Monday, March 30, 2009

Bank Islam eyes RM300m deposits from Al-Awfar

Bank Islam Malaysia Bhd expects to rake in RM300 million in deposits for its latest product, Al-Awfar savings and investment account, by financial year ending Dec 31, 2009.
Its general manager of consumer banking division, Khairul Kamarudin, said the bank believed the product would be well received by Malaysians as it was the first of its kind savings-i and investment-i account that offered account holders a chance to win cash prizes of up to RM100,000.
"The product is in accordance with the Shariah requirements and the processes are highly transparent as there are no elements of interest (riba). "There are no participating fees and the prizes are fully funded by the bank," he told reporters after the launch of the Al-Awfar product in Kuala Lumpur on Mar 25.
Khairul said the bank aimed to attract 200,000 depositors for the Al-Awfar product.
"We also hope to reach out to customers of all races, reflecting Bank Islam as a bank for all," he said.
The bank's retail deposits currently stood at RM5.8 billion. Al-Awfar, which means "prosperous investment", is based on the Mudharabah concept, a contract of profit sharing.
The profit sharing ratio for the Al-Awfar savings account is 98% for the bank and 2% for the customer, while that for Al-Awfar investment account is 70%:30%.
For savings account, the minimum deposit is RM100 while the minimum deposit for investment account is RM1,000 for onemonth tenure and a minimum of RM500 for a three to six month tenure.
Bank Islam will arrange for cash prize draws every quarter. The customers would be entitled to one opportunity for a prize draw with every RM100 deposited into the account.
Established in 1983, the country's first Islamic bank has to date, a network of 93 branches and more than 500 self serviced terminals nationwide. Its consumers base currently stood at 2.3 million. — Bernama (Mar 25, 2009)Any source

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