Final Project

Money Banking & Finance

Vs

Comparison of Conventional and Islamic Bank

Submitted By: Hureera Asghar [bchm-f19-024]

Muhammad Bilal [bchm-f19-046]

Submitted To: Ms. Shama Urooj

Department of Management Sciences

Superior University Lahore

 HBL Islamic Bank Vs HBL Bank

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What is Bank?
In Simple words we can say that bank is a pipeline through which money moves into and
out of circulation. Bank accepts deposits and repays cash to its customers on demand. The bank
borrows money at a lesser rate of interest and lends it to the borrower at a higher rate.

History of banking in Pakistan:

At the time of independence, there were 487 offices of scheduled banks in the territories
now constituting Pakistan. Following the announcement of independence plan in June 1947, the
Hindus residing in the territories now comprising Pakistan started transferring their registered
offices in Pakistan, transferred them to India in order to bring a collapse of the new state. By
30th June 1948, the number of offices of scheduled banks in Pakistan declined from 487 to only
195.

Banking In Pakistan:

Pakistan has indeed unique banking history commencing as were from scratch at the time
of Pakistan of this subcontinent. However it soon comes over its extra ordinary banking
problems and by grace of Allah we have a stable banking sector.

History and Background of HBL:

Originally established in 1941, HBL moved its operations to Pakistan in 1947 at the
request of Muhammad Ali Jinnah, hence becoming the first commercial bank to lay its
foundation in the country. Embarking on a progressive journey, HBL continued to grow and
expand in the successive years. The Bank's first international branch opened in Colombo, Sri
Lanka in 1951, while the construction of the iconic Habib Bank Plaza was completed in 1972,
the year that also marked the commemoration of HBL's 25th anniversary. 

With a sizeable domestic share, HBL was nationalized in 1974. The Bank became a trend
setter in the banking industry, acquiring the lion's share in inward foreign remittances and a
major market share in loans to small industries, traders and farmers. International operations
expanded and HBL now operates in over 20 countries across four continents.

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 In February 2004, the bank was privatized and the management control of the bank was
handed over to AKFED. By April 2015, the Government of Pakistan divested its entire
shareholding of 41.5% through the Privatization Commission of Pakistan, thereby officially
making HBL Pakistan's largest private bank.

HBL has not just been a pioneer in the banking industry, but has also been a platform that
has enabled dreams for millions of people. It has time and again, proven to be a catalyst for
change by initiatives that have elevated Pakistan’s image and reputation. From bringing back
international cricket to Pakistan through the HBLPSL, to helping strengthen the economy of the
country through initiatives like CPEC, HBL continues to enrich lives of Pakistanis around the
world.

Vision

“Enabling people to advance with confidence and success”.

Mission Statement:

“To make our customers prosper, our staff excel and create value for shareholders”

History and Background of HBL Islamic Bank :

HBL is one of the largest and leading Islamic banking players in the country, with over
540 outlets nationwide. The bank provides a wide range of Shariah compliant solutions to its
diverse clientele and is committed to introduce innovative products and initiatives for its valued
customers. All the Islamic products offered by HBL are approved by the bank’s Shariah Board
comprising of renowned Shariah scholars of Pakistan.

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 HBL Products HBL Islamic Bank Products
There is a list of products offered by HBL There is a list of products offered by HBL Islamic
Bank to their customer. Bank to their customer.

Current Account: Current Account:

 HBL Basic Banking Account  HBL Islamic Basic Banking Account (BBA )
 HBL Conventional Current Acc  HBL Islamic Current Account

 HBL Asaan Account  HBL Islamic Asaan Account

Saving Account: Saving Account:

 HBL PLS Savings Account  HBL Islamic PLS Account

 HBL Daily Progressive Account  HBL Al-Mukhtar Account (Mudarba)

 HBL Daily Munafa Account  HBL Irtifa Account

 HBL Foreign Currency Savings Acc.  HBL Islamic FC PLS Account

Term Deposit Term Deposit

 HBL Advantage Account  HBL Al-Samarat Account

 HBL Advantage Plus  HBL Islamic High Yield Foreign Currency
Investment Deposit
 HBL High Yield Foreign Fixed Deposit

Consumer Financing:
Consumer Financing:
 HBL Car Ijarah
 HBL Car loan

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CURRENT ACCOUNT:

In this type of account the client is allowed to deposit or withdraw money as he likes. He
may, thus, deposit or withdraw several times in a day as he likes. Usually the bank allows
this and charges service charges are deducted by the bank from current deposit account. It gives
advantage for paying debts by the convenient and safe means of sending Cheques through the
post thus avoiding the trouble and loss.

HBL Basic Banking Account HBL Islamic Basic Banking Account

(BBA )
A simple bank account for individuals
with minimum transactional requirements. It A secure and convenient account with
enables you to fulfill your basic banking needs. minimum transactional requirements to cater

your basic banking needs 

Key Features Key Features:

 Open an account with just Rs.1000.  Salary account based on Qard.

 No minimum balance requirement.  No Minimum Balance required.

 Avail up to two chequing withdrawals  No initial deposit required.

in a month (for more transactions,
 Non Profit bearing account.
charges applicable as per the prevalent
Schedule of Bank Charges)  FREE  two Deposits monthly.

 Access numerous branches and ATMs  FREE two Withdrawals monthly.

across Pakistan
 FREE withdrawals through HBL
ATMs unlimited.
HBL Conventional Current Account HBL Islamic Current Account

For individuals & entities seeking a secure and A simple and safe way to accumulate funds,
reliable current account, the HBL Conventional HBL’s current account allows you to deposit
Current Account gives you the ease to conduct money and withdraw funds anytime

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unlimited transactions, anywhere in Pakistan.

Key Features Key Features

 No service charges on maintaining a  Non-profit bearing deposit account

minimum monthly average balance  Flexibility to open your account in PKR,
of Rs. 5,000* USD, EUR and GBP
 Access account through HBL Debit
 Minimum account opening requirement of
Card, Internet Banking and HBL Phone
PKR 1,000/- or equivalent currency
Banking, 24 hours a day, 7 days a week
 No minimum balance requirement
 Benefit of availing unlimited
transactions  24/7 access to ATMs

 Debit Card Facility

HBL Asaan Account HBL Islamic Asaan Account

A current account that offers ease with the A convenient and hassle-free personal account
simplest account opening requirements. with minimal account opening requirements
Experience hassle-free banking and (for unbanked customers)
convenience.

Key Features Key Features

 Open an account with just PKR 100/-
 Free first year PayPak debit card
 No minimum balance requirement
 Avail up to 4 free over-the-counter
withdrawals every month
 Simple one page Account Opening
Form
 Open an account with just PKR 100/-
 Free first year debit card
 No minimum balance requirement

 Maximum account balance up to  Avail up to 4 free over-the-counter

500,000 withdrawals every month

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  Simple 1 page account opening form  Maximum account balance up to PKR
500,000/-
 Receive biannual account statements

 Access E-statements, 24 hours a day

 Cheque book, E-statement, SMS Alerts

available

Difference between Islamic and Conventional Current account

Conventional Current Account Islamic Current Account

 No Shariah based restriction on  Funds are invested in Shariah

investment of funds compliant-avenues

 May charge customer for not  Cannot charge customer for not
maintaining minimum balance maintaining minimum balance since
account is on Qard basis

SAVING ACCOUNT:
An account used to deposit money at a bank or credit union and earn Interest / Profit on
the account over time. Money can be added or removed from the account by visiting the bank.
Usually you can add or withdraw funds at any time; there is no cost to do so. Banks may require
a minimum to open or maintain the account. This type of account is often the easiest account for
children to open. Because of its simplicity, it is the first account for many people and is used by
all ages.

HBL PLS Savings Account HBL Islamic Basic Banking Account

(BBA )
HBL PLS Savings Account is specially
designed to cater the needs of Individuals who HBL Islamic PLS Account is specially
are above 18 years of age or Non Individual designed to cater the needs of Individuals who

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entities who want to earn profits on their are above 18 years of age or Non-individual
deposit entities who want to earn Shariah compliant
profit on their deposits.

KeyFeatures Key Features

 Open an account with just PKR 100
 Receive semi-annual account
statements
 Enjoy the benefit of unlimited
transactions
 Access to E-statements, 24/7 Phone
Banking. & Internet Banking
 Profit payout on semi-annual basis
 Based on Mudarabah. Funds of this
account may be commingled with funds
from other accounts including the
current deposits within the Mudarabah
pool as and when required
 Profit calculation on average daily
balance and payment monthly
 Minimum account opening requirement
of PKR 1,00/- or equivalent currency

 Receive biannual account statements

 No minimum account balance

requirement

HBL Daily Progressive Account HBL Al-Mukhtar Account

A savings account for business entities An account catering to the banking

that offer lucrative rate of returns. It is aimed at needs of businessmen. It offers a range of free
commercial, corporate and high net worth unlimited features enabling businessmen to
individuals, enabling them to maximize their conduct their day to day transactions with ease
wealth along with conducting daily and convenience.
transactions required.

Key Features Key Features

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  Open an account with just PKR
500,000
 Earn increasing profit rate on
incremental daily balances
 Profit calculated on daily basis on
closing balance
 Profit payout on monthly basis
 Minimum monthly balance requirement
of PKR 20,000
 Tier based profit rates applicable
 Minimum Account Opening Balance is
PKR 25,000/-
 Based on Mudarabah. Funds of this
account may be commingled with funds
from other accounts including the
current deposits within the Mudarabah
pool as and when required
 Profit Calculation Basis is average
daily balance
 • Profit Distribution is monthly basis

HBL Daily Munafa Account HBL Irtifa Account

The perfect account for individuals and HBL Al-Irtifa Account is based on the concept
institutions with high transactional of Mudaraba. Under this arrangement,
requirements, HBL’s Daily Munafa Account customer (Rab-ul-Maal) provides funds to
provides you attractive profit rates monthly, HBL (Mudarib) for investment under Shariah
while allowing you to bank with flexibility. guidelines. The actual profit at the end of
period is shared between the customer and
HBL as per the pre-agreed profit sharing ratio.
Loss, if any, is borne by the customer and HBL
will not be entitled for Mudarib share of profit.

Key Features Key Features

Profit calculation on daily closing balance and  Offered primarily to Institutions

payment monthly  Open an account with just PKR
500,000/-
• No minimum balance charges on
maintenance of average balance of PKR  Profit calculated on average daily

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20,000/- balance

 Profit payout on monthly basis as per

announced weightages

HBL Foreign Currency Savings Acc HBL Islamic FC PLS Account

An account for all those individuals who wish A foreign currency saving account for
to maintain their savings in foreign currency. individuals and institutions.
HBL ForeignCurrencySavingsAccount is the
HBL Islamic FC PLS Account is based on the
ideal choice allowing you to save with ease
concept of Mudaraba. Under this arrangement,
while offering convenience and reliability for
customer (Rab-ul-Maal) provides funds to
Pakistanis as well as foreign nationals dealing
HBL (Mudarib) for investment under Shariah
in foreign currencies.
guidelines. The actual profit at the end of
period is shared between the customer and
HBL as per the pre-agreed profit sharing ratio.
Loss, if any, is borne by the customer and HBL
will not be entitled for Mudarib share of profit.

Key Features Key Features

 Open an account in USD, GBP and  Offered in USD, EUR and GBP
EUR with an amount equivalent to  Open an account with just 1,000 units
USD 1,000* of any of the foreign currency specified
 Profit calculated on monthly balance above

 Profit payout on quarterly basis  Profit payout on monthly basis as per

annouced weightages
 Acquire cheque book as per charges
enclosed in prevalent SOBC.  Profit calculated on monthly average

 Receive biannual statement of account

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 and access e-statement balance

Term Deposit

Term Deposit Accounts. Term Deposits are booked by investors having an appetite for short/
long term investment horizons. In order to book a fixed deposit, customers should have a
checking account in the respective currency for subsequent disbursement of profit.\

HBL’s Islamic term deposit accounts allow individuals and businesses to accumulate attractive
profit returns over a period of time.
Islamic Term Deposit Accounts are profit bearing based on the concept of Mudaraba. These must
however be booked from an existing Current or Saving Account. The actual profit rates depend on the
applicable periodic PSR and weightages disclosed on the HBL website. Facility for early termination is
available.

HBL Advantage Account HBL Al-Samarat Account

This account for those looking for short, For those looking for short, medium and long-
medium and long-term investment term investment opportunities, the HBL Al-
opportunities with a fixed profit rate, the HBL Samarat Account give you a flexible
Advantage Account gives you a flexible investment product that provides multiple
investment product that provides multiple profit payouts and tenures of your choice.

profit payouts and tenures of your choice. 

Key Features Key Features

Choose from a deposit period ranging from  Multiple options for profit payout and

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1 month to 10 years. tenures on the basis of Mudaraba.
 Minimum investment of PKR 25,000.
 Profits can be withdrawn
through cheques or ATM and are  Withdrawal at the end of the fixed term.
credited to your Account.
 Choose from a deposit period ranging
 Principal stays secure.
from 3 months to 10 years.
 Rate remains same over the entire
 Profits can be withdrawn through
investment period.
cheques or ATM and are credited to a
 Premature encashment available with transaction.
profit at PLS saving rate (subject to
completion of three months from the
opening date of the account).

 Receive up to 90% financing against

this account.

 Rollover option available.

 Enjoy profits calculated on principal,

Payment: flexible, as per your chosen
tenure.

HBL High Yield Foreign Fixed

HBL Islamic High Yield Foreign
Deposit
Currency Investment Deposit
An account for all those individuals who wish
to maintain their savings in foreign currency. HBL offers the High Yield Foreign Fixed
HBL Foreign Currency Saving Account is the Deposit Account for individuals and
ideal choice allowing you to save with ease institutions who wish to maintain secure
while offering convenience and reliability for foreign currency deposits and earn attractive
Pakistanis as well as foreign nationals dealing

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in foreign currencies. returns on their foreign currency deposits.

Key Features
Key Features
 Open an account in USD, GBP and
EUR with an amount equivalent to  Flexibility of choosing a variety of

USD 1,000* tenures for your foreign currency

 Profit calculated on monthly balance deposits.

 Available in the multiple currencies
 Profit payout on quarterly basis including USD, GBP, and EUR.

 Acquire cheque book as per charges  Tiered product with multiple options of
enclosed in prevalent SOBC. terms and rates.

 Receive biannual statement of account  Flexible tenure ( 1, 2, 3, 6 and 12

and access e-statement months).

 Flexible deposits slabs.

 Principal stays secure.

 Avail the same profit rate over the

entire investment period.

 Withdraw profits through cheques and

ATMs – profits are credited to
transaction account.

 Minimum amount is 1,000 units (of any

currency).

 Obtain financing.

 Avail rollover option.

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Difference between Islamic and Conventional Islamic Term Deposit
Term Deposit

Conventional Term Deposit

Bank and account holder’s relationship is Bank and term-depositor’s relationship is

based on Debtor and Creditor Mudaraba basis whereby depositor (Rab ul
Maal) provides funds and Bank (Mudarib)
invests funds in Shariah-compliant modes

Mark-up is predetermined Profit rates are not predetermined. Profit from

mudaraba is distributed on pre-agreed ratio of
weightages

No Shariah based restriction on investment of Funds are invested in Shariah compliant

funds avenues

Pays mark-up to account holders even if Bank Loss is borne by Rab-ul-Maal proportionate
incurs a loss to their investments

CUSTOMER FINANCE:

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The division of retail banking that deals with lending money to consumers. This includes a wide
variety of loans, including credit cards, mortgage loans, and auto loans, and can also be used to
refer to loans taken out at either the prime rate or the sub prime rate.

HBL Islamic CarFinance

A flexible and hassle-free financing facility
HBL Islamic CarFinance is based on the
that enables you to own your dream car and
concept of Diminishing Musharakah. Under
provides financing up to 85% of the value of
this arrangement, bank and customer become
your desired car.
joint owners in a vehicle with an agreed
investment ratio. Bank’s ownership share of
HBL CarLoan offers of you the freedom to the vehicle is divided into units which
choose between a fixed mark-up or a floating customer purchases periodically to ultimately
mark-up rate facility to suit your personal become complete owner of the vehicle. Till the
requirements. complete ownership, customer pays agreed
rentals for using bank’s share in the vehicle.

Features Key Features

 Financing limit between PKR 200,000
to PKR 5,000,000
 Repay within a 7 year time period (5
years for used car financing).
 Option to choose between fixed and
floating rate
 Comprehensive insurance coverage and
tracker arrangement through leading
 Financing limit between PKR 200,000
to PKR 5,000,000/-
 Finance new, used or imported vehicle
for personal use
 Payment tenure ranging from 1 to 7
years (5 years for used car)
 Takaful arrangement through leading
business partners on HBL panel
 Initiation of rentals only after delivery

business partners of vehicle to the customer

 Quick processing with minimum

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  Dedicated after sales service documentation

 Option for partial payment

 Option for early termination of facility

Criteria Criteria

Salaried individuals Salaried individuals:

 Applicant must be a Pakistani citizen  Applicant must be a Pakistani citizen
 Applicant to be 22 years or more at the  For booking cases, minimum age to be
time of application and 60 years or less 22 years and maximum 59 years or
at the time of maturity retirement age whichever is lower (at

 Minimum monthly income to be PKR maturity)

20,000  For ready/used car cases, minimum age

to be 22 years and maximum 60 years
Self-employed business
or retirement age whichever is lower (at
persons/professionals maturity)
 Applicant must be a Pakistani citizen
 Applicant to be 22 years or more at the
 Minimum monthly income to be PKR

time of application and 70 years or less 20,000

at the time of maturity

 Minimum monthly income to be PKR

25,000 Self-employed business
persons/professionals to provide:
 Applicant must be a Pakistani citizen
 For booking cases, minimum age to be
22 years and maximum 69 years (at
maturity)

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  For ready/used car cases, minimum age
to be 22 years and maximum 70 years
(at maturity)

 Minimum monthly income to be PKR

25,000

HBL Islamic HomeFinance

HBL HomeLoan
HBL Home Finance is based on the concept of

A loan facility that enables you to fulfill your Diminishing Musharakah. According to this
dream of owning a perfect home. Be it concept, the customer and the bank both invest
purchasing a new one, or jointly in an asset to create joint ownership.
constructing
renovating your existing home, this facility has This proportionate share of the bank is divided
multiple options to suit your needs. into units. The bank then leased its share of
asset (units) to the customer against rental
payments. In parallel, the customer
periodically purchases the units under the
ownership of the bank. Upon purchase of all
the units, the customer becomes the sole owner
of the asset.
Key Features Key Features
• Financing limit between PKR 2,000,000 to .

PKR 40,000,000  Purchase of complete residential

• Flexibility of choosing between fixed and
variable mark-up rate
• Repayment tenure ranging from 5 years to 20
years
• Free property insurance at all times ensuring
peace of mind
property (Apartment / Bungalow)
 Financing limit between PKR.
2,000,000 to PKR. 50,000,000/-
 Equal monthly installments with
reducing rentals
 Payment tenure ranging from 3 to 25

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Criteria
Salaried individuals
 Applicant can be a Pakistani or non-
resident Pakistani*
 Applicant to be 25 years or more at the
time of loan application and 60 years or
less at the time of loan maturity
 For existing customers, minimum
monthly income to be PKR 100,000
 For new to bank customers, minimum
monthly income to be PKR 150,000
 Permanent employee with a minimum
of 5 years’ experience with confirmed
employment status in the current job
*Non-resident Pakistani must apply with a co-
borrower who is a Pakistani resident
Self-employed business
persons/professionals
 Applicant must be a Pakistani resident
 Applicant to be 30 years or more at the
time of loan application and 65 years or
less at the time of loan maturity
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years
 Financing up to 70% of property value
 Property Takaful
Criteria
Existing HBL Customers
Salaried individuals:
 Applicant must be a Pakistani citizen
 Applicant must be 25 years or more at
the time of financing application and 60
years or less/retirement age, whichever
is lower at the time of financing
maturity
 Minimum monthly income must be
PKR 50,000/-
 Permanent job with a minimum 5 years
continuous work history in the same
industry/field. At least 06 months
permanent employment with the current
employer and currently not on
probation
Self-employed business
persons/professionals:
 Applicant must be a Pakistani citizen
 Applicant must be 30 years or more at
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  For existing customers, minimum the time of financing application and 65
monthly income to be PKR 150,000 years at the time of financing maturity

 For new to bank customers, minimum  Minimum monthly income to be PKR

monthly income to be PKR 200,000 100,000/-

 Minimum 5 years’ experience in  Minimum 5 years in current

personal business business/industry

Difference between Ijarah and Conventional Lease

Ijarah Conventional Lease

All ownership related rights and liabilities lie with No clear demarcation between rights and liabilities
lessor while usage related lie with lessee of lessor and lessee

Rentals start after delivery of asset to lessee Installments may start prior to delivery of asset to
lessee

Asset is insured based on Takaful model Asset is insured primarily on conventional

insurance model

The customer allows bank to pay an amount to A penalty is charged in case of late payment of
charity in case of late payment of rentals rentals

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HBL Investment Services

HBL offers a wide range of investment services catered to meet your long-term financial goals.

It is critical to understand the difference between savings and investments. Generally people
assume that savings and investments are the same, but they are wrong.

Saving primarily involves securing your money while preserving its nominal value, however the
opportunity to grow is limited.

Investments, on the other hand, enable you to grow your savings over a certain time period with
some level of associated risk. While savings might enable you to set aside funds for an
emergency or for an immediate short-term goal, investments will enable you to achieve your
long-term goals such pay for your child’s education or for your retirement.

Our Business Philosophy

At HBL, we believe that each customer is unique and has a different set of requirements. Our
investment analysts, therefore, analyze your particular life stage, goals, and resources before
developing investment solutions.
Our aim is to improve the quality of product offerings in the retail investment field, thus enabling
customers to optimize their returns by aligning them with their risk profiles. 

Our investment analysts are composed of a team of highly trained professionals, who undergo
extensive training programs. They are capable of assessing your needs so they can suggest the
most appropriate products that will best suit your needs. Our seasoned practitioners will not only
help you understand the steps necessary to attain your goals, but they will update you about all
the financial tools available to do so.

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Offering Investment Solutions Tailored to Meet your Goals
HBL Investment Services provide comprehensive solutions, including innovative Capital
Protected Structures, Mutual Funds, Government Securities and Islamic investment options. We
go through a structured series of steps to enable you to make the best decision.

 Understanding your Requirements: Our investment advisors will have a one-on-one

consultation with you to gather information pertaining to your risk appetite, which goal
you are saving for, and your return expectation.  (You will need to fill out a risk profile
questionnaire based on international standards).
 Strategy Selection: Based on your feedback, an advisor will suggest an investment
strategy, enabling you to choose from a wide range of investment solutions which best
meet your needs.

 Sales Closure: Once you decide on an investment solution, and all required

documentation is complete, you will receive a call from an independent unit at the bank’s
head office. A representative will ensure that you were properly advised and you
understand all associated liabilities and risks associated with your investment.

Features
 Maximize returns on your savings.
 Choose from a variety of options to diversify your risk.

 Professional management oversees your investments, ensuring investor protection.

 Provides liquidity and access to your money.

 Gain significant tax benefits (as available in mutual funds).

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A financing facility that enables you to own your dream house with ease and flexibility.

Key Features
.

 Purchase of complete residential property (Apartment / Bungalow)

 Financing limit between PKR. 2,000,000 to PKR. 50,000,000/-

 Equal monthly installments with reducing rentals

 Payment tenure ranging from 3 to 25 years

 Financing up to 70% of property value

 Property Takaful

Basic Difference between conventional and Islamic banking

Conventional Banking Islamic Banking

 The functions and operating modes of  The functions and operating modes of
conventional banks are based on fully Islamic banks are based on the
manmade principles. principles of Islamic Shariah.

 The investor is assured of a  In contrast, it promotes risk sharing

predetermined rate of interest. between provider of capital (investor)
and the user of funds (entrepreneur).

 It aims at maximizing profit without  It also aims at maximizing profit but

any restriction. subject to Shariah restrictions.

 It does not deal with Zakat.  In the modern Islamic banking system,
it has become one of the service-

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 oriented functions of the Islamic banks
to be a Zakat Collection Centre and
they also pay out their Zakat.

 Lending money and getting it back with  Participation in partnership business is

compounding interest is the the fundamental function of the Islamic
fundamental function of the banks. So we have to understand our
conventional banks. customer’s business very well.

 It can charge additional money (penalty  The Islamic banks have no provision to
and compounded interest) in case of charge any extra money from the
defaulters. defaulters. Only small amount of
compensation and these proceeds is
given to charity. Rebates are give for
early settlement at the Bank’s
discretion.

 Very often it results in the bank’s own  It gives due importance to the public
interest becoming prominent. It makes interest. Its ultimate aim is to ensure
no effort to ensure growth with equity. growth with equity.

 For interest-based commercial banks,  For the Islamic banks, it must be based
borrowing from the money market is on a Shariah approved underlying
relatively easier. transaction.

 Since income from the advances is  Since it shares profit and loss, the
fixed, it gives little importance to Islamic banks pay greater attention to
developing expertise in project developing project appraisal and
appraisal and evaluations. evaluations.

 The conventional banks give greater  The Islamic banks, on the other hand,
emphasis on credit-worthiness of the give greater emphasis on the viability
clients. of the projects.

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  The status of a conventional bank, in  The status of Islamic bank in relation to
relation to its clients, is that of creditor its clients is that of partners, investors
and debtors. and trader, buyer and seller.

Conclusion:
After a complete analysis of both banks we conclude that both banks are doing well in
their respective fields. Moreover, HBL Islamic Bank should also enhance its market share
nationally and internationally by launching awareness programs for society to create better
understanding regarding Islamic banking.

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Superior University Lahore