Is this authentic information regarding Profit and Loss account?
If not, what would be the correct answer to this question?
Jazakallah Khair …
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh
We have analysed the answer you refer to you in your question.
We understand that there are two issues posed in the question in reference, viz. Standard Chartered Profit and Loss Sharing Account – dividends accrued thereof and Provident Fund – interest accrued thereof.
Standard Chartered Bank offers Islamic Banking and conventional banking products. The questionnaire did not clarify which specific product is being referred to. We cannot issue a specific ruling until we review the exact product in reference including the terms and conditions thereof.
Furthermore it is highly irresponsible to issue rulings based on assumptions rather than solid and established facts.
The dividends accrued on conventional provident funds are impermissible and unlawful. Such dividends should be dispensed in charity.
And Allah Ta’āla Knows Best
Checked and Approved,
Mufti Ebrahim Desai.