Islamic Finance

By Riffat Mughal KARACHI: Standard Chartered Bank (SCB) Islamic banking business net assets surged by outstanding 63.16 percent during nine months of the calendar year 2011 (9MCY11). The net assets of the bank have reached Rs 2,800.690 million as on September 30, 2011 as against Rs 1,716.558 million as on December 31, 2011. Bank’s financing and receivables went up by 47.41 percent to Rs 13,766.007 million. In the total financing and receivables, Murabaha portfolio contributed Rs 3,300.083 million, showing an increase of 87.70 percent. Diminishing Musharaka portfolio surged by 35.87 percent to Rs 10,261.761 million during the 9MCY11. Out of total financing and receivables, Diminishing Musharaka portfolio constituted 74.54 percent and Murabaha contributed 23.97 percent. Diminishing Musharakah is a financing instrument used for long term financing. Increase in its share confirms that bank’s advances to deposit ratio would sustain the current levels achieved. More ex...

By Riffat Mughal KARACHI: Bank Alfalah Limited Pakistan (BAFL) Islamic banking business net assets surged by 22.23 percent during nine months of the calendar year 2011 (9MCY11). The net assets of the bank have reached Rs 5,888.209 million as on September 30, 2011 as against to Rs 4,817.195 million as on December 31, 2011. Bank’s advances declined during the period by 10.44 percent to Rs 23,247.294 million. Bank Alfalah Islamic banking business net investments increased by outstanding 44.97 percent to Rs 31,938.394 million and fixed assets climbed up by 2.38 percent to Rs 1,677.560 million during the period under review. Balances with and due from Financial Institutions (FIs) also went up by 19.87 percent to Rs 4,631.542 million. With the decline in demand for finance from sound and blue chip companies amid slow economic activity, the bank used the funds more towards investments. On liabilities side, total deposits and other accounts increased by 14.80 percen...