Bank AL Habib Islamic Banking — Complete Guide
Bank AL Habib's Islamic Banking runs on Mudarabah-based deposits and Diminishing Musharakah financing, supported by a dedicated Islamic branch network covering every Islamic product it offers.
Part of PakFinHub's Bank AL Habib coverage — see the full bank overview.
- Last Verified: Aug 23, 2026
- Official Data
- 417 Islamic Branches
Bank AL Habib runs one of Pakistan's larger Islamic banking networks — 417 dedicated branches plus 8 Islamic Banking Windows inside conventional branches, under a dedicated Shariah Board. Here's how the deposit and financing structures actually work, in the bank's own terms, with links to every specific Islamic product PakFinHub covers.
Islamic Banking Network
| Metric | Figure |
|---|---|
| Dedicated Islamic branches | 417 |
| Islamic Banking Windows (inside conventional branches) | 8 |
| Shariah Board | Dedicated board incl. Mufti Islamtullah, Mufti Sher Ali, Mufti Muhammad Hamza |
Sourced from Bank AL Habib Islamic Banking's official "About Islamic Banking" page (islamic.bankalhabib.com). This figure is more current than the 392 Islamic branches reported in the FY2025 annual report (dated year-end December 2025) — the network has grown since.
How Deposits Work — Two Categories
Bank AL Habib's Islamic Banking Division splits deposit accounts into two structurally different categories, per its own official description:
| Category | Structure |
|---|---|
| Non-remunerative (current-account style) | Based on Qard — funds are accepted as a loan to the bank, withdrawable on demand, and the bank uses them for Shariah-compliant financing and investment. |
| Remunerative (savings/term-style) | Based on Mudarabah — the depositor is Rab-ul-Maal (capital provider), the bank is Mudarib (manager); profit generated is shared between bank and depositor in an agreed ratio. |
Sourced from Bank AL Habib's official "Conversion to Islamic Banking" page.
How Financing Works — Three Modes
Purchase & sale of goods
The bank purchases goods on a cash basis and sells to the client on a deferred, cost-plus-profit basis.
Purchase & lease (Ijarah)
The bank purchases a fixed asset — from the market or from the client — and leases it to the client for a specified period.
Joint purchase & lease (Diminishing Musharakah)
The bank and client jointly purchase the fixed asset; the bank then leases its portion of ownership to the client, who buys out the bank's share over time. This is the mode behind Islamic ApniCar and Islamic Housing Finance.
Sourced from Bank AL Habib's official "Conversion to Islamic Banking" page.
Islamic Products Available
| Product | Where to learn more |
|---|---|
| Islamic Current, Savings & Digital Accounts | Compared on islamic.bankalhabib.com; PKR and FCY variants available |
| Islamic Term Deposits | Flexible tenures, Shariah-compliant returns |
| Islamic ApniCar (Diminishing Musharakah) | See PakFinHub's Car Financing guide and the ApniCar Calculator (has an Islamic ApniCar mode) |
| Islamic Housing Finance | See PakFinHub's Home Financing guide |
| Islamic Scooter Finance (incl. Woman Scooter Finance) | See PakFinHub's Scooter & Motorcycle Finance guide |
| Islamic Roshan Digital Account / Roshan ApniCar / Roshan Apna Ghar | See PakFinHub's Roshan Digital Account guide |
| Islamic Lockers (Ujrah basis, Takaful-covered) | See PakFinHub's Locker Facility guide |
| Islamic Foreign Currency Accounts | USD, GBP, EUR — Shariah-compliant, per islamic.bankalhabib.com |
Rather than duplicating detail already covered elsewhere on PakFinHub, this page links out to the relevant product guide for each — most BAHL Islamic products have both a conventional and Islamic variant covered side-by-side on the existing pages.
What "Riba" and "Shariah" Mean in This Context
Per the bank's own explanation: Riba refers to any stipulated excess compensation without due consideration — a definition the bank states is derived from the Quran and accepted across Islamic scholarship. Shariah refers to the divine guidance found in the Quran and Hadith, as interpreted by Islamic scholars. PakFinHub is reporting Bank AL Habib's own structural descriptions here, not making an independent Shariah ruling on any product — for a religious compliance opinion, consult a qualified scholar or the bank's own Shariah Board.
Sourced from Bank AL Habib's official "Conversion to Islamic Banking" page.
Ready to explore Bank AL Habib Islamic Banking Guide?
Verify current rates, terms, and eligibility directly with Bank AL Habib before applying — this page is independent, sourced, and kept current, but the bank's own site is the final word on live terms.
More on Bank AL Habib
Bank Overview
History, leadership, ownership, and key facts.
Rates & Accounts
Profit rates and every account type.
Financial Results
FY2025 audited results and ratio analysis.
Branch & ATM Locator
Network size and how to find a branch.
Digital Banking
AL Habib Mobile app and netbanking.
ApniCar Auto Finance
Conventional & Islamic car financing, plus Cash & Laptop financing.
Housing Finance
Buy, build, or transfer your home loan — plus solar and low-cost housing.
Business & SME Banking
Corporate, SME, Trade, Cash Management, Guarantees & more.
Helpline & Complaints
Contact numbers and escalation path.
Fraud & Security
Real scam patterns BAHL has warned about.
CSR
Corporate philanthropy and community programs.
Roshan Digital Account
For overseas Pakistanis — accounts, remittance, investment.
Careers & Jobs
Where to find real openings and what to expect.
IBAN Format & Generator Guide
How BAHL's IBAN works, and where to get your correct one.
Dormant Account & Closure
12-month dormancy rule, reactivation, and closing an account.
Islamic Banking
Mudarabah, Diminishing Musharakah, and every Islamic product.
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Dubai Islamic Bank Pakistan
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BankIslami
Dedicated Islamic bank with nationwide retail presence.