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Zakat is accounted as per the Articles and Memorandum of Association of the Bank and is approved by the Bank Fatwa and Shari’a Supervisory Boards on the following basis:
a. The portion of Zakat payable by the Bank on its shareholders’ behalf is calculated on ‘statutory reserve’, ‘general reserve’, ‘retained earnings’ and ‘provision for employees’ end of service benefits’;
b. Zakat on depositors’ investment risk reserve is calculated and deducted from the investment risk reserve balance held with the bank and added to the Zakat payable balance; and
c. Zakat is disbursed by a committee appointed by the Board of Directors and operating as per the by-law set by the Board of Directors.