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Assignment Title Islamic Bank Vs Convention Bank

Assignment Number 2
Submitted To Mam Sabeen
Submission Date 5/10/2017

Submitted By:
Sheran Hamid FA15-BAF-012
Zoha Kiani FA15-BAF-027
Mahnoor Sharif FA15-BAF-041

Comsats Institute of Information Technology Islamabad


Standard Chartered Bank
Role and Function
The Bank is committed to building a sustainable business over
the long term that is trusted worldwide for uploading high
standards of corporate governance social responsibility
environmental protection and employee diversity. It employs
over 70,000 people nearly half of whom are women The
Groups Employees are 125 nationalities of which 68 are
represented among senior management.
The Bank Basically focuses on attractive, growing markets
where it can leverage relationships and expertise, Combining
global capability and deep local knowledge and creativity to
outperform competitors and continuously improving the way it
works, balancing the pursuit of growth with firm control of costs
and risks.
The Bank has a network of 162 branches in Pakistan. It employs
a workforce of 9000 employees in Pakistan operation.
Standard Chartered derives 90% of profits from Asia, Africa and
the Middle East. Serving both consumer and wholesale Banking
customers worldwide. The bank combines deep local knowledge
with global capability to offer a wide range of innovative
products and services.
Product and Service:
Services
Consumer Banking:
It provides mortgages, Credit Cards, Personal Loans, Auto
Loans, Islamic Banking and wealth management products. In
order to maximize customer convenience the bank offers 24
Hour phone banking, e Statements, Sms Banking, ATM Cards
and VISA Debit Cards as well as online banking and state of the
art branches.
Wholesale Banking:
Wholesale banking provides Transactional banking. Debt
Capital Markets, Corporate Finance, Derivatives and FX
Options, Commodity Finance and deposit products.
SME Banking:
SME Banking Division offers products and services to help
small and medium enterprises manage the demands of a growing
business, including the support of out international network and
trade expertise.
Islamic Banking:
Standard Chartered Saadiqs dedicated team provides
comprehensive international banking services and a wide range
of Shariah-compliant financial products based on Islamic
Values.
Standard Chartered Private Bank:
Private bank advisor and investment specialists provide
customized solutions to meet the unique needs and aspirations of
high net worth clients.
Standard Chartered Priority Banking:
Priority Bank advisors and investment specialists provide
customized solutions to meet the unique needs and aspirations of
high net worth clients rest of the world.

Products
Account and Deposits:
Savings Account Current Accounts
Saving Account Basic Banking Account
Super save Account Ruppee Current Account
High Yield Account Xtra Mile Account
Easy Saver Account Foreign Currency Account
Bonus Saver Account Business Account
Flex Account Sahulat Online Account
Mahana Izaafa Corporate Salary Account
Rupee term Deposit
Interest Rate
Mahana Aamdani Certificate
Overdrafts
Lockers
Debit Cards Credit Cards
Visa debit card Saadiq VISA Credit Card
Credit Card MasterCard
Master Card Cashback VISA Card
Easy Credit Card
American Express Credit Cards
American Express Charge Card
PIA CoBrand Credit Card
Treasures Catalogue
American Express reward Program

Priority Banking
The Right Partner
Product Proposition
VISA Platinum Debit Card
Other Financial Services
Banking Convenience
Rewards and Privileges
Priority Center Locations

Loan Mortgage
Ready Cash Home Purchase
Swift Finance Home Credit
Insurance Investment
For Branch Banking Customers Mutual Fund Basics
Mustaqbil Mutual Fund Offered
Taleem JS Investment Limited
Rishtey National Investment Trust Limited
Tahaffuz Atlas Asset Management Limited
Invest n Assure Arif Habib Investments
Iqra Education Plan Management Limited
Family Care BMA Asset Management Limited
Cash Cover Plus KASB Asset Management Limited
Ready Cash
Swift Finance
For Credit Card Customers
Smart Wallet
Cover for Life
Credit Cover Plus
5 Year Summary
Standard Chartered Growth over the Years
Standard Chartered Profitability over the Years
Standard Chartered Financial Health
Dubai Islamic Bank
Roles and Function
DIBPL is the first Islamic Bank in Pakistan to be offering Priority &
Platinum Banking and the most extensive & innovative portfolio of
Alternate Distribution Channels (ADCs) which includes VISA
ATM/Debit Card, Internet Banking, SMS Banking, Phone Banking,
Mobile Internet Banking, Inter Bank Fund Transfer and over 186 ATMs
across Pakistan. DIBPL is currently one of the most active players in the
Consumer Autos and Home Finance industry with the combined
portfolio standing way above PKR 10 Billion. DIBPL continues to strive
and expand its sphere of World Class Banking expertise in Retail,
Corporate, Trade and Investment Banking services across Pakistan.
It basically combines the best traditional Islamic values with the
technology and innovation, It has established its self as the undisputed
leader in its field. Its vision is to be the leading Islamic bank providing
Sharia compliant financial services by creating value for all
stakeholders.
Dubai Islamic bank is involved in local and international partnerships
having established DIB Pakistan limited, wholly owned subsidiary
which has a network of 200 branches across 62 major cities in Pakistan,
It has also a representative office in Turkey and has received a
preliminary banking licence by the Central Bank of Jordan to operate as
an Islamic financial institution.
PRODUCTS AND SERVICES
Products of bank include all those services a customer can use
effectively in his general and business.
Current Account
Regular Savings Account
Saving Plus Account
Saving Special Account
Fixed Deposit/ Term Deposit
It has an array of products catering to the working capital, trade, project
financing and BMR requirements of customers operating in a variety of
sectors including Power, Cement, Textile, Automobile, Consumer
Goods, Food, Health, Services and many other important segments of
Pakistans economy.
It's Relationship teams work in close liaison with the extremely capable
Product Development teams to structure products according to specific
needs of the customers. Their general product suite is as follows:

Working Capital Products


Murabaha
Istisna Cum Wakala
Tijarah
Wakala Istithmar Local
Running Musharakah
Long Term Financing Products
Shirkat-ul-Melk Cum Ijarah
Diminishing Musharakah
Sukuk
Fleet Finance

Trade Products
Import Murabaha
Islamic Export Refinance
Wakala Istithmar Pre Manufacturing
Wakala Istithmar Post Manufacturing
Trade Services
Letters of Credit
Letters of Guarantee
Registered Import Contracts
Collection and Negotiation of Export Documents
Forward Cover
Inward and Outward Remittance
DIBPL has become the Investment Bank of choice for local and
regional clients, Driven by Sharia principles, providing a mix of
following services:
Project Finance
Mergers & Acquisitions Advisory
Privatization Advisory
Real Estate Project Advisory
Balance Sheet Restructuring
Financial Advisory
Arrangement of Debt through Sukuk Instruments
Arrangement of Equity
Sukuk Issuance (Public Offerings & Private Placements)
Issuance of Equity (Public Offerings & Right Issues)
Dubai Islamic Bank Growth
Dubai Islamic Bank Profitability
Dubai Islamic Bank Financial Health
Differences between Dubai Islamic bank and
standard chartered
Difference

Standard Chartered (2013) Dubai Islamic Bank (2013)


Total Asset 30613361 Total Asset 35614365
Shareholders Equity 2687419 Shareholders Equity 28474318
Asset Growth 34.40% Asset Growth 40.4%
Earnings Growth 96.64% Earnings Growth 97.7%

Standard Chartered Offers both Conventional and Islamic


System where as Dubai Islamic Bank only focuses on Islamic
System.
Standard chartered has approximately 9000 employs where as
Dubai Islamic bank has 12000 employees in Pakistan.
Charging Interest is strictly prohibited in rules of Dubai Islamic
Bank where as Standard Chartered can charge Interest based on
their types of Clients.
Dubai Islamic Bank provides Profit according to P and L Ratio
on savings account where as Standard Chartered provides fixed
payments.
Asset Backed Transaction is compulsory in Dubai Islamic Bank
where as its not compulsory for Standard Chartered.
Standard chartered offers different services such as investment
schemes with fixed return that are not offered by Dubai Islamic
bank.

Similarities
1 These both banks offer such services such as ATM , mobile
banking , online banking , national electronic transfer of funds
and real time gross statements
2 Both banks have strong market positioning
3 Maintain position as main leading cash providers not only in
Pakistan around the whole globe where ever they operate

Conclusion
DIBPL was given the Best Islamic Retail Bank in Asia award
for the Banks achievements in product innovation,
comprehensive suite of Halal financial solution and sustainable
business growth.
For more than four decades, DIB has leveraged its unrivalled
financial expertise and relentless focus on innovation to deliver
the highest quality of banking services in the market. The banks
Smart Bank initiative, which is aligned with the Governments
Smart City agenda, provides customers with a seamless and
convenient digital banking experience. Additionally, with a
network of 90 branches, the bank has continually remained
committed to meeting, and exceeding, the needs of its base of
over 1.4 million customers.
Embarking on a newly established growth agenda, the bank has
been the leading performer in the UAE financial sector over the
last three years recording record breaking performance despite
volatile market conditions. The massive growth has seen DIB
market share cross over 6% with financing book nearly doubling
and deposits growing by 60% over the last two and a half years.
Even more impressive is the more than a 100% growth in profits
over the same period as DIB joined the exclusive USD 1 bln
profit club in the country.
Dubai Islamic Bank main principle is that every transaction is
interest free, they dont charge Interest and everything is based
on Principle of Sharia, It has its full attentions on Islamic
System where as Standard Chartered Focuses on Conventional
System, Charging Interest is considered as a normal Practice.
Both the bank have an incredible Earning Growth ranging from
97% for Standard Chartered, while 98% for Dubai Islamic Bank.
It is an incredible achievement for Dubai Islamic Bank to have
an incredible Percentage with a bank which focuses on
Conventional System. It has also higher percentage in Asset
Growth.
The Recent Economy is facing serious downturns, Conventional
system is failing, The World needs a new system looking at the
results from above it can easily be concluded that Islamic system
should be given a chance, Interest Payment may increase a
person wealth in his point of view but from Allahs Sight its a
grave Sin, Not only Conventional system increases burden on
the borrower but also increases the chances for his default and
concentration of wealth among the elites. For the betterment of
Economy there should be equivalent Distribution of wealth,
Paying Zakat is beneficial for the economy as the Poor gets the
Purchasing power and through that circulation of money gets
Easy.