RegAlertRule · SBP · 21 Jan 2025 · IFPD Circular Letter No. 01
Instructions for Profit and Loss Distribution and Pool Management for IBIs
The document replaces paragraph 2.3.1 of the Instructions for Profit and Loss Distribution and Pool Management for IBIs to specify that provisions created against non-performing assets, write-offs, and losses on the sale of investments must be charged to the respective pool along with other direct expenses, while any reversal of these provisions or investment values is allocated to the same pool. Additionally, the phrase "(excluding fixed assets)" is deleted from paragraph 2 of IFPD Circular No. 9 dated November 26, 2024. These changes apply to all Islamic Banks and all conventional banks having Islamic Banking Branches.
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IFPD Circular Letter No. 01
Instructions for Profit and Loss Distribution and Pool Management for IBIs
January 21, 2025
569
The Presidents/Chief Executives
All Islamic Banks and
All Conventional Banks having Islamic Banking Branches
Dear Sir/Madams,
Instructions for Profit and Loss Distribution and Pool Management for IBIs
Please refer to IBD Circular No. 03 dated November 19, 2012 as amended vide IBD Circular Letter No. 01 dated January 01, 2013 on the above subject. In this regard, it is clarified that the provisions created against non-performing assets as per relevant SBP regulations will be charged to the respective pool. Accordingly, para 2.3.1 of the “Instructions for Profit & Loss Distribution and Pool Management for IBIs” is replaced with the following:
“The provisions created against non-performing assets as per relevant SBP regulations, write-offs and loss on sale of investments shall be charged to respective pool along with other direct expenses. In case of any reversal of the provisions expense/value in investment, the benefit shall be allocated to the same pool.”
Moreover, in para 2 of IFPD Circular No. 9 dated November 26, 2024, the phrase “(excluding fixed assets)” stands deleted.
Other instructions of the above referred Circulars/Circular Letter shall remain unchanged.
Yours sincerely,
Dr. Zahid Ur Rehman Khokher Director
Home — Circulars — IFPD Circular Letter No. 01
Instructions for Profit and Loss Distribution and Pool Management for IBIs
January 21, 2025
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The links and the sentences they come from (3)
- Amends
- IBD Circular Letter No. 1 dated 2013-01-01Not in RegAlert
“Please refer to IBD Circular No. 03 dated November 19, 2012 as amended vide IBD Circular Letter No. 01 dated January 01, 2013 on the above subject.”
- IBD Circular No. 3 dated 2012-11-19Not in RegAlert
“Please refer to IBD Circular No. 03 dated November 19, 2012 as amended vide IBD Circular Letter No. 01 dated January 01, 2013 on the above subject.”
- IFPD Circular No. 9 dated 2024-11-26Not in RegAlert
“Moreover, in para 2 of IFPD Circular No. 9 dated November 26, 2024, the phrase “(excluding fixed assets)” stands deleted.”
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