Can Islamic bank pay any kind of dividend to their depositors out of their profits, even the deposit holders do not have share holding in Islamic banks?
Yes. Through the liability side products namely Musharkah or Mudarabah, Islamic banks can receive deposits from deposit holders. The profit of the Islamic banks is distributed among the deposit holders and the Islamic banks according to a pre-agreed ratio of profit, on monthly basis. If the Islamic banks suffer loss for any month then the dep[oist holder swill have to bear the loss according to their respective ratio of investment in the overall pool of deposits as well as equity of the banks.
