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The
special feature of the investment policy of Islami
Banking is to invest on the basis of profit and loss
sharing system in accordance with the tenets and
principles of Islamic Shariah. Earning of profit is
not the only motive and objective of the Islamic
Banking investment policy rather emphasis is given in
attaining social welfare and creating employment
opportunity. |
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The
objectives and principles of investment of Islami
Banking are: |
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01. |
To invest fund strictly in accordance
with the principles of Islamic Shariah. |
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02. |
To diversify its investment portfolio by
size, by sector, by economic purpose, by securities and by
geographical area including industrial, commercial and agricultural
involvement. |
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03. |
To ensure mutual benefit for both the
Bank and the investment client. |
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04. |
To make investment keeping in view of
the socio economic requirement of the country. |
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05. |
To increase the number of potential
investors by making participatory and productive investment. |
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06. |
To finance various development schemes
for poverty alleviation, income and employment generation, with view
to accelerate sustainable socio-economic growth. |
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07. |
To invest in the form of goods and
commodities rather than give out cash money to the investment
clients. |
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08. |
Though all mode of investment is
practiced in the Islami Banks are fully permissible, Musharaka and
Mudaraba are the pristine mode of Islamic investment. The objective
would be to increase investment through these modes. |
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Prime Bank conducts its investment portfolio mainly under three
mechanisms. These are as
follows: |
