Islamic banking is the most progressive system

Muhammad Shoaib Qureshi, Senior Executive Vice-President of Muslim Commercial Bank and head of operations in Islamic Banking, MCB, said here on Monday that Islamic banking "is the most progressive banking system" with a progress of 15 to 20 percent annually.
Speaking at a seminar on Islamic banking organised by Hyderabad Chamber of Commerce and Industry here, he said that to provide an alternative Riba-free solutions for those who wanted to avoid the element of Riba in their banking and business transactions the MCB developed Islamic banking by launching its first branch at Karachi, and the response could be judged by the fact that the branch has lined up assets of Rs 1.5 billion at the time of commencing of Islamic Banking operation and is in profit from Day One.
He said that in the short span of six months the branch had book many accounts and has an assets base of Rs 1.1 billion, while another Rs 500 million is in pipeline.
He said that clientele is growing. Those businessmen who never transacted with conventional banks in view of their Islamic principles are now benefiting.
He said that MCB was planning future expansion. New products would be added, for example house financing based on Diminishing Musharaka, export refinance, to meet the requirements of exporters.
The bank is in process of increasing the number of Islamic banking branches up to 5 during 2004 at Lahore, Multan, Hyderabad and Karachi.
He said that Islamic banking has shown phenomenal growth, especially in Europe, Middle East, Far East and South Asia. In Pakistan also, major local and foreign banks are in the process of starting Islamic banking operations.
He that said as a first step towards fulfilling customers' requirements, MCB team is working to develop a complete set of products on both assets and liabilities side.
The liability products including savings, current, and term deposit accounts, have been designed under the Islamic principles of Mudaraba and Musharaka, and have been branded as Al-Makhraj Saving Account, Al-Makhraj Ianat (current) Account and Al-Makhraj Term Deposit, respectively.
He said recently Car Imaret Schemes has been launched for individuals desiring to avail leasing facility based on Islamic principles.
Rashid Rehman, General Manager Islamic Banking MCB gave a presentation on various products of Islamic banking and their modes of operation.
HCCI President Emad Siddique, welcoming the guests, said that the seminar was organised by the Chamber to create awareness among the industrial and trading communities with regard to Islamic banking system and to popularise Riba-free banking system in the country.