ISBAC Bank Islamic banking, The SBAC Bank Limited declares Investment Income Sharing Ratio (ISR) between Bank as "Mudarib" and Customer as "Saheeb Al-Maal", which will be applicable on its Savings Account, Short Notice Deposit Account, Term Deposit Account products, Monthly Benefit Scheme, Monthly Deposit Scheme and Hajj Deposit Scheme etc.
What is ISR?
SBAC Bank Islamic Banking does not offer provisional rate for any types of Mudarabah Accounts aforesaid. In any partnership business partners agree on a profit sharing ratio rather than a provisional or fixed return between them before entering into any agreement. Partners do not expect a fixed return where risk is associated in business. Similarly, when customers open a Mudarabah deposit account with Islamic bank and put some fund, it is considered as his investment into the partnership business with the bank.
Customer and bank must agree on a pre-agreed profit sharing ratio. Actual rate will be determined every month-end according to the actual return from investment. Hence, there is no need for provisional rate or fixed rate, as calculation of profit is done monthly. This method of Mudarabah profit distribution is known as Investment Income Sharing Ratio (ISR).
SBAC Bank Islamic banking is using ISR to determine the actual rate of the depositors of different tenure and schemes. The ISRs are used to calculate the profit rate of customer's investment for every day/each month based on actual investment income for that day/month. We are always committed to uphold Shariah values in banking
Mudaraba Deposit product-wise allocation of Investment Income Sharing Ratio (ISR) :