Business

Tuesday July 14, 2009

Strong response to Bank Islam’s ‘prosperous investment’


KUALA LUMPUR: Bank Islam Malaysia Bhd is confident its Al-Awfar account will register savings and investments worth RM300mil by September.

According to consumer banking division general manager Khairul Kamarudin, the bank had already reached half its target by end-June.

“There has been an overwhelming response to the product,” he told reporters after announcing winners of the first Al-Awfar draw yesterday.

Khairul Kamarudin ... ‘the bank had already reached half its target by end-June.’

A total of 529 customers received cash prizes totalling RM175,000 for just putting their money in the Al-Awfar savings and investment account-i.

Khairul said the bank had registered 40,990 Al-Awfar accounts for savings and investments totalling RM145.8mil from its launch in March to June 30.

He said “Al-Awfar”, which means “prosperous investment”, was based on the Mudharabah contract of profit sharing.

It is a savings and investment account which enables holders not only to save and earn profit but also offers the unique proposition of allowing them to win cash prizes up to RM100,000 every three months.

For savings account, the minimum deposit is RM100, while the minimum deposit for investment account is RM1,000 for a one-month tenure and a minimum of RM500 for a three- to 60-month tenure.

Khairul said the bank planned to distribute 2,000 prizes, totalling RM700,000, in the first year of Al-Awfar’s operations.

“There will be one draw every quarter and each draw will offer a grand prize of RM100,000 cash.”

He said the bank planned to launch a personal financing and credit card product later this year.

He also said the bank’s non-performing loans rate had trended down to a single digit for the financial year ended June 30 (FY09), compared with 14%-15% in FY08.

“The management will announce the figure during the company’s year-end announcement which is normally August or September,” he said.

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