KARACHI: Summit Bank Limited has launched its Islamic Banking with setting up new branch in Karachi with a plan to convert overall banking operation from conventional to Sharia-compliant in the next three years.
The bank has been established with Rs 1 billion equity in accordance of mandatory operations requirement of starting operations with the capital driven through non-interest source.
Hussain Lawai, President and CEO of Summit Bank said that bank will convert its 4 branches into Islamic from conventional whereas it will add 15 new branches in the calendar years mainly in provincial capitals and big cities.
These branches will play a crucial role in setting business strategy of the bank through providing experiences including issues and success in the Islamic banking.
The bank will set its new direction through operations of its branches and rapidly convert its branches from conventional to Sharia-based.
The bank’s management has first decided to open a window or division of Islamic Banking side by side with its conventional banking but it planned to full-fledge bank through migration of interest-based banking to Islamic banking, veteran banker.
The Islam bank has been planned to grow with 20-30 percent annual rate which is possible though not challenging or impossible due to rising awareness of Islamic banking in the country.
The growth of Islamic Banking is immense in Pakistan standing 30 percent annually as compared with conventional banking industry that standing at 10-12 percent per annum. Summit Bank is operating currently with 187 branches in the country. It is imparting its leading role bringing remittances inflows in Pakistan to be the six largest players in this business. Lawai said Summit Bank has increased its home remittances services with partners like Ufone, a cellular phone company, to be the six largest contributor of processing home remittances in the country.
(Daily Times / 08 March 2014)---
Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com