KARACHI: The management of Faysal Bank Limited aims to increase the value of its assets up to 1 trillion rupees by the end of 2022 to be the second Islamic bank in Pakistan to reach the mark.
Speaking at the media roundtable recently, Chief Financial Officer Syed Majid Ali said the bank is likely to reach balance sheet size up to one trillion rupees by the end of 2022. At present, the assets of the Islamic bank reached 865 billion rupees in July. while assets of Rs 134 billion will be converted to Islamic from conventional as per the guidelines of the State Bank of Pakistan (SBP).
He informed the media that the size of the bank’s deposits jumped to 694 billion rupees, almost 94% Islamic, with the bank converting 0.5 million deposits since 2015 in line with its conversion plan. conventional bank to Islamic bank. In addition, the share of Islamic banking in financing and investment with an aggregate value of Rs 753 billion reached 93% and 79% respectively at the end of July.
He said the banking company has received approval from its board of directors to apply for the Islamic banking license which will be granted by the banking regulator by December 2022.
Faysal Bank Limited will operate as a fully-fledged Islamic bank from 2023, with its management having converted over 90% of its operations to Islamic banking.
Faysal Bank Limited’s conversion from conventional banking system to Shariah-compliant system will be a unique example not only in Pakistan but worldwide given the size of its assets and operations, he added.
“We have been invited to share the conversion experience as a study from different universities which will also be seen as the model for various financial institutions with conversion plans in the mode of operation,” the CFO said.
The State Bank of Pakistan (SBP) has given its full support to the bank’s management in line with its conversion plans, he said, adding that Faysal Bank’s conversion from conventional to Islamic banking will be the greatest transition in the world.
Muhammad Faisal Sheikh, Head of Islamic Banking, Faysal Bank Limited, said Faysal Bank management is working to expand the branch network of Faysal Bank Limited to 700 with the establishment of new branches in different cities.
At present, the bank is operating with 638 Islamic branches and one conventional bank branch which will be converted to Islamic and 61 new branches will be established in the remaining period of 2022.
The bank established 359 Islamic branches and converted 210 conventional bank branches into Islamic branches. Faysal Bank will be the second largest fully fledged Islamic bank.
Muhammad Faisal Shaikh, Head of Islamic Banking, said the growth of Islamic banking in Pakistan has exceeded the growth of conventional banking, mainly due to the preference of Pakistani customers for Islamic banking over banking-based banking. the interests.
He also said that Faysal Bank Limited has introduced a wide range of financial products in Pakistan which are alternatives to what interest based banks are offering in Pakistan, hence the bank’s products are the choice of customers in the end. of account.
Islamic bank’s housing finance constitutes almost 60 percent share in the whole banking sector despite the fact that Islamic bank has reached more than 20 percent share in the whole banking system of the country, it said. -he mentioned.
Copyright Business Recorder, 2022