Total amount of profit, rate of return (percent per annum) and month-wise profit calculated on the basis of Sanction Advice shall be recorded in the columns earmarked for the purpose on the top right hand corner of Investment Ledger. G) Profit Receivable A/c Total amount of profit on every deal as per Sanction Advice/Agreement (sale price-cost) shall be debited to the respective Investment Account immediately after delivery of the goods to the client and shall be credited to the “Profit Receivable Account”. On the last working day of each month, amount of profit receivable up to the end of the month shall be debited to “Profit Receivable Account” and credited to “Investment Income Account”. For this purpose, the Branch shall prepare a Working Sheet on the following proforma-Ledger-wise. OPERATIONAL PROCEDURE IN FIRST SECURITY ISLAMI BANK LTD. STEP 1: INDUCTION OF CLIENT The Branch manager and officers concerned should search for and if found shall cordially receive the potential investment client and explain to him the various aspects of investment under Islamic Shariah principles. i)
The Branch shall exchange views about the business of the prospective client and assess his capability, experience, business needs etc.
The branch shall explain to the client the detail procedure of BaiMurabaha mode of investment and the terms and conditions under which the bank makes such investments.
On completion of the assessment of client’s capability, business experience, commitment and his business needs, if everything is found satisfactory, the branch shall request the client to open an Al-Wadiah current A/c and to operate the same satisfactorily at least for six months.
If not found satisfactory, the branch shall regret him politely.
On being satisfied with performance of the client, if the branch thinks it wise, will request him to submit a formal application for Murabaha investment and provide him with an application form.
STEP-2: APPLICATION a. If the Investment proposal falls within the discretionary power of the Branch, they shall obtain only one copy of Application duly filled in and signed by the client. (For new client and renewal cases, Application shall be obtained and for Deal Application shall be obtained. b. Head Office Controlled Branches shall obtain Application from the client in Duplicate (One copy for Branch record and the other to be sent to Head Office along with the Proposal duly recommended by the branch).
Published on Mar 10, 2013