SBP Islamic Banking Bulletin, July-Sep 2007

Provisions to npfs 1021 1084 net npfs to total

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Provisions to NPFs 102.1% 108.4% Net NPFs to Total Capital -0.07% -0.27% The overall financial position of the Islamic Banking Industry remains solid as depicted by the ratio analysis. Earning and Profitability Ratios remained good in this quarter as well The asset quality ratios reflect that the quality of fi- nancing of the Islamic Banking Institutions is very strong. NPFs to financing are just 0.9 % which depicts that a minimal part of financing is going bad, which is adequately covered through provisions. “O you who believe, fear Allah and give up what remains of your demand for interest, if you are indeed a believer. If you do not, then you are warned of the declaration of war from Allah and His Messenger; But if you turn back you shall have your principal: Deal not unjustly and you shall not be dealt with unjustly.” (Al Baqarah 278 - Al Quran)
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July-September 2007 Deposits Structure Page 5 Total Deposits have increased by 15% from 108,293 million to 124,437 million Rupees. Deposits by customers have increased by 16 %. Deposits by financial institutions have increased by 5 %. Fixed Deposits by customers constitute 38 % of the total deposits depicting customers preference towards long term fixed deposits. (Rs. in million) Description Jun-07 Sep-07 % Change Deposits and Other Accounts 108,293 124,437 15% A) Customers Fixed deposits 39,652 47,423 20% Savings deposits 31,640 38,582 22% Current accounts -Non Remunerative 23,792 24,467 3% Others 998 1,115 12% Total of A 96,082 111,587 16% B) Financial Institutions FI-Remunerative deposits 12,151 12,819 5% FI-Non Remunerative deposits 59 31 -48% Total of B 12,211 12,850 5% Particulars of deposits In Local currency 101,693 117,518 16% In Foreign currency 6,599 6,919 5% Total 108,293 124,437 15% Breakup of Deposits-Sep 2007 Savings deposits 31% Fixed deposits 38% Current accounts 20% FIs- Remunerative deposits 10% Others 1%
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July-September 2007 Modes of Financing Page 6 Share of Murabaha Financing has decreased from44.91% in previous quarter to 40.9% in total financing by the IBI’s during the quarter ending September 2007. Second most widely used mode of Finance is Ijarah Financing accounting for about 28.8 % of the total financing. Diminishing Musharakah has increase by 47% and jumped to 26.1% from 19.9% of total financing in June 2007 The total number of Financees’ accounts increased by 18% , from 29, 204 to 34, 362 in current quarter. (Rs. in million) Modes of Financing- Jun 2007 Ijarah 30.2% Murabaha 44.9% Musharaka 0.7% Diminishing Musharaka 19.9% Others 2.1% Istisna 1.0% Salam 1.2% Modes of Financing Jun-07 Sep-07 Inc./Dec. Murabaha 35,767 36,469 2% Ijarah 24,038 25,738 7% Musharaka 582 1,394 139% Mudaraba - 84 - Dimin. Musharaka 15,877 23,314 47% Salam 952 1,276 34% Istisna 757 39 -95% Qarz/Qarz-e-Hasna 6 8 28% Others 1,663 927 -44% Gross Financing 79,641 89,247 12% Amount of NPF 790 846 7% Provisions 807 917 14% Net NPF (17) (71) 321% Gross Financing 79,641 89,247 12% Total No of Financees’ accounts 29,204 34,362 18% Modes of Financing- Sep 2007 Salam 1.4% Mudaraba 0.1% Others 1.0% Diminishing Musharaka 26.1% Musharaka 1.6% Murabaha 40.9% Ijarah 28.8%
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