CDB well-positioned to provide Islamic financial expertise to diverse segments

CDB Meezan at head office

Having driven its commitment unwaveringly to provide innovative and attractive financial solutions to diverse customer segments diligently, Citizens Development Business Finance PLC (CDB) is now a renowned brand in the burgeoning Islamic financial services space in 
the country.

With an in-depth understanding of this unique banking genre and its growing popularity the world over, CDB established CDB Meezan in December 2012 to offer a plethora of expansive Islamic financial solutions. 
CDB Islamic Finance Operations Head Shabni Mohideen stated that CDB Meezan embeds the promise of being true to customer beliefs, offering the competitive advantages of financial services while following the principles of Islamic banking. 

“The CDB Meezan product portfolio combines traditional values with modernity and are inspired by faith, while adhering to the highest ethical standards.”  
The expansive range of Shari’a compliant Islamic finance solutions include Mudharabah savings and deposits, Ijarah (leasing) and Murabaha facilities for both vehicle and business trading.

CDB Meezan operations are closely monitored by a panel of recognised Shari’a scholars in Sri Lanka, whose guidance is sought in charting progress and vision. 

Mudharabah deposit is a profit-sharing term investment option in accordance with Shari’a guidelines, with profits generated at maturity shared between the customer and CDB on a pre-agreed ratio at the time of investment. CDB offers competitive profit-sharing ratios at deposit periods of one to 36 months, with profit payable monthly or at maturity.
Also on a similar profit sharing basis and on a pre-agreed ratio at the time of investment is the Mudharabah savings scheme, which has the value addition of withdrawal options from the invested funds, either fully or partially at any given time. Based on the promise of a higher profit returns monthly and having no restrictions on withdrawals or deposits unlike other counterpart products, CDB also enables customers to effect standing orders and debit facilities on this scheme. 

Another product offering is Murabaha, a trade financing facility for vehicles and business, with its defining characteristic being the cost of goods and the profit margin (gained by CDB) disclosed to the customer at the time of entering into a Murabahah agreement. Significant advantages include competitive pricing, convenient instalment payment options, minimum documentation and a speedy service.

Ijarah, which is CDB Meezan’s unique leasing scheme that addresses vehicle leasing requirements with competitive leasing rentals aided by customised payment options, minimum documentation and an additional comprehensive Shari’a compliance insurance cover.  
Elaborating on CDB’s future plans, he said, “Expansion is key for the growth of this financial genre which combines a dedicated knowledgeable team in all our branches. We will augment this with dedicated marketing teams deployed around the country, to ensure that a clear and comprehensive Islamic financial product portfolio is accessible to customers.”