Features

• Bank being the Sahebul Mal will provide the capital and the Mudarib will manage the business. The amount of investment shall be made known to both the parties.
• Normally Bank will not interfere in the affairs of business. But will have the right to supervise and oversee the operation.
• Profit will be shared equally by the Bank and the Mudarib. However, Bank may allow more share of profit to the Mudarib at its discretion since he will manage the business.
• Profit will be distributed to both the parties. For the time being parties will divide profit twice in a year i.e. on 30th June and 31st December.
• In case of specific purpose Mudaraba profit will be distributed at the end of each deal.
• Suitable Books of A/Cs have to be maintained by the Mudarib.
• Genuine loss if any, shall be borne by the Bank. But Bank will not shoulder any loss incurred for any fault of the Mudarib.
• In case of specific purpose Mudaraba the specified purpose with clear description have to be incorporated in the Mudaraba agreement.
• A written agreement incorporating therein all the terms and conditions shall be executed by the parties before undertaking the venture.