A Review On Bank Islami

[Pak3000]

Bank Islami Pakistan


Bank Islami Pakistan Limited is a Pakistani Islamic bank based in Karachi, Pakistan. It has 340 branches in 114 cities of Pakistan.

It was the first Islamic commercial bank to receive the Islamic banking license under the Islamic banking policy of 2003 from State Bank of Pakistan on March 31, 2005. The bank started its operations from 7 April 2006 and offers shariah compliant retail banking, investment banking, consumer banking and trade finance products. The bank intends to focus on wealth management as the core area of business and plans to soon launch proprietary products, and integrated financial planning services.

The bank has a nationwide presence, its branch network consists of 213 branches and sub branches spread over 80 cities of Pakistan. With the amalgamation of KASB on May 7, 2015, all 104 branches of KASB have become part of Bank Islami’s branch network. Bank Islami is now the 11th largest banking network in the country with 317 branches in 93 cities nationwide

[alkatiri]

Commercial Bank Business Activities
- Collecting funds from the public in the form of deposits in the form of demand deposits, time deposits, certificates of deposit, savings, and or other equivalent forms.
- Give credit.
- Issuing debt instruments.
- Buy, sell, or guarantee at their own risk or for the benefit of and on the orders of their customers:
- Notes include drafts accepted by the bank, which validity period is not longer than the trading practice in said documents.
- Debt acknowledgments and other trading papers whose validity period is not longer than the trading custom for such securities.
- Treasury bills and government guarantees.
- Bond.
- Commercial papers with a maturity of up to one (1) year.
- Other securities instruments with a maturity of up to one (1) year
- Transferring money either for own interests or for the benefit of customers.
- Placing funds with, borrowing funds from, or lending funds to other banks, either by letter, telecommunication facilities or by display draft, check or other means.
- Receive payments from bills on securities and perform calculations with third parties.
- Provide a place to store valuables and securities.
- Carrying out custodian activities for the benefit of other parties based on a contract.
- Placing funds from one customer to another in the form of securities that are not listed on the stock exchange.
- Perform factoring, credit card business and trustee activities.
- Provide financing and or carry out other activities based on Sharia Principles, in accordance with the provisions stipulated by Bank Indonesia.
- Carrying out other activities that are commonly carried out by banks as long as they do not conflict with this law and the prevailing laws and regulat

[yuyul]

Banking has an important role in supporting the activities of the business world. Especially for companies and individuals who need capital in order to develop a business. Besides that, it is also a place to save money that is safer than being kept in the company and will also get additional benefits in the form of interest. Since a bank collects funds from the public, it is also obliged to provide funds in ways that best serve the interests of the public in addition to the interests of the owners of these funds. It takes objectivity and wisdom to allocate funds because there is a high risk of misallocating them. This will result in bad credit which has an impact on huge losses.
By providing credit, the bank will get benefits in the form of interest. Most of the funds collected by banks are channeled to the public in the form of credit. More and more loans have been distributed, it can be said that the funds are productive for the benefit of the community who need funds to develop their business and for consumptive interests. However, with a bigger credit, it will also carry a high risk if the customer is unable to increase the installments or interest. For this reason, Banks need to carry out good cooperation between banks and customers