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DUBAI ISLAMIC BANK PAKISTAN LIMITED PECO ROAD BRANCH TOWNSHIP LAHORE ACKNOWLEDGMENT Countless thanks to Almighty Allah.(The most merciful the most beneficial). The only creator of universe who enabled me to complete this project. All respects to the Holy Prophet (P.B.U.H) who enable us to recognize our greater and whose spiritual teachings guide us in every matter of the life. I am immeasurably, indebted to Mr. Fida Hussain Bukhari who kindly provided us a chance to get experience of working in a professional organisation through this internship program. It was valuable experience for me to do such work and it was really a delightful job for me to do. A very special thanks to all the people at DUBAI ISLAMIC BANK, who helped me to collect information, which was necessary for the completion of this report. Specially to Mr. Zahid Abbas(operation manager) and Mr. Saleem in the Remittances Deptt. To Miss Jawaria at the Welcome Desk & to Miss Saima in the Account Opening Deptt. These people helped me solving all my problems at DIB so I will never forget working with such people and their help & guidness throughout my internship program. Last but not the least ; I would like to thank my parents specially and then to my uncle who arranged this internship for me in Dubai Islamic Bank. Once again, I am thankful to all those who directly or indirectly helped me in writing this report because I know it was not an easy task for me.

PREFACE I know that internship is an essential part of MBA program because through this training, students come to know the real difference between theory and practical work and they also introduced to the outside business world. An important requirement of this training program is to compile a report about the activities of that organization in which student has done the internship. I have done my internship in DUBAI ISLAMIC BANK, PECO ROAD BRANCH, TOWNSHIP, LHR. The internship provided me great opportunity to equip myself with knowledge, techniques, application and tools used in an organization. I have tried to choose suitable words to lighter the subject of this report. Because words are the symbols used to express ideas. There are the tools of affective writing. There importance lies in the power, when they have suitably chosen and arranged to convey and through to other in language, that is the understandable clearly and understood readily. An important requirement of this report is that it should be comprehensive and written in good style, I have tried my best to make the style of this report as good, as possible, because style in writing as in other walks of life, is a quietly peculiar to the individual, as not to people write alike. Background, training, experience and the way a person thinks determine it. I hope this report will help in understanding various aspects and features of Dubai Islamic Bank. BANKING IN PAKISTAN The banking structure in Pakistan comprises of the following types, State Bank of Pakistan, Commercial Bank of Pakistan; Exchange Banks, Saving banks, Cooperative banks, specialized credit institutions. The state bank of Pakistan is the Central bank of the

country and was established on July 01, 1948. The network of bank branches now covers a very large segment of national economy. The State Bank of Pakistan issues the shares of these periodically. Bank employees and other common peoples can also purchase these shares and earn profit. WHAT IS BANK? There are many definitions of the word bank even the standard encyclopedia and law books find it difficult to state exactly what a bank is. There have been many attempts by different writers to explain the exact significance of the term bank. Here some of the definitions are quoted as follows.

According to banking companies ordinance 1962 section 5(b) defines: Banker means a person transacting the business of accepting for the purpose of lending or investment, of deposits from the public, and withdrawal by cheques, drafts, order of otherwise, and includes any post office saving bank.

According to Samulelson: Commercial banks provide certain services for customers and in return receive payments from them. According to Holder, The modern banker is primarily a dealer in credit.

According to Crowther, Bank is a dealer of debt, his own and of other people.

According to Gilbert, A bank is a dealer in capital or dealer in money. He is an intermediary party between the borrowers and lenders. So the comprehensive definition of the bank is: A bank is a financial institution, which deals with money and credit. It accepts deposits from individuals, firm and companies at a lower rate of interest and gives at a higher rate of interest to those who need them. The difference between the terms, at which it borrows and those, at which it lends, form the source of its profit. A bank, thus, is a profit earning institution.

History of Banking in Pakistan

The Indian society was quite familiar with the banking, right for the beginning. There is also sufficient evidence to show that during 5th century people were accustomed to use hondies as a credit investment. Loans were given to the people against personal and other securities such as ornaments, goods and other immovable properties.


FIRST PHASE (1947-1974) Establishment Of Commercial Banking System There were 19 non-Indian foreign banks in Pakistan at the time of independence with the status of small branch network, whose policies and operations were controlled by their head offices abroad. These banks were solely engaged in export of crops from Pakistan. There were only two banks in Pakistan at the time of partition, Habib bank, which had transferred its head office from Bombay to Karachi after the announcement of the partition, and Australian bank, which have been working in Pakistani territories prior to June 1947.The Govt of Pakistan tried hard to eliminate the banking crises. The imperial bank of India closed down most of its offices in Pakistan, which had been working as the agent of Reserve bank of India was not willing to purchase even token amount of the government of Pakistan. Securities on the plea that these securities were not marketable. The reserve bank of India was hardly to any help. It refused to help the Govt of Pakistan with advance argument adhoc securities to enable them to make essential disbursements such as salaries and other obligations to add to the difficulties. The Indian Govt withheld Pakistans share of 750 million in cash balances held by her at the time of independence. The forgoing developments clearly brought home the urgency of assuming the control and currency in Pakistan and brought to the force the need to setup a central banking institution to take the place of reserve bank of India. Therefore it was agreed between the Govt of India and Pakistan to authority of Pakistan from 30th September 1947 to 30th June 1948. In order to make necessary arrangements of the establishment of the central bank of Pakistan a committee was appointed to recommend the necessary steps. Consequently the Governor General of Pakistan and father of the nation Quaid-e-Azam Muhammad Ali Jinnah inaugurated the State bank of Pakistan of 1st July 1948.After the SBP order was promulgated on 12th May 1948.

When it assumed full control of banking and currency in Pakistan the first important task before the SBP was to issue of currency notes and withdrawal of reserve bank of India, which had been in circulation in Pakistan so far.

SECOND PHASE (1974-79) NATIONALIZATION OF BANKS: The banking reforms turned out to be a transitional and temporary step and hardly after 18 months, the government nationalized the banking system. Thus through the nationalization bank act 1974, SBP and all commercial banks incorporated in Pakistan and carrying on business in or outside the country were brought under the government ownership with effect from January 1974.Thje ownership and management of all Pakistan banks stood transferred and rested in the federal government .The shareholders were provided compensation in the form of federal government bonds redeemable at par any time with in a period of fifteen years. The amount of compensation was equal to the breakup value of the shares in case of commercial banks. For the SBP shares the amount of compensation was estimated on the basis of average of the clearing quotations during the 6 working days preceding

The chairman, director and chief executive of various banks were removed from their offices other than those appointed by the federal government and the state bank. the central board of banks, managing committees and similar other bodies were dissolved. A Pakistani banking counsel was established for nationalized commercial banks to co-ordinate their activities. Merger of Banks

As a result of merger of banks the following 5 major banking companies were formed: National bank of Pakistan Habib bank limited United bank limited Muslim commercial bank limited Allied bank of Pakistan

CAUSES OF NATIONALIZATION: The nationalization of banks may be justified on the following grounds; Large business and industrial houses dominate the Lending policies of the commercial banks; this brought concentration of wealth. Commercial banking operations were guided by profits motives and as a result the backward regions and the small entrepreneurs were never been their favorite customers. The operation of banks, unlike after business, have direct implication on the entire national economy .For instance if the banks raise the cost of their credit, the cost of every thing go up. Unhealthy complications among banks can lead to financial and economic problems. The flow of bank advances towards national priority sector in general is not forthcoming because private banks are profit oriented. RULES OF NATIONALIZATION: Although there are doubts about the positive results of the nationalization but we can say that the nationalization of banks provided efficient professional management to expand banking services in every nook and corner of the country. Banks laid full emphasis on their lending policies on priority sector and national building projects, which forward the problem of

discouraged non-productive and unhealthy activities like speculation and hoarding, there was also a recorded increase in the number of foreign branches of Pakistani banks. The growth of Pakistani banking system was significant. The banking facilities expanded in the rural areas. The bank credit increased sharply especially in the public sector. A part from this expansion the banking systems activity seeking to gain credit targets laid down by national credit consultative counsel (NCCC) and to conform to the priorities over the year to enlarge the flow of credit for the small banker and agriculturist as well as for exports. Bank deposits rose very substantially during a period when total monetary assets also registered a sharp rise. In a remarkable short time banks and their management had adjusted to the realities and compulsion of the new situation and the system as a whole was completely geared to government objectives and policies.

THIRD PHASE (1979-91) INTRODUCTION OF ISLAMIC BANKING: In 1977 the Bhutto government was toppled. The martial law government planned to reform the banking sector in a novel way. The overall policy was to Islamize the economy and the banking system, being based on interest was an important target of the new policy. The most preferred form of Islamic bank financing profit and loss sharing would receive banks to receive deposit without guaranteeing and return. The Islamic bank has to acquire a high degree of confidence of the saver to make him deposit his money with them. Not even the return of the principal amount if guaranteed. The Islamic bank cannot finance the project of an investor merely on the furnishing of collateral. The bank will have to be a partner in the project. This will require to careful security of the project and the assessment of risk involved because profit are the functions of the amount of risk on the project. Honesty and trust from both sides of the market are more important to the system of Islamic banking. FOURTH PHASE (1991-2000)

PRIVATIZATION AND DE-REGULATION: The government headed by Prime Minister Nawaz Sharif was not fully satisfied with the performance of nationalization. The areas, which were severely criticized, were the falling standard of banking services and common red-tapism.there were complaints about the services as delay in home remittances, dispatch of cheques, drafts, inefficient counter services. They were on sector applications for privatization of other banks namely UBL and HBL were also invited but the binding response was quite poor. The privatization of these banks is under consideration. Legislation was in acted to permit the establishment of new banks and the government approved 10 applications from the private sector for the grant of commercial bank licenses by SBP, out of these new 9 banks have since been incorporated. Till March 1994 there were 20 domestic schedule banks with 9825 branches and 21 foreign banks with 66 branches in operation in the country. Over all investment of the schedule banks in the current year rose to 76.7% .At present there are 24 domestic scheduled with 8137 branches and 19 foreign banks with 71 branches are in operation in the country. Total assets of domestic scheduled banks amounting to Rs.1563.73 billion on 30th march 1996.Overall investment of the domestic scheduled banks in the current year declined by 80% over the same period last year. Bank of Commerce Al Habib Limited Soneri Bank Lmited Union bank Limited Mehran Bank Limited Askari Commercial Bank Limited

Introduction To Islamic Banking

Defination Islamic banking refers to a system of banking or banking activity which is consistent with Islamic law (Sharia) principles and guided by Islamic economics. In particular, Islamic law prohibits the collection of interest, also commonly called riba in Islamic discourse. One form of the argument against interest is that money is not a good and profit should be earned on goods and services only; not on control of money itself. Prohibition of Riba in Quran Al Baqarah 275 Those who devour Riba shall rise up before Allah like men whom Shaitan has demented by his touch; for they claim that trading is like usury. But Allah has permitted trading and forbidden usury. He that receives an admonition from his Rabb and mends his ways may keep what he has already earned; his faith is in the hand of Allah. But he that pays no heed shall be among the people of fire and shall remain in it forever.

Main Purpose of Islamic Banking


History of Islamic Banking in Pakistan 1947 The inception of Pakistan as the first Islamic Republic created in the name of Islam. While the world is now recognizing the significance of Islamic finance industry, in Pakistan, as early as in 1948, Mr. Muhammad Ali Jinnah emphasized the virtues of Islamic principles and in his address at the inauguration of the State Bank of Pakistan (SBP), said: . I shall watch with keenness the work of your Organization in evolving banking

practices compatible with Islamic ideas of social and economic life. We must work Our destiny in our own way and present to the world an economic system based on true Islamic concept of equality of manhood and social justice1.

1980 CII presents report on the elimination of Interest genuinely considered to be the first major comprehensive work in the world undertaken on Islamic banking and finance. 1985 Commercial banks transformed their nomenclature stating all Rupee saving accounts as interest-free. However, foreign currency deposits in Pakistan and foreign loans continued as before. Procedure adopted by banks in 1985 was declared unIslamic by the Federal Shariat Court (FSC). The Government and some banks/DFIs made appeals to the Shariat Appellate Bench (SAB) of the Supreme Court of Pakistan. 1997 The Shariat Appellate Bench of the Supreme Court of Pakistan rejects the appeals and directs all laws on interest banking to cease. The government sets up a high level commission, task forces and committees to institute and promote Islamic banking.




Dubai Islamic Bank Pakistan Limited ('DIBPL') will be the leading provider of world class banking the Islamic way by being the first choice of our customers and our employees.

Innovation, Talent and technology.

Trust Listening Innovation Social Responsibility Fun

Why Islamic Banking?

In the light of Allahs commands, it is obligatory on us to try to find and adopt the right banking system, one that follows the principles set by the Creator. Those who learn to differentiate between what has been allowed and what has been forbidden will be the ones with a clear conscience when they assemble in front of the Creator on the Day of Judgment. Allah has clearly ordained the prohibition of Riba in the Glorious Quran. Verses [2:278279] translate into: 278. O ye who believe! Fear Allah, and give up what remains of your demand for usury, if ye are Indeed believers. 279. If ye do not, take notice of war from Allah and His Messenger: but if ye repent, ye shall have your capital sums; Neither will you deal with others unjustly, nor shall you be dealt with unjustly. Beware! false interpretations of these verses has led many individuals to assume that the prohibition only relates to situations where the creditor is likely to charge exploitatively high rates of interest. It is wrong to see the above translation as proof that the (sole) objective served by the prohibition of Riba is the avoidance of injustice (in the sense of exploitation of the poor debtor by the rich creditor). In Islam, there is no room for Riba, marginal or otherwise. Riba gives birth to an economic system that is unjust; one that favors the rich at the expense of the poor. Rather than reward for effort and entrepreneurship with profit, the Riba based economic system rewards capitalists. Islamic Finance attempts to create a fair economic system. It works on the principle of profit and loss sharing. Riba (Interest) is strictly prohibited in all its forms and kinds.

Islamic banks enter into trade and investment to earn Halal profit as they neither take deposits/funds on interest nor do they advance loans on interest. They have to purchase and sell assets in order to make profit from the higher sale prices or enter into investment arena. The most common sale contracts used by Islamic banks are Murabaha, Salam, Istisna, sale on deferred payment basis while Ijara is the sale of the usufruct of an asset owned by the bank. For investment, the Islamic banks have Mudaraba, Musharaka and Wakala structures. Islamic banks have to strictly comply with the principles and rules of Sharia which prohibit outright any transaction involving alcohol, pork, gambling, etc. Further, the Islamic modes of finance and investment used by these banks must fulfill the basic conditions of these contracts to be considered Sharia compliant. An Example In an Islamic mortgage transaction, instead of lending money to the buyer, an Islamicbank buys the item from the seller, and sells it to the buyer at a profit with the sale price deferred and paid to the bank by the buyer/customer in installments. This mode of financing is called Murabaha. It is a Sharia requirement that the bank must purchase the asset and get the title/ownership, and hence the associated risks and potential benefits before selling it to the customer. In conventional financing, the bank does not assume ownership or the associated risk. In such a system, capital alone is used to produce more capital.


At DIBPL we have a full fledged Sharia Department that monitors every transaction the bank is involved in. All products, marketing material and campaigns are also certified by this department ensuring that nothing is in conflict with the guidelines of Sharia. Moreover Sharia Audit is conducted to ensure that none of the banks income is from transactions that were Sharia repugnant. If such a case is found, the income from the infringing transaction is removed from the banks profit and donated to charity!

Dubai Islamic Bank Global Thirty years ago, Dubai Islamic Bank ('DIB') created history by becoming the world's first Islamic Bank. Today, Islamic banking has become one of the fastest growing economic sectors with over 300 financial institutions, with assets estimated at over US $300 billion providing Islamic financial services. Despite huge growth in the sector DIB continues to be the industry pioneer and undisputed market leader to date. Since its inception, DIB has evolved from a retail bank to a fully fledged bank catering to almost all the requirements of its customers in providing Sharia-compliant solutions to major local and international companies. It has constantly upgraded its services to private individuals, who remain a highly valuable element of DIB's customer base. By combining the best traditional Islamic values with high-standard technology and innovation, DIB is committed to not only fully comply with the principles of Sharia in all its financial dealings but to also facilitate its customers who venture into the world of Islamic banking in such a befitting way that they would feel reaping the best rewards of both the worlds.

For its outstanding performance and contribution to Islamic financing, DIB received the Best Islamic Bank in the Middle East Award (2006) by both Euromoney's Islamic Finance Weekly and Gulf Wealth Forum. DIB has also been awarded the Bank of the year (UAE) at the 2006 Banker Awards. DIB has not only been at the forefront of innovation but has excelled every step of he way. With the launch of Al Islami Internet Banking, DIB has re-affirmed its commitment to promote and develop Islamic banking in line with the requirements of the modern age. For these efforts, DIB received the Golden Trophy at the UAE Web Awards in 2006. DIB is also the first to offer a mobile SMS messaging service in both Arabic and English. Moreover, DIB became the first bank in the Middle East to introduce Internet Protocol (IP) for its Visa card operations.

a)Sukuk Powerhouse of the World Sukuk is a hallmark of DIBs product innovation capabilities. The development of Sukuk (Islamic bonds) has earned DIB several awards including Banker Middle East Industry Award for Best Bank and Best Product Innovation (2006). DIB is honored to have successfully led to manage the world's first airline Sukuk for the Emirates Group. This seven year Sukuk Al Mushtaraka valued at US $550 managed to attract investors participation from Europe and the Far East. Based on its outstanding performance DIB has been awarded the largest Sukuk issue in the history of Islamic Banking world over for general funding and expansion needs of Dubai and Jebel Ali Ports. The US $2.8 billion issue is being lead-managed by DIB and is part of a large financing package being arranged at a time when the ports' operator is

bidding to become one of the worlds largest. The 2-year bullet tenor Sukuk is also the first convertible Sukuk ever to be issued. This deal earned DIB the Governor's Award for Most Innovative Product (Sukuk) at the Kuala Lumpur Islamic Finance Forum 2006. The Sukuk was also dubbed the Middle East Debt Capital Markets' Deal of the Year by Euro money International Financial Review. DIB has also co-managed Pakistan's first Sovereign Islamic Sukuk issue. This US $600 million received a tremendous response from the investors and consolidated the status of DIB as an Islamic Sukuk powerhouse. Dr Ashfaque Hasan Khan, Economic Advisor to the Ministry of Finance in Pakistan, has particularly acknowledged the bank's participation and significant contribution to the success of the transaction. The credit rating assigned to DIB by Standard and Poor's is 'A' long-term and 'A1' shortterm for the year 2006. The DIB has also been assigned an A1/Prime 1 ranking by Moody's. The DIB aims to maintain the same high standards set for product development in the coming years.

b) Ensuring Sharia Compliance To adhere to traditional Islamic values and ethics, the DIB relies on the expertise of scholars of high repute with extensive experience in law, economics and banking systems.

The members of DIB's Fatwa & Sharia Supervision Board specialize in law and finance as prescribed by Islamic code. The Board is appointed by the DIB's General Assembly and ranks above the Board of Directors. The DIB's board supervises the development and creation of innovative Sharia-compliant investment and financing products and services to ensure that all the transactions are free from riba (interest) and all other Sharia repugnancies. Thorough professionalism and a stringent compliance to rules have made DIB the pioneering organization to practice Islamic finance in its true letter and spirit. DIB also contributes to Islamic Banking and Finance seminars, conferences, exhibitions, workshops and studies such as those on Islamic Retail Banking to disseminate information and educate the masses on Islamic banking.

c) More Than a Bank DIB takes pride in its efforts to expand the scope of Islamic funding by focusing on financing capital intensive sectors such as power, airlines, transportation, telecommunication, and real estate through common Ijara (leasing) facilities at both the local and regional levels. DIB has been financing landmark properties across the UAE such as the Jumeirah Beach Residence and the Dubai International Airport. Deyaar, a 100% subsidiary and real estate arm of DIB, is the largest and most successful real estate company headquartered in Dubai. Deyaar acquires, develops, rents and manages real estate throughout the GCC. Working with both large and small investors, Deyaar takes pride in building homes and not houses.Tamweel, another flagship subsidiary of DIB, is the leading home finance service provider in the UAE. It is the only UAE based company offering Islamic home financing.

Dubai Islamic Bank Pakistan Limited

The State Bank of Pakistan (SBP) awarded to Dubai Islamic Bank Pakistan Limited (DIBPL), the license for the establishment of its operations in Pakistan on Saturday, November 26, 2005. Since then, DIBPL has undertaken major initiatives to expand its branch network across the country. Under its consumer banking division, the bank is offering state-of-the-art Sharia compliant products that effectively compete with those being offered in the market by conventional banks. This is not the Banks only strength though. It also has expertise in providing Retail, Private, Small and Medium Enterprises, Corporate, Investment Banking and Advisory services. The Bank has launched Pakistan's first Islamic Visa Debit Card and introduced financial products covering Home Financing, Auto Financing, and Depository products. DIBPL has also introduced Priority Banking and Internet Banking, both of which are being recognized as benchmark products in their respective categories. Besides regular banking services, the Bank is committed to bringing foreign investment to the country. DIBPL's corporate wing has actively pursued foreign investors and convinced world renowned giants from the GCC to be part of Pakistan's economy. DIBPL is a Public Limited company. Its total worth is Rs. 5.1 billion which will gradually increase to Rs. 6 billion. DIBPL is 100% owned by Dubai Islamic Bank PJSC (Public Joint Stock Company) and its nominated shareholders. The parent company is a listed company in Dubai.


Dubai Islamic Bank named Best Islamic Bank at Banker Middle East Awards Bank wins award for fourth consecutive year DIB chosen from among hundreds of financial institutions after fierce competition Dubai, June 22, 2008: Dubai Islamic Bank (DIB) has won the Best Islamic Bank Award at this years Banker Middle East Awards. This is the fourth consecutive year that DIB has won the award. DIB was chosen after fierce competition from a list of many of the largest and most famous global financial institutions at a gala ceremony organized by Banker Middle East Magazine. The event took place on June 17 2008 at Emirates Towers in Dubai. Khaled Kamda, Chief Executive Officer of DIB and Managing Director of the DIB Group, accepted the award on behalf of the banks management. Upon receiving the award Kamda remarked: This award is a reflection of our status as the pre-eminent Islamic financial institution in the region. Since our inception in 1975, we have made every effort to not only remain at the forefront of innovation within the Islamic banking industry, but to be a pioneer in the field. As the worlds first bank to have incorporated Islamic principles in all our practices, it is natural that we are seen as a leader in Islamic finance. He added: Winning this award would not have been possible without the professionalism and dedication of our management and staff. As the markets of this region grow ever more sophisticated and demanding, it is reassuring that our team at DIB remains ready to take on every new challenge that comes our way. Financial institutions of any size that operate in the Middle East are eligible for nomination at the Banker Middle East Awards. Winners are selected by a panel of experts based in the region who work in the finance industry and are leaders in their fields.

$35 Million Musharaka Facility for OPII

The signing ceremony of the appointment of DIBPL as the lead arranger by Orient Petroleum International, Inc. (OPII) for its $35 million syndicated Musharaka facility was held on Friday, May 25, 2007 in Islamabad. Speaking at the ceremony, Sadruddin Hashwani, Chairman Hashoo Group of Companies said, This is the first ever Salam based facility for any oil and gas exploration company in the world, thus creating a benchmark for future transactions internationally particularly in the commodities sector. Hashwani also appreciated the role of DIBPL in structuring, arranging and executing this Sharia compliant foreign currency off-shore facility for OPII adding, Despite being a relatively new entrant in the Pakistani market, DIBPL has been successful in syndicating this facility through other prominent local banks. By introducing an innovative Musharaka cum Salam structure for oil exploration and preparation of Sharia compliant documentation for such a composite structure, DIBPL has not only proven its world class Sharia expertise but has also demonstrated its commitment to innovation and promotion of new modes of investment and development of Pakistans economy. Saad Zaman, CEO DIBPL at the time, thanked OPII for their trust and support. The Bank has been associated with various notable transactions including the Rs.4.2 billion Sukuk issue for Karachi Shipyard and Engineering Works and the Rs.8 billion Sukuk issue for WAPDA and is honored to be a part of this land-mark, first-of-its-kind transaction. Other Musharaka partners in this facility include United Bank Limited (Co-arranger), Habib Bank Limited and Muslim Commercial Bank Limited. The Bank of Punjab also played a vital role in this transaction.

DIBPL closes 2007 at PKR 16.1 billion deposits

DIBPL closed 2007 with year end deposits of 16.1 billion. These have taken only 1.9 years of operation and account for an unprecedented growth of 273% in a very competitive market in 2007. Dubai Islamic Bank Pakistan Limiteds total assets reach Rs 21bn a growth of 152% in 2007 Karachi, January 23 2008: DIBPL is one of the fastest growing banks in Pakistan, recording an incremental growth of 152 percent in its total asset base which stands at PKR 21 billion as of Dec 2007. Elaborating on the Banks achievements at a press conference, M A Mannan, DIBPL shared that in a short span of two years since the Bank commenced operations in Pakistan, DIBPLs customer base has grown by 228% to approximately 21,000 customers in 2007, up from 6,400 in the year 2006. For the same period, the Banks deposit base has grown by 273% to Rs 16.1 billion in 2007. The share capital of DIBPL stands at Rs 5 billion. According to Mannan, During the Year 2007 DIBPL has remained actively abreast of the industry by offering a number of world class products and services in corporate and consumer banking. Of the products introduced last year, DIB Auto Finance, registered a volume of Rs. 2.9 billion within 9 months of its launch. In a market where cut throat competition persists, this reflects a great success for the Bank. On the corporate side, DIBPL is at the forefront of product innovation and development. During the year 2006 07, the Bank arranged Sukuks worth PKR 24 billion, which is 41% of the total domestic Sukuk issuances. DIBPL has played the role of lead arranger for most of the issuances it has been associated with. DIBPL also successfully launched SME business which has a portfolio of Rs. 1.5 billion plus.

DIBPL commenced operations in Pakistan in March 2006. DIBPL has seventeen branches in nine major cities Karachi, Lahore, Rawalpindi, Islamabad, Faisalabad, Gujrat and Peshawar. DIBPL is a wholly owned subsidiary of the Dubai Islamic Group headquartered in UAE. The Group has maintained its status quo as the undisputed market leader in Islamic

Financing since its inception in 1975. Dubai Islamic Bank also has the honorable distinction of being the first Islamic bank in the world. Similarly, the unique Home Finance facility, offered by DIBPL garnered an equally overwhelming response. Within the first three months, DIB Home Finance was the industry leader in the entire banking industry by far achieving a milestone of the fastest billion mark. DIB Home Finance maintained its market leadership throughout the year 2007 and in only 12 months time DIB Home Finance registered a volume of Rs. 2.6 billion, which is the fastest growth rate in the entire industry. Mannan attributed the overwhelming market response to distinctively unique product design and features. The success of the Bank is not limited to the mortgage front but also resonates in other services offered by DIBPL. Aside from providing regular banking services, DIBPL has been very active in attracting foreign direct investment in and from Pakistan. Sharing DIBPLs vision for 2008, Mannan said, We see the year 2008 as bright years which will InshaAllah take us to the next level of success in terms of growth. Our major ambition is to take continue our growth trajectory and take Islamic products more customers in Pakistan. DIBPLs A rating reaffirmed

JCR VIS has reaffirmed DIBPLs credit rating of A (single A) and short term rating of A-2 (A Two) for the year 2007. The outlook on the organization has been maintained as stable.


DIBPL offers a variety of depository account types. Meticulously designed, these accounts give you the optimal blend of liquidity and profit making potential. And of course, service and convenience are DIBPLs hallmarks. Remember, you have round the clock access to all your accounts at DIBPL through: Our countrywide, ever growing, network of ATMs. The Dubai Islamic 24/7 Phone Banking Service. The Dubai Islamic Internet Banking Service.

Also, all our branches are online, meaning you can access your account through any DIBPL branch in the country! Historical Profits Dispersed Product Aug-2006 Sep-2006 Oct-2006 Nov-2006 Dec-2006

Jan-2007 Saving - Regular Less than Rs 25k Over Rs. 25k up to Rs. 99.99k Greater than Rs.100k 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2.18% 2.20% 2.22% 2.35% 2.29% 2.50% 2.45% 2.35% 2.49% 2.64% 2.60% 2.78%

Saving - Plus Less than Rs 1 mln Rs. 1 million to Rs. 4.99 mln Rs. 5 million to Rs. 9.99 mln Rs. 10 million to Rs. 24.99 mln Rs. 25 million to Rs. 49.99 mln Rs 50 million to Rs. 99.99 mln Rs. 100 million and above Term Deposits - Maturity 1 Month - Rs.100k to Rs.9.99 mln 6.23% 6.25% 6.30% 6.15% 6.10% 7.00% 7.25% 8.00% 9.00% 8.50% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 3.65% 3.60% 3.55% 3.25% 3.27% 3.29% 4.05% 4.00% 3.95% 3.50% 3.50% 3.48% 5.05% 5.00% 4.95% 4.75% 4.73% 4.72% 6.00% 5.75% 5.72% 5.75% 7.25% 7.30% 7.25% 8.50% 6.52% 6.75% 6.50% 6.50% 0.00% 0.00% 7.05% -

1 Month - Rs.10mln to Rs.49.99 mln 1 Month - Rs. 50 mln to Rs. 99.99 mln 1 Month -greater than Rs. 100 mln 3 Month - Rs.100k to Rs.9.99 mln -

6.54% 6.55% 6.60% 6.35% 6.33% 7.33%

3 Month - Rs.10mln to Rs.49.99 mln 3 Month - Rs. 50 mln to Rs. 99.99 mln 3 Month -greater than Rs. 100 mln 6 Month - Rs.100k to Rs.9.99 mln -

6.79% 6.80% 6.85% 6.55% 6.57% 7.57%

6 Month - Rs.10mln to Rs.49.99 mln 6 Month - Rs. 50 mln to Rs. 99.99 mln 6 Month -greater than Rs. 100 mln 1 Year 2 Years 3 Years 5 Years -

7.05% 7.10% 7.15% 7.20% 7.25% 8.25% 8.00% 8.10% 8.15% 8.25% 8.27% 9.27% 9.00% 9.10% 9.15% 9.25% 9.30% 10.30% 10.00% 10.10% 10.15% 10.15% 10.15% 11.15%

Term Deposits - Quarterly 1 Year 2 Years 3 Years 5 Years 6.29% 6.30% 6.35% 6.40% 6.43% 7.40% 6.80% 6.85% 6.90% 0.00% 0.00% 7.90% 8.05% 8.10% 8.15% 8.10% 8.12% 9.10% 9.05% 9.10% 9.15% 9.20% 9.25% 10.25%

Term Deposits - Monthly 1 Year 2 Years 3 Years 5 Years 6.05% 6.10% 6.15% 6.10% 6.15% 7.15% 6.54% 6.55% 6.60% 6.75% 0.00% 7.75% 7.59% 7.60% 7.65% 7.75% 7.75% 8.75% 8.35% 8.40% 8.45% 8.50% 8.53% 9.50%

Foreign Currency Deposits Current Saving 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 1.35% 1.26% 1.37% 1.45% 1.42% 1.45%

Note: Rates are declared on a monthly basis 24/7 Dubai Islamic Phone Banking Service: 111-786-DIB

Current Account
Fatwa Based on the Wadiah contract, the Current Account offers users safe keeping of their cash deposits. Through the Wadiah contract, the depositor permits Dubai Islamic Bank to invest his money in Sharia compliant investments. The cash standing to the credit of the Current Account is neither entitled to investment profit nor does it bear any risk. The Current Account is offered in the following currencies: Pak Rupees US Dollar UK Pound EURO Japanese Yen

The Current Account can be opened with as low as PKR 10,000. In case of Foreign Currency Account, the Bank shall determine The minimum level from time to time. Features of the Current Account No profit or loss sharing. No restrictions on withdrawal (subject to sufficient credit balance, and the regulatory restrictions applicable to Foreign Currency Account) No minimum balance restriction. Standing instructions option for payment of bills (utilities) and other periodical payments. Six monthly FREE account statements.

Entitlement to ATM/ VISA Debit Card Facilities. Internet Banking Facility available. 24/7 Call Center with complete tele-banking services. Account accessible through all Dubai Islamic branches.

How to Apply O Application Form b

Saving Accounts
Fatwa More flexible. More convenient. More innovative. The Dubai Islamic Saving Account is truly all you'll ever need. It is an all-in-one account designed to meet all your financial needs. Round the clock, convenient access to your funds, Halal profits and World Class service! By investing in the Dubai Islamic Saving Account you authorize the Bank (Investment Manager) to invest your funds On the basis of unrestricted Mudaraba contract according to the principles of Islamic Sharia. Profits earned or losses Incurred are shared on the basis of invested amounts. The Saving Account is offered: Pak Rupees US Dollar UK Pound EURO Japanese Yen

The Saving Account can be opened with as low as PKR 25,000. In case of Foreign Currency Account, the Bank shall determine the minimum level from time to time. The Saving Account entitles its Holder to a share of the Mudarba pools profit as long as its deposits remain above the Minimum balance requirements for the account. Features There are three deposit tiers for this account: Up to Rs.25, 000. Rs.25K to Rs.100, 000. Greater than Rs.100, 000. For expected profit rates click here. Monthly profit sharing on Mudaraba basis. Unlimited number of withdrawals. No minimum balance restriction, but the balance shall not participate in the profit if deposit falls below Rs.25, 000. Standing instructions option for payment of bills (utilities) and other periodical payments. Six monthly FREE account statements. Entitlement to ATM/ VISA Debit Card Facilities. Internet Banking Facility available. 24/7 Call Center with complete tele-banking services. Account accessible through all Dubai Islamic branches.

How to Apply Application Form

Saving Plus Accounts

Fatwa DIBPL gives you the means to Save and Spend The Islamic Way. Benefit from easy access to your saving, watch as your funds earn you healthy profits & enjoy complete peace of mind that comes from knowing that every Paisa earned is 100% Halal. It is a special saving account which allows customers to earn higher profit on higher balances. Saving Plus is the ideal avenue for investment for Small and Medium Enterprises, Institutions & individuals that have high liquidity. The Saving Plus Account will only be offered in Pak Rupees. Features Profits will be calculated on the average balance of each month. Profit will be paid on monthly basis. Profit earning potential increases as the Account Holders balance rises. The higher the Saving Plus deposit tier, the higher is the expected profit rate. Following are the Saving Plus tiers (subject to change based on market dynamics). Rs. 1 million to Rs. 4.99 mln Rs. 5 million to Rs. 9.99 mln Rs. 10 million to Rs. 24.99 mln Rs. 25 million to Rs. 49.99 mln Rs. 50 million to Rs. 99.99 mln Greater than Rs. 100 mln

No restriction on deposits and withdrawals (Note Rs. 1,000,000 needed to share monthly profits). Standing instructions options for payment of bills (utilities) and other periodical payments. Six monthly FREE account statement. Entitlement to ATM/ VISA Debit Card Facilities. Internet Banking Facility available. Account opening possible with a minimum of Rs.1 million. 24/7 Call Center with complete tele-banking services. Account accessible through all Dubai Islamic branches.

How To Apply o Application Form

Term Deposits Accounts

Fatwa Looking for investments with an excellent mix of short and long term goals? One that offers the potential to earn high returns the Islamic way? Well, look no further, our Dubai Islamic Term Deposit products are the wise financial decision you need to make. By investing in the Dubai Islamic Term Deposit Account the Account Holder (fund provider) authorizes the Bank (Investment Manager) to invest his funds on the basis of unrestricted Mudaraba contract under the principles of Islamic Sharia. The Bank invests these deposits in its common pool with other deposits and the shareholders equity. The net profit on the common pool is distributed amongst the shareholders and depositors,

taking into consideration the tenor, amount of the deposit and profit payment frequency for the account. Account Holders have the option of investing their funds in: Pak Rupees US Dollar UK Pound EURO Japanese Yen

The following table lists the various investment options available to the customer: Tenor & Profit Payout Tenors Monthly profit payment 1 Month 3 Month 6 Month 1 year Available 2 years Available 3 years Available 5 years Available Quarterly profit payment NA NA NA NA NA NA Available Available Available Available Available Available Available Profit at maturity

Available Available Available Available

Features Investment portfolio can be viewed over the internet using DIBPLs online banking service. Minimum investment amount as low as Pak Rs.100, 000/-. Available in tenors of 1 , 3 , 6 months or 1 , 2 , 3 , 5 years.

Profit can be distributed monthly or quarterly or semi-annually, annually or at maturity. Pre-mature withdrawal options shall be at the discretion of the Bank. Incase of such a premature. encashment, profit allocation would be made based on the expected profit rates of the lowest tier on the term deposit category.

Certificates can be encashed at maturity from any branch of DIBPL across Pakistan. 24/7 Call Center with complete Tele-banking services. Profit sharing on Mudaraba basis within the Common Mudaraba Pool with weightage points allocated on the basis of tenor, amount limit and profit payment frequency.

Account Holder bears loss in proportion to its investment in the Mudaraba Pool. Account Holder can give standing instruction for re-investment or roll-over of investment for the next applicable period.* Six monthly FREE account statement. Statement of Account Holders deposits can be viewed over the internet as well. Internet Banking Facility such as resetting roll-over instructions.

How To Apply o Application Form

UMRA Investment
Fatwa Introducing the revolutionary Umra Investment Account, a gift for those who embrace the world of Islamic Banking! Open an Umra Investment account today and receive a fully paid Umra trip as a gift on day one.

First class accommodation and fully arranged transport will make your 5 day trip, one to remember. Remember, DIBPL looks after everything, including travel visa. And of course, your investments earn you profits all the time. The Umra Investment Account will only be offered in Pak Rupees. The following table lists the various investment options available to the customer: Amount Rs. 200,000 Rs. 400,000 Rs. 500,000 Rs. 1,000,000 Tenor (In Years) 5 3 2 1

Features Investment portfolio can be viewed over the Internet using DIBPLs online banking service. There is no Pre-mature withdrawal option. Certificates can be encashed at maturity from any branch of DIBPL across Pakistan. 24/7 Call Center with complete Tele-banking services. Perfectly acceptable as Collateral for other Banking Facilities. Profit sharing on Mudaraba basis. Account Holder bears loss in proportion to its investment in the Mudaraba Pool. Six monthly FREE account statements. Internet Banking Facility such as resetting roll-over instructions.

How To Apply o Application Form

DIBPL is pleased to offer locker services to its customers. Our customers can lease a locker for the safekeeping of their Valuables for complete peace of mind. For further information, customers are requested to contact us at 111-786-DIB (342). Sizes The following Locker sizes are being offered at DIBPL: Size Dimensions (Height x Width x Depth)

Small 8 inches x 7 inches x 20 inches Medium 8 inches x 15 inches x 20 inches Large 15 inches x 15 inches x 20 inches Cost Customers are required to pay a security deposit of Rs. 2,000 at the time of locker issuance. This security deposit is refundable once the customer discontinues the service. The yearly rentals with respect to the size of the lockers are as follows: Size Small Medium Large Rental (Per Year) Rs. 2,500 Rs. 3,500 Rs. 5,000

Timings You can access your lockers during our banking hours: Days Monday to Thursday Friday Saturday Locker Insurance All lockers at DIBPL are insured as follows: Size Limit Per Locker Timings 9:00am to 5:00pm 9:00am -12:30 pm, 3:00pm till 5:00pm 9:00 am to 1:30pm

Small Rs. 500,000 Medium Rs. 1,000,000 Large Rs. 1,500,000 Who is Eligible Lockers will only be provided to account holders of DIBPL. Locker will be available to individual account holders only and will not be available for companies whether public or private, sole proprietorship, trusts, clubs and other organizations. The locker customer should meet the minimum average balance requirement of Rs. 250,000 or above in his/her Account for acquiring a locker. No locker will be leased to a customer maintaining an average account balance ofLess than Rs. 250,000. A maximum of 4 people will be allowed to operate the locker; one of these operators must be an account

Holder. However, anyone can operate the locker independently. Minors would not be allowed to co-operate the locker. Locker lease facility will be made available on first come first served basis. Preference would be given to those account holders who maintain an account with the locker branch. However DIBPL Ltd would make every effort to accommodate all customers regardless of their home branch.


VISA DEBIT CARD Introducing The First Islamic Visa Debit Card in Pakistan Globally Accepted Shari'a Complaint Card Open an account with us and get your Visa Debit Card to start enjoying the following benefits!

Global Acceptance The DIBPL Visa Debit Card is linked with the global Visa network allowing you to access your account from over 24 million merchants and one million ATMs around the globe. You also have the flexibility of using this card at all 1Link and MNET ATMs in Pakistan giving you instant access to your bank account any time of the day or night.

Convenience Using your Visa Debit Card is quicker than visiting a bank, safer than carrying cash and easier than writing cheques. With your card, you have your bank account in your pocket. Unlimited number of Supplementary Cards You can have an unlimited number of Supplementary Cards issued against Visa Debit Card and have the freedom of giving supplementary cards to as many people as you wish. Your daily account and transaction limits will be shared between all cards that have been issued against your bank account. ATM Cash Withdrawal Your Visa Debit Card allows you to withdraw up to Rs. 50,000 per day at any ATM across Pakistan. You can also withdraw the equivalent amount in foreign currency at an international ATM wherever the PLUS sign is displayed. Funds Transfer across Accounts You can use your Visa Debit Card to transfer funds across accounts. You daily limit for this transaction is set at Rs. 300,000. Balance Inquiry Your Visa Debit Card can be used to check your account balances an unlimited number of times at any ATM in Pakistan or at over 1 million ATMs around the world!

Mini Statement You can check your account balance through a mini statement at DIBPL ATMs. This will give you details of the last 5 transactions carried out on your card. Global Customer Assistance Services DIBPL Visa Debit Card users can receive global assistance 24 hours a day, 7 days a week from VISA Global Customer Assistance Services (GCAS) while traveling overseas. This service can be used for lost/stolen card reporting or any other urgent queries. Please click here to see an updated list of GCAS numbers. Zero Loss Liability If your card is lost/stolen, immediately call us at Dubai Islamic Phone Banking on 111786-DIB (342) to report the loss/theft. Once you have reported the lost/theft to the bank, we will bear the financial liability for any transactions conducted on your card after your call. HOME FINANCE Dubai Islamic Home Finance is the key to your dream home and we are eager to put this key in your hands. Using the Musharaka cum Ijara model, the Bank enters into a partnership with you and helps you in fulfilling your dream of owning a home quickly, conveniently and in a fully Shariah compliant manner. Whether you want to buy, renovate or simply transform your present home finance of any other bank, DIBPLs would be the best Shariah compliant alternative. Currently Dubai Islamic Home Finance is offering three product variants:

Home Purchase. Purchase of undivided share (Home Renovation). Purchase of undivided share of property at other bank (Balance Transfer).

Fatwa Download Fatwa Features There are so many reasons that make Dubai Islamic Home Finance the right choice! 100% Shariah Compliance Minimum Financing amount of Rs. 0.5 million. Maximum Financing of up to Rs. 50 million. Fastest processing time Affordable monthly payment amount Financing of up to 80% of your property value Finance Enhancement option as per the applicable terms. Early & Partial settlement options as per the applicable terms Eligibility Customer Eligibility Criteria (Pakistani Residents) Pakistani National. Age 25-65. Minimum monthly net income of Rs.15,000. Self-employed Businessmen/Professionals or Salaried individuals. Property Eligibility Criteria

The qualifying property must be located in Cities (Karachi, Lahore, Islamabad, Rawalpindi and Faisalabad) of Pakistan. The minimum value of the property must be greater than Rs.800,000. Customer Eligibility Criteria (Overseas Pakistani - UAE only) Pakistani National residing in UAE. Age 25-65. Minimum monthly net income of AED.25, 000/-. Self-employed Businessmen/Professionals or Salaried individuals. Property Eligibility Criteria The qualifying property must be located in Cities (Karachi, Lahore, Islamabad, Rawalpindi and Faisalabad) of Pakistan. The minimum value of the property must be greater than Rs.1, 250,000/-. Documents Required Copy of primary applicants CNIC. Copy of Co-partners CNIC, if necessary. 2 Passport Size Photographs. Tax Returns. Copy of Utility Bill. Professional Degree (for self employed professionals only). Salary Certificate/Proof of Profession. Latest Salary Slip. Bank statement of the last 12 months & Bank Certificate.

Financing Details Financing Required Please Enter Finance Required Property Takaful Yes No Financing Tenor 3 Years 4 Years 5 Years 6 Years 7 Years 8 Years 9 Years 10 Years 11 Years 12 Years 13 Years 14 Years 15 Years 16 Years 17 Years 18 Years 19 Years 20 Years Product Bank Segment Salaried Self Employed Businessman Self Employed Professional Home Purchase Home Renovation Purchase of Property Mortgaged at other

AUTO FINANCE A world class auto finance facility that enables you to get a car quickly, conveniently and in full Sharia compliant manner. Using musharaka model to finance your car, steer yourself towards peace of mind and fulfillment. WHAT MAKES DUBAI ISLAMIC AUTO FINANCES THE BEST CHOICE Free tracker unit installed on banks expense by the top tracking companies in Pakistan Free of cost monitoring charges on banks expense No payment before delivery of car in advance booking Above all, our offer is 100% Sharia compliant Lower insurance rate Affordable and competitive monthly rent

Financing up to 90% of the car value Customer Eligibility Criteria (Pakistani Residents) Pakistani National. Age 25-65. Minimum monthly net income of Rs.15, 000. Self-employed Businessmen/Professionals or Salaried individuals Documents Required Copy of primary applicants CNIC. Copy of Co-partners CNIC, if necessary. 2 Passport Size Photographs. Tax Returns. Copy of Utility Bill. Professional Degree (for self employed professionals only). Salary Certificate/Proof of Profession

CORPORATE BANKING The world of finance belongs to those who shape it. DIB has taken a leading role in shaping the dramatic transformation that UAE has experienced in the last two decades. Now, with the same vigor, the Bank comes to assist businesses in Pakistan. DIBPL provides a wide range of services specifically designed to assist Pakistani businesses. You can benefit from our:

Cash Management Services Trade Related Services Investment Banking Services Services for Small and Medium sized Enterprises Our ever expanding network of correspondent banks allows your company to utilize our arrangement with numerous local and foreign commercial banks in meeting your collections and payments requirements. Cash Management DIBPL Cash Management offers comprehensive end-to-end Sharia compliant solutions to meet your cash flow requirements. With our help, you can reduce turn around times for your accounts receivables, better manage your payables, and benefit from our valueadding MIS reports. GL reconciliation would have never been easier for you PRIORITY BANKING We welcome you to our Dubai Lounge Priority Banking, where a world of luxury, convenience and financial innovation awaits you. Here bring you an array of specialized products & services to fulfill all your financial needs. Our special investment products and financial advisory service ensure that you are not left dissatisfied. Enjoy the pleasure of Priority Banking with 100% Sharia compliant banking facilities ACTIVITIES AS AN INTERN

Answering Balance Inquiries The major activity I used to perform in DIB is to facilitate the customer about inquiries relating to their account balance maintained at DIB. This includes answering to customers as well as telling balances on telephone.

PROCEDURE: The procedure of balance inquiries which i followed used to be like that Asking customers about account numbers of the account whose balance was needed. If the customer provided the account number then opening "balance inquiry" option from the software "inquiry menu. Then entering following details: BRANCH CODE The system displays the branch code by default. The field next to it displays the branch name automatically. ACCOUNT NUMBER Account number field is used to specify the account number to be inquired. FULL NAME Name of the customer asking for balance inquiry. ACCOUNT TYPE This displays the type of account being inquired. On pressing "action" option following balances is displayed and i used to tell about the balance they ask for. BALANCES

The field displays the same as found in account inquiry.


Display the amount available after the end of day.

If the customer is unable to tell the account number at that time then i used to ask them about their account title. 1. The opening "Account locator" from the "Account Menu". 2. Giving the name of account holder in "short name" tag and pressing "action. This will generate a list of account numbers either account titles that are similar to the provided one than asking the customer about the one that exactly matches its account title. 3. Before telling him the account number ,verify the customer by asking him some questions about the information that were given by the customer during opening of the account like his mother name or his mailing address. ISSUING STATEMENT OF ACCOUNTS Following procedure is followed, Account Statement Request form 1. Customer will be given the account statement request form to fill. 2. If the accountholder not himself come to collect the statement then copy of CNIC is needed to be attached with the request form. Procedure In The System To Be Followed For generating statement of account i used to give following details in the software: SELECT RANGE TYPE There are two options available either account type or account number wise statement can be generated. The system asks for range FROM TO UPTO and generates the temporary statements for all accounts in the specified range. DATE RANGE I had to fill the date range segment very carefully. Date range asks for FROM DATE and TO DATE and the statement is generated for period specified. Some times if client ask for a statement for a single day, i used to provide the same date in both fields.

REPORT OUTPUT MEDIUM PIBAS plus follows a certain standards for all sorts of report generation. The report generated can only be viewed in PIBAS report viewer and can be printed there. FILLING OUT DEPOSIT SLIPS The most frequent task I have performed there is to fill out the deposit slips for the customer on their request PROCEDURE For this purpose I use to fill following details The current date on which the slip is to be presented on the counter. The branch name of DIB here I specify PECO ROAD Writing the account title of the customer. title then finding it out from account locator Filling the account type. Whether current or saving. Indicating the currency type If there is a cash to deposit than ticking the cash on the slip otherwise tick the cheque. The amount in figure and words must be same. Than signing in by the depositor if customer is not been able to tell the exact

ACTIVITIES PERFORMED RELATED CHEQUE BOOKS DIB has maintained a separate draw for holding cheque books and cheque book register

HANDLING OUR CHEQUE BOOKS If any customer had already given new cheque book request and comes to collect the cheque book have to provide the customer his cheque book following these steps If the customer himself came to collect the cheque book than asking his account title and account number and matching the same with the cheque book register to see whether the cheque book has arrived or not . If the name was found in the register than searching the book from cheque book draw where these are categorized as saving or current Than take receiving from the customer both on cheque book register and acknowledge slip. If the customer had not come himself to collect the cheque book then making sure that the bearer has the signed authority to collect the cheque book on behalf the account holder.

ACTIVITIES PERFORMED IN OPERATIONS I used to work with the account opening officer and performed following Filling the account opening forms for individuals or entities Complete the documentation required for each category of account i.e. for individual accounts.busianess accounts, salaried person account, joint stock companies account etc. Checking the complete form and documents and if any discrepancy, solve it. Checking the following stamps on account opening form Signature admitted stamp on specimen signature card Signature admitted stamp on introducer detail portion and cheque book request portion Signature verified stamp on authorized signatories portion Bank stamp on the bank use portion of the form Getting the verisys from the system Getting the world check from the system

Scanning the complete form and than share it with the head office. Maintaining the files of dormant account activation, TDR placement forms, cheque book issuance file etc. Then I used to work with the remittance officer. I learn these activities there Inward and outward remittances How to prepare a pay order ,demand draft How to do the internal transfers Procedure of Telegraphic transfer through SWIFT Procedure of OBC(outward bill for collection) and FOBC (foreign outward bill for collection) Charges deduction on profits, cash withdrawals,ATM card production,cheque book issuance, account statement issuance etc FED(federal excise duty) on various transactions


DIB is one of the growing banks; its business is growing at a good rate. In the light of situation we can make analysis by using following factors:

Strengths Weakness Opportunities Threats

STRENGTHS Premier in Islamic banking. Fastest growing rate. DIB has strong financial position, as its owners are always willing to inject more equity in it. Bank has successfully launch new product with the passage of time. Increasing network of branches. Attractive & fully maintained branches. Use of modern technology gives more efficient results. Provide facilities to all types of customers like individuals, firms, companies, associations etc. Staff deals give importance to their customers and deal with them very well. Islamic environment of the branches.

WEAKNESSES Although DIB is a growing bank, yet it has some weaknesses like: Most of the people are unaware about the Islamic products. Lack of modern advertisement techniques. Give no job satisfaction so many employees resigned. High turnover of staff due to fewer benefits to the employees. Excessive load of work on employees Late sitting.

OPPORTUNITIES DIB can use effective marketing technology to make people aware of its product. DIB can introduce new products to satisfy their new customers. Islamic banking share is only 4% in the banking sector. It should try to capture more of the share as more of Pakistani nation has Islamic mind set.

THREATS Unstable political and economic condition of the country. More banks open their Islamic Branches in the country so great competition is there for DIB.


During my internship period with DIB I have learned a lot about banking system, observed deeply the functioning of the branch. In the light of these observances, I have following suggestions for the DIB. These recommendations base on many observations: RIBA FREE COMMERCIAL BANKING to be set up in all countries of the world, Muslims and non-Muslims. This will greatly facilitate international export import trade without the fear of being involved in any Riba dealing. The bank should do proper and effective advertisement, and enhance its public image, goodwill and attract more customers towards Islamic banking by doing efficient advertisement. Increase consumer banking and offer more and more products in it. DIB does not provide jobs security to the employees. Most are hired on contractual bases on the start. More people must be employed on permanent bases, providing job security and satisfaction. A research cell should continuously try to gather information about the present action of its competitors and their expected future actions. So in this way more effective strategies can be formulated. The performance reward linkages should be made strong as it said, A happy employee deliver more than he receive from organization. The DIB should also try to make its employees happier.


This internship program gave me an exposure of the real banking environment and its interaction with commercial sector. The valuable learning experience shows all internal and external of not only about the role of banking but also almost all other sectors of business or private enterprises The essence of the business philosophy of DIB is to cater to the banking requirements of the entire individual, SME, commercial and corporate, providing them qualitative & competitive services and Sharia compliant products.

In banking the Golden rule is generating profit through customer satisfaction by providing competitive Services & maintaining Balance between liquidity & profitability.


1. Income Ratio: Average Rate of lending = __Profit/Return earned_ x 100 Financing + Investments

2007 Profit / Return earned Financing + Investments Average rate of lending Interpretation: 152007 14322066 1.06%

2008 515636 17399148 2.96%

This ratio shows the profitability of the bank i.e., how much bank is earning on the money lent out and invested. There is a increase in this ratio from 2007 to 2008.This is mainly because of the increase in the profit/ return rate in the year 2008. The bank has also increased its financing and investment but according to the figures they have extended that money on higher rates. In 2008 bank increased its financing and investments in profitable securities but take cautious measure in extending finance so there is a huge increase in financing and investments and there is a much increase in profit/mark up which means that they give more finance to the good customers even on low rates.

2. Expense Ratio:

Avg Rate of borrowing =

Profit / Return expensed______ x 100

Deposits + Borrowing from financial inst

2007 Profit / Return expensed Deposits + borrowing from Financial institutions Average rate of borrowing 16114844 0.36% 58377

2008 233863 20691415 1.13%

Interpretation: This ratio shows the cost of money the bank pays to its depositors and to other financial institutions. This ratio is steadily increasing from 2007 to 2008. It is because the deposit has increased from 2007 to 2008 as the branch network has increased during that period so the return associated to that money has also increased. Another reason of this increase in return is, as discussed earlier, most of the bank deposits are term deposits and saving accounts.

3. Administrative expense ratio: = Administrative expense x 100 Total deposit



Administrative expense Total deposits Administrative expense ratio Interpretation:

281725 16114461 1.74%

431751 20191415 2.13%

This ratio tells us that how much bank is spending for administrative expenses in relation to the total deposits. There is a increase in this ratio from 2007 to 2008. As the bank has increasing its branch network from 2007 to 2008 so consequently there administrative expense has increased but also they have succeeded to get a huge amount of deposits from the public so there is not much changes in the ratio from 2007-2008.

4. Spread: = Avg cost of lending - (avg cost of borrowing + administrative expense cost)

2007 Avg cost of lending Avg cost of borrowing Administrative expense cost Spread Interpretation: 1.06% 0.36% 1.74% (1.04%)

2008 2.96% 1.13% 2.13% (0.3%)

Spread is actually the earning of the bank. This ratio tells on which percentage the bank is running its business. It is increasing from 2007 to 2008 showing a positive sign for the bank. It has not that much increased from 2007 to 2008 despite of the tremendous increase in deposits and financing.

5. Return on Asset (ROA):

Net profit/Loss___ x 100 Total assets 2007 2008

Net Loss Total assets Loss on Assets Interpretation:

120328 21308247 0.56%

121113 25818078 0.46%

This ratio tells us the return which the bank is earning in relation to the total assets. It is steadily increasing from 2007 to 2008 which shows a positive sign for the bank. Bank loss is decreasing from 0.56% to 0.46%.

6. Return on equity: = Net profit/loss___ x 100 Total equity 2007 Net loss Total equity Loss on equity 120328 4255339 2.76% 2008 121113 4234257 2.86%

Note: Equity = Share capital + Reserves + Un-appropriated profit

Interpretation: This ratio tells us that how much bank is earning in relation to is equity. The equity of the bank is decreasing over the last year and the net loss has increased so it is showing a negative trend. 7. Cash Reserve Ratio: = Cash + Balance with treasury x 100 Total deposits

2007 Cash & balance with treasury Total deposits Cash reserve ratio Interpretation: 1992425 16114464 12.36%

2008 2107766 20191415 10.43%

It is the requirement of Prudential Regulation for every bank to maintain 10-15% of the total deposit with treasury. As it is shown from the ratio calculated above bank is complying with the prudential regulation requirement.

8. Earning per share (EPS): = Net Income/loss______ No. of common shares

2007 Loss per share Interpretation: 0.31

2008 0.24

The EPS is a good measure of profitability. It gives a view of the comparative earnings or earning power of firm. The shareholder wants higher return on their investment. Here the loss per share has decreased from 0.31 in 2007 to 0.24 during the year 2008.loss is decreasing that is showing improvement. 9. Contingencies & commitments:

2007 Contingencies & Commitments Equity Of bank 10 times of bank equity 11012116 4355339 43553390

2008 16872343 4234257 42342570

Interpretation: According to the Prudential Regulations the contingencies and commitments should not exceed 10 times of the bank equity. According to the figures shown above the bank is complying with the prudential regulations

Description / Nature of the Job perform by the student

There is not particularly one job which I have performed in Dubai Islamic bank. There are many types of jobs done by me in the bank.. Following are the job which was performed by me during working there.

Account opening process

Opening of account Acknowledgment of cheque book Requisition of cheque book Dormant account. Stop payment .TDR redemption. Fixed deposit .vouchers of placement form with report .voucher of cheque book. ATM afterward request. Making set of accounts forms individuals & entities.
Closing of account Cheque Book Issuance


Cash department
Cash Deposits

Payment of cheques Filing of Cash Related Reports Sorting Report Cash Opening Report Reporting to head office Fresh Cash Reporting Daily Cash Average Teller Box MIS Report Cash Closing Report Daily journal ATM Reporting Supervision of ATM machine Atm audit roll signing with report

Clearing: Inward out ward clearing. Record in register

IT Department .world check, verysis, foreign currency rates setting on board. Scanning of accounts and put them into share drives for Karachi . Solve descripiencies.atm.photo copy documents

Customer Relation Officer

Greetings One of the good jobs which was preformed by me was the customer relation officer in which we have to deal with the customers face to face this give me a lot of confidence and courage to interact with people. As in other hand it gave me the ultimate achievement to over come by fears of communication.

Ticket summary report

Important Ideas? skill learn

Before going to Dubai Islamic bank I dont have any kind of knowledge of how a bank operate in these things and dont know the long process of opening of accounts, clearing and minor things which are observed and need full attention necessarily for cash department its so much sensitive work. How to deal with customers. How to solve their problems. Provide them good service