dubai islamic bank

Sequence of Presentation

Introduction

Vision

Deposits

Business with customer

Management remuneration

Profit calculation

INTRODUCTION

PIONEER

• The world’s first Islamic bank

best modern

banking

.

• combined the best of traditional Islamic values with the technology and innovation

FORMATION

• 1975, Dubai Islamic Bank has established itself as the undisputed leader in its field

Vision

To be the leading Islamic Bank providing Shari’a compliant financial services, by creating value for all stakeholders.

ACCEPTANCE OF SAVINGS FROM CUSTOMERS

DEPOSITS

Saving Account

E-Savin

g

Current Account

Saving Plus

Fixed Deposits

Special saving

Junior Account

CURRENT ACCOUNTQarz-e-hasana

Non-remunerative checking account

Transact frequently

An ideal low cost option

No minimum balance restriction

Free account statement on a six monthly basis

SAVINGS ACCOUNTInvestment for depositors to earn Halal returns

Flexibility to withdrawn

depositor is fund provider or Rabbul-Maal

DIBPL is fund manager Mudarib) 

Unrestricted Mudaraba

ESAVING ACCOUNTThe power to control financial future from anywhere and anytime.

Online Account opening

Unrestricted Mudaraba

Free Internet & Mobile Banking 

No issuance of cheque book  

SAVINGS PLUS

Save and Spend

100% HALAL

 SPECIAL SAVINGS

High profit

on high balance

Profit calculatio

n on daily base

product

Murabaha

base

Profit Payment is on

monthly base

ATM/ VISA Debit Card Facilities only for

Individual Account Holders 

FIXED DEPOSIT

Mix of long and short term benefits

to depositors wants Halal returns on their savings.

Unrestricted Mudaraba

Common pool

JUNIOR ACCOUNT

Riba free banking

BUSINESS OF BANK WITH CUSTOMERS

By:WARDA MEHAK

MUSHARAKAH •A PARTNERSHIP•BANK PARTICIPATES IN PROJECTS AND SHARES THE CAPITAL AND RETURNS.

•OWNERSHIP OF ASSETS ON A PERMANENT OR A NON-PERMANENT BASIS

•PROFIT IS SHARED WITH AN AGREEMENT BETWEEN THE BANK AND THE CUSTOMER

MudarabahPARTNERSHIP BETWEEN THE BANK AND AN ENTERPRISE

PRE-AGREED PERIOD

CAN INVEST IN EITHER A NEW OR EXISTING COMPANY

PRE AGREED PROFIT PERCENTAGE

Sales contract Pre-agreed profit

margin Fixes the deal

along with a profit Time Period : 1. Raw materials

& finished goods from 90 to 180 days

2. Machinery and equipment unto 5 years

MURABAH

SAKUK:

Islamic bond asset-backed proportionate ownership

in the underlying asset Yield generated by the

client’s lease of the asset.

ISTISNA sales contract Bank agrees to

deliver a commodity or an asset at a pre-determined future time at an agreed price.

finance the construction of real estate

A lease contract Bank (lessor)

leases the property to the customer (lessee)

Return for a rental payment for a specified financing period.

transfer the title of the property to the customer

The leasing period 3-7 years

IJARAH

BUSINESS FINANCE: Shirkatul Melk cum Ijara model DIBPL enters into relationship by

purchasing an undivided share and subsequently leases to leasee.

Financing up to 70% of your property value

Musharaka cum Ijara model

Home Purchase. Purchase of

undivided share (Home Renovation).

Purchase of undivided share of property from other bank (Balance Transfer)

HOME FINANCE:

AUTO FINANCE: Using Musharaka cum Ijara model to

finance your car Tracker Device & Monitoring  Lowest Insurance/Takaful Rates Payment Advance Booking Cases Monthly Rental Islamic Product

ATM cards Funds transfer Access your account

anytime, anywhere 390 Automated Teller

Machines (ATMs) An unlimited number

of Supplementary Cards

withdraw up to Rs. 50,000 per day

Transfer funds between your accounts

Transfer funds to other DIB accounts

Visa Debit Card is used to transfer funds across accounts

Daily transaction limit Rs. 300,000

 DECLARATION ON MANAGEMENT REMUNERATION & PROFIT CALCULATION

By : Saman Gohar

REMUNERATION MANAGEMENT

Bonus is given on the

basis of branch

performance, not on the

basis individual

performance

BANK PROFIT

Sharia prohibits the fixed interest

(Riba)

Net profit is the profit earned after subtracting of all the expenses and

income taxes.

Net Profit %= Net profit/Revenue*10

0

PROFIT CALCULATION ON VARIOUS ACCOUNTS

Current Account

Savings Account

E-saving Account

Savings Plus

Account

Special Savings Account

Fixed Deposit

Junior Account

Historical Rate sheet for Feb. 2014

Product

Month

Tiers

Rate

Saving Regular

Feb 2014

Less than Rs.100k upto Rs.500k and above

3.30-3.50%

Savings Plus

Feb 2014

Less than Rs.500k upto Rs 1 bln and above

3.60-7.55%

Special Savings

Feb 2014

Less than Rs.500k upto Rs 1 bln and above

3.60-8.50%

E-Savings

Feb 2014

Less than Rs.10k upto 5 million and above

3.30-7.75%

FIXED DEPOSITProfit Payment Frequency

Tenor Amount of Deposit

Profit Rate % (Feb-2014)

Pofit at maturity option

1 Month Rs 100k-Rs 100 mln and above

6.00-8.00%

3 Months

Rs 100k-Rs 100 mln and above

6.20-8.10%

6 Months

Rs 100k-Rs 200 mln and above

6.35-8.35%

1 Year Rs 100k-Rs 500 mln and above

7.65-8.50%

2-7 Years

- 8.75-10.15%

Monthly Payment 1-7 years

Rs 100k-Rs 249.99 mln

7.35-10.00%

Quarterly Payment

1-7 years

Rs 100k-Rs 499.99 mln

7.40-10.05%

Semi Annual Payment

1-7 years

Rs 100k-Rs 249.99 mln

7.45-10.10%

Profit at Maturity Option

SAVING DEPOSIT-FCY

Currency

Tenor Amount of Deposit Profit Rate %

USD Saving Less than USD 500-USD 500k and above

0.30-0.40%

GBP Saving Less than GBP 500-GBP 500k and above

0.30 %

EUR Saving Less than EUR 500-EUR 500k and above

0.30 %

TERM DEPOSIT-FCYCurrency Tenor Amount of

DepositProfit Rate %

USD 3 month USD 2k-USD 500K and above

0.70%

USD 6 month USD 2k-USD 500K and above

0.80%

USD 1 year USD 2k-USD 500K and above

0.90-1.10%