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To: Prof. Haidar Mahmood

SUBMITTED BY: Adnan Durrani

FORMATION:DAWOOD HABIB GROUP, which is the sponsor of Bank AL Habib Limited, has a very long track record of banking which dates back to 1920s. They were among the founder members of Habib Bank Limited which played a major role in meeting the financial and banking needs of Pakistan, and which was nationalized along with other Banks in Pakistan on December 31, 1973.

Under the privatization policy of Government of Pakistan, the DAWOOD HABIB GROUP was granted permission to set up a commercial bank. Bank AL Habib was incorporated as a Public Limited Company in October 1991 and started banking operations in 1992.

(Late) Hamid D. Habib, grandson of the founder of Habib Group, was the Chairman of Bank AL Habib Limited. He was the Director in Habib Bank Limited form 1954 and it's Chairman from 1971 until nationalization. After the death of Mr. Hamid D. Habib in May 2000, Mr. Ali Raza D. Habib, who was Director on the Board, was appointed the Chairman of the Bank.

(Late) Rashid D. Habib, who was the Managing Director of Habib Bank Limited in 1953 till its nationalization, was appointed as the Managing Director & Chief Executive of Bank AL Habib Limited which post he held till he expired in 1994. After his death, Mr. Abbas D. Habib who was the Joint Managing Director and closely associated with the bank since it's inception 1991 was appointed as the Managing Director & Chief Executive of the Bank.

To be a quality financial service provider maintaining the highest standards in banking practices.

To be a strong and stable financial institution offering innovative products and services while contributing towards the National economic and social development.

The Board of Directors of the Bank comprises of the following: Board of Ali Raza D. Habib Chairman Directors Abbas D. Habib Chief Executive & Managing Director Anwar Haji Karim Faiz N. Abdulali Hasnain A. Habib Imtiaz Alam Hanfi Murtaza H. Habib Qumail R. Habib Executive Director Syed Mazhar Abbas Tariq Iqbal Khan Audit Faiz N. Abdulali Chairman Committee Ali Raza D. Habib Member Anwar Haji Karim Member Syed Mazhar Abbas Member

Secretary Mahmood S. Allarakhia Statutory Taseer Hadi Khalid & Co. Auditors Chartered Accountants Legal Liaquat Merchant Associates Advisor Advocates and Corporate Legal Consultants Registered 126-C, Old Bahawalpur Road, Office Multan Principal 2nd Floor, Mackinnons Building, Office I.I. Chundrigar Road, Karachi Share Registrar M/s. Gangjees Registrar Services (Pvt) Ltd. 516, Clifton Centre, Khayaban-e-Roomi, Block - 5, Clifton, Karachi-75600. Website

AL HABIB BRANCHES:The Bank's Head Office is situated in the city of Multan in Punjab, but its main Principal Office is located in Karachi since it is the hub of business activities in Pakistan. Presently, the Bank has a network of Two Hundred And Seventy branches in all the major cities of Pakistan and abroad fully automated and computerized and providing wide range of banking services PRODUCT AND SERVICES: Bank AL Habib Limited offers a wide variety of products and services to its valuable customers. Over the period of time, these products are introduced to provide the best market services to the customers. Services:

ONLINE BANKING: Bank AL Habib offers Online Banking Facility to its account holders at branches all over Pakistan. Cash may be accepted at a branch for crediting accounts at another branch, Cheques can be paid by a branch by debiting the customers account at another branch. Following facilities are available at Bank AL Habibs Online Program for its customers: 1. Payments of Cheques. 2. Cash Receipts. 3. Transfer of Funds through Cheques or Cash between Branches. The Deposit and Withdrawal Limit for Online Banking Facility is PKR 5,000,000 and 1,000,000 respectively. Charges of Rs. 50/- Per transactions are applicable per transaction for using Online Banking Facility. Please visit the branch where your account is maintained to inquire about your online banking status.

ATM CARD: Now your BANK AL HABIB ATM card is not just an ATM card

Bank founder member bank of 1 Link, the largest shared ATM network countrywide, giving you 24-hour access to your account from any ATMs. This network will keep on AL Habib is a expanding to give you unmatched and most convenient service.

Useful Information for ATM Card holders: Available denominations in Bank AL Habib ATMs are Rs.500 & Rs.1000. Maximum withdrawal per day is Rs.25,000. Maximum withdrawal per transaction is Rs.10,000. The Mini Statement provides last 8 transactions as of last business day. If card/cash is not removed from the slot within limited time the machine will retain your card/cash. Three unsuccessful attempts to enter PIN will disable your Card. In case your card is captured, please contact the acquiring branch within 2 working days or collect from Issuing Branch within next 8 working days. Incase cash is not properly dispensed please contact the branch where the transaction took place. For more information please call our Help Desk. UAN: 111 014 014 Card Facilitation Center ATM NETWORK:With Bank AL Habib ATM Card you can access your savings and current account through ATM's in Pakistan with visiting your branch. You can also carry out most of the personal banking transactions such as Balance Inquiries, Cash Withdrawal, Mini Statement etc.

1 Link ATM Network

You can access your account not only through Bank AL Habib ATMs but also through the ATM of other banks on 1-Link network. ATM Dispute Claim Form (For Bank AL Habib ATM Card Holders Only) DEBIT CARD:Your ATM Card is now also your Debit Card In keeping with Bank AL Habib's tradition of bringing you the quality services, we now move one step further, to add more convenience to your banking. Your Bank AL Habib ATM Card can also work as a Debit Card at thousands of outlets and shops all over Pakistan, displaying the ORIX Network logo for a maximum of 25000/= per day. TELEBANKING:AL Habib Telebanking Service: At Bank AL Habib, customer convenience comes first. After successfully launching FREE ATM Cards and Online Banking. We now introduce yet another facility for all our customers.

AL Habib TeleBanking Service is a fully automated telephone banking service that brings banking at your finger tips, giving you instant access to the information you need. Now you can have access to your account without going to the bank 24 hours a day, 7 days a week, 365 days a year absolutely free! 6

Its so easy! All you need is your AL Habib ATM Card and a touch tone or mobile phone to dial into our state-of-the-art voice response service. Guide to use Tele-banking Services:Step1: 111-014-014 & 0800-00006 Step2: You will be asked to input your ATM Card numbers and the PIN code you use for your ATM Card. Step3: You will be guided to press pre-selected number for the specific service or information you need. Facilities available on Telebanking: 1. Account balance of all accounts attached to ATM Card. 2. Last 5 transactions details 3. Mini statement (last 8 transactions) 4. New cheque book request 5. Fax-on-Demand Service 6. General Product Information 7. PIN Authentication & PIN Change 8. General Banking Information: Branch Information ATM Locations Foreign Currency Exchange Rates

Product Information: ELECTRONIC FUNDS Transfer EFT:The InterBank and IntraBank Funds Transfer IBFT is an electronic funds transfer EFT facility added to the list of our existing ATM Card services. It is an automated solution for bank to bank funds transfers which enable 1Link ATM Cardholders to avail real time funds transfer facility from their account to any other account in Bank AL Habib (BAHL) or to any 3rd Party Account in BAHL or participating 1Link Switch Member Banks customer account using their banks ATM. BAHL ATM Cardholder may avail this service without submission of any application, unless otherwise advised in writing by the cardholder to deactivate the service.

PARTICIPATING BANKS The list of banks currently participating in 1Link InterBank Funds Transfer services are:

Bank AL Habib RBS ABL Askari Bank NIB HBL Soneri Bank UBL SCB Tameer Finance Bank Bank AL Falah Bank Islami

IBFT services are available for Individuals & Sole Proprietors having ATM/ Debit card relationships. The scope of IBFT services is:

The Transfer of Funds from account(s) of an ATM Cardholder to: Any other account(s) maintained by him/ her at another Bank AL Habib branch. Any 3rd party account(s) held by any Bank AL Habib customer(s). Any account(s) maintained at a participating 1Link Bank listed above.


Transfer of Funds can be done in PAK Rupees only. Transfer of Funds can only be affected from one of the BAHL ATMs. Transfer of Funds will be permitted only from an account linked with ATM Card. The maximum amount of transfers is limited to RS. 100,000 per day. There is no restriction on the number of transaction, however it should not exceed maximum transfer limit amount.

SERVICE CHARGES: Each Inter Bank Funds Transfer transaction will cost Rs. 24/- and will be charged to the transferor. However, for transfers within Bank AL Habib branches, there are absolutely no service charges.

Bank AL Habib Limited offers Funds Transfers in Pak Rupees (Inland Local Remittances) or in Foreign Currencies, (Foreign Remittances) on request of customer. Various Types of Remittance Facilities are available: 1) Payment Order 2) Demand Draft 3) Mail Transfer 4) Telegraphic Transfer Bank AL Habib also offers Travelers Cheques in collaboration with MCB which are encashable all over Pakistan. Along with this, Travelers Cheques in foreign currencies are also issued. Please visit the nearest Bank AL Habibs Branch for further details regarding the remittances.

To provide value added services and solutions is part of our mission statement. We understand the complex requirements of corporates when it comes to effectively manage their liquidity/cash flows. Our Cash Management suite of services/products is geared towards addressing these business and operational complexities with the objective to streamline a company's receivables and payables. With our real-time/online branch network of 263 branches, robust systems and experienced back office, we can add significant efficiencies in streamlining a company's cash flows. Our Cash Management systems are capable of generating rich customized reports/MIS which enables a company to closely monitor its cash cycle and effectively manage its funds. For more information on how we can assist you, please contact your Relationship Manager or contact our Cash Management Unit at 021-2270529 or 021-2277063.

Investments In the short span of 14 years, Bank AL Habib has already made a mark on the banking scene in Pakistan. Following an enviable and honored tradition of banking stretching back more than a hundred years, the bank is acknowledged for its prudent policies, enterprise tempered with caution, high profitability and its total dedication to Customer interest.

It is our pleasure that a portfolio of four highly profitable deposit products are being presented for our valuable customer.

Each product has been designed to fulfill a specific investment need for a particular class of investor. One of these is sure to suit your requirements.


Bank AL Habib has designed a new account specially for you..........your own Young Saver Account. Young Pakistanis, Bank AL Habib has designed a new account specially for you, ... your own Young Savers Account. 1. This is an account for Young Savers of up to 18 years.

Visit the nearest Bank AL Habib branch with your parent/guardian to open your Young Savers Account. You can open an account with as little as Rs. 5/=. 2. Rate of return on Young Savers Account is expected to be well above the return on normal savings accounts. Currently indicative rate of return on balances up to Rs. 500,000 is 10% P.A and for balances over Rs. 500,000 is 5% P.A, payable six monthly. 3. Young Savers Account will have Internet Banking facility and ATMlDebit Card available to your parent/guardian. 4. Young Savers of 16 years and more will also be eligible to receive ATM Cards and can withdraw money through ATMs, if specifically authorized by their parents/guardians (certain conditions apply). Until you the Young Savers are a minor, i.e., below 18 years, the account will be operated by your parent/guardian. When you attain majority, the balance in the account will be transferred to a new account which you will open and operate after completing required formalities, including the concurrence of your parent/guardian. 5. Bank officers will also visit your school to help you open Young Savers Account and collect your deposit. Profit would be subject to Zakat, Withholding Tax and other Government Levies unless exempted.


Bank AL Habib offers Two Value Added Savings Accounts which are PLS Savings Account and Monthly Profit Plan. PLS Savings Account & Monthly Profit Plan at Bank AL Habib offer best returns on your savings on six-monthly or monthly basis. Bank AL Habib offers Two Value Added Savings Accounts which are PLS Savings Account and Monthly Profit Plan

Features of PLS Savings Account: Profit is paid out to your Account on six-monthly basis.

There is NO Minimum Balance requirement for PLS Savings Account.

The indicative Return Payable on "PLS Savings Account" deposits with effect from July 01, 2008 is 5.00 % per annum.

Free Life and Disability Insurance cover for accountholders.

Features of Monthly Profit Plan : This plan adds to the earning ability of your PLS Savings Account with Bank AL Habib. Your profit is paid out / credited every month to your Account instead of six-monthly as in case of PLS Savings Account. NO Special forms or applications, NO Minimum Balance requirement.

The indicative Return Payable on "Monthly Profit Plan" deposits with effect from July 01, 2008 is 5.00 % per annum. Free Life and Disability Insurance cover for account holders.

Note: For detailed terms and conditions of Monthly Profit Plan, please refer to the related Rules and Regulation.


Corporate societies, trusts and even individuals have large funds which are generally idle. Such funds can be put to work to earn handsome profits via the AL Habib Treasurers Account. This plan is open to both PLS and Current Deposit Accounts. Access to such funds requires only a 24 hour notice. Profit is calculated on a daily product basis and credited to your Account monthly. The applicable rates for the Treasurer's Call Deposited Account, effective January 1, 2005 are: Deposit Amount On Balances Below Rs. 250,000 On Balances from Rs. 250,000 to 999,999 On Balances from Rs. 1,000,000 to 4,999,999 On Balances above Rs. 5,000,000> On Balances above Rs. 50,000,000 Rate per Annum Nil 1.25% 1.50% 1.75% To be quoted by zonal office

Note: For detailed terms and conditions of AL Habib Mahana Amdani Scheme, please refer to the related Rules and Regulation section.







AL Habib Mahana Munafa Account. High Returns. Reliable and Convenient. 1 Year Deposit 2 Year Deposit 3 Year Deposit 4 Year Deposit 5 Year Deposit 10.00% p.a* 10.25% p.a* 10.50% p.a* 10.75% p.a* 11.00% p.a*


* Expected Rate of Return for deposits effective May 03, 2010.

Mahaha Munafa Account can be opened with an amount of Rs. 25,000/-. Profit will be paid on the 1st working day of each month. 90% financing allowed against deposit. Free ATM Card Deposit will be rolled over on maturity for same period at prevailing rates unless otherwise requested by the customer.

Profit may be drawn through Cheque or ATM at any branch of Bank AL Habib. Profit is subject to Zakat, Withholding Tax and other Government Levies unless exempted.

Premature encashment will attract penalty as per rules. Transfer of old to new deposit will only be allowed with penalty @ 2.00 flat as per applicable Mahana Munafa Deposit Rules.

In case you have any further queries or need more Information, please feel free to contact your nearest Bank AL Habib branch manager.









Savings Account For Senior Citizens of 60 Years & Above (Atleast one of the accountholders should be of 60 years & above in case of joint account)

Rate of Profit 10 % p.a. (expected rate of return) Profit Payable Monthly. Profit will be automatically credited to account on minimum monthly balance on first working day of each month. Profit may be withdrawn through ATM or cheque from any of our branch.

No Minimum or Maximum Deposit Limits 14

Free Online Banking Free ATM / Debit Card Upto 90% Financing Against Deposits All other conditions including Zakat & Taxes for Savings Account are applicable.


Offers various free facilities on maintenance of minimum balance of Rs. 50,000/including:

Free ATM Card Free Pay Orders Free Online Banking Free Personalized Cheque Books Free Internet Banking.

ISLAMIC BANKING:Bank AL Habib Limited is a well established commercial bank in Pakistan, which has also been licensed by the State Bank of Pakistan to undertake Islamic Banking through its Islamic Banking branches. Bank AL Habibs Islamic Banking Branch offers Deposit Schemes and Islamic Financing for Individuals / Traders / Industries which are completely based on Islamic Shariah principles. All arrangements / documents relating to above are Shariah compliant and have been approved by our Shariah Advisor. He will regularly monitor all Deposits and Financing to ensure that these are Shariah compatible.


Introduction to Shariah Advisor Mufti Dr. Ismatullah Mufti Ismatullah is the Shariah Advisor of Bank AL Habib Islamic Banking. He is a PhD in Islamic Economics. His thesis Zar (Money) in light of Shariah is considered as one of the useful researches of Islamic Economics. Mufti Islamtullah holds the degrees of Aalim-e-Deen and Takhassus Fil Fiqh from Jamia Dar-ul-Uloom, Karachi. He has been teaching Quran, Hadith, Fiqh, Philosophy and Arabic Grammar in Dar-ul-Uloom since 1993. Mufti Sahab has a vast experience in issuing Shariah rulings (fatwa) and is currently serving Dar-ul-Ifta of Dar-ul-Uloom. So far he has issued about 20000 Fatwas regarding different topics and Shariah issues. He is a renowned research scholar, his research papers have been published in Monthly Al Balaagh. He wrote a book Guide to Takaful or Islamic Insurance which will be published very soon. Mufti Sahab is also a member of Shariah Advisory Board of Pak Qatar Takaful Group. All products are approved by our Shariah Advisor and all transactions are personally supervised by him.

Deposit schemes:- Bank AL Habib Limited, Islamic Banking Branch, invites participation in the following deposit schemes:

AL Habib Current Accounts AL Habib Saving Accounts AL Habib Term Deposits

The above deposit schemes are based on the Islamic Shariah principles and have been approved by our qualified and experienced Shariah Advisor. a) AL Habib Current Accounts

It is non-profit earning account with cheque book facility. ATM, Debit Card and Online Banking facilities are available. 16

Funds will be used for investments and providing finances to trade and industries on fully Shariah compliant basis.

Regularly reviewed by qualified and experienced Shariah Advisor.

b) AL Habib Saving Accounts

Based on Islamic principles of Musharakah / Mudarabah. Profits and Losses to be shared as per prescribed rules. Profits to be paid every six month in January and July. Profit to be calculated on the basis of weightages, to be announced at periodic intervals.

ATM, Debit Cards and Online Banking facilities are available. Funds will be used for investments and providing finances to trade and industries on fully Shariah compliant basis.

Regularly reviewed by our qualified and experienced Shariah Advisor.

c) AL Habib Term Deposits

Based on Islamic principles of Musharakah / Mudarabah. Available in tenures of 3 months, 6 months, 1 year, 3 years and 5 years. Profit to be paid periodically or on maturity as per rules. Profit to be shared according to a system of weightages, to be announced at periodic intervals.

Funds will be used for investments and providing finances to trade and industries on fully Shariah compliant basis.

Regularly reviewed by our qualified and experienced Shariah Advisor.

ISLAMIC FINANCING:- We also offer Islamic Finance for Individual / Traders / Industries, etc. These finances are offered in the following forms:

Murabaha Finance Ijarah Finance (Leasing) Diminishing Musharakah Finance

All arrangements / documents relating to above are Shariah compliant and have been approved by our Shariah Advisor. 17

a) Murabaha Finance A contract between the Bank and a Customer under which the Customer first purchases certain goods/commodities/assets as an Agent of the Bank, and the Bank after taking possession of the goods/commodities/assets sells it to the same Customer by adding certain profit margin to its cost. Murabaha Financing is available for:

Local purchase of Assets/Commodities/Goods. Imports under Letter of Credit/Firm Contract. Purchase of raw material for exports. Local purchase of raw materials for production of Goods/Assets.

Shariah Compatibility:

Assets must be Shariah compatible. All agreements/documents approved by our qualified and experienced Shariah Advisor and regular monitoring/checking of Murabaha transactions by the Shariah Advisor.

Customers Guidance:

Murabaha is always allowed for fresh purchases. Goods shall not be used by the Customer before the Murabaha offer and acceptance are signed.

Rollover in Murabaha is not allowed. However, fresh purchases can be made under new Murabaha arrangements.

Murabaha price once fixed cannot be changed. In case of late payment, Customer will have to pay certain amount to charity fund as per Murabaha Agreement.


b) Ijarah Finance (Leasing) Ijarah is basically the transfer of usufruct of a fixed/durable asset to another person for an agreed period, at an agreed consideration. Under Ijarah agreement the asset will be given to the Customer on rent for the period agreed at the time of contract. For Vehicles (Commercial/Personal use):

Ijarah agreement and other document approved by our qualified and experienced Shariah Advisor.

Periodical rentals to be fixed according to Customer needs at very competitive terms. Regular monitoring and checking of Ijarah transactions by our Shariah Advisor.

For Machinery & Equipment (Leasing): Machinery (for small, medium and large industrial units) and office equipment.

Lease agreements and other documents approved by our qualified and experienced Shariah Advisor.

Periodical rentals to be fixed according to Customer needs at very competitive terms. Regular monitoring and checking of Ijarah transaction by our Shariah Advisor.

c) Diminishing Musharakah Finance (For Shirkat-ul-Milk) Diminishing Musharakah is a form of partnership in which one of the partners promises to buy the equity share of the other partner gradually until the title of the equity share is completely transferred to him. This transaction starts with the formation of a partnership, after which buying and selling of the equity takes place between the two partners. Diminishing Musharakah can be used for plant & machinery, equipment, buildings and automobile financing. Principles of Diminishing Musharakah (Shirkat-ul-Milk):


1. Diminishing Musharakah (DM) is a form of co-ownership in which the client and the bank share the ownership of a tangible asset in agreed proportion and the client undertakes to buy in periodic installments of the proportionate share of the bank until the title to such tangible asset is completely transferred to the client. 2. Diminishing Musharakah can be created only in tangible assets. Diminishing Musharakah shall be limited to the specific asset(s) and not to the whole enterprise or business. 3. A DM would consist of the following three steps

Creation of joint ownership between the bank and the client. Renting out by the bank undivided share in the asset owned to the client. Selling its share in periodic installments by the bank to the client.

4. All other terms and conditions as are essential to co-ownership, Ijarah and sale shall be fulfilled in respect of different stages in the process of DM arrangement. 5. Proportionate share of the client and the bank must be known and defined in terms of investment. 6. Loss, if any, shall be borne by the bank and the client in the proportion of their respective investments. 7. The amount of periodic payment would go on decreasing with purchase of ownership units by the client. 8. Each periodic payment shall constitute a separate transaction of sale. 9. Separate agreements/contracts shall be entered into at different times in such manner and in such sequence so that each agreement/contract is independent of the other in order to ensure that each agreement is a separate transaction. 10. Following are the documents to be executed in DM Financing; Diminishing Musharakah Agreement Rental Agreement for moveable/Immoveable Assets Agreement for purchase of Musharakah Units 11. In case a client fails to honor the undertaking, as aforesaid with regard to the periodic payment and purchase of sale of units as the case may be, the asset may be sold in the open market and the bank aggrieved by such failure shall be entitled to recover:

Actual loss, defined as the difference between the market price and price mentioned in the undertaking, if any, not being the opportunity cost.


ny gain on sale of property, shall be shared by the bank and the client in proportion of their respective investment at the time of such sale.

12. The bank shall be entitled to recover outstanding periodic payments in respect of the period for which the client has actually used or possessed the asset which shall be payable to the bank. DECLARATION OF PROFIT:Declaration of Profit on various Deposits for the Quarter ended June 30, 2010 Bank AL Habib Limited Islamic Banking has declared the following Profit Rates: Products Saving Deposit (1 999,999) Saving Deposit (1,000,000 9,999,999) Saving Deposit (10,000,000 49,999,999) Saving Deposit (50,000,000 & above) Term Deposit - 1 month Term Deposit - 3 months Term Deposit - 6 months Term Deposit - 1 year (profit to be paid on monthly) Term Deposit - 1 year (profit to be paid on maturity) Term Deposit - 3 years (profit to be paid monthly) Term Deposit - 3 years (profit to be paid on maturity) Term Deposit - 5 years / Equity The above profit rates have been approved by our Shariah Advisor. Policy for Distribution of Profit for next three months i.e. from July 1, 2010 September 30, 2010. The Bank is currently offering Term Deposits of various maturities in addition to the Saving Deposits. The term deposits and saving account, will work under the principle of Mudarabah.. Profit Rates 5.04% 5.18% 5.40% 5.76% 7.20% 8.55% 9.30% 10.10% 10.30% 10.50% 10.75% 10.80%


The Bank will calculate the profit of the deposit pool after every quarter. Profit will be distributed at the Gross Income level. The Gross Income will be calculated after deducting costs and expenses directly incurred in deriving that Income. Gross Income of the deposit pool will be shared between the Bank (Mudarib) and depositors (Rab ul Maal) on the basis of a pre-determined profit sharing ratio. The Banks profit sharing ratio will be 60% of Gross Income and Depositors profit sharing ratio will be 40% of Gross Income. The profit is distributed among the account holders on the banks predetermined weightages, announced at the beginning of the quarter based on their respective category/tiers. At the end of the period, the Bank may unilaterally reduce its profit sharing ratio for the benefit of depositor(s). In case of a loss, as per the rules of Mudarabah, the deposit pool will share the loss in the ratios of investment of depositors. Moreover, Bank will create a Profit Equalization Reserve (PER) equivalent to 1% of its Gross Income, i.e. before the distribution of profit between Mudarib and Rab-ul-Maal. The main purpose to create PER is to maintained profit rates smooth and compatible to the market. These reserves will be created at each quarter end, and same will be included in the Gross Income in the subsequent quarter.


Weightages declared for the 3rd quarter i.e. (1st July, 2010 30th September, 2010) are: S/n 1 2 3 4 5 6 7 8 9 Products Saving Deposit (1 999,999) Saving Deposit (1,000,000 9,999,999) Saving Deposit (10,000,000 49,999,999) Saving Deposit (50,000,000 & above) Term Deposit - 7 Days Term Deposit - 1 month Term Deposit - 3 months Term Deposit - 6 months Term Deposit - 1 year (profit to be paid monthly) Term Deposit - 1 year (profit to be paid on maturity) Term Deposit - 3 years (profit to be paid monthly) Term Deposit - 3 years (profit to be paid on maturity) Term Deposit - 5 years / Equity Weightages assigned 0.70 0.72 0.75 0.80 0.80 0.85 1.00 1.05 1.10





12 13

1.35 1.50

The above mechanism has been approved by our Shariah Advisor.


HISTORICAL PROFIT RATE:Details of Historical Profit Rates declared in preceding quarters are as follows: Profit Rates for the Quarter Ended Products Saving Deposit (1 999,999) Saving Deposit (1,000,000 March 31, 2010 5.04% 5.19% December 31, 2009 5.24% 5.39% September 30, 2009 5.02% 5.16% June 30, 2009 5.01% 5.15%

9,999,999) Saving Deposit (10,000,000

49,999,999) Saving above) Term Deposit - 1 month Term Deposit - 3 months Term Deposit - 6 months Term Deposit - 1 year (profit fo be paid monthly) Term Deposit - 1 year (profit to be paid on maturity) Term Deposit - 3 years (profit to be paid monthly) Term Deposit - 3 years (profit to be paid on maturity) Term Deposit - 5 years Deposit (50,000,000 &





5.76% 7.10% 8.60% 9.25% 10.00%

5.99% 7.00% 8.75% 9.25% 10.00%

5.74% 7.00% 8.75% 9.25% 10.00%

5.73% 6.75% 8.50% 9.00% 10.00%









10.75% 10.81%

10.75% 11.23%


11.00% 11.50%


HOME REMITTANCE:Bank AL Habib Limited will encourage all remitters to open account for the beneficiaries in Pakistan at any BAHL branch to avail following services absolutely free of charge:

No minimum balance required to open and maintain a Savings account Same day value for remittances received before 1300 Hrs PST for deposit in the remitter/ beneficiarys BAHL account.

ATM/Debit Card accepted at over 6000 merchants and 2000 ATMs across Pakistan. Free Life Insurance cover for up to PKR 1 million, subject to prevailing terms and conditions for PKR Savings account holders.

Issuance of Pay Order or Demand Draft. Direct Debit and Standing Instructions for frequent payments from accounts Competitive exchange rates for FCY transactions or transfer from US$ account to PKR account.

NetBanking for round the clock internet banking services from anywhere at any time for balance inquiry, statement of account and funds transfer etc.

24X7 Call Center and TeleBanking services.

The Remitters can open their own account while in Pakistan either prior to their departure or while they are visiting Pakistan. NRP remitting funds in foreign currency can choose any Currency and Bank listed below for their foreign currency remittances to their account in Pakistan. For Remittances in Pak Rupee: Simply mention your beneficiary's complete account number with branch and city name for direct credit.


Strategic Position and Action Evaluation (SPACE) Matrix

Financial Strength (FS)
Return on investments (ROIs) For Year 2005

1. Return on Assets (ROA) Return on Total Assets (ROA) = Net Income / Total Assets Rs. In 000 1,483,165 91,501,541 = 1,483,165 / 91,501,541 = 0.016

Net Income Total Asset ROA ROA

2. Return on total Stockholders Equity Return on Stockholders Equity (ROE) = Net Income / Total Stockholders Equity Rs. in 000 1,483,165 4,745,795

Net Income Total Stockholders Equity ROE ROE

= 1,483,165 / 4,745,795 = 0.313 = 0.016 + 0.313 = 0.329

Return on investments (ROIs)

Operating profit Margin For Year 2005 Operating profit Margin = EBIT / Sales Rs. in 000 2,022,008 5,971,690

Earning before interest and taxes Sales Operating profit Margin

= 2,022,008 / 5,971,690 = 0.34


Working Capital Working Capital = Current Assets Current Liabilities = 8,671,552,000 7,740,516,000 = 938,776,516

ROIs Operating profit Margin Working Capital Cash Flow (in 000) Net Income (in 000) Revenue (in 000) Total Competitive Advantage (CA)

0.329 0.34 938,776,516 8,671,552 1,483,165 5,971,690

5 4 4 5 5 5 28

Market Share Product and service quality Customer loyalty Technological know how Total

-2 -2 -2 -3 -9

Environmental Stability (ES) Technological Change -3 Rate of Inflation -4 Demand Variability -3 Price change of competing products -3 Competitive pressure -3 Total -16

Industry Strength (IS) Growth potential Profit Potential Financial Stability Resource utilization Total 5 5 5 4 19


The Quantitative Strategic Planning Matrix (QSPM)

S. No CRITICAL SUCCESS FACTORS OPPORTUNITIES 1 2 3 4 5 Develop value added services. Large international network. Reduction in intermediation costs. E-banking operations. A wide product portfolio, along with increasing greater hedging of business risks also significantly increases cross selling opportunities. THREATS Intense industry competition. Economic instability. Political changes. Brain drain. Cost of service and support of technology increases exponentially. Technology is constantly changing. STRENGTH 1 2 Strong brand recognition. Complete range of banking products and services. Focused business strategy supported by appropriate organization structure, operating procedures, and qualified human resource. Strong distribution capability. WEAKNESSES 1 2 3 4 5 No massive advertising. Up gradation of technology in all branches not yet complete. The potential of overseas branches is not being fully exploited. Shortage of trained and specialized staff. Communication among the functional areas are some how lacking. Sum Total Attractiveness Score 0.15 0.10 0.15 0.10 0.05 4 3 3 2 2 0.60 0.30 0.45 0.20 0.10 6.15 4 3 2 3 3 0.60 0.30 0.30 0.30 0.15 6.35 0.05 0.15 3 4 0.15 0.60 3 4 0.15 0.60 0.15 0.10 0.05 0.10 4 3 2 4 0.60 0.30 0.10 0.40 4 3 3 4 0.60 0.30 0.15 0.40 MARKET DEVELOPMENT WEIGHT AS TAS PRODUCT DEVELOPMENT AS TAS




1 2 3 4 5 6

0.15 0.10 0.05 0.10 0.05 0.05

4 2 1 2 3 2

0.60 0.20 0.05 0.20 0.15 0.10

4 1 1 2 2 3

0.60 0.10 0.05 0.20 0.10 0.15