DBI offers a suite of Islamic financial products and services to its clients who are interested in conducting their personal and business financing transactions in a Sharia-compliant manner. Operations focus on a) asset finance, b) partnership finance and c) lease finance. DBI deploys the most common Islamic financing instruments.
| Murabaha (Cost-plus transaction) |
Murabaha is a purchase and sale with an agreed-upon profit margin. |
| Qard al-Hasan (Loan without profit) |
Qard is a loan without profit. The borrower is required to repay only the principal amount borrowed but may pay an extra amount as a token of appreciation at the borrower’s absolute discretion. Qard contracts can also be used to support current accounts, in which customers lend the money to the bank. The bank generates profit on this loan and returns the capital and some of the profit it has obtained. |
| Mudaraba (Partnership) |
In Mudarabah, the customer provides funds to the bank, which then invests the funds into various investment schemes and financing. The profit sharing is agreed in advance. |
| Ijara (Lease) |
Ijara is a concept closest to the conventional idea of leasing. This involves payments processing for asset acquisition, rental calculation and payments, arrears processing, and sale of the asset at the end of the contract period (in the case of Ijara wa iqtina). |
| Musharaka (Investments) |
Musharaka means “to share.” In a banking context, it indicates that all profits or losses are shared equally. |
| Istisna (Manufacturing Contract or Project Finance) |
In an Istisna sale, the buyer asks the manufacturer to create a specific project or commodity with material from the manufacturer. The price is fixed after all parties give their consent and agree on all the necessary specifications of the project or commodity. |
| Salam (Forward Sale) |
Salam is a sale in which the seller supplies specific goods to the buyer at a future date in exchange for a price fully paid in advance. It is typically used to finance agriculture. The bank must take delivery of the commodity on maturity and it can enter into a parallel contract of Salam with another party to sell the commodity on the future date. |
| Sukuk (Islamic Bond) |
Sukuk is an Islamic bond that must be linked to an underlying asset. Banks cannot raise funds by issuing generic fixed or floating coupon-bearing bonds. Banks can securitize a stream of cash flows from Ijaras or Murabahas and then issue Sukuks. The coupon cash flow for these Sukuks can be the cash flow from the underlying Ijaras or Murabahas. |
The following products are offered by DBI:
Liability Products (Corporate and Retail)
1. Current Account
2. Mudarabah Investment Call Account
3. Mudarabah Saving Investment
4. Mudarabah General Investment deposit
Asset Products (Corporate)
A. Trade Finance
1. LC - Sight against 100% Cash Margin
2. Usage LC (Payment on Maturity)
3. Murabaha LC - Sight
4. Murabaha LC - Usage
5. Murabaha LC - Mixed Payment (Sight and Usage)
6. Murabaha Trade Finance collection Import
7. Murabaha Trade Finance collection Local
B. Murabaha (Corporate and Retail)
1. Car Finance
2. Real Estate Finance
Additional products will be made available starting in February 2010:
Liability Products (Corporate and Retail)
1. Wakalah Investment
2. Murabaha Investment
Asset Products (Corporate and Retail)
1. Ijarah Home Finance / Ijarah Real estate
2. Properties Under constructions
3. Ready properties
4. Refinance (Sale & Lease back)
5. Ijarah Equipments, Machinery & Vehicle (Heavy Vehicle) - Lease |
