SBP issues Islamic banking licence to BIPL
KARACHI: The central bank has issued third Islamic banking licence to Bank Islami Pakistan Limited (BIPL), who will start operation with a paid up capital of Rs 2.1 billion in the country soon.
The bank will also raise a total of Rs 300 million through an initial public offering (IPO) at the Karachi Stock Exchange (KSE). The bank plans to soon file an application with the KSE for quotation of its shares on the ready board counters. The Rs 450 million private placement of the bank is completed and over-subscribed.
The State Bank governor, Dr. Ishrat Husain handed over the licence to Mr. Hassan Aziz Bilgrami, chief executive Bank Islami at a simple ceremony held in Karachi on Thursday.
BIPL, which will be the third full-fledged Islamic Bank in the country, has been jointly sponsored by the DCD Group, UK and M/s Jahangir Siddiqui & Company Limited (JSCL).
“It is the first Islamic Financial Institution in Pakistan that is going to focus on wealth Management as the core area of business,” said Hassan Aziz Bilgrami, chief Executive of the bank.
The other two full-fledged Islamic banks operating in Pakistan are Meezan Bank and Al-Baraka Islamic Bank. In addition to these banks, 29 branches of nine conventional banks are providing exclusive Islamic banking services to their customers.
Speaking on the occasion, Dr. Ishrat Husain, said that the State Bank is encouraging the participation of reputable local and foreign investors in the field of Islamic banking with a view to develop a competitive and viable Shariah compliant financial system in the country.
He said that the Islamic banking is growing at a fast pace in the country. He said that during last year the total assets of Islamic banking institutions grew by 244 percent to Rs 44 billion and the deposits grew by 263 percent to Rs 30.5 billion.
Mr. Hassan Aziz bilgrami appreciated the role of SBP in the promotion and development of Islamic Banking in Pakistan. He said that the participation of DCD group in the venture is an endorsement to the government’s sound economic policies as well as the vast opportunities that exist in the Islamic Banking sector in the country.
The local private investors and underwriters of the bank, which including leading local financial institutions, brokerage houses and companies, participated in the ceremony.