Bank Alfalah Islamic Alfalah Islamic Savings & Term Deposits (incl. Alfa Digital TDR)

Bank Alfalah established its Islamic banking division in 2003, making it one of the two oldest conventional-bank windows in Pakistan (alongside Bank of Khyber's 2003 operations and ahead of Standard Chartered's May 2004 licence), and it has grown into roughly 453 dedicated Islamic branches across 106 cities with its own Islamic banking app. The Abu Dhabi Group holds a majority of the parent bank. Where most windows treat Shariah governance as a compliance checkbox, Alfalah has built it into a publishable asset: the Shariah Board profile brochure names five scholars with verifiable institutional affiliations - Chairperson Dr. Mufti Khalil Ahmad Aazami sits on the State Bank of Pakistan's Shariah Advisory Committee and AAOIFI committees (and also serves Faysal Bank's and NBP's boards), while members Mufti Aqeel Akhtar, Mufti Usama Ehsan, and Resident Member Mufti Ovais Ahmed Qazi all hold AAOIFI CSAA certification.

The fatwa disclosure is the segment's most granular. An asset-side fatwa enumerates every financing contract the window writes - Alfalah Diminishing Musharakah (Shirkatul Milk), Ijarah, Murabaha, Musawamah, Commodity Salam, Istisna, Running Musharakah, Currency Salam, letters of credit as Wakalah-cum-Kafalah, guarantees as Kafalah, and the SBP refinance schemes - while a liability-side certificate fixes deposits: current accounts on Qard, savings and term deposits on Mudarabah. Monthly profit-distribution weightages for local and foreign-currency pools were live through August 2026 at our crawl, actual-return sheets through June 2026, and Key Fact Statements refresh semi-annually (the July–December 2026 cycle was live for housing, auto, deposits, and the BNPL product). The one thing the paperwork never contains is the live margin: every financing KFS is a fill-in template with the spread blank, so Alfalah customers know their floor (8%) and ceiling (38%) but not their price.

The shelf itself is the segment's most structurally interesting. Home Musharakah runs 3–25 years at up to 80% financing with a free balloon option and bank-borne first-year life Takaful; the Apna Ghar subsidy variant reaches 90:10 with zero processing. The auto product is pure Ijarah - unique among the majors - with the bank holding ownership, paying Takaful, and stopping rentals on total loss, at the cost of a 6% early-termination charge. Deposits pair mid-table branch rates (savings 7.01–7.23% in June 2026) with the standout Alfa digital TDR at 8.41–8.97%, and the window also runs Pakistan's first Shariah-compliant Buy Now Pay Later with its own published KFS. It adds up to a window that innovates inside the fiqh rather than around it.