• Hire-Purchase under ShirkatulMelk (HPSM): Under this mode the Bank and the client procure assets such as machinery, building/flat, car etc. on equity participation basis. The Bank rents out its portion of assets to the client for a certain period. The client pays the rental with a part of principal amount on monthly / quarterly basis. The client gets its proportionate ownership with the payment of monthly / quarterly installments. On maturity, total ownership of the assets automatically transfers to the client as and when final payment of the account is made.
• Ijara or Leasing: This product is similar to HPSM above. In this case equity participation may or may not exist. Ownership of the asset is not automatically transferred to the client with the payments of installments. On maturity, the bank transfers the ownership to the client on payment of certain transfer fees.
• Bai-Muajjal / Bai-Murabaha: These products are for working capital finance. Under these schemes bank purchases goods / raw materials as per requirement of the client. In case of Bai-Muajjal bank receives the sales proceeds on deferred payment basis. On the other hand, in case of Bai-Murabaha, Bank receives the sale price at the time of delivery of the goods / raw materials. Before handing over the goods / raw materials the bank generally keeps the same in its custody under pledge. Besides goods may be handed over to the client with Trust Receipt (TR).
• Musharaka : Under this mode the Bank and clients jointly participate in a scheme or project. Profit is shared between the Bank and the concerned client as per pre-agreed ratio. On the other hand loss is shared according to capital ratio.
• Mudaraba: Mudaraba is a shared venture between labor and capital. Here Bank provides the entire capital and the investment client conducts the business. The Bank, provider of the capital, is called Sahib-Al-Maal and the client is called Mudarib. The profit is distributed between the Sahib-Al-Mal and the Mudarib at a predetermined ratio where the Sahib-Al-Maal bears the loss, if any, subject to ensuring due diligence and good management by the Mudarib.

Sector of Investments

Islamic Banking wing of the bank finances in all sectors i.e., Industry, business, Agriculture, Real Estate etc. if purpose of the investment is permissible under Islamic Shariah.

Limit of Investments

Investment is offered to the extent of single borrower exposure limit as fixed by the Bangladesh Bank from time to time.

Foreign Trade of Islami Banking Branch

Islami Banking Branch by complying Shariah principles and concerned rules-regulations of the country provides the following services at its foreign trade desks:

• Opening of LCs
• Post -Import Finance
• Export bill purchase and negotiation
• Pre-shipment financing etc.

AB Bank Islamic Banking has been continuously working on new initiatives, innovative services and products keeping in mind the actual needs of its valued clients and upholding the principles of Islamic Shariah.