HISTORY AND BACKGROUND

Faysal Bank Limited as incorporated as a public limited company under the Companies Ordinance,1994 on October 3,1994 in Lahore vide Certificate of incorporation No,LO7391 of 1994-95 with an authorized capital of Rs.1,500 million ordinary shares of RRRs.10/-each.The Ban has been established by Faysal Islamic Bank of Bahrain E.C.,pursuant to the federal Government permission/ sanction letter no.F 8(23) Bkg.IV/92-5443 dated April 7,1993 ,as amended, for establishment of a commercial bank The state Bank of Pakistan-SBP, vide its letter no . BRD (NBFI)676/625-E-93 dated September 16, 1993 has also agreed in principle to the setting up of the Bank in term of the governments aforementioned permission letter. SBPs said letter also contains interalia, its agreement in principle for they merger (amalgamation) with the Bank of the existing branches of Faysal Islamic Bank of Bahrain E.C. (hereinafter referred to as FIBB- Pakistan Branch) subject to meeting with the requirements of the law, in particular section 48 of the Banking companies Ordinance, 1962 & on the condition that the transfer of assets &liabilities shall be on the basis of the break-up value or net- worth of the FIBB-Pakistan Branch as per the books. The FIBB- Pakistan branch will merge with the Bank on a going concern basis. 8 INTERNSHIP REPORT
Faysal Bank Ltd.

The entire under taking of FIBB in Pakistan scheme of amalgamation are as follows: The entire undertaking of FIBB in Pakistan, including all it s assets & liabilities & all the rights & obligations, etc as at the effective data (data of approval of the scheme by the state Bank), shall with out any future act, action or deed, stand transferred to, & vest in the Bank . As a consequence, the FIBB Pakistan branch shall stand merged with the Bank. A consideration for the transfer, the Bank shall pay to FIBB, a sum equal to the non-worth of its branches in Pakistan, as per the books, as on the amalgamation date, the net-worth will be certified by the auditors of FIBBPakistan Branch. Notwithstanding the effective date, the cut-off date i-e the date as of which the amalgamation of FIBB- Pakistan Branch with the Bank shall be deemed to have taken place as envisaged to be the close of business on December 31, 1994. After approval by the shareholders of FIBB &the Bank the scheme would be presented to the SBP for approval in terms of section 48 of the banking companies ordinance, 1962.

Bank was incorporated as a public limited company. Its shares are quested in Pakistan. 60% of the capital is held by Faysal Islamic bank of Bahrain E.C & 9 INTERNSHIP REPORT
Faysal Bank Ltd.

40% by the general public. The Faysal Islamic Bank of Bahrain E.C merged into the Bank when it commenced business operations on January 02, 1995.

CONFORMITY TO ISLAMIC SHARIAA

The Holy Quran outlines for Muslims a complete code of life for dealing individually or collectively. This is future amplified by saying and practice of Holy Profit(May be upon him) From these guidelines , an Islamic economic system can be elaborated upon, aimed at creating a socially, economically and politically viable and just environment supporting the universal well being of humanity In this context all functions of the bank are performed in strict adherence to the principles of Islamic Shariaa. In order to ensure such conformity of Shariaa, the Bank operations are checked and monitored by its Religion Supervisory Board to whom the management reports periodically. In case of new operations and activities prior approval of Religious Supervisory Board is invariably obtained by the bank management. The Religious Supervisory Board of the bank itself comprises eminent scholars of Islamic Shariaa from Bahrain, Egypt, Saudi Arabia, Turkey, and Pakistan possessing in-death knowledge of the conditions in which the Bank operates. The Groups Religion Board, composed also of many internationally renowned Islamic Scholars, provides advice from time on issue that pertain to Group level implementation