Internship Duration
Eight Weeks
(January 26, 2009-March 26, 2009)
Submitted by:
JALEEL AHMED
M.Sc Islamic Banking and Finance
Registration # 99-SE/MSCIBF/F06
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PREFACE
This report is based on Dubai Islamic Bank. I have
tried my best to cover all the departments, products
and services of Dubai Islamic Bank. In planning this
report I carefully assessed all the requirement of IBF
authorities. This aided me enormously in evolution of
the various aspects of Dubai Islamic Bank. All the
information that I required for the purpose of my
report was gathered though different sources like
practical experience and official website of Dubai
Islamic Bank.
I feel this long report contains sufficient material
about Dubai Islamic Bank and tends to emphasize on
all the departments of Dubai Islamic Bank.
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Quranic Verse [2:278-279] …………….!
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LIST OF CONTENTS
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INTRODUCTION OF ISLAMIC BANKING
The roots of Islamic banking activity, such as acceptance of deposits and the rejection of
interest, go back to the days when the Prophet Muhammad was still alive. At that time,
people deposited money with the Prophet himself, or with Abu Bakr Siddique, the First
caliph of Islam. But the Islamic banking system as we now know it only began to evolve
towards the end of the 1960s when several Muslim countries started to put the idea into
practice. Early models began emerging in the 1970s, but found difficulty in implementing
full compliance with Islamic principles. During the same period, Islamic accounting, an
essential tool for the success of Islamic banks, was being developed and in 1973 the first
desirability of abolishing fixed interest rates and creating financial systems based on
Islamic beliefs. Dubai Islamic Bank was formed in 1975 as the first fully-fledged Islamic
bank, and many more have since been founded under the Islamic profit-and-Loss sharing
system.
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MODERN PHASES IN ISLAMIC BANKING
• Expansion (1976 to the early 1980s): Islamic banking spread from the Gulf eastward to
Malaysia, and westward to the UK. More than 20 Islamic banks were established,
• Maturity (1983 to date): The Arab world was confronted by economic setbacks,
including slowdowns in oil revenues, the relative strength of the US dollar, higher
interest rates, and capital outflows. At the same time Arab banks opened branches in the
United States and Islamic banking practices were implemented in both Pakistan and Iran.
The earliest theoretical model for Islamic banking was based on two-tier Mudaraba, with
only they would purge interest from all their operations relying on partnership and profit-
sharing instead. During 1980s Islamic banking and finance received broad-based
academic and professional attention. Several universities started teaching the subject and
encouraged research resulting into hundreds of PhD dissertations, some of them in the
universities in Europe and America. Numerous seminars and conferences were held in
places as wide apart as Kuala Lumpur, Dhaka, Islamabad, Bahrain, Jeddah, Cairo,
Khartoum, Sokoto (Nigeria), Tunis, Geneva, London and New York. A number of
Attention to money and banking. Some of these launched academic journals providing
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The original model was further developed and refined and the liabilities side saw
frameworks put in place for handling trust funds, venture capitals, and financial papers
based on ijara (leasing) salam (forwards) and murabaha (mark-up). The special
techniques for launching Sharia compatible mutual funds were also developed in this
period. This involved selecting companies whose shares could be traded as they did not
violate any Sharia norms. Islamic banks, led by Dubai Islamic Bank, are now becoming
fully competitive in all areas of banking activity as they shed their image of being in
existence only for Muslims and to meet religious obligations. In the process, Islamic
In the light of Allah’s commands, it is obligatory on us to try to find and adopt the right
banking system, one that follows the principles set by the Creator. Those who learn to
differentiate between what has been allowed and what has been forbidden will be the
ones with a clear conscience when they assemble in front of the Creator.
Allah has clearly ordained the prohibition of Riba in the Glorious Quran. Verses [2:278-
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"If ye do not, take notice of war from Allah and His Messenger: but if ye
repent, ye shall have your capital sums; Neither will you deal with
Beware! false interpretations of these verses has led many individuals to assume that the
prohibition only relates to situations where the creditor is likely to charge exploitatively
high rates of interest. It is wrong to see the above translation as proof that the (sole)
objective served by the prohibition of Riba is the avoidance of injustice (in the sense of
exploitation of the poor debtor by the rich creditor). In Islam, there is no room for Riba,
marginal or otherwise. Riba gives birth to an economic system that is unjust; one that
favors the rich at the expense of the poor. Rather than reward for effort and
entrepreneurship with profit, the Riba based economic system rewards capitalists.
Islamic Finance attempts to create a fair economic system. It works on the principle of
profit and loss sharing. Riba (Interest) is strictly prohibited in all its forms and kinds.
Islamic banks enter into trade and investment to earn Halal profit as they neither take
deposits/funds on interest nor do they advance loans on interest. They have to purchase
and sell assets in order to make profit from the higher sale prices or enter into investment
arena. The most common sale contracts used by Islamic banks are Murabaha, Salam,
Istisna, sale on deferred payment basis while Ijara is the sale of the usufruct of an asset
owned by the bank. For investment, the Islamic banks have Mudaraba, Musharaka and
Wakala structures. Islamic banks have to strictly comply with the principles and rules of
Sharia which prohibit outright any transaction involving alcohol, pork, gambling, etc.
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Further, the Islamic modes of finance and investment used by these banks must fulfill the
For example in an Islamic mortgage transaction, instead of lending money to the buyer,
an Islamic bank buys the item from the seller, and sells it to the buyer at a profit with the
sale price deferred and paid to the bank by the buyer/customer in installments. This mode
of financing is called Murabaha. It is a Sharia requirement that the bank must purchase
the asset and get the title/ownership, and hence the associated risks and potential benefits
before selling it to the customer. In conventional financing, the bank does not assume
ownership or the associated risk. In such a system, capital alone is used to produce more
capital.
DIBPL has a full fledged Sharia Department that monitors every transaction the bank is
involved in. All products, marketing material and campaigns are also certified by this
department ensuring that nothing is in conflict with the guidelines of Sharia. Moreover
Sharia Audit is conducted to ensure that none of the bank’s income is from transactions
that were Sharia prohibited. If such a case is found the income from the mentioning
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It is a banking system which is consistent with the rules and principles of Sharia and
Interest/Riba is a rent of money or the time value of money. In fact, it is the additional
amount charged by a creditor in lieu of the time that he gives to the borrower for
Following are the most commonly used modes of Islamic banking and finance.
• MUDARABA is a form of partnership where one party provides the funds while the
other provides management services against a pre-agreed share in the profit of the
investment. However if there is any loss it is borne solely by the capital provider.
. • MUSHARKA is a partnership with all the parties contributing to the capital of the
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Is it permissible for an Islamic bank to impose penalty for late payment?
If Islamic banks do not impose any penalties on late payment; the customers shall not pay
in time and thus the Islamic banks will not be able to run their business efficiently and
give a good return to the investors. Therefore, the Islamic banks have decided to take
from each client an irrevocable undertaking that in case of late payment he shall be
charged a penalty which shall be donated to a charity supervised by the Sharia Board of
The Islamic banks invest/utilize the funds received from the Account Holders/customers
under Islamic modes of financing such as Ijara, Murabaha, Salam, Istisna and investment
Yes, Islamic banks offer interest free credit card facility for which the client pays an
annual fee irrespective of the way he uses the card during the year. The fee is in lieu of
some real services that a credit card holder becomes entitled to. The fee neither increases
nor decreases on the basis of the use, frequency of usage or non-use of the card by the
customer.
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Is there any difference between Interest and Usury?
No, both have the same meaning. Quran, Sunnah and Fiqh do not differentiate between
the two. Islamic terms what is known as interest or usury as Riba and therefore prohibits
it.
Islamic banking offers Riba free banking governed by Islamic Sharia rules. It neither
gives nor takes loans on interest. It operates as a trading company which buys, sells and
enters into different modes and contracts of investment such as Mudaraba, Musharaka
etc.
Differenc
One must refrain from making a direct comparison between Islamic banking and
conventional banking (apple to apple comparison). This is because they are extremely
1. The functions and operating modes of 1. The functions and operating modes of Islamic
conventional banks are based on fully banks are based on the principles of Islamic
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2. The investor is assured of a predetermined 2. In contrast, it promotes risk sharing between
funds (entrepreneur).
3. It aims at maximizing profit without any 3. It also aims at maximizing profit but subject to
4. It does not deal with Zakat. 4. In the modern Islamic banking system, it has
5. Lending money and getting it back with 5. Participation in partnership business is the
very well.
6. It can charge additional money (penalty 6. The Islamic banks have no provision to charge
and compounded interest) in case of any extra money from the defaulters. Only small
7. Very often it results in the bank’s own 7. It gives due importance to the public interest.
interest becoming prominent. It makes no Its ultimate aim is to ensure growth with equity.
8. For interest-based commercial banks, 8. For the Islamic banks, it must be based on a
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relatively easier.
9. Since income from the advances is fixed, 9. Since it shares profit and loss, the Islamic
it gives little importance to developing banks pay greater attention to developing project
evaluations.
10. The conventional banks give greater 10. The Islamic banks, on the other hand, give
emphasis on credit-worthiness of the clients. greater emphasis on the viability of the projects.
11. The status of a conventional bank, in 11. The status of Islamic bank in relation to its
relation to its clients, is that of creditor and clients is that of partners, investors and trader,
12. A conventional bank has to guarantee all 12. Islamic bank can only guarantee deposits for
No one can forecast profits. Islamic banks declare the profit of their investment pools
periodically and the declared rates can be referred to show their past performance with a
clear disclaimer that the bank may or may not perform similarly in future.
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Would you be catering to the customers involved in business/activities prohibited in
Islam?
No, Islam does not allow business in prohibited items. This is one of the major
eligible to open account in Islamic banks provided they fulfill the banks’ and the
How can we ensure that all the investments are in line with the pronouncements and
All investments are first approved before signing the contracts by our Sharia Board. The
Sharia auditors monitor the operations of the Bank and the implementation process. If
they find any transaction implemented in a Sharia prohibited way they take away its
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No, Islam does not prohibit from selling or buying or entering into partnership with non-
What would be the procedure and ratio of Zakat deduction in accounts maintained
at DIB?
Yes, the Account Holder bears the loss in proportion to its investment.
Yes, but in an Islamic manner. The form of Islamic insurance is TAKAFUL which is
based on Sharia rules. In case of absence of a Takaful based company, we are allowed to
get insurance through conventional insurance to avoid exposing the investors’ deposits to
high risk.
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Islamic bank does not offer loans. It offers financing through Sharia compliant modes of
What is a Takaful?
Takaful is the Islamic way of Insurance. Takaful means mutual protection and joint
b. the participants are investors and they share the profit of their investment. At the same
time they compensate those of the group who are exposed to losses. .
Yes, Pak-Kuwait Takaful Company Ltd. has launched its operations in Pakistan with
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"DIB Pakistan will be the leading provider of world class banking – the
Islamic way by being the first choice of our customers and our employees."
DIB VALUES
We Value:
Trust
Listening
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Innovation
Social Responsibility
Fun
JCR VIS has reaffirmed DIBPL’s credit rating of ‘A’ (single A) and short
term rating of ‘A-2’ (A Two) for the year 2007, where as the outlook on the
INTRODUCTION
Dubai Islamic Bank Pakistan brings with it a legacy of outstanding success, constant
innovation and a solid commitment to practice Islamic financing to the letter and spirit.
Dubai Islamic Bank Pakistan is a wholly owned subsidiary of Dubai Islamic Bank
headquartered in UAE. As the world’s first Islamic bank, Dubai Islamic Bank has
maintained its status quo as the undisputed market leader in Islamic financing since its
inception in 1975. DIB is the leading arranger of Sukuk issuances globally and has led
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the single largest Sukuk in the world. DIB’s Sharia expertise is respected globally. DIB is
proud to have received numerous prestigious awards for its innovative Islamic Finance
deals.
Having set a standard of excellence in the UAE, The Bank offers state-of-the-art Islamic
providing Sharia compliant solutions to major local and international companies as well
as private individuals.
Dubai Islamic Bank commenced its operations in Pakistan, with the opening of its first
branch in the commercial city of Karachi in March 2006 at Avari Towers. DIBP is
pursuing an aggressive expansion plan and already has 18 branches in nine major cities
Dubai Islamic Bank Pakistan offers services in Consumer, Business and Corporate and
Investment Banking, at par with the international banking scenario. The Bank is
companies as well as private individuals. The Bank also provides Sharia compliant home
mortgage financing and has recently launched an Islamic Visa Debit Card.
In a short span of three years Dubai Islamic Bank Pakistan has emerged as one of the
fastest growing banks in Pakistan, recording an incremental growth of 152 percent in its
total asset base which stands at PKR 21 billion as of Dec 2008. DIBP customer base has
grown by 228% to approximately 40,000 customers in 2008, up from 6,400 in the year
2006. For the same period, DIBP deposit base has grown by 273% to Rs 16.1 billion in
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Dubai Islamic Bank Pakistan has remained actively abreast of the industry by offering a
number of world class products and services in corporate and consumer banking. Of the
products introduced last year, DIBP Auto Finance registered a volume of Rs 2.9 billion
within 9 months of its launch. In a market where cut throat competition persists, this
Similarly, the unique Home Finance facility, offered by Dubai Islamic Bank Pakistan
garnered an equally overwhelming response. Within the first three months, DIBP Home
Finance was the industry leader in the entire banking industry by far achieving a
milestone of the fastest billion marks. DIBP Home Finance maintained its market
leadership throughout the year 2007 and in only 12 months time DIBP Home Finance
registered a volume of Rs 2.6 billion, which is the fastest growth rate in the entire
industry.
On the corporate side, Dubai Islamic Bank Pakistan is at the forefront of product
innovation and development. During the year 2006–07, Dubai Islamic Bank Pakistan
arranged Sukuks worth PKR 24 billion, which is 41% of the total domestic Sukuk
issuances. Dubai Islamic Bank Pakistan has played the role of lead arranger for most of
Dubai Islamic Bank Pakistan Ltd. has been instrumental in developing this hitherto
unexplored market for Sukuk and has been on the forefront in innovative Sukuk
Telecom, Consumer Goods, and Textile sectors. DIBP also has the privilege of working
closely with the government sector for developing Sukuk as an alternative mode of
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Aside from providing regular banking services, Dubai Islamic Bank Pakistan plans to
take on the role of both an investor and a facilitator to serve as a catalyst for further
investment in the country. During the Bank’s launch phase alone, Pakistan benefited from
a US $100 million in the country. This launch is not the first step taken by the Bank in
being part of Pakistan's growing economy. It was only recent that Dubai Islamic Bank
played an active role in developing the market of Islamic commercial paper in Pakistan
when the bank participated as a co-manager of the Sovereign Islamic Sukuk issue.
Dubai Islamic Bank Pakistan has also been very active in attracting foreign direct
investment. In fact, Dubai Islamic Bank is already working closely with a number of
UAE based large business corporations such as Dubai Ports, Nakheel LLC and Emaar in
identifying opportunities and channeling hard flows into the country. The Bank has also
been actively involved in bringing Body Shop to Pakistan and is honored to act as the
HISTORY
The city of Dubai witnessed the launch of first Islamic bank, in a true sense of the word,
on 29 Safar 1395 Hijri, March 12, 1975. The launch of Dubai Islamic Bank coincided
with the rapid economic development UAE witnessed with the discovery of oil besides
the increasing importance of Dubai as commercial hub of Gulf and the Middle East.
Dubai Islamic Bank also known as ‘Al-islami’, has over the years, inspired the
establishment of many Islamic banks and financial institutions world over. The Best
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Islamic Bank award and New Product Innovation award from the prestigious Banker
Middle East in 2005 reconfirms DIB’s core competencies in areas of customer service
To enhance its presence in the regional and international market, DIB has invested in a
telecommunication, real estate and others. The most noteworthy of these investments are
Pakistan and UAE, and Al Khartoum Bank, is one of the largest investments in Sudan.
State Bank of Pakistan (SBP) awarded the license to Dubai Islamic Bank for the
establishment of its operations in Pakistan on Saturday, November 26, 2005 at the State
Bank of Pakistan.
As part of DIB’s global expansion plans, along with the observation of the economic
stability and growth of banking sector in Pakistan, the bank will create a centre of
excellence in Pakistan for products and professionals in the field of Islamic Banking. The
bank aims to offer state-of-the-art Islamic banking solutions, with world class products
and services. These would include services in Retail, Private, Johara, Business,
Corporate, Real Estate and Investment Banking; including advisory and equity services.
DIBP is a Public Limited concern. Its total worth is Rs. 2.1billion which will gradually
increase to Rs. 6 billion. DIBP is 100% owned by DIB PJSC (Public Joint Stock
Company) and its nominated share holders. It is a listed company in Dubai and we shall
MANAGEMENT OF DIB
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M. A. Mannan (CEO)
spear-heading the country operations of Dubai Islamic Bank Pakistan in his role of the
Bank’s CEO.
Having played a pivotal role in the Bank’s launch, Mannan has successfully managed the
Prior to joining DIB, he was Deputy CEO & Head of Global Consumer and Commercial
Bank of UBL, Pakistan's third largest bank. He was instrumental in turning around UBL
and launched Consumer banking from scratch. Mannan joined UBL from Citibank USA
where he was heading the Cross Sell business and before that was part of the pioneering
Being a consistent top performer since the beginning of his career, Mannan’s fast track
growth pattern and innate quest for innovative solutions are the reason behind his
personal and professional success that has translated into tangible results for Dubai
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Islamic Bank Pakistan. Under his wing, the Bank, in the span of its short stay in Pakistan
Azhar Aslam has over 16 years of experience. He has worked with American Express
Manager and Standard Chartered Bank as Unit Head, Cash Management and Local
Corporate Group. His last assignment with Standard Chartered Bank was Corporate Bank
Head South. He has the experience of both relationship and product management for
Local, Public Sector and Multinational sector companies. Azhar joined the DIBP in 2006
and established the North portfolio from scratch including top tier corporate relationships
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Syed Mujtaba Abbas has worked for Standard Chartered & ANZ Grind lays Bank for
more than 15 years in various senior capacities and has experience of local and
Last few responsibilities were Head of Credit, Collections & Risk Management, General
Manager Unsecured Business, and Regional Head of Decision Sciences & Strategy for
Middle East & South Asia and Project Director for CB Integration & Risk Management.
Ehtesham Ali has more than 20 years experience in International Banking Operations,
Systems & Procedures Development and FI. He has worked for Metropolitan Bank,
Union Bank, Bank Al-Habib and BCCI in various executive positions. He is currently
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Tahir Nazir Chaudhary has around twenty years of banking experience. He started his
career in banking as a management trainee in ANZ Grind lays Bank in 1987. Prior to that,
he briefly worked with NDLC. While at ANZ he worked in various areas of the bank
including corporate banking, operations, consumer banking and with ANZ Islamic
Unit Head Corporate Banking and Head of Sales & Credit Services. He was instrumental
in launching the Islamic Banking operations of Standard Chartered in Pakistan and was
part of the core team for Islamic Banking project. He joins us from MCB, where he was
Islamic Bank Pakistan. He has also served as a Sharia expert in the Sharia Structuring and
Dr. Qaseem holds a PhD in Tafseer and Quranic Sciences from the Faculty of Usul ud
“Islamic Banking: Points to Ponder” and translation, under the aegis of IIUI, a part of the
verdict of the Supreme Court of Pakistan, banning Riba as well as many other significant
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He has vast experience of teaching Islamic disciplines over a period of 18 years in B.A
Our Sharia Board members are widely acclaimed as leaders in the field of Islamic
DIBPL strives to bring to its customers, ‘World Class Banking, the Islamic Way’. To
ensure that every transaction complies with Islamic Law, we have in place a ‘Fatwa &
Sharia Supervision Board’, comprising of scholars of the highest repute, with vast
The ‘Fatwa & Sharia Supervision Board’ ranks above the Board of Directors and is
empowered to issue ‘Fatwas’ on any matter proposed before it by the different business
units of the Bank. This framework has made DIBPL an organization that practices
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Important duties of sharia board
arises.
Sharia compliance.
• It prepares an annual report on the Bank’s balance sheet with respect to its Sharia
compliance
DIVISIONS AT DIB
FINANCE DIVISION
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AUDIT DIVISION
COMPLIANCE DIVISION
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HR DIVISION
IT DIVISION
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OPERATIONS DIVISION
TEAM ADMIN
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TREASURY DIVISION
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a. EXPORT ORIENTED BANKING
DIBPL offers a range of solutions to help you in your trade transactions. The Banks
rapidly expanding local network befittingly complements the extensive experience it has
acquired in managing correspondent relationships across the globe. Our Sales and Service
Outlets have the infrastructure in place to ensure that your documents are processed
accurately and in the fastest possible time. Our trade professionals look forward to
Import Murabaha
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. Murabaha financing is extended to all types of trade transactions i.e., under
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
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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. Through this facility DIBPL is able to finance the exporter
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
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 LCs to corporate customers
Guarantee
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A guarantee is issued by DIBPL (the guarantor) on behalf of its customer (the applicant)
contractual 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-
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)
b. 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. We leverage our regional
expertise and local knowledge to create an efficient blend of solutions for our customers.
• Project Finance.
• Privatization Advisory.
• Private Placements.
• Syndications.
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• Sukkuk Issuance.
DIBPL’s 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. We derive strength from our team that has unrivalled experience in dealing with
In the short span of less than one year, the Investment Banking has been instrumental in
• Nakheel.
• Dubai Properties.
• Limitless.
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MY INTERNSHIP AT DUBAI ISLAMIC BANK
(Islamic Banking & Finance), I joined DUBAI ISLAMIC BANK, BANK ROAD
BRANCH RAWALPINDI on 26, Jan 2009 and worked there as an internee tills 30th
March 2009.
During my 8 weeks internship I spent most of my time in sales and account opening
departments of the branch. It was really a unique experience due to which I learnt a lot
about banking. This page onwards the portion of assignment regarding the branch of my
internship starts. All this information is essence of my practical work at the branch, the
written material available at the branch and the official website of DUBAI ISLAMIC
BANK.
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1. SALES DEPARTMENT.
DIBPL strives to bring to its customers, ‘World Class Banking, the Islamic Way’. To
ensure that every transaction complies with Islamic Law The bank aims to offer state-of-
the-art Islamic banking solutions, with world class products and services. The primary
1. HOME FINANCE
2. AUTO FINANCE
5. PRIORITY BANKING
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1. 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 Sharia compliant manner. Whether you want to buy, renovate
or simply transform your present home finance of any other bank, DIBPL would be the
best Sharia compliant alternative. Currently Dubai Islamic Home Finance is offering
• Home Purchase.
• Our Relationship Officer will visit and help you complete the Home Finance
application form.
• Once your application has been analyzed and approved you will receive an offer
letter stating the terms of offer and the amount DIBPL is willing to offer you as
finance.
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• On completion of these steps the amount stated in the offer letter which is
Musharaka account.
• Customer will be registered as the legal owner of the property at the local
registrar’s office.
• Customer will then be required to lease DIBPL’s undivided share of the property
• After successful completion of Lease, DIBPL will sell its undivided share in the
house to you for a nominal price and the property will be transferred to your
name.
Features
There are so many reasons that make Dubai Islamic Home Finance the right choice!
Eligibility
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1. Customer Eligibility Criteria
• Pakistani National.
• Age 23-65.
Documents required
• Tax Returns.
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2. 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
All vehicles financed by DIBPL are installed with a Tracking device on Bank’s expense
by the top Tracking companies in Pakistan. Monitoring charges are also borne by the
Bank. .
No monthly rental payments will be made by the customer before delivery of the car in
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Monthly Rental
Tracker & monitoring charges are free of cost yet monthly rentals are competitive and
Financing Amount
Islamic Product
We provide fast and hassle free processing of application through a Sharia compliant
process.
Flexibility
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• Income clubbing option.
Globally Accepted Sharia Complaint Card. Open an account with us and get your Visa
Global Acceptance
The DIBPL Visa Debit Card is linked with the global Visa network allowing you to
access your account from over 24 million merchants and one million ATMs around the
globe. You also have the flexibility of using this card at all 1Link and MNET ATMs in
Pakistan giving you instant access to your bank account any time of the day or night.
Convenience
Using your Visa Debit Card is quicker than visiting a bank, safer than carrying cash and
easier than writing cheques. With your card you have your bank account in your pocket.
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You can have an unlimited number of Supplementary Cards issued against Visa Debit
Card and have the freedom of giving supplementary cards to as many people as you wish.
Your daily account and transaction limits will be shared between all cards that have been
Your Visa Debit Card allows you to withdraw up to Rs. 50,000 per day at any ATM
across Pakistan. You can also withdraw the equivalent amount in foreign currency at an
You can use your Visa Debit Card to transfer funds across accounts. You daily limit for
Balance Inquiry
Your Visa Debit Card can be used to check your account balances an unlimited number
of times at any ATM in Pakistan or at over 1 million ATMs around the world!
Mini Statement
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You can check your account balance through a mini statement at DIBPL ATMs. This will
give you details of the last 5 transactions carried out on your card.
DIBPL Visa Debit Card users can receive global assistance 24 hours a day, 7 days a week
from VISA Global Customer Assistance Services (GCAS) while traveling overseas. This
service can be used for lost/stolen card reporting or any other urgent queries.
If your card is lost/stolen, immediately call us at Dubai Islamic Phone Banking on 111-
786-DIB (342) to report the loss/theft. Once you have reported the lost/theft to the bank,
we will bear the financial liability for any transactions conducted on your card after your
call.
4. SAVING PLUS
DIBPL gives you the means to “Save and Spend – The Islamic Way”. Benefit from easy
access to your savings, watch as your funds earn you healthy profits & enjoy complete
peace of mind that comes from knowing that the profit earned is 100% “Halal”.
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It is a special savings account which allows customers to earn higher profit on higher
balances. Savings Plus is an ideal avenue for investment for SME’s, Institutions &
• Profit earning potential increases as the Account Holders balance rises. The
higher the Saving Plus deposit tier, the higher is the expected profit rate.
• Following are the Saving Plus tiers (subject to change based on market
dynamics).
monthly profits).
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• Standing instructions options for payment of bills (utilities) and other periodical
payments.
• .Apply the rate of profit according to historical rate sheet (attached below) let
mentioned below.
Formula:
6.02/ 100 * 30/ 365 * average balance = profit for the period
Example:
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2007
15- Sep- Profit~~~ For The Month Of Aug 51,869.58
2007
30- Sep- Closing Balance 168,445,504
2007
Step I:
= 146,046,110 + 168,445,504/ 30
= 10,483,054
Step II:
= 51,869.58
5. PRIORITY BANKING
We welcome you to our Dubai Lounge – Priority Banking, where a world of luxury,
convenience and financial innovation awaits you. Here bring you an array of specialized
Our special investment products and financial advisory service ensure that you are not
left dissatisfied. Enjoy the pleasure of Priority Banking with 100% Sharia compliant
banking facilities.
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Current Account
A Halal Current Account that is designed to fulfill your banking needs with Online
Branch network. .
• Free from Riba as the deposits shall be used by the bank in Sharia compliant
transactions
Savings Account
Save the Islamic way, helping you save your own way:
The more you save, the higher profits you earn. With our Saving Plus Account you get
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• Halal profit on the basis of Mudaraba with the convenience of a checking account.
Fixed Deposit
At DIBPL, Fixed Deposits work under the principles of Mudaraba, here an account
holder authorizes the Bank to invest its funds on basis of an unrestricted Mudaraba
• Avail our Fixed Deposit facility to earn Halal returns on your investments.
• Our Fixed Deposit gives you the benefit of exceptional returns with flexible profit
Maturity.
(CROs)
We at the, Dubai Lounge – Priority Banking, believe in dedicated services for our
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• Devoted RMs and CROs provide you with the world class banking service
The Dubai Lounge – Priority Banking we set new standards to save your precious time
and effort. Our separate teller area offers all the regular services, but in optimal time and
complete privacy.
• Need a pay order in 5 minutes, we will ensure to deliver in less than 5 minutes.
• Our Lounge’s are designed with a separate teller area, catering to all transactions
The First Islamic Bank of the World brings you the First Islamic VISA ATM/Debit Card
in Pakistan benefit from round the clock access to your Current, Saving or Saving Plus
accounts globally.
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Lounge – VISA ATM/Debit Card gives you access to all branches of DIBPL as well as
all Dubai Lounges in Pakistan this privilege and enjoy the Dubai Lounge – Priority
Banking experience.
DIBPL strives to bring to its customers, ‘World Class Banking, the Islamic Way’. To
ensure that every transaction complies with Islamic Law The bank aims to offer state-of-
the-art Islamic banking solutions, with world class products and services. The primary
1. Internet banking
2. Phone banking
3. Lockers
1. INTERNET BANKING
No more waiting in queues. No worrying about bank timings either, because now, DIBPL
brings banking services to your doorstep. Free yourself from every hassle with our new
Internet banking facility. At DIBPL, we make sure you spend less time banking and more
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time enjoying life! Enjoy instant access to your account funds, from anywhere in the
Features
Account Related
• View your balance summary. Know where things stand with a glance at the
figures!
• View your Account Statements. You can view them online, download them or
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• Have Pay Orders and Demand Drafts made.
• View Consumer Finance payment history and next installment due date.
Customer Services
• Change PIN
• View Internet Banking Session summary and Internet Banking Account Activity.
2. PHONE BANKING
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DIBPL has setup a state-of-the art 24/7 Phone Banking Unit where we do our best to
provide quality services and financial solutions for our esteemed customers. Our highly
trained Phone Banking Officers are available 24/7 to assist and provide you the following
services:
• Account Queries.
• Balance Inquiry.
• Card Cancellation.
• Statement Generation.
3. LOCKERS
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.
Who is Eligible?
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• Lockers will only be provided to account holders of DIBPL.
• Locker will be available to individual account holders only and will not be
• The locker customer should meet the minimum average balance requirement of
Rs. 250,000 or above in his/her account for acquiring a locker. No locker will be
250,000.
operators must be an account holder. However, anyone can operate the locker
independently.
• Locker lease facility will be made available on first come first served basis.
However, we need your support to further improve our services. If you come across any
problem or query, have a complaint or a suggestion; please inform us through any of the
followingcontactchannels:
WriteUs:
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Problem Resolution Unit 3rd Floor, Karim Chambers, CL-5, 6/2, Civil Lines, Karachi.
FaxUs:
ProblemResolution:(021)-5694515
EmailUs:
Problem.Resolution@dibpak.com
OnlineFeedbackForm:
You can fill out our online feed back form by clicking
• Date.
• Full Name.
• Branch Name.
• A/C Number.
• Postal Address.
• Phone number.
• Fax number.
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• E-mail address.
Rest assured your problems and complaints will be swiftly and efficiently resolved
2. OPERATIONS
This department can be further divided into three different sections, which are enlisted
1. Account opening
2. Cash
3. Clearing
Any Pakistani whether resident or overseas, Muslim or Non-Muslim can open an account
with Dubai Islamic Bank to enjoy world class Islamic banking services.
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As a part of Know Your Customer KYC policy followed by Dubai Islamic Bank there are
• NADRA Verisys
• World watch
TYPES OF ACCOUNTS
• Individual Accounts
• Joint Accounts
• Minor Account
• Partnership Accounts
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• Local Bodies Accounts
• Staff Accounts
• Current Account
• Saving Account
• Term Deposit
relationship between the DIB and the customer The suitability of the prospective
entity that he / it claim to be that the proposed relationship does not violate
Banks invariably achieve this objective by requesting their Customers. When the
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• Another customer of the Bank who is of good standing
• Another Bank.
and respected existing customer. Staff may introduce an account only if the customer is
well known to him this fact must be documented on Account Opening Form AOF and
While accepting Introduction for opening of new accounts, including accounts of Limited
Concern and Corporate Bodies, through enquires must be made about the credential of
introducer and invariably record the full name, CNIC Number address and telephone
number etc, in accordance with the bank’s KYC Policy and State Bank of Pakistan’s
protection provided by law to a Bank. The Bank will therefore, obtain references and
When customer approaches branch for opening an account, staff concern should ensure
obtaining and confirming all information about customer i.e. full name of the client, the
current address and place of work, residence office telephone numbers and necessary
documents to support these information as well as the physical checking of the original
ID card and other documents as per policy keeping a copy thereof initiated by the account
opening officer under a “true copy of the original”/ further efforts should be made to ask
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for the 2nd ID such as driving license, credit card or club/association membership card to
similar manner an account holder maintaining an account in his / her own or in the same
Customer service staff should make a courtesy (thank you) call on landline at the
telephone number provided in the account opening from to confirm the availability of
with date and time and name of the person he/she spoke with.
the Bank. It is therefore extremely important that only those officers who are fully
conversant with the account opening and customer/client verification procedures are
Form (AOF), Specimen Signature Cards (SSC) in accordance with the KYC policy of
CONTROL OF DOCUMENTATION
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At the time of opening of an account, due care must be carried out to ensure that all the
requisite documentation has been obtained and bears the account number allocated to the
relevant account.
It will be the responsibility of Manager Operation to ensure that all the requisite
documentation has been obtained and formalities complied with and the introduction
reference has been verified. Relationship Managers (RM’s) are responsible to inform the
client about the rules and regulations and the documents required for opening of account
RM must also ensure the presence of customer at time of account opening along with all
All Account Opening documentation must be authenticated against original by officer in-
All changes affecting the conduct of the account and in authorized signatory of the
The account opening documentation is held in account number order in the Vault under
from the Board of Directors setting the extent of his authority etc.
A request for change in address or any other particular must be made in writing by the
Customer, duly signed and supported by necessary additional documents that may be
required.
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Any request by a Customer to effect a change in the style of signature must be treated
with great care and caution, particularly if is a sole account. The Customer should be
called to the Branch before the request is entertained and any change effected. After
positive identification of the Customer, the signatures taking on records must be admitted
by Manager Operation. In no case should such a request be entertained and given effect
to, through correspondence. In such cases, Specimen Signature Card duly approved must
BASIC DOCUMENTATION
The basic Account Opening documents generally required to open and operate are
It is to be ensured that AOF is completed in all its aspects and signed by all the clients in
officer with his full signature. Alternatively, either BM or MO will verify introducer’s
signatures on AOF.
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No Officer of the Branch is authorized to verify signatures of Introducer on AOF, except
personnel authorized above. This practice will be followed throughout the Branches of
AOF will be approved by the Manager Operation and Branch Manager jointly. In the
absence of any one of them, the First Signatory on AOF can be Officer in-Charge (OIC)
FIRST COMBINATION
OR
SECOND COMBINATION
Second Signatory : BM
However all account open during the absence of Branch Manager or Operation Manager
must be reviewed by them upon resumption of duty to ensure all formalities have been
completed.
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Signatures will be admitted in person for all Account holders except in case of reputable
OIC Account Opening will sign in full, against all the signatures on SSC and affix the
Customer.
Blank spaces on SSC and blank areas surrounding the ‘Specimen Signature’ should be
blocked our with red ballpoint diagonal lines to prevent any additions after the Specimen
The SS Card must be sent for capturing of the signature into the system and once scanned
and verified in the system SSC will be filed with AOF in lockable fire resistant cabinets.
Manager Operation or any other official designated by Manager Operation will hold keys
of cabinets where the AOF/SS Cards are kept and access to AOF and SS cards will be
It is to be ensured that whenever there is any change in signing authorities on the SSC
marked, initialed and dated by the designated officer and filed with the respective account
The Branch will exercise maximum care while opening new accounts.
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Following should be ensured in this regard:
Account opening the account is active in the system. While authorized the opening of
account Manager Operation must ensure that all required documentation has been
obtained and formalities completed and the introduction reference has been verified.
All account open during the day must be counter signed by the Branch Manager as token
In cases where the formalities are in the process of completion, operations in the account
instrument
• Cash withdrawals, transfer of funds even PO/DD insurance will not be allowed.
regarding the genuine of the introduction furnished from the party providing such
references.
INDIVIDUAL ACCOUNT
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Accounts of Individuals, who are resident or non-resident, are to be opened under this
category
JOINT ACCOUNT
Joint Account is an account in the names of two or more persons (other than Partners or
• The “Survivorship Mandate” is signed by all the parties to the account and
instructions for the operation of account are clearly stated and filled in the
Mandate.
• When the balance of Joint Account is repayable to either party or survivor, the
• A person who has not attained the age of 18 years is minor. However, incase
Court has appointed a Guardian for the property of a Minor, and then the period
• Title of Minors account should be on behalf of the minor in the name of parent /
Guardian i.e., “XYZ (Guardian) on behalf of ABC (Minor)” who will sign the
AOF and operate the account on behalf of a Minor. This will obviate the legal
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complications arising from dealing directly with a Minor. For this purpose
Account Opening formalities meant for “Joint Account” shall be adopted whereby
• Branches must ensure that the very purpose of opening an Account for a Minor is
always in credit since the Bank cannot resort legal action against the Minor in
respect of any overdraft that may arise in the account. As Minor cannot enter into
any kind of contact therefore, contracts entered into with a Minor will be void and
of no effect.
• Minor shall not be allowed to operate on such accounts even after he / she has
attained the age of Majority. Upon attaining the age of Majority, the account of
Minor should be closed and a new account should be opened after the completion
• In order to keep track of minor attending the age of majority the date of birth of
SOLE PROPRIETORSHIP
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• A formally stamped written request on the official Letter Head of the Business /
Firm of the Sole Proprietor in order to open a Sole Proprietor Account must be
• This request for opening of a Sole Proprietorship Account should comprise the
following clause:
• “I am a Sole Proprietor of the Firm and as such, I am entirely responsible for all
transactions carried out in the name of the Firm and I am personally liable for any
• Overdraft or other obligations arising in or in connection with this account and the
Bank is hereby authorized to debit the account with commission and / or other
• Additional care must be taken while opening of sole proprietor account. Beside
other documents the customer should be ask to produce the original NTN
certificate issued to his name in the capacity as sole proprietor of said firm.
• Branch should make reasonable efforts to ensure that all documents are in order
• While conducting KYC interview the nature of business, type of business and
• If customer is also maintaining an account with any of DIBL Branch the reference
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In matter of Illiterate Customers Accounts, it should be ensured that the Customer’s both
hands thumbs impressions should be recorded / affixed on the SSC. Furthermore, the
Customer will be required to affix his thumb impression at back of his photograph as well
and this activity will be witnessed by two Authorized Officers of the Branch who will
certify by appending their signatures (at the back of the photograph) below the thumb
impression that photograph is of the particular person. Any other piece of personal
information that will help establish quite positive identification of the Customer will also
The attested photograph may be attached with the SSC and the Manager Operation and
OIC Account Opening will duly attest the SSC in respect of all details. Furthermore, all
• At the time of Accounts are opened, photographs and thumb impression will be
Department.
• Two latest passport size photographs of such Customer must be obtained and
pasted on AOF (photos should not be stapled) and SSC, duly attested by MO
under signature in the manner that part of his signature extends on to the AOF and
SSC, respectively.
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• Illiterate Customers must attend the Bank personally along with the Cheque Book
for the withdrawals of funds from their account. It will be mandatory for such
PARTNERSHIP ACCOUNT
Partnership is an association of two or more persons who have agreed to share profits of a
business carried on by all or by any one of them acting for all. The terms and conditions
must be spelled out in the “Partnership Deed” formally agreed upon among Partners by
• The AOF must be signed by all the Partners in their capacity as individuals and
The signing and delegation of powers of those authorized to operate the account should
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There are two types of Limited Companies i.e., Public Limited and private Limited. The
Public and Private Limited Companies are both incorporated and governed under the
A Limited Liability Company may open an account with the Bank only if it is authorized
resolution must specify the titles / designation of the officials authorized to open and
operate the account, the extent of their authority and the manner in which the account will
be operated.
ascertain that they authorize the business, Company is engaged in and that the
person empowered to act have been duly appointed in terms of the same. The
and the capital of the company at the time of formation, whereas, the Articles
• In order to ascertain the powers of the Directors to open an account with Bank, to
borrow and to mortgage the company’s assets, to sign and endorse bills of
powers are not clear, the concern should be inquired to explain the procedures that
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• Cheque Book or withdrawal from the account of newly floated Public Limited
An Association, Committee, Society or Club may open an account with the Bank only if
or Club.
Club shall be collected for the credit of personal / private accounts of any of the Officer-
Pakistan and all national of Pakistan and persons domiciled in Pakistan, who visit abroad
for the purpose of employment study and business etc., are treated as Non – residents as
Accounts of all foreign nationals who are resident in Pakistan may be treated as resident
Accounts.
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It is to be further ensured that:
• New Non – resident Accounts in the names of persons or firms or companies may
be opened if funds received therein are from abroad through banking channel.
Accounts irrespective of the fact whether the accounts are to be operated solely or
jointly by them.
duplicated and forward a copy to the SBP for their records, however Form QA –
Moreover, following documents should also be obtained: Attested copy of first four (4)
pages of the passport and the page on which work permit / resident visa is endorsed for
KTC Form (to be completed by the Account Opening Officer while conducting
TRUST ACCOUNTS
A Trust Account may be opened exceptionally with the prior approval of Head of
Operations. Trust account may only be open for parties whose integrity and standing is
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beyond any doubt. Before sending the to HO, BM and MO will go through the “Trust
It is to be noted that DIBL will not as a rule open accounts for Trust as the operation of
Trust Accounts place undue responsibility on the Bank. BM / MO have to ensure that all
transactions taking place are consistent with the terms of the Trust and reference may
need to be made to the terms of the Trust and before authorizing every payment, to
It will be the responsibility of the BM / MO to ensure that all the details of the business
and the inflow of the expected deposit through Trust Account ate extensively disclosed,
before referring the case to the HO. It is also the responsibly of BM and MO to carefully
study the “Trust Deed” and ensure that operation of Trust Account will not place undue
“Trust Deed’ under their joint signatures unless trustees are given powers to
• Cheques or other instruments should not be collected for credit of any Trustee’s
private account
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• It must be noted that the Trustees do not have any authority to delegate their
function to anyone else unless so stated in the “Trust Deed” all Trustees must sign
instruction on the account i.e., cheques, letter regarding instructions to the Bank
etc.
• Specific instructions given by the HO, from time to time, should be followed.
Executors and Administrators Accounts shall only be opened with the prior permission
from the HO. Moreover, whenever application for the opening of Executors and
Manager who will forward the full details of the matter to HO for guidance and
All Executors and Administrators will be required to sign the AOF and SSC. Signed
instructions will have to be obtained from all Executors and Administrator stating who
will operate the account. The delegation of powers to any third party will not be accepted
further operations will only be allowed under the joint signatures of the Executors and
Administrator. No Executor and Administrator will be allowed to transfer the fund from
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City Governments, Municipalities, District Boards, Development Bodies etc are included
in Local bodies. Functions and powers of these Local Bodies are governed by the
relevant Local Acts and Rules / Bye-laws made in accordance with such Act.
These Local Bodies are regarded as desirable Customers because they have substantial
consistent with the Rules and Bye-laws and within the scope of the Trustees
Body.
As per the Foreign Exchange Manuel Chapter -20, SCRA can be open by Non-residents
for the purpose to trade in the shares quoted on the Stock Exchanges in Pakistan. Such
accounts can be fed by remittances from abroad or by transfer from a foreign from a
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balance available therein can be used for purchase of any share quoted on the Stock
Exchange.
All payment for such purchase will be debited to the account on production of stock
broker’s memo showing sale of shares to the account holder and disinvestments proceeds
may be credited provided evidence of the sale price in the shape of stock broker’s memo
is produced. .
These accounts can also be credited with dividend income against the share purchased
through SCRA accounts. Transfers from SCRA account. Transfer from one such account
to another may also be made in case of transfer of shares between the two account-
holders .
Branches will be required to submit weekly statement in the prescribed Performa (V-92)
of FE- Manual showing the position in respect of SCRA accounts as on each Saturday.
STAFF ACCOUNT
Staffs can open only one saving or current singly or jointly with his / her spouse at the
time of appointment in the respective branch of Dubai Islamic Bank Limited. The
account will be opened for the purpose of salary disbursement (like salary, bonus,
increments, allowance or any form of reimbursement from Dubai Islamic Bank Limited
from one branch to another branch, his / her salary account must be transferred to his /
her place of posting. HR shall advise his previous unit to close his/her salary account and
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Staff member will not open any account either sole or joint in any other branch without
the prior permission of Head of Operations and Head of Human Resources. However,
he/she may open only one additional account in his/her own branch singly or jointly for
Staff members are not allowed to hold mandate in any account. Only one account (staff
Any credit (other than salary, bonus loan from DIBL) of Rs. 10,000/- and above in staff
case of Head Officer on monthly basis, Branch Manager/Department Head should review
the transaction of Staff account and seek clarification of any unapproved credit in the
Manager/Department Head comments etc, must be documented in the report for audit
review.
In case of staff resignation, HR should communicate the same to respective branch for
change of account status as regular customer before giving the final clearance to staff.
All rules for inoperative and dormant shall be applicable after the change of account
status as regular customer, thus also attract bank’s charges as per bank’s schedule of
charges.
Senior staff who have opened staff accounts for the drives who are no longer in their
Current Account
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Based on the Wadia contract the Current Account offers users safe keeping of their cash
deposits against the Bank’s 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 the Bank bears all risks related to the use or investment of those funds.
Hence, the Current Account is neither entitled to investment profit nor does it bear any
risk.
• Pak Rupees
• US Dollar
• UK Pound
• EURO
• Japanese Yen
The Current Account can be opened with as low as PKR 1000. In case of Foreign
Currency Account, the Bank shall determine the minimum level from time to time.
Features
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• Standing instructions option for payment of bills (utilities) and other periodical
payments
SAVING ACCOUNT
More flexible. More convenient. More innovative. The Dubai Islamic Savings Account is
truly all you'll ever need. It is an all-in-one account designed to meet all your financial
needs. Round the clock, convenient access to your funds, Halal profits and World Class
services!
By providing your funds through the Dubai Islamic Savings Account you authorize the
Bank (Investment Manager) to invest your funds on the basis of unrestricted Mudaraba
contract according to the principles of Sharia. Profits earned are shared on the basis of
investmentproportion.
• Pak Rupees
• US Dollar
• UK Pound
• EURO
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• Japanese Yen
The Savings Account can be opened with as low as PKR 1,000. In case of Foreign
Currency Account, the Bank shall determine the minimum level from time to time. The
Savings Account entitles its holder to a share of the Mudarba pools profit as long as its
deposits remain above the minimum balance requirements for the account.
Features
• There are three deposit tiers for this account: Up to Rs. 25,000 Rs.25K to Rs.
• No minimum balance restriction, but the balance shall not participate in the profit
• Standing instructions option for payment of bills (utilities) and other periodical
payments.
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DIBPL gives you the means to “Save and Spend – The Islamic Way”. Benefit from easy
access to your savings, watch as your funds earn you healthy profits & enjoy complete
peace of mind that comes from knowing that the profit earned is 100% “Halal”.
It is a special savings account which allows customers to earn higher profit on higher
balances. Savings Plus is an ideal avenue for investment for SME’s, Institutions &
individuals that have high liquidity. The Saving plus Account is being offered in Pak
Rupees Only.
Features
• Profit earning potential increases as the Account Holders balance rises. The
higher the Saving Plus deposit tier, the higher is the expected profit rate.
• Following are the Saving Plus tiers (subject to change based on market
dynamics).
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Rs. 50 million to Rs.99.99 million.
Greater than Rs.100 million.
monthly profits).
• Standing instructions options for payment of bills (utilities) and other periodical
payments.
Looking for investments with an excellent mix of short and long term goals? One that
offers the potential to earn high returns the Islamic way? Well, look no further, our Dubai
Islamic products are the wise financial decision you need to make.
By investing in the Dubai Islamic Fixed Deposit Account the Account Holder (fund
provider) authorizes the Bank (Investment Manager) to invest his funds on the basis of
unrestricted Mudaraba contract under the principles of Sharia. The Bank invests these
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deposits in its common pool with other deposits and the shareholders’ equity. The net
profit on the common pool is distributed amongst the shareholders and depositors, taking
into consideration the tenor, amount of the deposit and profit payment frequency for the
account.
At Present the Account Holders have the option of investing in Pak Rupees Only.
The following table lists the various investment options available to the customer:
profit
payment
1 Month NA NA Available
3 Month NA NA Available
6 Month NA NA Available
1 year Available Available Available
2 years Available Available Available
3 years Available Available Available
5 years Available Available Available
Features
• Investment portfolio can be viewed over the internet using Dubai Islamic Internet
Banking service.
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• Profit frequency options are monthly or quarterly or semi-annually, annually or at
maturity.
the weight age of the tier for which the deposit has remained in the Bank.
Pakistan.
• Profit sharing on Mudaraba basis within the Common Mudaraba Pool with weight
age points allocated on the basis of tenor, amount limit and profit payment
frequency.
• Account Holder bears loss in proportion to its investment in the Mudaraba Pool.
• Statement of Account Holder’s deposits can be viewed over the internet as well.
First step for opening a new account will be the verification of the Introducer of new
account. The Introducer should preferably be an existing Account Holder of the Bank /
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Branch. During verification of the Introducer, Relationship Manager (RM) at Front
While accepting Introduction for opening of new accounts, thorough enquires will be
made about the credential of introducer and invariably record the full details i.e. name,
Accounts Holders whose accounts are Inoperative / Dormant cannot introduce any new
account.
An Account Holder maintaining an account in his / her own or in the name of Firm where
he / she is Proprietor or Partner should not introduce account of another Firm where he /
DIBL permanent staff may introduce accounts only for those persons who are personally
known to them.
RM will furnish a complete set of AOF after ascertaining the requirement of the
Customer along with other relevant documents, forms and letters etc to the Customer.
Customer will be facilitated by the RM in filling the AOF and provide clarifications and
The Customer will sign the AOF, in the presence RM of the Branch.
It will be RM’s responsibility to review the AOF and underlying documents and ensure
The AOF along with relevant documents then be forwarded to OIC Customer Service.
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A copy of the CNIC of the Customer will be attested by OIC Account Opening or
Manger Operation of the Branch who will sign the same after having it compared with
the original CNIC and writing “Original Seen” on the copy as evidence.
RM will ensure that all requirements for opening of new account have been fulfilled and
AOF is completed against all the signatures given in the AOF and SSC and affix the
stamp of ‘Signature Admitted’ near the specimen signatures of the Account Holder /
Customer and sign in full. RM will also verify the signature of the Introducer and affix
the stamp of ‘Signature Verified’ and will and send the AOF to Manger Operation for
approval.
MO will ensure that all the requirements for Account Opening have been met and the
style of signatures of Account Holder(s) on the AOF and SSC are identical, signature of
introducer are verified and customer signature on SSC are admitted by a designated
officer. MO will then sign in full on the AOF authorizing opening of account. MO will
Once the above formalities are duly completed, RM will obtain Account Number from
the System and note it down on the AOF, SSC, KYC and all other relevant underlying
documents.
RM will then key – in the data of the new Account Holder(s) in the system and new
RM will print new account profile and hand over all forms and underlying documents to
MO will scrutinize AOF and all underlying documents and compare the same with the
information loaded by the RM in the ‘Islamic Banker’ System by retrieving the Account
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Opening data i.e., name of the Customer, title of account, CNIC number and SBP’s
Depositor’s Code etc. in the ‘Islamic Banker’ System. MO will documentation and
accuracy of the transaction in the System, MO will authorize / supervise the same and the
The RM will then supply the deposit slip along with the account number to the Account
RM will ensure that the ‘Letter of Thanks’ on the Bank’s format has been sent to the new
Account Holder through registered post / courier/ this precaution would not only
accomplish the purpose of confirming his / her address but also notify the Account
Holder that an account has been opened in his / her name. A copy of this letter along with
Next morning, Manager Operation will review ‘Account Opened List’ Produced by the
IB system of the accounts opened during the previous day and ensure that only approved
MO will send this ‘Account Opened List’ along with all AOF for the review of BM for
Branch Manager will review all account opened previous day and will further ensure that:
• AOF has been completely filled-in and no mandatory field is left blank
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• Required documents, letters and forms according to the type of Account are duly
attached along with the AOF, in accordance with the requirements specified in
relevant sections.
• Signature(s) on SSC are duly admitted by MO and stamp affixed after placing
signatures
Once satisfied BM will counter sign the AOF as an evidence of having reviewed all
account opened.
INITIAL DEPOSIT
Initial Deposit must be in CASH. Cheques may only be accepted as Initial Deposit in
case of reputable sound parties and on personal responsibility of Branch Manager. In all
such cases, the Cheque when tendered should be crossed by the Account Holder /
Customer before being lodged for collection. Cheque Book should be issued after the
proceed of crossed Cheque has been actually realized and all KYC formalities have been
completed. .
SIMILAR ACCOUNT
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In case of business account, RM shall ascertain from the List of existing Accounts in IB
system that the title of new Account is not similar to any other account opened earlier.
CHANGE OF ADDRESS
A request for the change of address must be obtained in writing from customer. Before
changing the address in the system RM must ensure to obtain approved from Manager
Operation or Branch Manager. A thank you letter must be sent to customer’s new address
Whenever a request for the changes of residential change address is received Branch
must also obtain customer new telephone number as in most of the cases the residence
telephone will also change unless the change of address is in same locality.
Once an account is opened, regardless of the type of account, the same cannot be and
The type of an account opened in Individual’s name CANNOT be later converted to Joint
Account by adding the name of another person on the AOF and nor the nature of account
If a change is desired, the Account Holder should be advised to close the account and
open a fresh account. Branches are therefore, advised to ensure that no changes are made
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Any such change, if brought in the notice of management or highlighted during the audit,
Account Opening Forms and underlying relevant documents relating to all type of
accounts should be kept under the joint custody of the MO and OIC Customer Service, as
the case may be, and must be placed in the strong room or in a fireproof cabinet
NOTE
In case the ‘Letter of Thanks’ is returned undelivered, caution will be exercised and the
account will immediately be blocked till the reasons for the same are received from the
Closure of an account:
Account holder upon written request or on prescribed form of the bank can close his/her
account. He may or may not mention the reason of closure of account; signatures are
verified from the SS Card. The number of unused Cheques shall be noted on the
application form attached below. The balance available paid by the bank through pay
order/slip prepared in favor of account holder. DIB charges Rs.200 as account closure
charges.
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2. Cash Department:
about accounting treatment of different types of cash movements. It includes the entries
of teller at the time of opening and closing of the day and the amounts present in the safe
at opening and closing of the period. These accounting treatments have been shown in the
Transaction # 1:
Given to the teller (For whole day transactions) Cr. Rs. 40,000
Transaction # 2:
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Balance amount Cr. Rs. 300, 000
Transaction # 3:
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3. Clearing Department:
In order to understand the clearing of Cheques we have to see first that how many types
of Cheques are there used in by the customers of different types of banks. A banker in
OPEN CHEQUES
They are payable in cash at the counters of a banker in accordance with the practice of
CROSSED CHEQUES
They are not payable in cash at the counter of a banker, but can be collected by only the
banker who would credit the proceeds to his customer’s account after realization.
Example:
There are two parties ‘X’ and ‘Y’. ‘X’ issues a Cheque of Rs.20, 000 in favor of ‘Y’
which is a crossed Cheque of Dubai Islamic Bank Ltd. Mr. ‘Y’ that maintains its account
in Habib Bank Ltd, presents this Cheque in his bank for payment. Habib Bank Ltd takes
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the Cheque from client and payment is credited to his account. On the other hand the
account of State Bank with Habib Bank Ltd is given a debit. The Cheque is then sent to
the State Bank via N.I.F.T where all the banks maintain their accounts for clearing of
Cheques. State Bank credits the Dubai Islamic Bank account for Rs.20000 and debits the
account of Habib Bank Ltd for Rs.20000. Dubai Islamic Bank on receiving the Cheque
through N.I.F.T., credits the State Bank account and gives a debit to the customer’s
account because Rs.20000 have been reduced from the account. Hence, this is the way to
facilitate the customers of different Banks with almost 100% security of payment and
without the wastage of time. Process of clearing goes on but the client has not to wait
until the completion of the process and he receives the payment on the spot.
The accounting entries which are passed by different concerned persons during this
Accounting entries:
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Dubai Islamic Bank A/C Dr. Rs.20000
• Dater
• Round Stamp
• Posted Stamp
• Paid Stamp
• Void stamp
• A stamp having Branch code, Nature of Account code and Account number of the
individual.
• Receiving Stamp along with round clock being Used when client receives check
book
• A stamp containing instruction for photo account holder that cheque be signed in
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• Admitted stamp
• Verified stamp
It is very important that the stamps should be used very carefully during the stamping
process. These were the common stamps which are seen by me during the Internship
period.
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Zafar and all other teachers who taught us through
& class fellows, May God help them and guide them
in future as well.
MSc Studies: -
In MSc we studied the subject of Islamic Banking and Finance I have come to know that
how practically banking means, how to deal with the banks, how to deal with the banking
transactions, how to deal with the bank accounts of the employees of the organization.
• In MSc we studied the subject of Accounting I come to know how to maintain the
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• In MSc we studied how to allocate the resources but in internship I practically
word, Excel, Power point. In my job these all things help me a lot. I made the pay
• In MSc our teachers tells us how to manage the work in the big organizations,
organization.
Threat
The main threat for them is their competitors both conventional banks and especially
Islamic banks who are providing some very advance facilities at a very reasonable rates.
Weaknesses
Marketing as a tool is not being used as appropriately as it was to be used. That’s why
majority of the public not only is unaware about the Islamic modes of finance but also
does not know about the major distinctive features of these products. More surprising is
that, a majority of general public does not know about the initiation of the Islamic
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Banking Branches by Dubai Islamic Bank Ltd. Hence, the bank is unable to compete face
Staff in different departments doesn’t have the basic knowledge of Islamic Banking.
They normally are unable to explain and satisfy a visiting client about the structure of
Their main weakness is that people at high posts have not well knowledge of Islamic
Banking as is required.
lines;
focused. So, some key points for the improvement of this department are specified
below.
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• Either marketing personals should be appointed or services of a reputed marketing
• Employees should be advised and asked for the maintenance of better customer
relationship.
• The staff should be given proper training on Islamic Banking concepts. The
course should be designed in such a way that they can understand the underlying
• To make improvement in their banking system first of all they have to change
their traditional attitude that is they must have to adopt new marketing techniques
• They should employee young masters’ degree holders in the relevant field on
• Some extra benefit should be given to the efficient workers to motivate them.
• Their should be time card allotted to every employee at any level to make sure
that how much time workers works & to get actual productivity.
competitors.
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• Foreign tours should be arranged off and on to have the latest information any
CONCLUSION
It is an admitted fact that Banks transacting business on profit and lose sharing basis can
face serious set backs, if there is a void spread tendency in society to adopt false counting
practices to conceal profits. In countries, where interest based and interest free banking
institutions are simultaneously operating, the problem of false account can, to some
extent, be tackled as the financing can be done on selective basis to trust worthy parties.
In a system based on profit and lose sharing, it is to the advantage of bank and financial
institution to invest in those projects where high rates of profits are anticipated. The
financing by Islamic Banks under this system is done with in the frame work and keeping
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in view the social consideration, the requirements of priority sector and safety of funds.
The Islamic System, if truly practices, therefore, induced savings and capital formation
good idea to device an Islamic Economic Model which has to be flexible within the
frame of work of socio-economic situation of each individual country. High taxes, willed
the society, incompatible laws and poor administration thereof are major factor which
Islamic Banking System cannot be enforced by a stroke of the pen. This will be
disastrous. While taking steps to enforce Islamic Banking, it will have to be seen that
interest is eliminated in such a way that it does not abruptly disturb the basic structure of
the economy. It has also to be insured that initially the confidence of the people is
developed and strengthened in the new system. This approach would also provide an
Opportunity to refine the newly formed laws to support the Islamic System of Banking in
After doing work in DIB, I am in a position to conclude that the Islamic Banking
Services provided to the customers are properly screened and checked by the Sharia
Advisor. The working environment of the Bank is very much friendly and cooperative.
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Dubai Islamic Bank has a unique status among other Islamic Banks because of its high
profit rates, security deposits and quick processing methods for processing of
applications. There is a good training system for the internees as well. The staff currently
I would also like to avail the opportunity to thank all employees of the Bank who helped
and guided me in such a nice way, and also to my institute who provided me this
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