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BANK
Ismail Arshad Branch Manager:

Prepare and submit a Financial Proposal to CFO of Shan Foods Manufacturing

Corporation.
Deposit and Financing Products (along-with features) of your bank.
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VISION
"To be the most respected financial institution based on trust,
service and commitment"

VALUES
 Trust
 Integrity
 Respect
 Responsibility
 Commitment
 Teamwork
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CONTENTS

1) Cover Note
2) About Your Bank
3) Our Position Today
4) Financial Strength
5) Product & Services
6) Deposit Products
6.1) ABC Current Account
6.2) XYZ Savings Account
6.3) ABC Term Deposit Account
7) Financing Facilities
7.1) Murabaha
7.2) Istisna
7.3) Ijarah
7.4) Diminishing Musharakah
8) Closing Remarks

INTRODUCTION

Habib Metropolitan Bank was incorporated in Pakistan as a Public Listed Company in 1992.
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HABIBMETRO is a leading trade finance bank that currently operates with 450+ branches
(including 43 dedicated Islamic branches, 218 Islamic windows and 1 offshore banking unit in
Karachi Export Processing Zone) in 165+ cities across Pakistan.

The Bank serves its customers within retail, corporate, commercial and Islamic segments through
a dynamic suite of technology-led financial solutions, including round-the-clock banking
facilities such as mobile and internet banking, as well as a network of 470+ ATMs across the
country. HABIBMETRO was awarded as a ‘Leading Partner Bank in Pakistan’ by the Asian
Development Bank in 2015, 2016, 2020 and 2021. The Bank also received the Upcoming
Islamic Banking Window and the Best Islamic Banking Brand awards by the Global Islamic
Finance Awards (GIFA) in 2016, 2020 and 2021 respectively. The Bank also received the Best
Bank (Mid-Sized) award at the CFA Excellence Awards 2021.

For 19 consecutive years, the Bank has been rated AA+ (Double, A Plus) for a long term and
A1+ (A one plus) for a short term by the Pakistan Credit Rating Agency Limited (PACRA).
HABIBMETRO is a subsidiary of Habib Bank AG Zurich, an international banking group that
enjoys a presence in 10 countries across 4 continents.

Performance:

Islamic banking division of Habib Metropolitan Limited (“Bank”) has completed its eighteen
years of successful operations of Islamic banking. The Bank is continuously expanding its
Islamic Banking network and at the end of the year 2021, the number of Islamic banking
branches and Islamic banking windows were forty-nine (49) and two hundred and eighteen (218)
respectively

During the year 2021 Islamic Banking of Habib Metro posted a profit of Rs. (2,428,232)
thousand with a growth of 77.5 percent as compared to the same period last year (1,367,552)
thousand.

The Bank used diversified Islamic financing products including but not limited to Diminishing
Musharakah, Istisna, Al-Bai, Salam, Working Capital Musharakah, Murabahah, Musawamah
(local & import) and Ijarah. At the end of the year 2021, the Bank has Islamic financing and
investment / placement of Rs.112.542 billion. On the deposit side, the Bank has total Islamic
deposits under different Islamic accounts is of Rs.83.953 billion.

Deposits Products

Sirat Super Current Account

A current account for sole proprietors, partnerships and corporates with various fee services and 
no minimum balance requirement and no limit on the number of transactions
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With a Sirat Super current account, you can easily conduct a business transaction. The money
will be managed by the bank and won’t come to your account until it is needed for any use or
payment that has been directed towards your organization. You need not take care of this burden
yourself.

Businesses need to transact many funds that can be difficult if you don’t have access to them. A
business account lets the company handle more transactions without having limits imposed on it
as personal accounts would. Tracking your transactions is beneficial for businesses that are
working with multiple suppliers and need an easy way of tracking payments. A business pays
their employees, landlords, utility providers, etc., through the current account, which saves them
lots of time doing it manually.

Sirat PLS Premium Account

SIRAT PLS Premium Account of Habib Metro SIRAT is a profit/loss sharing account which has
been designed specifically on mudharabah basis. The account holder of saving account is being
treated as financer (‫ )سرمایہ کار‬and the bank works as fund manager ( ‫منیجر‬/‫)مضارب‬. Habib Metro
SIRAT does business of different types in compliance of instructions and guide lines of shariah
supervisory board and distributes the gross profit earned on that business among account holders
as per pre-agreed ratio/weightage. The loss if any is to be borne by the investors as per their
investment ratio. Habib Metro SIRAT cannot be involved in shariah prohibited business. This
account is designed to deliver attractive monthly profit payouts for Sole Proprietors /
Partnerships and Companies.

Features
Initial deposit required to open an account: Rs. 1000/-
Deposits invested by the Bank in strict accordance with Shariah compliant principles
Profit is shared between depositors and the Bank on the basis of predetermined profit-sharing ratio
Depositors and the Bank will bear the same ratio of their respective investment in the event of loss
Monthly profit/loss payments calculated on daily product basis
Profit rates are announced on monthly basis

Sirat PLS Saving Plus Account

SIRAT Saving Plus account is designed to deliver attractive monthly profit payouts for individuals, sole propri
etors / partnerships and corporates.

Fixed deposited
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HABIBMETRO ISLAMIC INVESTMENT CERTIFICATES (HIIC)

The relation of the HIIC holder and the bank is Mudarib / Investor, the bank is Modarib (i.e Manager) and the
depositors are Rab-ul-Maal (i.e Depositor).

Features

Minimum amount of investment is Rs.25,000/-.

All the principles and rules pertaining to HIIC are based strictly on the Islamic principle of Modarabah,
Therefore, profits and losses are shared by the partners according to the rules of Islamic Shari’ah.

HIIC are available in tenures of 1, 3, 6 months & 1, 2, 3, & 5 years.

Monthly, Quarterly, Six Monthly profit payment is available for investment of 12 months and above.

Monthly profit credit to linked account automatically.

Profit is distributed as per predetermined weightages after deducting management fee.

HABIBMETRO Islamic Investment Certificates can also be obtained in USD.

Islamic finance and related assets

During the year 2021, Shari'ah Board has reviewed and approved two hundred and fifty-six (256)
process flows under different Islamic financing modes for various corporate / SME / commercial
customers. Further, the Bank as the first time has acted and participated as the Joint Shari'ah
advisors in an Islamic Investment banking transaction. The breakup is as follows

Ijarah
Ijarah is a Shariah-compliant alternative to Conventional vehicle and machinery leasing where the Bank acts as
a Lessor and customer acts as a Lessee. In this ‘rent’ arrangement, customers are required to pay a monthly
rent for the use of the subject vehicle. During this arrangement, the ownership of the vehicle remains with the
Bank; only the rights of use are transferred to the Customer.

At the end of the Ijarah Agreement, customer is given a choice to either return the vehicle/machinery to the
Bank and receive the security deposit paid at the start of the arrangement, or purchase the vehicle/machinery at
a price as low as the security deposit
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Sirat Diminishing Musharakah
Diminishing Musharakah is commonly used for the purpose of financing fixed assets i.e. House, Car, Plant and
Machinery. In Diminishing Musharakah, the Bank and the Customer participate in joint ownership of the
subject property/equipment or a commercial enterprise. The customer, as a lessee, uses the share of the Bank
and pays rentals, and as a partner redeems the share of the Bank.

Under diminishing musharaka based financing, the Bank enters into a musharaka based on
shirkat-ul-milk for financing an agreed share of fixed asset (e.g., house, land, plant or machinery)
with its customers and enters into rental payment agreement for the utilization of the Bank's
musharaka share by the customer. The Bank receives periodic payments from its customers
partly for renting its portion of the assets and partly for gradual transfer / sale of its o ownership.
The rental payments are recognized in pr of it and loss account whereas transfer / sale payments
are applied towards reducing the outstanding principal.

Sirat Istisna
Istisna is a mode of sale at an agreed price whereby the buyer places an order to manufacture, assemble,
construct or to do anything to be delivered at a future date. Istisna is a short-term fund-based facility.

In Istisna, a sale contract is executed for the future supply of goods. The facility can be provided to facilitate
payment of wages and overheads. This product can suffice the requirements of textile sector, manufacturing
industries, storage & communication etc.

Murabaha
SIRAT Murabaha is a financing arrangement of sales transactions whereby HABIBMETRO SIRAT purchases
a commodity at request of the customer and sells it to the customer on cost-plus-agreed profit basis. The cost
and profit margin is expressly disclosed to the customer. Simply put, HABIBMETRO SIRAT buys the
commodity from a third party and sells it to the customer at an agreed price.

Sirat Salam
Salam is a sale and purchase contract whereby payment is made in cash and advance at the time of contract (by
the Bank) but the delivery of the asset purchased (by the Bank) is deferred to a pre-determined date. Salam is a
short-term fund-based facility.

Through Salam, a sale contract is executed for the future supply of goods. The facility can be provided to
facilitate payment of wages and overheads. This product can suffice the requirements of the agriculture sector,
commodity market and manufacturing industries.

Closing Notes
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The Bank has complied with Shari'ah rules and principles in the light of fatawa, rulings and
guidelines issued by its Shari'ah Board.
The Bank has by and large complied with directives, regulations, instructions and guidelines
related to Shari'ah compliance issued by State Bank of Pakistan (SBP) in accordance with the
rulings of SBP's Shari'ah Advisory Committee.
The Bank has a comprehensive mechanism in place to ensure Shari'ah compliance in their
overall operations.
The Bank has a w ell-defined system in place sound enough t o ensure that any earnings realized
from sources or by means prohibited by Shari'ah have been credited to charity account and are
being properly utilized for charitable purposes.
The Bank has complied with the SBP instructions on profit & loss distribution and pool
management.
The Learning Department and the management has arranged various Islamic banking and
capacity building sessions and is in continuous process to enhance and develop Islamic banking
learning network, wherein applicable. In this regard, the level of awareness, capacity and
sensitization of the staff, management and the BOD in appreciating the importance of Shari'ah
compliance in the products and processes of the Bank, is acceptable.
The Shari'ah Board has been provided adequate resources enabling it to discharge its duties.
However, considering the increase in the business, network and volume of the work, additional
resource in Shari'ah compliance department will further strengthen the Shari'ah compliance
function in the Bank
Based on the above, we recommend that:
1. The Bank should continue to make arrangements for Islamic banking trainings and refresher
sessions for their management,
Islamic banking staff, all concerned stakeholders and customers.
2. The Bank should continue to enhance the promotion and marketing of Islamic Banking
products and ser vices at all available forums