The
Presidents / CEOs
Islamic Banks /Heads Islamic Banking Divisions
Dear
Sirs
Declaration
of Weightages & Profit Sharing Ratios
The
weightages & Profit sharing ratios are used by Banks
to calculate distribution of profit as per the requirements
of Shariah covering Islamic Banking. It has been observed
that only few Institutions offering Islamic Banking are
regularly updating weightages & Profit sharing ratios,
before beginning of the period concerned, on their websites;
which is not an encouraging situation. Therefore all Institutions
offering Islamic Banking are advised to make sure that relevant
weightages and ratios are updated regularly, before start
of the period concerned, keeping in view the following minimum
standards:
1.
Weightages & Profit sharing ratios must be made available
to all constituents before beginning of the period concerned.
The weightages & Profit sharing ratios must be available
on website.
2.
The statement declaring weightages & Profit sharing
ratios must at the minimum contain date of declaration,
period for which they remain effective, all categories/pools
& bank’s equity share and their weighatage, types,
sizes, tiers of accounts and actual rates paid during the
preceding period.
3.
The Statement of weightages & Profit sharing ratios
must be prominently displayed in all Islamic Banking Branches.
4.
All Islamic Banking Institutions are advised to update the
weightages & Profit sharing ratios on their websites
within 7 days form issuance date of this Circular Letter.