Baraka Islamic Bank
Barack Islamic Bank (BIB) has the honor of being the pioneer of Islamic banking in Pakistan and has been operating in the country as branches of AY Barack Islamic Bank Bahrain since 1991. Over the years, the bank has successfully developed and maintained Its Identity as one of the leading providers of a host of banking products and services In strict compliance with Sharma’s principles.
Currently operating with 29 branches In 17 major cycles of the country, BIB offers a wide array of Islamic financing products such as Maharajah, Sarah, Muskrat and Islamic Export Refinance, etc. Consumer sectors. Moreover, various Shari’s compliant deposit schemes are available for customers to invest their funds in, along with a variety of other ancillary services such as online banking, ATM/debit card, safe deposit lockers and utility bill payments etc.
AY Barack Islamic Bank (BIB) is a member of AY Barack Banking Group (BAG) which is a Bahrain Joint Stock Company listed on Bahrain and Dubbing stock exchanges and one of the well-known leading international Islamic banks. BAG is committed to expanding its presence in Pakistan, which is evident from the rapid Roth being undertaken by AY Barack Islamic Bank in the country and its plans to have its Pakistan operations localized as a Bank registered in Pakistan, over the next few weeks.
Building on the expertise and experience of its workforce and the growing awareness of Shari’s-compliant banking solutions among the masses, BIB has successfully developed itself as a major unit of BAG operating in the region, capitalizing on the Group’s geographical presence and high quality research and development in Islamic financial products for its business expansion in the country.
Faced with growing challenges in this rapidly developing market, BIB strongly relies on its ability to be an effective and efficient market player through renewed focus on superior customer service, development of Islamic alternatives to conventional financing facilities, and strict adherence to Shari’s rulings and principles. BRANCHES IN PAKISTAN Central region Lahore Main Branch (Country office) “I-JAN: +92-42-111 742 742 Email: Ihr@albaraka.
Com. PC” Fusillades Branch Lahore Circular Road Branch Lahore DAD Branch Lahore Shady Branch Granular Branch Umlaut Branch Gujarat Branch Lahore Facial Town Branch
Shallot Branch Saliva Branch North region Islamabad Blue Area Branch Mall Rawlins Branch Rawlins Chain Chock, Branch Boatload Branch Murmur Sad Kashmir Branch Appeaser Branch City Branch Rawlins Managers Branch Way Can’t Branch Islamabad F-10 Branch Karachi Main Branch Karachi Sultan-E-legal Branch Karachi Koran Branch Karachi Clifton Branch Karachi Sahara-E-Facial Branch Karachi Sultan-E-Mammary, Branch Hydrated Branch Karachi – S. I. T. E.
Merger of the Pakistan Operations of AY Barack Islamic Bank and Emirates Global Islamic Bank Press release from the office of Office of the President and Chief
Executive Lahore, 26 April 2010: AY Barack Islamic Bank BBS (C) (Bahrain), wholly owned subsidiary of AY Barack Banking Group (BAG) (Bahrain), and Emirates Global Islamic Bank announced their intention to merge the branches of AY Barack Islamic Bank in Pakistan and Emirates Global Islamic Bank – Pakistan under the name of AY Barack Bank Pakistan. The merger will lead to the emergence of a bank that has assets in excess of IIS$582 million and a network of 89 branches covering cities and towns in Pakistan. Obtaining the necessary approvals from the regulatory authorities and official bodies in Bahrain and Pakistan is under way.
On this occasion, Sheikh Sales Abdullah Camel, Chairman of AY Barack Banking Group, said that the merger between the two banks reflected the group’s strategy to expand in the Pakistani market as part of its strategies to strengthen its presence and operations in promising Islamic markets. The merger will create a high value-addition not Just for the merged financial institutions, but also for the banking and financial market in Pakistan which is considered to be one of the most important markets in the Muslim world.
For his part, Mr…
Khalid’s AY Zany, Chairman of AY Barack Islamic Bank, said that he new bank, which will carry the name of AY Barack Bank Pakistan and be managed by BAG Group, will have substantial capital resources and a wide branch network that would enable it to play a truly leading role in the Pakistani banking market and provide a full range of Islamic banking services, supported by the extensive resources and expertise of the well established parent company BAG and its twelve subsidiary banking units in various parts of the world, as well as the solid and wide presence in the Pakistani market. Mr.
.. Adman Aimed Houses, President & Chief Executive of AY
Barack Banking Group, said the presence of AY Barack Islamic Bank in the Pakistani market dates back to more than twenty years ago and it currently has twenty nine branches that offer all types of Islamic banking products and services, which in turn had earned the bank a high standing in Pakistan and the trust of the Pakistani businessmen and investors communities. He added that the operations of AY Barack Bank in Pakistan had achieved excellent results during the past years. This requires that we continue the efforts to achieve further expansion in these operations given the huge size of the Pakistani market.
For this reason, we see the best choice for us now to achieve our goal in expansion is to merge with Emirates Global Islamic Bank, which in turn had enjoyed a significant and successful presence since it was established in Pakistan.
We are confident that this merger will benefit the shareholders of both banks as well as the Pakistani economy. For his part, HE Sheikh merger with the branches of AY Barack Islamic Bank in Pakistan falls within our ambitious goals for expansion in the Pakistani market by consolidating the expertise and resources of two of the most important financial institutions in Pakistan.
Behind he two banks stand fully committed shareholders who has substantial financial, human and technical resources and a far-sighted banking vision that prepares for meeting the challenges of the future by taking a sure and firm step by the establishment of an Islamic bank between them capable of meeting the needs of growth and expansion in this friendly Muslim country, a bank that offers all types of banking products and services to meet the different needs of its individual and corporate customers and investors”.
He added that the Pakistani market had great potential and tremendous opportunities for growth and expansion, considering the size of the population of more than 175 million people, wide-ranging economic and financial reforms designed to encourage investors to continue with and expand their investments and consolidate their presence in the highly competitive Pakistani market. The merger will strengthen and increase our market share, and at the same time will help meet regulatory requirements to strengthen the bank’s capital and enhance its technical and human resources.
The operations of AY Barack Islamic Bank in Pakistan dates back to 1991 and since then it made a lot progress and achieved outstanding results.
The Bank today has 29 branches in different cities of Pakistan, its assets increased by 20% to RSI. 29. 2 billion (IIS$ 348 million) and it made operating profit of about RSI 199 million (IIS$ 2. 3 million). Emirates Global Islamic Bank was established in 2004 and began its operations in Pakistan in 2007.
The Bank is owned mainly by the Emirates Investment Group (through Emirates Financial Holding Company) and AY Rajah Investment Group (through Mall AY Chalked Investment Company). The Bank offers all types of Islamic banking products and services through 60 branches spread in 31 cities in Pakistan. It has total assets of RSI. 19. 7 billion (IIS$ 234 million) and shareholders equity of RSI.
. 4 billion (IIS$ 40. 5 million) as at the end of December 2009. VISION STATEMENT We believe that society needs a fair and equitable financial system which rewards effort and contributes to the development of the community.
MISSION STATEMENT To meet the financial needs of communities across the world by conducting business ethically in accordance with the Shari’s, practicing the highest professional standards and sharing the mutual benefits with the customers, staff and shareholders who participate in our business success. CORE VALUES PARTNERSHIP – Our shared beliefs create strong bonds that form the basis of long ERM relationships with customers and staff.
DRIVEN – We have the energy and perseverance it will take to make an impact in our customer’s lives and for the greater good of the society.
NEIGHBORLY – We value and respect the communities we serve. Our doors are always open; our customers always experience a warm- hearted, hospitable welcome and accommodating service. PEACE OF MIND – Our the highest ethical standards. CHAPTER 2 CORPORATE PROFILE RISK MANAGEMENT The risk management function has now taken its root within the financial institutions on a world wide basis, and is as critical in fulfilling the institute’s financial objectives s the objectives themselves.
Its not Just a function to foretell and manage an adverse future event but it brings about the basic function of being informed; being informed of what can and may happen, being informed of what stepscontrols need to be taken to reducemitigate the level of risk and to be informed and to be reasonably prepared to deal with any undesired eventcircumstances. Decisions emanating from this basic understanding form the corner stone of Alba’s Risk management framework.
A strong organizational set-up, with clearly defined roles and responsibilities permits a higher level of articulating of the banks risk mandate, establishment of structure that provides for authority, legation, accountability and the development of a control framework. Risk management cannot live in a vacuum; in order to be effective it has to be run on an enterprise level. Banks framework comprises of separate department, with a dedicated and growing team, which share core strategic values including an effective Shari’s compliance.
Committee related to the management of risks at BIB form the main layer of the framework, the inflow/ outflow of the information is through the dedicated function of the risk management.
The head of the credit, operations, finance, treasury and other related functions review the critical risk areas of operational, credit and market risk as well as risks being faced by the organization, along with magnitude of their impact and likelihood of occurrence. BIB perceives the management of risk not to be limited to a department or a function, but rather should read-into banks daily business routine.
Ideas and decisions are heavily based on risk/reward trade-off; some of the ideas which never see the light of day are usually the ones which have been shelved due to an unacceptable risk level. The risks when identified and analyzed are further weighed against the applicable risk weights and its impact reviewed on periodic basis. This productive approach helps in outlining the organization’s risk tolerance level visa–visa Alba’s risk appetite in relation to its size, current position and market but also to effectively manage risk.
CREDIT RATING Alberta Islamic Bank – Pakistan Operations are rated A for the Medium to Long Term and AY for the Short Term by JAR-VISA Credit Rating Company.
Following is the interpretation of the ratings assigned: Medium to Long Term Rating (A) Good credit quality. Protection factors are adequate. Risk factors may vary with possible changes in the economy. Short Term Rating (AY) High certainty of timely payment. Liquidity factors are excellent and supported by good fundamental protection factors.
Risk factors are minor.
GOOD GOVERNANCE “Governance” means: the process of decision-making and the process by which decisions are implemented (or not implemented). Governance can be used in several contexts such as corporate governance, international governance, national governance and local governance. Participation by both men and women is a key cornerstone of good governance. Participation could be either direct or through estimate intermediate institutions or representatives.
It is important to point out that representative democracy does not necessarily mean that the concerns of the most vulnerable in society would be taken into consideration in decision making.
Participation needs to be informed and organized. This means freedom of association and expression on the one hand and an organized civil society on the other hand. Good governance requires fair legal frameworks that are enforced impartially. It also requires full protection of human rights, particularly those of minorities. Impartial enforcement of laws requires an independent Judiciary and an impartial and incorruptible police force.
Transparency means that decisions taken and their enforcement are done in a manner that follows rules and regulations. It also means that information is freely available and directly accessible to those who will be affected by such decisions and their enforcement. It also means that enough information is provided and that it is provided in easily understandable forms and media. Good governance means that processes and institutions produce results that meet the needs of society while making the best use of resources at their disposal.
The concept of efficiency in the context of good governance also covers the sustainable use of natural resources and the protection of the environment. BOARD OF DIRECTORS Sheikh Sales Abdullah Camel Chairman Mr.
.. Abdullah A. Saudi Vice Chairman and Board Member Mr..
. Abdullah Sales Camel Board Member & Chairman of the Board Executive Committee Mr… Sales AY Houses Board Member Mr..
. Adman Aimed Houses President & Chief Executive and Board Member Dry. Near Abraham Mr… Abdul Ella Sabbath Mr.
.. Abraham Faze AY Shams’ Board Member Mr… Houses All Faded Bin Faded Board Member Mr.
.. Kamala bin Galatia Board Member AUDIT COMMITTEE Mr…
Mouse Dull Aziza shaded Chairman Mr.
.. Ashram al ginghams Mr… Houses all faded bin faded SHARI’S BOARD Member Sheikh dry.
Abdul strata ABA gaud Chairman Sheikh Assam Mohamed Aisha Member Sheikh walled a. Al manhood Member EXTERNAL AUDITORS Ernst & Young Ford Rhodes Sided Hyde (Chartered Accountants PAKISTAN-COUNTRY OFFICE (Executive Management) Shaft Aimed Country Head Pakistan Aimed Chula Kidnap Regional Manager-South Mamas All Kale Cabal Kayak Aimed Regional Manager-Central Regional Manager-North EVE/Chief Financial Officer Raff Manhood Chuddar SSP/Head of Credit Division Basis Tannins UP/Head of l. T. Division Awkward Kurdish
UP/Head of Operations Muhammad Young UP/Head of CAD Muhammad Shall Kiddies UP/Head of Consumer Banking Hanoi Ashram Vass Bin Khalid’s Muskrat Safari Mari Razz Said UP/Head of Internal Audit APP/Head of Compliance Division APP/Head of HER Division UP/Head of Risk Management Department Muhammad Fiftieth Bag Advisor (Shari’s) Seed Salesman All Atria Rica BANK ORGANISMS CEO (President) SEEP EVE APP/Head of Treasury APP/language Treasury 8. 0 APP MANAGER ASSISTANT MANAGER SENIOR OFFICER OFFICER NON-OFFICER CHAPTER 3 BRANCH INFORMATION BRANCH HISTORY BIB wants to facilitate its customer with maximum of facilities at minimum cost.
It intends to open its branches in every city of the country to provide banking facility to its customer and attract more and more customers for its business. It is ensured and banks’ policy that every branch of the bank in Pakistan is online. This is to facilitate the customers with online banking facility across Pakistan. Moreover, it also saves banks’ capital by not opening branches where the banking business is untouchable. In order to facilitate the customers of Punjab region and centralize the working of the Punjab region, main branch of Punjab was established on Hall road, near Main Boulevard.
This branch serves as the main head office of Punjab region and Country office as well. Unit heads of various departments sit in the head office to monitor the working of the branches. Besides being a main branch, this branch facilitates individual customers residing anywhere in Lahore. AREA The branch is located on Hall road, near Main Boulevard. This region is mainly composed of business centers and commercial houses.
Being in such locality, most of the accounts in the branch are of business nature either in the form of business capacity or of salary nature.
As per banks policy, any one living in Lahore can open n account with the branch anywhere in Lahore. COMPETITORS The bank has three major competitors (Atwood Islamic bank, Dubbing Islamic bank , and Bank Islam Ltd), and it aims to exceed the business volume of Means bank Ltd. By means of emirates global Islamic bank merger. TYPE OF CUSTOMERS capacity or in the form of salary account.
TYPE OF BRANCH To date data of the branch has revealed that the branch has mix type of activities. It performs both the functions of deposits and financing activities. However, most of the financing activities were related to companies or business firms.
BRANCH HIERARCHY CHAPTER 4 PRODUCTS ACCOUNTS Account opening is considered as the first step while making someone as customer of the bank. State bank of Pakistan has laid down appropriate, suitable and valid ways of steps while opening an account and has laid down minimum conditions of checking income source of the customer.
BIB Pakistan gives due diligence to these minimum conditions and abide by the process of account opening of its customers. Related personnel are well trained about the process involved and conditions which need to be fulfilled in this process.
KNOW YOUR CUSTOMER Know your customer (KEY) is the due diligence and bank regulation that financial institutions and other regulated companies must perform to identify their clients and ascertain relevant information pertinent to doing financial business with them. Know your customer policies have becoming increasingly important globally to prevent identity theft fraud, money laundering and terrorist financing. KEY should not be thought of as a form to be filled – it is a process to be undergone from the start of a customer relationship to the end.
One aspect of KEY checking is to verify that the customer is not on any list of known fraudsters, terrorists or money launderers. Beyond name matching, a key aspect of KEY controls is to monitor transactions of a customer against their recorded profile, history on the customers account(s) and with peers. Know Your Customer processes are also employed by regular companies of all sizes, for the purpose of ensuring their proposed agents’, consultants’ or distributors’ demanding that customers provide detailed anti-corruption due diligence information, to verify their probity and integrity.
BANK’S POLICY One important factor in this process is to abide by “Know Your Customer” policy. To come up with this requirement, every customer is asked to give valid proof of its resource of income. In case of salaried persons, their current salary slips are taken.
In case of business, their valid source of income which involves National Taxation Number and other related documents are obtained. To confirm the true identity of the customer, accounts are opened in the name of the customer who appears on computerized national identity card of the customer and certificate of registration or incorporation, as the case may be.
This step provides the true identity of the customer. If any customer does not provide these minimum and most important documents, they are not allowed to open an account with the bank as the bank does to compromise on rules. Moreover, the bank management does not want to use the banking channel for money laundering.
TYPES OF ACCOUNTS BIB facilitates its customers by providing its customers both current and saving accounts. It is noteworthy to mention here that the bank has made the process and documentation so easy that their remains no hindrance for customers of any sort.
ALBERTA CURRENT ACCOUNT A transactional account, checking account or current account is a deposit account held at a bank or other financial institution, for the purpose of securely and quickly providing frequent access to funds on demand, through a variety of different Hansel. Because money is available on demand these accounts are also referred to as demand accounts or demand deposit accounts. Transactional accounts are meant neither for the purpose of earning interest nor for the purpose of savings, but for convenience of the business or personal client; hence they do not tend to bear interest.
Instead, a customer can deposit or withdraw any amount of money any number of times, subject to availability of funds. The Current Account offers users safe keeping of their cash deposits against the Banks guarantee to provide the depositor his funds on demand. However, the depositors permit BIB to use or invest heir money in its Shari’s compliant investments and the Bank bears all risks related to the use or investment of those funds.
These funds are invested with utmost care in Hall business ventures only. Hence, the Current Account is neither entitled to investment profit nor does it bear any risk.
