University of Agriculture Faisalabad

University Of Agriculture Faisalabad

Assignment 4 (mid) 20/04/2020

Class: M. Com 4th

Subject: Islamic Finance

Teacher: Prof. Abdul Moueed sb

Submitted by: Ali SHER ( 2018-ag-3423)

Short Assignment:

1. Prepare a list of conventional banks in Pakistan.

a. Alphabetically or
b. Category wise
2. Prepare a list of Islamic Banks in Pakistan.
3. Prepare a list of conventional banks which also starts Islamic banking in
recent past.
 ACKNOWLEDGEMENT

First of all, I thank ALLAH who give me opportunity to do this project. I would like to express
my special thanks of gratitude to my great and respectable teacher Mr. Abdul Moueed sb who
gave us the golden opportunity to do this wonderful work, which also help me in doing a lot of
research and I came to know about so many new things. I am really thankful to him for his kind
and continuous encouragement and give me guidance during all phases of this study. It enabled
me to solve many difficult issues in this Assignment. I again acknowledge my sincere gratitude
to my subject teacher, without his kind guidance, support & encouragement; I may not be able to
complete this assignment. I hope that any short comings, errors & mistakes are purely accidental
and would be pardoned.

Question 1:

List of conventional banks in Pakistan:

Ans No. 1:

What is conventional banking?

Conventional banks are in the business of lending & borrowing money based on interest.
How many conventional banks are there in Pakistan?
As of December 31, 2016, the bank operated 475 conventional banking branches, including 18
sub-branches, 10 overseas branches, 153 Islamic banking branches, and an offshore banking unit.
As of 2016, the bank's total assets amounted to US$8.29 billion and net profit reached US$71.42
million.
How are conventional banks classified?
banks are classified into two categories i.e. scheduled commercial banks and non-
scheduled commercial banks. ... Foreign Bank: Banks set up in foreign countries, and operate
their branches in the home country are called as foreignbanks.
 (a) Public Sector Banks:

 (b) Private Sector Banks:

 (c) Foreign Banks
Total Schedule Banks: Public Sector Public Sector Non-
Schedule Banks: Schedule Banks:
1. Al Baraka Bank (Pakistan) Limited.
2. Allied Bank Limited.
1. National Bank of 1. Bank of Azad
3. Askari Bank Limited.
Pakistan Jammu &
4. Bank Alfalah Limited.
2. Bank of Punjab Kashmir
5. Bank Al-Habib Limited.
3. Sindh Bank
6. BankIslami Pakistan Limited.
4. Bank of Khyber
7. Citi Bank
5. First Women Bank Private Banks:
8. Deutsche Bank A.G.
6. Zarai Taraqiati
9. The Bank of Tokyo-Mitsubishi UFJ
Bank Limited 1. Askari Bank
10. Dubai Islamic Bank Pakistan
Limited. 2. Allied Bank
Specialized Limited
11. Faysal Bank Limited.
Schedule banks: 3. Bank Alfalah
12. First Women Bank Limited.
13. Habib Bank Limited. 4. Bank Al Habib
1. Industrial
14. Standard Chartered Bank (Pakistan) 5. Faysal Bank
Development
Limited. 6. Habib Bank
Bank
15. Habib Metropolitan Bank Limited. Limited
2. SME Bank
16. Industrial and Commercial Bank of 7. Habib
3. The Punjab
China Metropolitan
Provincial Bank
17. Industrial Development Bank of Cooperative Bank
Pakistan 8. JS Bank
4. Zarai Taraqiati
18. JS Bank Limited. 9. Samba Bank
Bank Limited
19. MCB Bank Limited. Limited
20. MCB Islamic Bank Limited. 10. Silkbank
Limited
21. Meezan Bank Limited.
11. Standard
22. National BankofPakistan Foreign Banks:
Chartered
23. S.M.E. Bank Limited.
Pakistan
24. Samba Bank Limited. 1. Deutsche Bank
12. Soneri Bank
25. Silk Bank Limited AG
13. Summit Bank
26. Sindh Bank Limited. 2. Bank of Tokyo -
Mitsubishi UFG 14. United Bank
27. Soneri Bank Limited. Limited
28. Summit Bank Limited. 3. Citi Bank N.A
15. MCB Bank
29. The Bank of Khyber. 4. Industrial and
Commercial Bank Limited
30. The Bank of Punjab.
of China Limited
31.The Punjab Provincial
CooperativeBankLimited 5. Bank of China[1]
32. United Bank Limited.
33. Zarai Taraqiati Bank Limited
Question 2: Prepare a list of Islamic Banks in Pakistan ?

Ans No. 2:

What is the concept of Islamic banking?

Islamic banking, also known as non-interest banking, is a system based on the
principles of Islamic or Sharia law and guided by Islamic economics. Islamic
banks make a profit through equity participation which requires a borrower to give
the bank a share in their profits rather than paying interest.
List of Islamic Banks in Pakistan:
There are many Islamic banks working in Pakistan. The list of banks is given
below:

1. Meezan Bank Limited

2. Soneri Mustaqeem Islamic Bank
3. Dubai Islamic Bank
4. Al Baraka Bank
5. Bank Alfalah Islamic
6. BankIslami Pakistan Limited
7. Askari Bank Ltd
8. MCB Islamic Banking
9. UBL Islamic Banking
10. HBL Islamic Banking
11. National Bank of Pakistan
12. Bank Al Habib Islamic Banking
13. Bank of Punjab Islamic Banking
14. Allied Islamic Bank
15. Faysal Bank (Islamic).

Question no.3 :Prepare a list of conventional banks which also starts Islamic
banking in recent past?
Ans No. 3:

What are the similarities between Islamic banking and conventional banking?
Both types of institutions (Islamic and Conventional) are providing financing to productive
channels for reward. The difference lies in financing agreements. Conventional banks offer loan
for a fixed reward while IFIs cannot do that because they cannot charge interest.
And now, many full-fledged Islamic banks in Pakistan are operating (such as Faysal bank,
Meezan bank, and Bank Islami, Dubai Islamic Bank, etc.). Many conventional banks (such as
Askari bank, Bank Alfalah, etc.) are having separate Islamic Banking branches.

TOP 10 BANKS LIST IN PAKISTAN 2016 -17:

1 NATIONAL BANK OF PAKISTAN
NBP is a state owned bank providing both commercial and banking services, founded in
1949.  The bank is running several development schemes including small finance for
agriculture, business and industries, administrator to  Qarz-e-Hasna loans to students, self-
employment scheme for unemployed persons, public transport scheme.

2 HABIB BANK LIMITED

HBL is a privately owned bank, founded in Mumbai 1941. Having more than 14,000
employees countrywide, its headquarters is in Karachi. HBL owns a network of 1500
branches in Pakistan and 55 branches across the world

3 UNITED BANK LIMITED

Having more than 1320 online branches in Pakistan and 15 outside the country,  UBL  was
formed in 1959.

4 MCB BANK LIMITED

Formed in 1947. this bank is currently owned by Nishat Group, under the supervision of
famous industrialist Mian Muhammad Mansha. The bank has nationwide distribution
network of 1,190 branches, including 22 Islamic banking branches within Pakistan and
eight branches outside the country.

5 FAYSAL BANK
FBL is a public limited bank and its footprint now spreads over more than 260 branches  in
over 70 cities
6 BANK ALFALAH
Bank Alfalah Limited, formed in 1997 is a private bank in Pakistan owned by the Abu
Dhabi Group. Bank Alfalah is the 6th largest bank of Pakistan with 648 branches in
Pakistan and abroad
7 STANDARD CHATERED BANK
Standard Chatered  Bank is Pakistan’s oldest and largest foreign commercial bank, founded
in 1863 under the slogan of “Your Spirit Our Strength”. It employs over 9000 people in
its 162 branches in Pakistan
8 MEEZAN BANK
Meezan Bank  is the first and largest Islamic commercial Bank of Pakistan, founded in
1997. The Bank offers wide range of banking products and services to its customers based
on Islamic principles
9 BANK AL-HABIB
The Bank AL-Habib Limited  is run by the Dawood Habib family group of companies in
Pakistan. It dates back to 1930’s. Presently, the bank has a network of 505 branches

10 SONERI BANK
Soneri Bank s tarted its operation in year 1992, and currently it has 260 branches
nationwide.

why islamic banking is better than conventional:

( The results suggest that Islamic banks intermediate more of their
deposits than their conventional counterparts do. ..
The general conclusion is that Islamic banks are less efficient, have higher
intermediation ratios and higher asset quality, and are better capitalized).