To,

All RMs of Branch Banking, SME, Commercial and Corporate Banking

All Documentations officer of CAD /RFC/ CRM
Subject: Shariah Guidelines on City Manarah Finance for Retail, SME, Commercial and Corporate Banking.
This is to inform that the sometimes investment income may goes out of bank`s income due to violation of
shariah compliance in investment process. Then the amount is considered as part of charity as compensation
income. This is a great loss of the Bank. To minimize this loss following shariah compliance guidelines has been
issued by the shariah department for maintaining shariah in every part of investment.

PROCESS & DOCUMENTS OF MODE WISE INVESTMENT:

A. Product Name : Bai-Murabaha Investment
Name of the Finance Mode

Bai-Murabaha

Shariah permissible
Murabaha items/goods

Raw materials
Finished Goods
Commercial Goods
Home appliance

Murabaha Products & Business Area

Manarah Personal Finance for Retail banking

Murabaha Trust Receipt (MMTR) for SME & Corporate
Murabaha Local Purchase (MLP) for SME & Corporate.

Murabaha Finance Documents:

Before approval process:
SL
1

Name of the Document

Customer Application

Document Issuer

Customer:
The customer himself will
formally apply for the
finance facility in business
letter head or prescribed
FORM.

Price Quotation

Murabaha Agreement

Supplier/Vendor:

Irrevocable Letter of
Authority (for MMTR)

The trading firm who will

propose to sale the goods to
the bank as per customer
request in business letter
head with logic price of goods

Bank:

Provided by bank in
prescribed form for shariah
permissible items financing
through buy sale mode.

Document Content

Customer:
The authorization from
customer to the bank to use
his IRC for import LC

Date of application
Quantity & Quality of Murabaha goods
Expected price per unit & total
Application to be for Murabaha goods only
In the application the customer will promise to
buy the goods from the bank
Price quotation in the name of Bank (not customer)
Issuing date must not after application
Quotation must be received by RM with seal
Price of goods must be verified by RM
Price of goods and quality must be accepted by
customer.
Date and place of Murabaha Agreement
Goods name and particular
Cost price (principal amount)
Sale price to customer (Cost +profit)
Signature of both parties Bank & Client
Signature of minimum 2 witnesses (male).
Tenor of investment.
Number of LC,AF
Date of LC,AF
Number of Registration
Importable items particular

Buying Agent
Application
(if allowed In a special
circumstance to
purchase goods from
very rural/non account
holder suppliers)

Buying Agent
Appointment

Other Documents

Customer:
The customer will formally
apply to the bank to appoint
as buying agent of the bank
in business letter head or
prescribed FORM.

Bank:

Date of application
investment client name
Sanctioned advice number, amount & date
Major items and nature
Application to be in prescribed form and
promise to purchase items in the name of Bank

Date of appointment
Appointed name & address
Sanctioned advice number, amount & date
Major items and nature
Purchased Goods will be inspected by bank
officer before use.
Cash memo/Bill/Delivery Challan will be in the
name of Bank, not agent or customer.
As per requirement of CAD & Asset ops of C&C of the Bank.
The appoint letter to be
issued from the bank to
customer in a prescribed form
to follow conditions.

After approval process

Payment Order(PO)

Bank:

Delivery Challan /Cash

memo/Bill invoice

10

Cash Facility
( special case only)

11

Document preservation

Supplier name
approved amount of investment
Date and concern signature in PO.
A copy of PO to be preserved in customer file
PO will be delivered to vendor by RM/Bank
official against supplied goods.
RM/Bank Officer will receive goods and
Supplier(Vendor)
Delivery Challan/cash memo from Supplier
Goods seller to the Bank as
per customer request
Delivery Challan must be in the name of bank
(not in customer name)
Date of delivery Challan must be same of PO
date or after that any day
Supplier signature and seal as issuer
Bank official signature as receiver of goods
Customer signature as acknowledgment of
goods received from the Bank
Approved amount can be credited into
Bank :
appointed buying agent`s CASA .
Payment through Buying
Agent
Agent will purchase goods in the name of Bank
Agent will collect Delivery Challan/Cash memo
RM/Bank officer will inspect the goods and
receive delivery Challan from agent.
All received document will be preserved in CAD/Asset ops of C&C with
customer investment file for immediate audit.
Bank (IBB) will issue PO for
approved amount favoring
to supplier by debiting
limit uploaded sundry
account.

B. Product Name : Hire Purchase under Shirkatul Meilk (HPSM) Investment

Name of the Finance Mode

HPSM

Shariah permissible
items for HPSM Finance

Capital Machinery item

Fixed Asset
Auto /Car
Ready flat Finance

Murabaha Products & Business Area

Manarah Auto Finance for Retail Banking

HPSM Import Finance( machinery) for SME & Corporate
HPSM Local Finance (machinery)for SME & Corporate
Manarah Home Finance (Fixed Asset) for Retail invest.

HPSM Finance Documents

Before approval process:

SL

Name of the Document

Document Issuer

Document Content

Customer Application

Customer:

The customer himself

will formally apply for
the finance facility in
business letter head or
prescribed FORM.

Price Quotation

Murabaha Agreement

Supplier/Vendor:

Irrevocable Letter of
Authority
(for HPSM Import finance)

Buying Agent Application

(if allowed In a special
circumstance to purchase
rentable from rural/non
account holder suppliers)

Price quotation in the name of Bank (not customer)

Issuing date must not after application
Quotation must be received by RM with seal
Price of asset must be verified by RM
Price of asset, quality and specification must be
accepted by customer.
Asset to be no fungible/rentable items.

The trading firm/individual

who will propose to sale
the asset to the bank as
per customer request in
business letter head with
logic price of asset.

Bank:

Date and place of HPSM Agreement

Asset particular
Cost price (principal amount)
Client`s Equity and Bank`s equity (principal amount)
Rent/profit rate
sale price(EMI amount) to customer (cost +rent)
Tenor and gestation period of investment
Capital gain issue (if any)
Signature of both parties Bank & Client
Signature of minimum 2 witnesses (male).
Number of LC,AF
Date of LC,AF
Number of Registration
Importable items particular
Date of application
investment client name
Sanctioned advice number, amount & date
Major items and nature
Application to be in prescribed form & promise
to purchase items in the name of the Bank

Provided by bank in
prescribed form for
shariah
permissible
items financing through
HPSM mode.

Date of application
Quantity , Quality& specification of asset
Expected price per unit & total
Application to be for HPSM Machinery/Fixed
Asset Finance not for cash facility.
In the application the customer will promise to
rent and buy the bank`s equity in the asset.

Customer:
The authorization from
customer to the bank to
use his IRC for import LC

Customer:
The
customer
will
formally apply to the
bank to appoint as
buying agent of the bank
in business letter head
or prescribed FORM.

Buying Agent
Appointment

Other Documents

Bank:

Bank:

Date of appointment
Appointed name & address
The appoint letter to be
Sanctioned advice number, amount & date
issued from the bank to
Major items name and nature
customer in a prescribed
Purchased asset will be inspected by bank officer
form to follow conditions.
before use.
Cash memo/Bill/Delivery Challan will be in the
name of Bank, not agent or customer.
As per requirement of CAD & Asset ops of C&C of the Bank.

After approval process

Payment Order(PO)

Supplier name
approved amount of investment
Date and concern signatures in PO.
A copy of PO to be preserved in customer file
PO will be delivered to vendor by RM/Bank
official as price of asset purchased.
RM will receive Delivery Challan/cash memo
Supplier(Vendor)
against asset purchased from Supplier
Goods seller to the Bank
as per customer request Delivery Challan must be in the name of bank
(not in the name of customer )
Date of delivery Challan/cash memo must be
same of PO date or after that any day
Supplier signature and seal as issuer
Bank official signature as receiver of asset
Customer signature as acknowledgment of
asset received from the Bank
Approved amount can be credited into buying
Bank :
agent`s CASA .
Payment through Buying
Agent
Buying Agent will purchase machinery items in
the name of bank
Agent will collect Delivery Challan/Cash memo
RM/Bank officer will inspect the asset and
receive delivery Challan from agent
All received document will be preserved in CAD/Asset ops of C&C with
customer investment file for immediate audit & inspection.
Bank (IBB) will issue PO
for approved amount
favoring to supplier by
debiting limit uploaded
sundry account.

Delivery Challan /Cash

memo/Bill invoice

10

Cash Facility
( special case only)

11

Document preservation