Term Report-MIS

BankIslami Pakistan Limited

Submitted to: Ms. Maheen Ghauri
5/27/2011




Sarah Ejaz, Syed Qamar & Saad Afridi
2



Table of Contents


Introduction to BankIslami and its network ................................ ...................... 3


Nature and Scope of the MIS used in BankIslami ................................ .......... 3


Data collected about BankIslami MIS ................................ .............................. 5


Appendix
Questionnaire ................................ ................................ ................................ .......
References ................................ ................................ ................................ ...........
Contact Person Details ................................ ................................ .......................





3

BankIslami- The Idea

The epochal idea of BankIslami was conceptualized by Jahangir Siddiqui & Company
Limited and DCD Group in late 2003. On September 26, 2005, Dubai Bank joined the
Sponsors and became one of the founding shareholders of BankIslami by investing 18.75% in
the total Capital. The State Bank of Pakistan issued a No Objection Certificate on August 19,
2004 and BankIslami Pakistan Limited, the second full-fledge Islamic Commercial Bank in
Pakistan, was incorporated on October 18, 2004 in Pakistan.
BankIslami Pakistan Limited was the first Bank to receive the Islamic Banking license
under the Islamic Banking policy of 2003 on March 31, 2005. The Bank envisioned to focus
primarily on Wealth Management as the core area of business in addition to Shariah
compliant Retail Banking products, Proprietary and Third party products, and Integrated
financial planning services.
The State Bank of Pakistan declared BankIslami Pakistan Limited as a Scheduled Bank with
effect from March 17, 2006. BankIslami started its Banking operations on 7th April 2006
with its first branch in SITE, Karachi. By the end of 2006, the Bank had 10 branches, nine in
Karachi and one in Quetta. The Bank further concentrated in building a nationwide network
and by the end of year 2007, its branch network grew to 36 branches in 23 cities. In 2008, the
Bank opened 66 new branches nationwide which expanded its network to 102 branches in 49
cites. This gives BankIslami the distinction of having the fastest expanding network in
Pakistan as well as offering the widest network by any Islamic Bank in Pakistan.


Nature and Scope of the MIS used in BankIslami

BankIslami has one of the most sophisticated and state-of-the-art IT infrastructure in
Pakistan. Consequently, the MIS and other IS used in the bank are also modern and up-to-
date. It has over 102 branches in 49 cities nationwide. Around 1400 employees are part of the
Bank. BankIslami is also famous for offering a multiple Lines of Business to cater to
different consumer groups such as Consumer Banking, Retail banking and Corporate
Banking. Then, it also offers a multitude of products and services to facilitate its consumer
for their various money-related needs in a completely Shariah compliant method.

Consumer Banking
y MUSKUN Home Financing
y Islami Auto Ijarah-New Vehicle & Islami Auto Ijarah-Used/Imported Vehicle

4


Retail Banking
y Islami Current Account & Islami Foreign Currency Account
y Islami Bachat Account & Islami Dollar Bachat Account
y Islami Mahana Munafa Account & Islami Amadni Certificate
y Rates & Weightages


Corporate Banking
y Account Services & Trade Services
y Working Capital Finance
y Project Finance
y Musharakah Financing & Mudarabah Financing



Value Added Services
y Online Banking & Inter Bank Fund Transfer
y Internet Banking
y ATM/Debit Card & Biometric ATM
y 24/7 Phone Banking & Self Service Phone Banking
y eStatement
y Lockers


Investment Banking
y Advisory & Private Placement
y Sukuk Arrangement
y Syndication & Underwriting
y Trusteeship
y Structured Finance & Listing on Capital Markets
y Project Financing & Mergers & Acquisitions

BankIslami is one of the fastest growing banking networks in Pakistan and to service all the
above mentioned functions and products gave rise to the need for a highly developed and
refined infrastructure.



5

Data collected about BankIslamis MIS infrastructure
On the Islamic Banking side BankIslami offers most authentic financial solutions and on the
technology side it is second to none. Some of the salient features of its IT/MIS infrastructure
are:
y First Bank to implement enterprise wise Linux Environment
y First Bank to implement Biometric enabled ATM
y Implemented state-of-the-art CISCO based IP Telephony Infrastructure
y First Bank to implement centralized backup solution for 102 branches
y Biggest deployment of Sun Thin Clients within Banking sector in Pakistan
y Implemented the World #1 Islamic Banking Software iMAL
y Complete centralized environment
y Online video surveillance of remote branches.
y First Bank to use Zimbra collaboration suite in Pakistan.
y Member of 1Link Shared ATM network
y Offers VISA Debit Cards

Linux based systems are basically open source. Its license is free and BankIslami pays a
Monthly subscription/annual fee which provides software upgrades and customer support.
Cost Benefit Analysis done when planning this project showed that these Linux-based
systems save millions of dollars vs. Windows due to its free licensing.
BankIslami also has biometric enabled ATM systems. Here, instead of pin, the machine uses
the finger impression of customers to identify them and allow the use of ATM services,
making the process more efficient and fast.

Cisco based IT telephony structure. It is a latest technology that uses IP phones which are
similar to our internet lines. This telephonic structure connects Intra-city as well as Inter-city
branches. Same lines are for data transfer and voice i.e. multiple purposes are served by a
single line which makes it very cost efficient.

Sun Thin Client Server. These systems have a Processor, RAM, network connection but no
hard disk. Everything runs on Servers. It makes use of Graphical Terminals with a Windows
interface. All data is stored on a central server which enables real-time updation of data. This
facilitates and quickens the Support service leading to added efficiency.
6

Zimbra Collaboration Suite. It is primarily an Email software but is also used to setup
meetings, share calenders, document sharing and other groupware activities.

iMAL. iMAL is the Islamic Banking & Investment System. The i is for Islamic and Mal is
for money. It is considered the best Islamic Banking software internationally. It was bought
off the shelf by BankIslami from Path Solutions.
Path Solutions developed iMAL to be an Islamic banking competitive advantage. The system
provides a broad range of products and services to various functions within the organization.
iMAL is based entirely on the Sharia guidelines for the purposes of trade related to
Morabaha, Modaraba, Ijara, Istisnah, Salam, project financing, real estate and others.
iMAL is an ERP equivalent for BankIslami. It is a Sharia-compliant product rich in
opportunities for increasing revenue; it enables a 360 view which enhances customer service
and increases cross selling opportunities. In addition, iMAL helps BankIslami implement a
flexible, cost-efficient infrastructure with instant access to accurate, up-to-the minute
financial updating in order to make informed operational and strategic decisions at a
moments notice. This comprehensive approach can produce a higher Return on Investment
(ROI) to clients.
iMAL also helps improve purchasing, budgeting, invoicing, forecasting and inventory
management to further increase productivity and business profitability (powerful bank
reporting, cash flow management, easy reconciliation). The system also generates multiple
reports in the following categories: Bills of Materials, General Ledger, Inventory Control,
Multidimensional Analysis, Multicurrency Management, Receivables Management and more.
Positive changes have been included, such as reducing the time for performing month-end
closings, simplifying data entry and accelerating administrative processes, or ensuring that
banking information is fully reliable.
At BankIslami, all core banking activities take place on iMAL. ATM, online banking, and all
the rest of the services are connected to iMAL. Only two other banks in Pakistan, ABN Amro
and UBL have this system. iMAL will be the core focus and will be covered at length in this
Term Report.

7

iMAL-Islamic Banking & Investment System



8






Appendix
9

Questionnaire
1) How did BankIslami come about?
2) What is its position in the banking sector?
3) What is the present IT / MIS infrastructure at BankIslami and why was it needed?
4) Was there any previous MIS? If yes, then why was it changed?
5) Which department and business units does it cater to?
6) What are the different IS systems being implemented at BankIslami and their
functions?
7) How have the systems mentioned in Q.5 affect the efficiency of the different business
units and their functions?
8) What is the iMAL and how does it provide a competitive advantage to your bank?
a. Which department is it catering to?
b. What information does it provide?
c. How is it benefiting the end users/ dept/ org?

10

References

1) http://www.bankislami.com.pk/about_us/
2) http://www.inntron.com/banksys/path.htm

11

Contact Person Details
Name: Mr.
Designation:
Contact Number: