Islamic banking mainly invests money based on 03 (three) principles.

• Purchase and sale procedures; (Bai Mechanism).
• Partnership based approach; (Share Mechanism).
• Rent-based approach; (Lease Mechanism).

Shariah principles recall that the buying and selling of any commodity is defined as the Bai Mechanism. For this, the bank has several methods, such as Bai-Murabaha, Bai-Muazzal, Bai-Salam, Bai-Istisna etc.

A business in which two or more persons contribute capital, all or some participate in the management and operation of the business and take profit as per the agreement and bear the loss in proportion to the capital is called Share Mechanism. For example: Musharaka.

Lease mechanism is a contract executed by leasing/renting fixed or temporary assets in accordance with Shariah system. Example- Lease or HPSM.

A business in which two or more persons contribute capital, all or some of them participate in the management and operation of the business and take profit as per the agreement and bear the loss in proportion to the capital is called musharakah investment.

Murabaha is the sale of Shariah-approved goods by charging a fixed dividend on the purchase price, with the consent of both the seller and the buyer, in cash or at a fixed time in the future, together or in fixed installments.