The National Bank of Pakistan applied for the permission from State Bank of Pakistan to conduct due diligence of burj bank; planning for sound presence in Islamic banking.
The National Bank has already started conversion of its existing branches into Islamic, number of its Islamic branches will reach to 175 by the end of this year. The bank’s management is considering to have a wholly-owned Islamic banking subsidiary or acquire a complete Islamic bank. The decision by MCB for not purchasing Burj Bank, has provided the opportunity to National Bank.
Burj Bank is a small Islamic bank having a network of 75 branches. Islamic banking is growing across the globe, and also in Pakistan. NBP one of largest and popular bank of Pakistan have plans to become a key player in Islamic Banking.
The State Bank of Pakistan is taking steps for the development of Islamic banking. The Central bank is also encouraging other key players of the banking industry to work for its promotion. Islamic banking was introduced in Pakistan in 70s, but the pace of its expansion remained slower as compare to the other Islamic countries.
The SBP aimed at doubling the industry’s branch network along with at least 15 percent share of Islamic banking in Pakistani banking system in next 5 years. Recently SBP announced appointment of Mr. Taqi Usmani as new deputy governor and member in its Shariah Board.
The Central Bank has also launched various media awareness campaign last year; also would revise rules on Shariah governance and liquidity management for Islamic banks.