PDSC Policies

Question 1

Policy No 1A/06

Answer 1

Policy for Operations of Charity Account

1. Charity recorded as Liability.
2. Donations made to Charitable Org / Individual approved by Shariah Advisor / Shariah Supervisory Board.
3. Criteria for selection of Charitable Organisations:
   A. Registered as Charitable Org & not profit making entity.
   B. Purpose of donation should be identified.
   C. Incase of donation to individual the need for fund & its genuineness should be ascertained.
4. Proposal request for donation shall sent to PDSC for approval from Shariah Advisor. Upon approval from Shariah Advisor the proposal / request shall be presented either before the CEO or COO for approval for release of funds.
5. Donation to unapproved charitable org / individual, specific approval from Shariah Advisor be will be required.
6. Summary of operations of charity account shall be presented to Shariah Advisor on quarterly basis by Finance Department.
7. Amount of charity to be distributed within 1 years of its transfer.
8. Internal Audit will do annual audit of the charity account and report will be submitted to PDSC.
9. Charity funds cant be used for sponsorships or any such activities involves promotion or marketing of Bank.

Question 2

Policy No 2/05

Answer 2

Phased Implementation of Revised Structure of Deposit Product

Step No 1:
Stop Charging Administration cost to the depositors and increasing management fee (Mudarabah Fee) to 80% of gross income from the pool and its announcement via MBL Website.

Step No 2:
Revision of Existing Weightages based on following account categories and there announcements via MBL Website.
Savings Account 10k to 10 M

Step No 3

Question 3

Policy No 3 / 5

Answer 3

New Tiers in Monthly Musharakah Certificates(MMC)

Previous Tier:
MMC-PKR 100K and Above

New Tiers:
MMC-PKR 100k to 4.99M
MMC-PKR 5M to 9.99M
MMC-PKR 10M to 49.99M
MMC-PKR 50M to 99.99M
MMC-PKR 100M to 499.99M
MMC-PKR 500M & Above

Question 4

Policy No 4

Answer 4

Service Charges for Issuance of LC & LG

1. Bank may charge a fee for the following services while opening a LC or giving a LG
   Documentation, Credit Assessment, Correspondence, Account Maintenance Services, Monitoring Services & other Ancillary Services.
2. Charges can’t be on a percent / annum basis. However, as the amount of services required may vary several slabs may be designed to determine the fee.
3. Charges in subsequent quarter should not be more than 50% of the initial charges, because in the subsequent period, lesser services are required.

Discount;
Discounts may be offered to customers in the above mentioned charges in the following manner:

Example 1. 50% discount in 1st Qtr and 25% discount in subsequent quarters on corporate schedule of charges for LC.
Example 2. 25% discount on the corporate schedule of charges for import LC.

Question 5

Policy No 6

Answer 5

Clarification of Gross Income

“The gross income of business means and includes all the income of the business derived after deducting costs and expenses directly incurred in deriving that income such as cost of purchase, insurance expense etc