Islami Business Saving Account

Islami Business Savings Account serves to cater  your frequent transactional needs without any compromise on the profits. This account is based on Mudarabah and the Profit  will be calculated on the Daily Balance whereas the payment of profit will be on monthly basis.

The Islami Business Saving Account offers you the following salient key features:

• Initial deposit requirement 50,000/-
• Profit calculation on daily average balance
• Monthly Profit Payment
• No restriction on number of withdrawals during a month
• No restriction on the number of deposit transactions during a month
• Personalized service through designated Personal Banker
• No restrictions on intercity transactions
• Paypak Debit card facility available (charges apply as per SOC)
• Free internet Banking service
• Round the clock phone banking through 111-ISLAMI (475-264)
• Free account statement facility
• Hold mail and Stop payment facility
• Safe deposit lockers (subject to availability)

Islami Business Savings Account is a Mudarabah based account. This is how it works:

• You provide funds to the Bank on Mudarbah basis for investment in the Bank’s Shariah Compliant Assets
• In this arrangement you are the Rab-ul-Maal (owner of funds) and the Bank is the Mudarib (manager of the funds).
• The bank will form a pool of deposits received from account holders of Islami Business Saving Account
• The pool provides financing to various individuals, corporate, government and other entities based on various Islamic modes of finance such as Murabaha, Ijarah, Musharakah, Mudaraba and other modes which would generate income
• The Bank will calculate income from the pool on a daily basis. This income will be shared between the Bank and the Depositors as per a pre- agreed profit sharing ratio
• The profit share of the Bank is called the Mudarib’s share. This profit sharing ratio between the Bank and the Depositors is determined at the beginning of each month
• The profit share of the depositors is based on the predetermined weightages assigned at the beginning of the month. A weightage based profit distribution mechanism ensures that the return paid to any Customer in a Profit & Loss sharing contract is proportionate to the risk taken
• In the case of a loss, as per the rules of Mudaraba, the loss will be borne solely by the Rabbul Maal. The loss will be distributed between various categories of customers on a pro rata basis. Bank also suffers loss as no income is generated against its efforts

To Understand the Difference between Islami business saving account and conventional saving account kindly click

The documents required vary with the customer category as follows:

Q. What is a Mudaraba?

Mudaraba is a form of partnership where one party provides funds while the other party provides expertise and management to manage the business or investment fund. The provider of funds is known as Rabbul Maal and the entrepreneur is referred to as Mudarib.The profit is shared in pre-agreed ratios, and loss, if any, unless caused by negligence or violation of terms of the contract by the Mudarib is borne by the Rabbul Maal.

Q. What is the profit offered on Islami Business  Saving Account?

As per Shariah requirements, profit can not be committed to the customer upfront. The profit rates can only be determined after actual income from pool of assets is determined. Profit announcement at the beginning of next month will determine the profit paid. However, the sales person can share the rates announced for previous months to provide the customer with indicative rate(s).

Q. What makes Islami Business Saving Account Shariah Compliant?

All funds raised by BankIslami are invested in businesses which are in compliance with Shariah. Importantly, they are invested in the manner which is prescribed by Shariah. All profit & losses are pooled and distributed according to rules of Shariah between BankIslami and the depositors.

The pre-agreed profit sharing weightage is announced at the start of each month and can be obtained from the branch, Website or Phone Banker. Based on this profit sharing weightage, the Islami Bachat Account holder would be distributed the share in profit for the month at the beginning of the next month.

Q. What is the relationship between an Islami Business Saving Account holder and BankIslami?

An Islami Business Saving Asaan Account holder provides funds as ‘Rabb-ul-maal’ and BankIslami invest these funds as ‘Mudarib’ i.e the fund manager. Based on this relationship, the depositors and BankIslami become beneficiaries of the profit earned. When the joint investment pool earns profit, it is distributed in the pre-agreed ratio of depositors and BankIslami. In case of the unlikely event of loss, the depositors on the pro-rata basis bears the loss whereas the Bank goes un-rewarded for all its efforts and bears all the costs incurred for doing the business.

Q. How is the Customer’s profit calculated?

Profit from the pool of Shariah compliant assets is calculated at the end of every month. BankIslami keeps a share of the profit as a Mudarib’s share. The balance profit is distributed between various categories of Customers as per predetermined weightages. The profit amount for each category is used to calculate the profit rates for the relevant category of customer, which are announced at the beginning of next month

Q. What is withholding tax on profit?

Withholding tax is a tax payable to the Government of Pakistan on the profit credited in the account of a Savings or Term Account holder.