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Key Features
Investment Periods
Investment can be made for 3 months, 6 months, 1 year, 2 years, 3 years and 5 years
Profit Payments
Minimum Investment
Other Feature
Eligibility criteria
The Gross income of the deposit pool is distributed among the bank (Mudarib) and customers (Rab
ul Maal) on the basis of a pre-determined profit sharing ratio and weightages which shall be
announced 3 days before beginning of every month and shall not be changed during the month.
According to the spirit of Mudarbah, the profit rates are calculated and announced up to seven days
of the subsequent month from the monthly income of the trade activities of the pool. Conversely, in
case of the loss as per the rule of Mudarbah, the Rab ul Maal shall bear the loss in the ratio of their
investment.
Bank will share 50/50% of Distributable Income as Mudaib Depositor will Rab-ul-Maal or 60:40
Where: sp = simple profit, P0=principal amount, n = number of years, and Pr=profit Rates%
Future value: we add the simple profit earned on the principal amount.
3.) Dr. Proft and Loss account or Reserve account PKR 55800
Cr. Cash account PKR 55800
(Being proft disbursed to rab al-mal)
(OR)
= Quarterly 1.55
= Maturity 1.56