Al BARAKAH Bank

Contents:
  Introduction
 History
 Mission and vision of bank
 CEO’s message
 Herarqi
 Product and services
 Profit and loss
 SWOT analysis
 Our views

Introduction
Al Baraka Banking Group (B.S.C) is licensed as an Islamic wholesale bank by the Central Bank
of Bahrain, listed on Bahrain Bourse and Nasdaq Dubai stock exchanges. It is a leading
international Islamic banking group providing its unique services in countries with a population
totaling around one billion. It is jointly rated BBB+ (long term) / A3 (short term) on the
international scale and A+ (bh) (long term) / A2 (bh) (short term) on the national scale by
Islamic International Rating Agency & Dagong Global Credit Rating Company Limited, and by
Standard & Poor's at BB+ (long term) / B (short term). Al Baraka offers retail, corporate,
treasury and investment banking services, strictly in accordance with the principles of the Islamic
Shari ‘a. The authorized capital of Al Baraka is US$ 1.5 billion, while total equity is at about
US$ 2 billion.

The Group has a wide geographical presence in the form of subsidiary banking units and
representative offices in fifteen countries, which in turn provide their services through over 600
branches. Al Baraka currently has a strong presence in Turkey, Jordan, Egypt, Algeria, Tunisia,
Sudan, Bahrain, Pakistan, South Africa, Lebanon, Syria, Iraq and Saudi Arabia, including two
representative offices in Indonesia and Libya.

History of Bank
 AIB is a subsidiary banking unit of ABG, a Bahrain Joint Stock Company listed on Bahrain and
NASDAQ Dubai stock exchanges. It is a leading international Islamic bank with Standard &
Poor’s long and short-term credit ratings of BBB- and A-3 respectively and offers retail,
corporate and investment banking, and treasury services strictly in accordance with the principles
of Islamic Shariah. The authorized capital of ABG is US$ 1.5 billion, asset base of US$ 15
billion and total equity is US$ 1.7 billion and is present in Jordan, Bahrain, Algeria, Sudan,
South Africa, Lebanon, Tunisia, Egypt, Turkey, and Syria, with a representative office in
Indonesia.

The total number of branches of the Al Baraka Banking Group, including Pakistan, will exceed
360 branches.

Al Baraka Islamic Bank Pakistan (AIBP), the branch operations of Al Baraka Islamic Bank
(AIB) Bahrain, a subsidiary of Al Baraka Bank Bahrain, and Emirates Global Islamic Bank
(Pakistan) have successfully merged their operations under the name of Al Baraka Bank
(Pakistan) Limited (ABPL). The Head office will be located in Karachi.

ABPL will have assets in excess of Rs. 50 billion, a workforce of 1400 professionals and a
network of 89 branches in 36 cities and towns across the country. ABPL will commence
operations from October 29, 2010 and consequently, all branches of AIBP and Emirates Global
Islamic Bank will be re-branded as ABPL.

The merger, a first in the Islamic Banking sector in Pakistan, positions ABPL to play an
important role in further growing an industry which has witnessed tremendous growth over the
last 5 years. Substantial capital resources, combined with a nationwide branch network will
enable ABPL to provide a full range of Islamic banking services, supported by the experience
and expertise of the parent company, ABG.

Al Baraka Islamic Bank is attributed to be the pioneer of Islamic Banking in Pakistan. It has been
operating in the country since 1991 as branch operations of Al Baraka Islamic Bank Bahrain.
During this period of over two decades in the country, the bank effectively developed and
sustained its identity as one of the pioneers in providing Shariah compliant banking products and
services. At the time of merging its operations it had 29 branches across Pakistan, an asset base
of Rs. 31billion and profit before tax of Rs.168million.
Al Baraka (Pakistan) Limited (ABPL) came into being as a result of the first merger in the
Islamic Banking sector of Pakistan. The merger took place between the branch operations of Al
Baraka Islamic Bank (AIB) Bahrain, Al Baraka Islamic Bank Pakistan (AIBP) and Emirates
Global Islamic Bank (Pakistan), and thus from 1 November 2010, the operations of the merged
entity begin. As of Dec 2014, the Bank has a national presence in Pakistan with a network of 135
branches in more than 82 cities across the country.

Vision
To be a leading and a diversified International Islamic Bank, Offering a wide range of Quality
Products and Services and forming strategic alliances for a Competitive Edge.

Mission
We strive to be a Premier Regional Islamic Bank, Dedicated to the Economic and Social
Development of our target market, Maximizing our Clients and Shareholders Value And
focusing on the Human Resource Development In an environment of Creativity and Innovation.

Objectives

 To enhance shareholder value whilst pursing a strategy of business growth and geographical
expansion.
 To provide innovative and high quality research and development into Islamic financial
products which comply fully with the principles of Shari’ a Law and Islamic values, for the
benefit of our customers.
 To utilize the Group’s geographical presence to distribute its products and services and
promote cross border services.
 To maintain the highest international standards of corporate governance and regulatory
compliance

Core of Values
The bank Management has identified the following core values to achieve its targets:

 Highest quality of service

 Professionalism, Integrity and Team Work
 Innovation & utilization of latest technology
 Corporate & Social Responsibility
 Islamic Banking service

Adnan Ahmed Yousif

President & CEO of Al Baraka Banking Group:

More than 37 years’ experience in retail, wholesale, investment and Islamic banking provide me
with vast and integrated experience. I started with American Express for five years and then I
moved with ABC for 20 years, and I think that we called ABC the city bank in the Arab world.
When it was started, it was with a big size of capital, it was close to about $1bn in 1980, at that
time it was huge, and if you compare it to Chaseman at that time it was about $2bn. And we have
been operating in 34 countries at that time, and by spending almost 20 years in the bank, it has
given me a lot of experience when I joined Al Baraka. Therefore what I got from Al Baraka from
ABC We believe that banking has, or ought to have, a crucial role to play in society, one in
which as bankers we have an incredible responsibility of stewardship for the resources placed in
our hands. in the 20 years, and also from American Express, has given me a good experience in
running subsidiaries. Therefore I came with a lot of experience, and I tried to share this with my
colleagues at Al Baraka.
We believe that banking has, or ought to have, a crucial role to play in society, one in which as
bankers we have an incredible responsibility of stewardship for the resources placed in our
hands. To meet this responsibility and use the resources wisely, we rely on Sharia’a principles to
guide us as we participate in our customers’ successes, sharing in the social development of
families, businesses and society at large. Therefore, our unified identity developed the concept
“partnership”. By ‘partnership’, therefore, be mean that our success and that of each of our
customers are as intertwined as our jointly held beliefs. Taking part in the joint effort is therefore
our reward.IBA

Board of Directors:

Mr. Adnan Ahmed Yousif Representing Al Baraka Islamic Bank B.S.C. (c)
Chairman

Mr. Tareq Mahmood Kazim Representing Al Baraka Islamic Bank B.S.C.(c)

Deputy Chairman
Mr. Shafqaat Ahmed Representing Al Baraka Bank (Pakistan) Limited
Executive Director & Chief Executive Officer

Mr. Abdulrahman Shehab Representing Al Baraka Islamic Bank B.S.C.(c)

Director

Mr. Nadeem Amjad Khan Representing Al Baraka Islamic Bank B.S.C.(c)

Director

Mr. Abdul Ghaffar Fancy Representing Emirates Financial Holding LLC

Director

Mr. Nadeemuddin Ahmed

Director

Mr. Tariq Hamid Independent Director

Mr. Salman Ahmed Independent Director

Mr. Asaf Mohyuddin Independent Director

Board Committees:
Board Executive Committee (BEC):

 Mr. Tariq Mahmood Kazim Chairman

 Mr. Salman Ahmed Member

 Mr. Abdul Ghaffar Fancy Member

 Mr. Nadeem Amjad Khan Member

 Mr. Shafqaat Ahmed Member

 Dr. Fakhara Rizwan Secretary of BEC

Board HR & Remuneration Committee (BHR&RC):

 Mr. Adnan Ahmed Yousuf Chairman

 Mr. Tariq Mehmood Kazim Member

 Mr. Mukkarram Jafri Secretary to BHR & RC

Board Audit Committee (BAC):

 Mr. Asaf Mohyuddin Chairman

 Mr. Abdulrahman Shehab Member

 Mr. Abdul Ghaffar Fancy Member

 Mr. Hanif Ashraf Secretary to BAC

Board Risk Committee (BRC):

 Mr. Tariq Hamid Chairman

 Mr. Salman Ahmed Member

 Mr. Nadeem Amjad Khan Member

 Mr. Ayyaz Ahmed Secretary to BRC

Board Social Responsibility Committee (BSRC):

Mr. Tareq Mehmood Kazim Chairman

 Mr. Tariq Hamid Member

 Mr. Shafqaat Ahmed Member

 Ms. Farah Naz Secretary to BCSR

PRODUCT AND SEVICES

Al Baraka offers a diverse product portfolio which conforms to Shariah principles and meets the
needs of a broad customer base. Al Baraka’s customers range from individuals and retails to
corporate, SM and consumer categories. Various financing products are available for
investments such as Murabaha, Ijarah, Musharakah and Islamic Export Refinance etc.
Furthermore, a range of Shariah compliant deposit schemes are offered to customers in which to
invest their funds.
With state of the art technology and infrastructure at ABPL, ancillary services such as online
banking, ATM/debit card, SMS banking, safe deposit lockers and payments of utility bills
through ATMs are made convenient by the bank.
Products:

Current Account.
Basic Banking Account.
Saving Account.
Term Deposit Account.
Khazana Account.
Bussiness Plus Account.
Mudaraba Premium Account.
Senior Citizen Account.
Tifi Young Savers Account.
Mahana Amdani Account.
Services of AIB:
Beside of these banks also offer a large range of services.
 Demand Drafts
If you are looking for a safe, speedy and reliable way to transfer money, you can now purchase
AIB‟s (D.D) Demand Drafts at very reasonable rates. Any person whether an account holder of
the bank or not, can purchase a Demand Draft from a bank branch.
 Letters of Credit
AIB is committed to offering its business customers the widest range of options in the area of
money transfer. If you are a commercial enterprise then our Letter of Credit service is just what
you are looking for. With competitive rates, security, and ease of transaction, AIB Letters of
Credit are the best way to do your business transactions
 Letter of Guarantee
The advances department also issues Letter of Guarantee. L/G is a form of advances against
guarantee. An L/G is an under taking given by a bank to be answered for the debt, default or
miscarriage of another person. It is also defined as a contract to perform the promise or discharge
the liability of third person in case of default. The L/G is opened in the name of a party when
another party with whom they are dealing business requires a bank guarantee.
 Travelers Cheque
Pak Rupees Traveler‟s Cheque is a negotiable instrument. There is no restriction on the period of
validity. Available at all branches of AIB all over the country. There is no limit on purchase. AIB
Traveler‟s Cheque is the safest way to carry our money
 Pay order
AIB provides another reason to transfer money using facilities. Pay orders are a secure and easy
way to move money from one place to another. And, as usual, charges for this service are
extremely competitive.
 Foreign Remittances
To facilitate its customers in the area of Home Remittances AIB has taken a number of measures
to Increase home remittances through the banking system and Meet the SBP
directives/instructions for timely and prompt delivery of remittances to the beneficiaries.
 Phone Banking.
 SMS Banking.
 E-Statement.
 ATM.
 Inter Bank Funds Transfer Facility.
 Utility Bill Payment Services.
Specimen of Demand Draft
Specimen of Letter of Credit

Features of AIB Housing Musharakah

REQUIREMENTS EXPLANATION
FINANCING BY BANK 80% OF INVESTMENT

MAXIMUM PERIOD UP TO 1 TO 15 YEARS

SECURITY(IES) ASSET BASED FINANCING

Balance Sheet
ASSETS 2007-2008 2008-2009 (%)
 (%)
Cash and balances with treasury bank 14.13 (1.0)
Balances with other banks (9.79) (28.52)
Lending to financial institutions (20.13) (20.60)
Investment -net 0.44 99.49
Advances-net 25.36 (6.38)
Operating fixed assets (11.45) 440.36
Deferred tax assets 174.8 15.06
Other assets -net (22.97) (5.22)
Total Assets 15.20 23.84
LIABILITIES & OWNERS’ EQUITY

Bills payable (64.9) 87.0

Borrowings (31.08) 465.17
Deposits and other accounts 15.52 6.28
Other liabilities 14.06 32.84
Total Liabilities 11.70 23.19
Owners’ Equity

Share Capital 0 25.0

Reserves 8.56 (69.69)
Unappropriated profit (1.53) (267.19)
Surplus on Revaluation (423.5) 175.28
Total Owners' Equity (20.33) 27.36
SWOT Analysis:
SWOT stands for Strength, Weaknesses, Opportunities and Threats. SWOT is useful tool for
providing a framework for analysis of an organization. It is widespread approach to make
assessments in terms of internal and external environment of the organization and to formulate
strategies by analyzing its internal strengths and weaknesses, external opportunities and threats.
STRENGTHS
 Commitment to Islamic Shariah
 Experienced and Qualified Staff
 Good PR with Customers
 Good Managerial Skills
 Job Satisfaction at All Levels
 Quarterly Performance Appraisal
 Friendly environment
 Competent senior management
WEAKNESSES
 No HR department level at zonal and branch level
 Centralized decision making
 Lack of frequent training
 Lengthy recruitment process
 Less internal recruitment for new posts
 Lack of Marketing Effort
OPPORTUNITIES
 More qualified people in the market
  Effective utilization of internal human resources
 Training can enhance the employee’s skills
THREATS
 Increase in Competition
 Good job opportunities outside.
 Uncertainty about future change
 Other organizations are using better HR techniques

Conclusion:
The Al – Baraka Islamic Bank is a new emerging bank and it is trying to get market share in the
presence of national and foreign banks operating in the country. It has played an important role
in boosting the economy of the country but there always exists some room for improvement.
After observing this AIB very closely and its HR department in particular, following outcomes
have been concluded.
 The decision making is still centralized as the middle and low level management is not
taken into confidence.
 There are no sub divisions at the provincial or branch level. So when different problems
related to HR are raised, they are left unaddressed.
 Most of the employees working in this branch are not much familiar with computer. They
just know how to use their part of software if any problem comes in the computer they
can’t fix it.
 The spacing requires expansion. The employees are seated congested .If the customers
exceed more than fifteen in number, then the branch get filled with lot of disturbance.
 The recruitment process is very lengthy it should be trimmed.
 The marketing efforts at the branch level are less disciplined and there are no integrated
efforts from all the staff members. The mobilization of deposits is mainly considered as
the responsibility of the branch manager but the rest of the staff is usually least interested.
 Bank branches are restricted to some specific cities.
 The bank has been applying the modern concepts of management and marketing at both
micro levels. The interior and exteriors of the branch have been changed but the staff of
the branch has been found less motivated towards the organizational objectives