Askari Bank Limited:

Askari Bank Limited opened its doors for Shariah compliant banking solutions in the year
2006 by establishing a dedicated Islamic Banking Services Division (IBSD). In a short period
of time, Askari Islamic has grown considerably, and now provides a comprehensive range of
products and services in personal banking, corporate banking, Islamic treasury, trade services
and Banca-Takaful solutions. Our objective is to put in place an efficient banking system
supportive to economic justice and welfare of society in line with the Shariah principles.
Askari Islamic serves the banking needs of the valued customers through its 78 dedicated
Islamic Banking branches (including 3 sub-branches) in the major cities of the country. The
Bank, under its new sponsors and the new management is actively pursuing the growth of
Shariah compliant banking in Pakistan.
Compliance with the principles of Shariah is the cornerstone of our operations. We are driven
by values, embedded in the ethics of Islamic society, established over 1400 years ago. Our
ability to offer a wide array of products and services is a testament to the capacity of Islamic
finance to serve all banking needs of the customers. All our products are developed under the
guidance of our Shariah Board, comprising renowned Shariah Scholars namely, Mufti
Muhammad Zahid, Mufti Ismatullah and Dr. Muhammad Tahir Mansoori.
Our customers enjoy the freedom to choose from a wide array of deposit product menu that
offer flexible term deposit schemes, current accounts and savings accounts. On the consumer
banking front, Askari Ijarah Bis Sayyarah allows the customers to drive a car of their choice,
while the Askari Home Musharakah allows the customers to own a home. Our continuous
efforts to provide a diversified range of Shariah compliant, innovative financial products and
solutions to the corporate/commercial clients continue to win us new relationships.
Askari Islamic Banking is creating a niche through its services, reliability, strength of the
management, and most importantly, its strong sponsors

Murabaha:
Murabaha means a sale of goods by a person to another under an arrangement whereby the
seller is obliged to disclose to the buyer the cost of goods sold either on cash basis or deferred
payment basis and a margin of profit included in the sale price of goods agreed to be sold.

Product Features
Description

Specific Product Details

Name of Product:

Murabaha

Basis of Pricing:

A fixed profit rate OR a floating profit rate linked with a

benchmark, e.g. KIBOR, is offered keeping in view.

Financing Limits:

Tenors:

Minimum: Per party limit as per SBP Prudential

Regulations/as per facility approval

Maximum: Per party limit as per SBP Prudential

Regulations/as per facility approval

For Working Capital: Upto 1 year

For Fixed Assets Financing: Upto 3 years

Target Customers:

Corporate/Commercial/SME

Security/Collateral:

On a case to case basis, e.g. hypothecation, charge on assets,

mortgage of properties, pledge, lien on deposits, etc. as per
facility approval

Repayment

Murabaha Cost Component

(i.e. Principal):

Payment of Murabaha Profit

Component:

1 to 3 months bullet at maturity

6 months to 3 years quarterly/or as per facility
approval
1 to 3 months bullet at maturity
6 months to 3 years Quarterly/or as per facility
approval

Ijarah
Ijarah is a contract whereby the owner of an asset, other than consumables,
transfers its usufruct to another person, for an agreed period, for an agreed
consideration. In Ijarah, the corpus of the leased asset remains in the ownership
of the lessor and only its usufruct is transferred to the lessee.

Product Features
Description

Specific Product Details

Name of Product:

Ijarah for plant & machinery/equipment/commercial vehicles

Basis of Pricing/Return:

Ijarah Rentals are determined by using any well known/

recognized bench mark as per prevailing market
practices/dynamics e.g. KIBOR OR it can also be Fixed

Financing Limits:

Minimum: Per party limit as per SBP Prudential Regulations/as

per facility approval
Maximum: Per party limit as per SBP Prudential Regulations/as
per facility approval

Tenors:

Minimum: 1 year
Maximum: 7 years

Target Customers:

Corporate/Commercial/SME

Security/Collateral:

On a case to case basis e.g. exclusive ownership of Ijarah asset by

the Bank, security deposit, hypothecation, charge on assets,
mortgage of properties, pledge, etc. as per facility approval

Repayment:

Monthly Ijarah rental payments or as per facility approval

Diminishing Musharakah
Diminishing Musharakah is a form of co-ownership in which two or more persons share the
ownership of a tangible asset in an agreed proportion and one of the co-owners undertakes to
buy in periodic installments the proportionate share of the other co-owner until the title to
such tangible asset is completely transferred to the purchasing co-owner. Diminishing
Musharakah can be created only in tangible assets. Diminishing Musharakah shall be limited
to the specified asset(s) and not to the whole enterprise or business.
Product Features

Description

Specific Product Details

Name of Product:

Diminishing Musharakah (for commercial property/plant &

machinery, equipment, etc)

Basis of Pricing/Return:

The rental amount is calculated with reference to a well

known benchmark as per prevailing market
practices/dynamics, e.g. KIBOR

Financing Limits:

Tenors:

Minimum: Per party limit as per SBP Prudential

Regulations/as per facility approval

Maximum: Per party limit as per SBP Prudential

Upto 20 years

Target Customers:

Corporate/Commercial/SME

Security/Collateral:

On a case to case basis, e.g. hypothecation, charge on assets,

mortgage of properties, pledge, lien on deposits, etc. as per
facility approval

Repayment:

Unit purchase (i.e. principal): Monthly/or as per

facility approval

Rental payment (i.e. profit): Monthly/or as per facility

approval

(http://akbl.com.pk/islamic/financing/business/)