pak Qatar Family Takaful Ltd. (PQFTL) Al-Islamic
Saving Takaful Plan is a Shariah compliant alternative to conventional insurance, offering
a unique combination of saving , investment and protection. The Al-Islamic Saving &
Takaful Plan offers you peace of mind and takes care of the future of your loved ones by
offering a saving plan and providing Takaful coverage in event of death to your
beneficiaries. So rest assured, with Al-Islamic Saving and Takaful Plan, your future plans
are in safe hands. As an individual you have many dreams:
A college education for your child from a prestigious university
A dream wedding for your beloved daughter
Your spiritual journey to perform Hajj
Any other financial objectives you may want to achieve
The Islamic concept of Takaful
The word Takaful is derived from Arabic verb Kafala, which means to guarantee, to help,
to take care of ones needs. Takaful is a system based on the principle of Taawun (mutual
assistance) and Tabarru (voluntary contribution where risk is shared collectively against
loss or damage to any one of them as defined in the pact. Takaful is operated on the basis
of shared responsibility, brotherhood, solidarity and mutual cooperation.
Departments
DIBPL has following departments
Cash department
Clearance Department
Advances Department
Remittance Department
Deposits Department
Foreign Exchange Department
24

 Compliance Department
Human Resource Management Department
Information Technology Department
Cash department
Cash department performs following functions
Receipt
Payment
Receipt
The money which either comes or goes out from the bank, its record should be kept. Cash
department performs this function. The deposits of all customers of the bank are
controlled by means of ledger accounts. Every customer has its own ledger account and
has separate ledger cards.
Payment
It is a bankers primary contract to repay money received for this customers account
usually by honoring his cheque.
Clearance Department
A clearing house is an association of commercial banks set up given below for the
purpose of interchange and settlement of credit claims. The function of clearing house is
performed by the central bank of the country by tradition or by law. In Pakistan, the
clearing system is operated by the SBP. If SBP has no office at a place, then NBP, as a
representative of SBP act as a clearing house.
The easy, safe and most efficient way is to offset the reciprocal claims against the other
and receive only the net amount owned by them. This facility of net interbank payment is
provided by the clearing house. The representatives of the local commercial banks meet
at a fix time on all the business days of the week. This meeting is held in the office of
25

bank that officially performs the duties of clearing house. The representatives of
commercial banks deliver the cheques payable at other local banks and receive the
cheques drawn on their banks. The cheques are then sorted according to the bank on
which they are drawn. A summary sheet is prepared which shows the names of banks, the
total number of cheques delivered and received by them.
Advances Department
DIBPL gives loans to the borrowers for different purposes. These loans are given for
various sectors for different periods. Small Finance, Cash Finance, Personal Loans,
Demand Finance, Running Finance, Corporate Finance, Export Import Financing, House
Building Finance.
Remittance Department
Another important department in the bank is remittance. People send their money to other
persons and organizations through various ways i.e. bank draft, telegraphic transfer, mail
transfer, coupons, Govt. Draft and Western Union Money Transfer etc. It works both
inward and outward.
DIBPL offers the following forms the remittance.
Demand Draft
Telegraphic Transfer
Pay Order
Mail Transfer
Safe custody of specimen signature book
Preparation of periodical statements
Any other work/duty assigned by manager
Deposits Department
Customers keep their savings in PLS saving accounts and businessmen save their money
in bank current accounts. DIBPL gives profit on saving and special saving accounts.
26

Foreign Exchange Department

This department mainly deals with the foreign business. The main functions of this
department are:
L/C dealing
Foreign currency account dealing
Foreign Remittance dealing
Compliance Department
Role of branch compliance department is to reconcile the prescribed frequencies,
investigate long pending reconciliation item, and ensure correct treatment every half year
and clearing system service branch-in major cities. Internal control is the integration of
activities, plans, attitudes, policies and efforts of the people of the bank working together
to provide reasonable assurance that the organization will achieve its objectives and
mission.
Human Resource Management Department
Human Resource Management Department works for the betterment of the employees.
Enhances skills, training management, service benefit, wages, medical facilities, staff
loans are basic function of this department.
InformationTechnologyDepartment
Banks data collection and information system run by Regional Data Collection Center.
This department manages staff training programs regarding computer.

Company Analysis
DIBPL being a quality organization strives to provide quality to all its stakeholders,
customers, employees and environment. In Pakistan, it is operating in a very volatile
economic and political environment. The detail of its analysis is given in following
27

sections.
SWOT Analysis
SWOT analysis is an effective technique to evaluate various aspects of an organization.
Strength
DIBPL has this privilege to be the first in the Islamic Banking sector which give
DIBPL a competitive edge over all other banks and being the pioneer of this
industry. DIBPL is enjoying major share of it.
The first international Islamic Bank in Pakistan with a network of over 80
branches.
The members of Shariah Supervisory Board of DIBPL are internationally
renowned scholars, serving on the boards of many Islamic Banks operating in
different countries.
Being an Islamic Bank, DIBPL has a wide national network. As an emerging
markets bank, it has branches in all major cities of Pakistan with the facility of
online banking, it is very easy for its customers to transact all over the country.
DIBPL provides online banking service. Online banking service means that a
customer can withdraw and deposit his money at any branch in the country.
Where this service is not present, cheque has to be presented only in that branch
on which they are drawn. But with this facility, a person has access to its funds at
any branch of the bank
There are many value added features in the products offered by the bank. ATM
cards are provided with every account. Other features are present in various
products. The priority customers enjoy a much pampered status at the bank.
The employees at the bank provide impeccable customer service to their
customers.
Customers are treated with great respect and honored to the utmost degree.
The working environment of bank is very friendly and cooperative. There is no
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bossiness in the higher management. The upper management consults its staff in
making decisions and provides them independence in their job areas.
Weakness
Till the last year, DIBPL had a totally different perspective. The management
was of the view that the customer should come to them and they dont need to
go to customer. But in this era of mass marketing and advertising, it is not
possible to stay in competition without these tools. The bank has now changed
its perception arid has started an effective marketing and advertising strategy.
But the previous gaps are still there and there is lack of awareness in the
people about the bank and its products. The bank needs to improve in
marketing and advertising areas.
It was observed in the bank that the degree of satisfaction of employees was
quite low. First of all, the pays are lower those offered in other banks.
Secondly, the employees are given targets that are too difficult to achieve. For
example, the targets given to the sales personnel and service department are
higher than any other bank in the country, be it a local bank or a foreign bank.
This makes a job too stressful and tensed. It is good to keep people under a
continuous move, but to overstress them can be harmful to them as well as to
the organization.
Due to the dissatisfaction of staff and recession, there is high turnover among
them. People who find other alternatives do not stay with the bank. Therefore,
the bank incurs loss in their training and development.
Opportunities
Home financing sector can be targeted to maximize profits.
Growing demand of Islamic products and services.
Venturing into Islamic groups outside the countries as opportunity to expand
business in UAE and Gulf states.
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 Coming up with the products for the SME to target the medium level customers.
Doing business with the companies having Islamic mindset i.e. Islamic Financial
Institutions.
Increase branch network within the country.
The innovative service of Islamic Insurance called Takaful.
Threats
Right now there are a few banks that are providing Islamic banking
services in addition to DIBPL. These banks include Bank Islami, AlBarkah Bank, Meezan Bank and some branches of Bank Alfalah which are
dedicated for Islamic Banking services. Thats why there is no intense
threat for the DIBPL in the near future but it is not difficult to say that
more banks may enter in this field as the awareness of Islamic banking is
increasing among the public. Therefore the DIBPL should not be
contented to its present market share but should strive for providing better
and better and modern services.
Due to the increase in the conventional commercial banks, there is an
increase in competition. Also there is a lot of aggressive marketing by the
competitor banks. This is also threat for DIBPL.

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Reviewing this SWOT analysis from time to time would help evaluate banks position. It
would help the management in comparing their strengths of the past with those of the
present and to what extent the management has been able to overcome the weaknesses.
How other departments are affected by it.
Marketing Analysis
Dubai Islamic Bank Pakistan Limited is growing rapidly in Pakistan. This shows the
success of its various strategies. Various factors of marketing for DIBPL are
Target Market
Marketing Mix
Positioning
Target Market
The DIBPL is mainly focusing on corporate sector. Small and medium sized companies
are its main customers. The reason behind focusing on corporate sector is that a single
company can deposit a large sum of money that is difficult to achieve by focusing on
individual customers. It does not mean that DIBPL is lacking the other side of the picture.
It has also got individual customers. Corporate sector constitute 80% of all the deposits
of the bank. This is the reason DIBPL is focusing on corporate sector. Due to this reason
we see no advertisement of DIBPL in print and electronic media. Target marketing is the
basic step for rest of the strategies being developed.
Marketing Mix
Marketing Mix includes four Ps of marketing. These are:
Product
Price
Place
Promotion
Products and services provided by DIBPL have been discussed above. All the products
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and services offered by DIBPL are purely Islamic. No other bank offers such services to
the customers.
Price means that service charges of the bank. Charges are determined by the Schedule of
Charges every year. Bank provides quality services at very competitive charges. For
example there are charges for the renewal of ATM card, renewal of cheque books and
cash withdrawals.
The main factor to discuss is the promotion. Promotion strategies consist of promotion
mix. The promotion mix includes:
Advertising
Publicity
Sales Promotion
Personal Selling
Advertising is paid and non-personal communication of companies message to target
customers. DIBPL has no focus of advertising. This is also a weakness of DIBPL,
because its customers are spending a lot of funds on advertising. Competitors are taking
full advantage of it. As DIBPL is offering products and services to individual customers,
so they need to communicate their products and services with people through print and
electronic media.
DIBPL has very effective personal selling teams. Their Financial consultants and
Relationship managers convince corporate customers to an account in the bank. This is
competitive advantage of DIBPL. This is the reason due to which DIBPL stands good in
the market. Even without advertising and other communication methods DIBPL manages
to gain a good market share.
Positioning
Positioning is the customers perception about the companys products and services.
DIBPL is positioning itself as a prestigious and quality services provider in the country.
DIBPL believes that customer is the key to success of business. Customer Relationship
department and Relationship managers are responsible for giving customer a sense of
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prestige at the bank.

CONCLUSION:
The key findings of the project includes that the market share of Islamic banking in
Pakistan is only 4% which is still less than other Muslim countries across the globe. The
problems faced by the Dubai Islamic Bank Pakistan lies in terms of the software that it
uses. It is not of good quality and moreover the bank does not have any backup system.
The advertising campaign of Dubai Islamic Bank is nowhere to be seen. Thus, the need
of the hour is to come up with the aggressive advertising campaign.
SHORTCOMINGS:
1. While competing with conventional banks, the PLS basis of Islamic banking
2.

makes the proposal unattractive to deposit holders under Moradabad.

Banks have to recruit highly competent persons in evaluating each proposal or
project before entering into any partnership. Any collusion between entrepreneurs

3.

and experts will affect deposit holders.

Financial fraudulent practices will help in manipulating profit figures on lower

side to reduce the share of the bank/shareholder in the profit of the business.
4. Gestation period of three to five years in generating profits from the business will
discourage deposit holders in blocking funds in Moarbad accounts. As a result,
only trading community and that too in big towns will enjoy the benefits of such
facility. Small units will be worst sufferers. The claim of faster economic growth
may not therefore be sustainable for a long time. Also due to uncertainty of
weather God, financing to agricultural activities would not be profitable and as
such this activity will remain outside the Islamic banking system.
5. Short term financing is a dominant factor in Islamic banking system. As such long
term financing will have to be provided by the government itself or by the
conventional banking system.
6. . Most profitable enterprises would like to part with a fixed percent of interest
than parting with higher profits under PLS scheme.

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RECOMMENDATIONS:

The bank must pursue a very aggressive marketing and advertising strategy.
There is a need of creating satisfaction among employees.
The personnel in the bank should not overstress with workload.
DIBPL should need to improve its website. More information regarding the

financial performance of the bank should be available on the website.

DIBPL should buy high quality software instead of importing pathetic ones from

India.
There should be a proper backup system.

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REFRENCES:
1) Bokare, D. (june 1997). Merits and Demerits of Islamic Economy. Vol II-06
No:125.

2) Bhatti, Z. (2007). Pros and Cons of Islamic banking over commercial banking, in
view of the financial crisis of 2007. 6.

3) Dr. Rukhsar Ahmed, D. K. (2010). Islamic banking in Pakistan: problems and

prospects. 25.

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