Besides conventional banking, Jamuna Bank PLC is carrying Islami Banking activities based on Islami Shaiah principles. The first Islami Banking branch of the Bank opened on October 25, 2003 at Nayabazar in Dhaka. Afterwards it’s second branch opened on November 27, 2004 at Jubilee Road in Chittagong.

Jamuna Bank PLC is committed to conduct business of it’s Islami Banking branches strictly complying Shariah requirements. To achieve this goal a Shariah Supervisory Committee has been constituted with renowned Islami scholars of the country and senior banker having Islami Banking experiences in depth knowledge of conventional and Islami Banking.

All activities of Islami Banking branches are carried out under the guidance of this Committee. A separate division has also been created at Head Office.

We have wide range of Correspondent Banking Network & Remittance drawing arrangement with different International reputed Money Transfer Companies & Exchange Houses throughout the world to facilitate Bangladesh bound Remittance Globally. We value our customers to provide prompt & efficient services offering best competitive price for their hard-earning Foreign Currencies.

Mode of Deposits

Mudaraba:

Mudaraba is a partnership of labour and capital, where one partner provides full capital and the other one manages the business. The capital provider is called Sahib-Al-Maal and the user of the capital is called Mudarib. As per Shariah principles, the Mudarib will conduct the business independently following Shariah principles. The Sahib-Al-Maal may provide advices, if he deems fit but he can not impose any decision over the Mudarib. Profit, if any, is divisible between the Sahib-Al-Maal and the Mudarib at a predetermined ratio, while loss, if any, is borne by the Sahib-Al-Maal. Mudarib can not avail of any salary or remuneration against his labour as a manager or conductor of the enterprise/business. The deposits, received by Islami Banking branches under this principle are called Mudaraba Deposits. Here, the depositors are called Sahib-Al-Maal and the bank is called Mudarib. The Mudaraba deposits include:

JBL has developed various deposit schemes on the basis of this Mudaraba principle for it`s Islami Banking branches such as:

Investment Principles & Products

Mudaraba is a shared venture between labour and capital. Here Bank provides with entire capital and the investment client conducts the business. The Bank, provider of capital, is called Sahib-Al-Maal and the client is called Mudarib.The profit is to be distributed between the Bank and the investment client at a predetermined ratio while the bank has to bear the entire loss, if any.

Investment System Islami Shariah

Investment in Imports:

The import business is broadly divided into the following three categories:-

Import of Commercial goods. Import of raw materials for production purpose. Import of capital / machineries.

The importers avail of investment facilities against all kinds of imports. But in case of imports under category, investments are made under the Shariah approved Bai-Murabaha and Bai-Muajjal modes and in case of import under category, investment is made under the Shariah compliant mode of Hire Purchase under Shirkatul Meelk (HPSM). Investment facilities are also provided for import business through Bai-Salam, Musharaka and Mudaraba modes. Besides, the Islami Banking branches will fully abide by the national and international norms and guidelines relating to export/import business.

1. Import under the Bai-Murabaha system

1.1 Definition of the Bai-Murabaha:

Bai-Murabaha is a contract between a buyer and a seller under which the seller sells certain specific goods permissible under Islamic Shariah and law of the land to the buyer at a price determined by charging agreed profit, margin or mark-up over the cost price. In this case, the buyer either makes cash payment to receive the goods or is allowed to make payment by instalments or on a fixed future date. The profit mark-up may be fixed in lump sum or in percentage over the cost price of the goods.

1.2 Some important features of the Bai-Murabaha mode of investment

a) The client (buyer) requests the Bank to purchase particular goods and promises to purchase the same from the bank at a price fixed by charging profit over the cost price. b) Under the Bai-Murabaha mode of investment there is no scope to increase the price once it is fixed. c) After buying the goods, the Bank has to bear all the risk until goods are actually delivered to the client.

Import of goods under Bai-Murabaha mode of investment In the import business, the importer provides an irrevocable letter of authority to the ank to import specific goods on behalf of him (the client) from the foreign seller and romises to buy the same from the Bank. In this case, the Bank is designated as a onsignee in the Bill of lading and later on the Bank hands over the same to the mporter through endorsement i.e. the ownership of the goods is transferred to the mporter. As per uniform customs and practices, the seller lodges his claim or places claim for dues to the buyer’s Bank through the bill of exchange and the buyer’s bank discharges the claim on behalf of the buyer. The above import system is fully approved/ supported by the Islamic Shariah.

1.3 Investment in imports by Islami Banking branches

In the import business, Bai-Murabaha investment is accomplished through a single deal at the time of opening L/C, Bills and Shipment. For example:

a) Murabaha Import L/C b) Murabaha Import Bills (MIB) c) Murabaha Post Import (MPI)

1.4 Murabaha Post Import (MPI)

The importers apply for investment facility against imported goods after shipment for payment of the invoice values of the goods to the seller/supplier including custom duty, VAT and other expenses. In such a case, Islami branches allow a Bai-Murabaha investment facility under single deal concept. It is so called as the Letter of Credit. Bills and the handling of Post-shipment are settled under one agreement while opening the letter of credit for importing the goods.

1.5 Accounting procedure for purchase price, profit and sale price

a) Price payable to the supplier b) Other expenses related with purchase

i) Conveyance – TA/DA ii) Commission payable to the agents. iii) The expenditures in connection with supplier’s payment. iv) Transportation cost up to the Bank’s godown. v) Transit Insurance and other expenses. vi) Godown rent and salary of officials etc. incurred before sale of goods.

Additional expenses

1. Duty 2. VAT 3. License fee 4. Commission for C&F agent etc.

c) Cost price or total value = a + b

d) Estimated profit/Mark-up profit (profit percentage on purchase/cost price) e) Sale price = c + d f) The net Investment amount is determined after deduction of the down payment (if any ) from figure at “e” above.

2. Import under the Bai-Muajjal mode of investment

2.1. The term Bai-Muajjal means “deferred payment sale” or “Sale on Credit”

Under this mode of investment a contract is made between the buyer and seller for buying and selling of goods approved by Islamic Shariah and law of the land on the stipulation to pay the agreed price at a specific future date or by fixed installments.

2.2 Some important features of the Bai-Muajjal mode of investment

Most of the features of Bai-Murabaha and Bai-Muajjal are alike excepting the following:

1. Bai-Muajjal sale is executed completely on deferred payment system 2. The sale price is determined adding the profit with cost price. It is not necessary to disclose the cost price and the profit mark-up separately to the client. But in Bai- Murabaha, the cost price and the profit mark-up ratios are to be disclosed separately to the client. 3. The accounting procedure for imported goods under both the Bai-Muajjal and Bai- Murabaha mode are alike. But so far as contract is concerned they are different. Bai- Murabaha contract and Bai-Muajjal contract are executed for imports under Bai- Murabaha and Bai-Muajjal modes respectively.

3. Import under diminishing proprietorship method (Hire Purchase under Shirkatul Meelk-HPSM)

Capital machineries and other re-usable goods are imported under this mode. It combines three modes: rent (Ijara), partnership (Shirkat) and buying and selling.

The Bank and the client invest their capital jointly through a contract called partnership (Shirkat).

The bank leases its portion at a certain rent. The Bank sells its portion to the client on receipt of the price under this system.

4. Import under Musharaka mode of investment

4.1. Definition of Musharaka:

Musharaka is a Shariah compliant mode of investment wherein the bank and the client jointly provide the capital. Here no prefixed profit is earmarked like in Bai-Murabaha or Bai-Muajjal. Profit, if any, is distributed as per agreement between the client and the bank while the loss, if any, is shared according to capital ratio.

4.2. Some general features of Musharaka mode of investment :

The Musharaka agreement shall clearly laid down the amount of capital investment to be provided by the bank and the client and the profit/ loss sharing ratio as agreed between them. The actual profit of the business is to be distributed between the bank and the client as per the agreed ratio. But loss, if any, is to be borne by them as per ratio of the capital. The client shall properly maintain ledger, register, books of accounts etc. and have to show those to any authorized person of the bank on demand. For the success of client’s business the bank shall have the right to give any decision and supervise the business activities.

4.3. Before establishing Letter of Credit, the bank shall receive an application from the client in prescribed form which shall include the following aspects:

The price of goods to be imported, C&F price as per quotation/indent. Wholesale/retail price of every unit/ton/bag/carton. Import cost including estimated import expenditures. Expected sale price of imported goods. Per unit/ton/bag/cartoon expected sale price of the imported goods. Particulars of any other expenditure in addition to the import cost. Estimated net profit. Capital and profit /loss sharing ratios.

4.4. Documentation shall:

The Bank shall, thereafter, receive the equity portion of the client and after completion of documentation shall make payment against the import liability and all expenses related to it as per the Musharaka agreement. If there is profit, bank shall receive its share of profit as per agreement and in case of loss, shall bear the same according to capital ratio.

4.5. Fixation of liability in case of loss:

If loss is incurred after performing all duties and responsibilities as per agreement, then the loss would be borne by the bank and the client according to capital ratio. But if the loss is incurred due to carelessness, negligence or breach of any condition by the client, then the client would be liable to bear the loss.

5. Import under Mudaraba mode of investment

5.1. Definition of Mudaraba:

Under the Mudaraba mode of investment, the client or businessman or capital user does not invest any capital. In this case, the bank alone invests all the required capital and the entrepreneur (the client) directly manages and looks after the business.

5.2. Under this mode

The bank bears all the expenditures related to imports. In this case, the Bank supervises the use of capital, system of business operation and income of the business etc. The client maintains all the registers, documents and accounts concerning buying & selling of the goods.

5.3. In this case

In this case, profit, if any, is distributed between the bank and the client as per the agreed ratio and loss is fully borne by the Bank.

Investment in exports:

To accomplish export process/ order as per the terms and conditions of the letter of credit (L/C) and the agreement executed between the seller and buyer, an exporter needs financial and other banking facilities on urgent basis. So, it is one of the important functions of a bank to provide investment and banking facilities to the exporter at different stages of export business. An exporter needs financial facilities at two stages of export process such as at pre-shipment stage, and at post-shipment stage. Hence, financial facilities to export sector may be classified as: Pre-shipment Finance. Post-shipment Finance. Financial assistance/ facilities complying Shariah principles are provided at both the stages of export process.

Investment at Pre-Shipment stage as per Islami Shariah:

An exporter needs various financial facilities till shipment of goods. Finance is needed for procurement of raw materials and to meet transportation and other related cost upto shipment. Pre-shipment facilities are generally provided for the following purposes: To procure raw-materials. To process the exportable goods. For transportation and packaging. For payment of insurance premium. For payment of water, electricity and gas bills etc. For payment of wages and salary/bonus to employees. For payment of freight of the ship. Shariah compliant modes for Pre-shipment Finance:

1. Back to Back Letter of Credit (Back to Back L/C)

Bank extends Back to Back letter of credit (L/C) facility to exporters to procure/import raw-materials for producing/manufacturing exportable goods at pre-shipment stage under the mode of Bai-Muajjal. Initially, no financial facility from the Bank is required when the back to back L/C is opened. But if the exporter fails to pay the L/C value at maturity or on due date, the Bank provides financial facilities to the client under Bai- Muajjal mode.

2. Bai-Murabaha TR (Trust Receipt) :

To procure/purchase raw-materials for executing export order the Bank provides investment facilities to the client under the mode of Murabaha TR. In this case, the Bank obtains Trust Receipt signed by the client and handover the imported goods to the exporter.

3. Bai-Salam :

3.1 Under the Bai-Salam mode of investment, payment is made in advance to purchase the goods and the supplier makes promise to deliver the goods at a future date. 3.2 Investment under Bai-Salam mode is made to meet other expenses of the exporter excepting the manufacturing cost of exportable goods. The Bank purchases a portion of the exportable goods under the Bai-Salam mode and makes advance payment for the same on the condition that arrangements will be made by the exporter to export the goods purchased by the Bank along with other goods of the exporter. 3.3 Fixing purchase price of the goods and recovery of bank’s investment: The purchase price is determined by deducting estimated profit of Bank’s purchased portion of the exportable goods. The Bank recovers its dues after realization of export proceeds.

4. Musharaka:

Pre-shipment investment may be made under Musharaka mode of investment if there is any pre-determined investment arrangement.

Post-Shipment Investment :

Bank provides post-shipment investment facilities through Negotiation (FBN) and purchase of export bills. It normally negotiates or purchases the export documents if the documents/bills prepared by the exporter are found in order/correct in all respect. The bank adjusts the liabilities against FBN/FBP after receiving the export proceeds and earns exchange income from this. This mode of investment is in compliance with the Islamic Shariah.

Hajj is one of the fundamental obligatory acts of Islam. Every Muslim cherishes an eternal desire to visit various important places of religion including Jiarat of Holly Baittullah, Rouja Mubarak of the beloved Prophet Hazrat Muhammad (sm.) and other historical places of Islam. The unspoken heart of Muslim wants to say, Labbaika! Allahumma Labbaik!!. But in the socio-social context prevailing in Bangladesh, many of those who are interested in performing Hajj and Umrah cannot gather the necessary money. Many others, despite having many movable and immovable assets, cannot go for Hajj and Umrah due to lack of cash. As a result, the interest and desire of many of them to perform Hajj/Umrah remains unfulfilled. Millions of devout Muslims from Bangladesh perform the holy Hajj/Umrah every year. Physical and financial ability is a prerequisite for performing Hajj/Umrah. But most of the Muslims in our country reach the end of their lives to arrange the necessary money for performing Hajj/Umrah. Also, many Muslims employees want to perform Hajj and Umrah at least once before death of their elderly parents or in-laws; but in this case also the problem is to provide one-time money. As part of our Islami Banking business expansion, Jamuna Bank is going to facilitate the Muslim customers for performing holy Hajj and Umrah by enjoying the new Investment products “Bai-Murabaha Hajj Investment and Bai-Murabaha Umrah Investment” on mutually agreed terms and conditions. It is paramount that these facilities strictly are adhering to the Shari`ah-compliant principles, refraining from any elements of interest (Riba). It is not like a conventional loan but it is an Investment facility where Bank will purchase the Hajj/Umrah packages from any Government approved Hajj/Umrah Agencies as per choices of customers and Bank will sell the packages with profit i.e. based on Bai-Murabaha of Islami Shari`ah.

Considering the above, the policies of new Islami Banking Investment Products “Bai-Murabaha Hajj Investment and Bai-Murabaha Umrah Investment” have been introduced for our Islami Banking customers as follows:

  Quoted  

01.	Product Name	:	Bai-Murabaha Hajj Investment and Bai-Murabaha Umrah Investment
02.	Purpose of Investment	:	To perform Hajj and Umrah
03.	Investment Nature	:	Bai-Murabaha (Service)
04.	Term of Investment	:	A)   Maximum 05 (five) years for Hajj including moratorium period B)    Maximum 03 (three) years for Umrah including moratorium period
05.	Moratorium Period	:	03 (three) months (During taking preparation    of performing Hajj and Umrah period).
06.	Investment Limit	:	A)   For Hajj      : BDT 7.00 lac only or value as declared by the Government/Private package. B)    For Umrah : BDT 1.00 lac to 2.00 lac only or value of the Umrah package.
07.	Mark- Up Profit	:	@15.00% p.a (Mid-Rate) or the rate fixed by HO from deal to deal.
08.	Installments Fixing Method	:	Reducing Method
09.	Installments Amount	:	Installments will be fixed up on the basis of value of the package and term of Investment including moratorium period. The residual amount will be adjusted along with the last installment.
10.	Repayment Method	:	Monthly installment/Advanced payment.
11.	Investment Processing and Documentation Fee	:	As per Schedule of Charges of JBPLC.
12.	Disbursement Branch	:	All Islami Banking Branches of the Bank.
13.	Investment Sanction Authority	:	As per the latest Delegation of Business Power of Jamuna Bank PLC.
14.	Eligible for Investment	:	A)    All Bangladeshi Muslim Government and Private sector employees. B)    All Other people (without service holders) holding Financial Legal Instruments like; Wage Earners Bond, US Dollar Bond, Mudaraba Fixed Deposit Receipt [MTDR] & other Mudaraba Scheme accounts of Jamuna Bank PLC. as well as other bank’s Instruments kept under lien against “Bai- Murabaha Hajj and Umrah Investment” up to 80% of Instruments Face Value. C)    Job duration of the service holder will be at least 03 (three) years as a permanent employee. D)    Applicant will be eligible for investment of his/ her Spouse, Father- Mother, Father/Mother in-law and Son- Daughter. E)     Installment amount should not exceed 10% of the applicant’s monthly take home salary of the service holders. F)     Adjustment of the total Investment will be made during the service period for service holders. G)    Only Pre-registration holders for Hajj and on whom Hajj has become ‘Fard’ will be eligible for Investment.
15.	Disbursement Procedures	:	A)    The amount of Investment will be disbursed through issuing Payment Order/ Bank Demand Draft/BEFTN/RTGS in favor of Hajj/Umrah Agency or credited to the account of Hajj/Umrah Agency. B)          Disbursement may be made through the Investment holder’s account by appointing him ‘Buying Agent’ according to the principles of Islamic Shari’ah in case of necessity.
16.	Investment Margin	:	No Investment Margin. Bank may allow full or partial value of Hajj and Umrah Package.
17.	Security	:	A)    02(two) Personal Guarantors must be required including spouse. B)    Guarantor will be at least same grade or above of the investment holder (For service holders). C)    Employer Certificate, No Objection Certificate & latest Salary Certificate duly issued by the competent Authority/employer must be obtained. D)    Lien of Investment holder’s Provident Fund (PF) and Gratuity/undertaking along with the investment application form will be provided by the Investment holders for adjustment of the outstanding amount, which will be counter signed by the organization’s competent Authority. E)     Investment holders will provide signed required No. of Cheques for legal action in case of default. F)     The Investment will be processed by JBPLC. Retail Banking Division.
18.	Investable Sectors	:	Airfare, Accommodation, Food and all other related expenses under the Hajj/Umrah package.
19.	Documents Required for Investment	:	A)    Quotation for package from the Government approved Hajj Agencies. B)    02(two) copies of passport size photograph (Applicant, Co-Applicant/Dependent/ Sponsor/Guarantor). C)    Copy of National Identity Card/Passport (Applicant, Co-Applicant/ Dependent/ Sponsor/Guarantor). D)    Employer Certificate, No Objection Certificate & Latest Salary Certificate duly issued by the competent authority/employer. E)     Document of Hajj Pre- registration and Final Registration. F)     TIN Certificate (as applicable). G)    All the prevailing rules of the Bank (if not contrary to Shari’ah) must be duly followed.
20.	Documents	:	A)    DP Note. B)    DP Note Delivery Letter. C)    Letter of Guarantee on Non-Judicial Stamp. D)    Balance Confirmation Letter. E)     Security Delivery Letter. F)     Letter of Lien. G)    Letter of Installments. H)    Letter of Disbursement. I)       Letter of Undertaking. J)       Agreements as per serial no.21.
21.	Agreements Executed	:	A) Execution of Investment Agreement between Bank and applicant. B) Execution of Package Purchase Agreement between Bank and Government approved Agency (if applicable). C) Execution of Bank’s Sales Contract with Customer. D)       Execution of Tripartite Agreement with Customer, Bank and Agency.
22.	Investment Management	:	The Retail Banking Division will process/sanction the investment files. The concerned Division and the Branches will make ensure the 100% repayment of the amount of investment timely.
23.	Miscellaneous	:	A)    If the customer has a salary account in the Jamuna Bank PLC. or any other schedule Banks, he/she can get “Bai- Murabaha Hajj and Umrah Investment” from the Islami Banking Branches of Jamuna Bank PLC. In that case the following rules should be followed: i)        Authorization form for payment must be obtained duly signed by the customer through EFT Debit. ii)      Obtaining a six month’s Salary Account statement of the customer before making Investment. iii)    Verifying all documents submitted by the customer. B)    The amount of actual tax, VAT etc. determined by the Government should be collected from the customer’s account. C)    The actual cost of legal and other incidental expenses shall be realized from the customer’s account. D)    CIB report of the customer must be obtained from Bangladesh Bank. E)     General lending/Financing guidelines and regulation issued by the Bank from time to time must be followed (if not inconsistent with Shari’ah). F)     This investment will be sold to the customer after purchasing the Hajj/Umrah package from the Government approved Hajj/Umrah Agencies.