Mudarabah

1. Meezan Bank launches Meezan Business

Plus, a Mudarabah based Business Account

Its a Mudarabah based business account which allows customers

to conduct their banking transactions while availing a wide range
of free services and value added features. Meezan Business Plus
is a unique business account that is based on the concept of
Mudarabah and is a Shariah compliant solution of offering free
services to the Business account holders as an alternative to the
conventional banking current accounts (that are based on Qarz
and offer free services related to a specific balance hence
linking the benefit of free services to the amount of loan/qarz and
entering into the domain of Riba).

Meezan Business Plus offers accounts to Individuals, Sole

Proprietorships, Partnerships and Limited Companies, with no
minimum balance requirements and no restriction on withdrawals
or number of transactions. The product offers free services
including: Free Cheque books, Free Pay Orders, Free Visa Debit
Card, Free Account Statements, Free Intercity clearing thru NIFT
etc and other benefits for maintaining an average monthly
balance of Rs. 100,000/-

By offering this product, Meezan Bank has brought convenience

and flexibility to businessmen and has moved another step in the
direction of achieving its Vision of making Islamic Banking the
banking of first choice and also reflects strong Meezan Bank
commitment to offer strict Shariah Compliance banking solutions.

How the Business Plus Account Works

On agreeing to become a Meezan Business Plus Account holder,

the customer enters into a relationship based on Mudarabah with
Meezan Bank. Under this relationship, the customer is an Investor
(Rab-ul-Maal) and the Bank is the Manager (Mudarib) of the funds
deposited by the customers. The Bank allocates the funds
received from the customers to a deposit pool. These funds from
the pool are utilized to provide financing to customers under
Islamic modes that include, but are not restricted to Murabaha,
Ijarah, Istisna and Diminishing Musharkah.

Profit Sharing Ratio

Bank will share 50% of Gross Income as Mudarib

Depositor will share 50% of Gross Income as Rab-ul-Maal

Profit Rates (% per anum) 0.04%
 2. Short-term Halal Investments with Competitive
Returns

The Riba-Free Monthly Mudarabah Certificate (MMC) is a short-

term deposit product which has been designed to give the

customer expected monthly returns.

How the Monthly Mudarabah Certificate Works

Profit Sharing and Distribution Method

The Distributable income of the deposit pool is distributed among

the bank (Mudarib) and customers (Rab ul Maal) on the basis of a

pre-determined profit sharing ratio and weightages which shall be

announced 3 days before beginning of every month and shall not

be changed during the month. According to the sprit of Mudarbah,

the profit rates are calculated and announced up to seven days of

the subsequent month from the monthly income of the trade

activities of the pool. Conversely, in case of the loss as per the

rule of Mudarbah, the Rab ul Maal shall bear the loss in the ratio

of their investment.

Profit Sharing Ratio

Bank will share 50% of Distributable Income as Mudarib

Depositor will share 50% of Distributable Income as Rab-ul-Maal