Home / This Week / Research / Islamic Finance (Facts & Figures)

Islamic Finance (Facts & Figures)

REGION WISE BRANCHES (December 31, 2016)
Province/Region
Total Number
Share (%)
Punjab
1,092
47.0
Sindh
705
30.3
KPK
250
10.8
Baluchistan
99
4.3
Gilgit Baltistan
10
0.4
FATA
9
0.4
Federal Capital
121
5.2
AJK
36
1.6
Total
2,322
100.0
PAKISTAN: STRUCTURE OF INTEREST RATES –I (%)
w.e.f.
SBP Reverse Repo Rate
SBP Repo Rate
SBP Policy (Target) Rate
26-Jan-15
8.5
6.0
24-Mar-15
8.0
5.5
25-May-15
7.0
5.0
6.5
14-Sep-15
6.5
4.5
6.0
23-May-16 till date
6.25
4.25
5.75
FINANCING MIX (% Share)
Details
Dec-15
Sep-16
Dec-16
Murabaha
24.5
16.9
15.8
Ijarah
6.6
7.8
6.8
Musharaka
14.0
12.0
15.6
Diminishing Musharaka (DM)
31.7
38.5
34.7
Salam
5.3
3.3
4.4
Istisna
8.6
7.0
8.4
Others
9.3
14.5
14.3
Total
100.0
100.0
100.0
CLIENT WISE FINANCING PORTFOLIO (% Share)
Details
Dec-15
Sep-16
Dec-16
Industry
Corporate Sector
74.4
79.8
77.5
68.0
SMEs
3.1
3.2
3.4
7.1
Agriculture
0.6
0.7
0.8
5.3
Consumer Financing
10.0
11.8
10.5
6.5
Commodity Financing
8.6
2.8
5.6
11.1
Others
3.3
1.7
2.2
2.0
Total
100.0
100.0
100.0
100.0
ASSETS QUALITY RATIOS (%)
Details
Dec-15
Sep-16
Dec-16
Industry
NPFs to Financing (gross)
4.9
4.8
4.1
10.1
Net NPFs to Net Financing
0.2
0.6
0.7
1.6
Provisions to NPFs
95.6
88.1
84.7
85.0

 

LIQUIDITY RATIOS (%)
Details
Dec-15
Sep-16
Dec-16
Industry
Liquid Assets (Rupees in billions)
566
747
610
8,506
Liquid Asset to Total Assets
35.1
41.8
32.9
53.7
Liquid Assets to Deposits
41.2
50.6
38.8
72.1
ISLAMIC TERMS USED IN ISLAMIC BANKING
 

Amanah: It refers to deposits in trust.
 

Bai‘ Muajjal: Literally it means a credit sale.
Bai′ Salam: Salam means a contract in which advance payment is made for goods to be delivered later on.
Bai′ bil Wafa: Sale with a right in the seller, having the effect of a condition, to repurchase (redeem) the property by refunding the purchase price.
Falah: Falah means to thrive, to become happy or to have luck and success.
Dayn or Debt : A Dayn comes into existence as a result of any other contract or credit transaction.
Fiqh: Islamic law. The science of the Shariah. It is an important source of Islamic economics.
Gharar: It means any element of absolute or excessive uncertainty in any business or a contract about the subject of contract or its price, or mere speculative risk.
Ijarah: Letting on lease. Sale of a definite usufruct of any asset in exchange of definite reward.

Ijarah-wal-Iqtina‘: A mode of financing, by way

of Hire-purchase, adopted by Islamic banks.
Ijtihad: It refers to an endeavor of a qualified jurist to derive or formulate a rule of law to determine the true ruling of the divine law in a matter on which the revelation is not explicit or certain, on the basis of Nass or evidence found in the Holy Qur’an and the Sunnah.
Istisna’a: It is a contractual agreement for manufacturing goods and commodities, allowing cash payment in advance and future delivery or a future payment and future delivery.
Mudarabah: A form of partnership where one party provides the funds while the other provides expertise and management.
Mubah: Object that is lawful (i.e. something which is permissible to use or trade in).
Musawamah: Musawamah is a general kind of sale in which price of the commodity to be traded is bargained between seller and the purchaser without any reference to the price paid or cost incurred by the former.
Murabaha: Literally it means a sale on mutually agreed profit.
Musharakah: Musharakah means a relationship established under a contract by the mutual consent of the parties for sharing of profits and losses in the joint business.
Riba: An excess or increase. Technically, it means an increase over principal in a loan transaction or in exchange for a commodity accrued to the owner (lender) without giving an equivalent counter-value or recompense (‘iwad) in return to the other party; every increase which is without an ‘iwad or equal counter-value.
FINANCING CONCENTRATION (% Share)
Details
Dec-15
Sep-16
Dec-16
Industry
Chemical and Pharmaceuticals
7.7
6.3
6.6
4.2
Agribusiness
5.8
3.4
3.9
9.1
Textile
18.0
14.9
15.7
14.2
Cement
1.8
1.9
1.9
1.2
Sugar
3.4
1.9
2.7
2.9
Shoes and leather garments
0.7
0.6
0.5
0.5
Automobile and transportation equipment
1.5
1.5
1.6
1.6
Financial
0.7
0.6
0.6
3.0
Electronics and electrical appliances
1.9
1.3
1.1
1.3
Production and transmission of energy
9.4
16.8
15.8
14.8
Individuals
10.9
13.4
12.1
9.2
Others
38.2
37.5
37.5
38.0
Total
100.0
100.0
100.0
100.0

Check Also

Market Indicators

Market Indicators

PAKISTAN MARKET INDICATOR EXCHANGE RATES Currency activity Friday 5-Jan Friday 12-Jan Friday 19-Jan Friday 26-Jan …

Leave a Reply