Al-Wadiah Principle is a deposit arrangement under which the Bank holds funds on behalf of the customer as a safekeeping arrangement. Under this principle, the Bank is obligated to return the full amount of the deposit to the customer upon demand. In accordance with the fundamental principle of “No Risk, No Gain,” no profit is distributed to Al-Wadiah Current Account holders against their deposits.

Mudaraba is a partnership between capital and labor, where one party provides the full capital and the other manages the business. The capital provider is known as Sahib-Al-Maal, while the entrepreneur or manager is known as Mudarib. In accordance with Shari’ah principles, the Mudarib conducts the business independently and in compliance with Islamic principles. The Sahib-Al-Maal may offer advice when deemed appropriate, but cannot impose decisions on the Mudarib. Any profit generated is shared between the Sahib-Al-Maal and the Mudarib according to a pre-agreed ratio, while any loss is borne solely by the Sahib-Al-Maal. The Mudarib is not entitled to any salary or remuneration for managing the enterprise. Deposits received by the Islami Banking Branches under this principle are known as Mudaraba Deposits.