Con­sor­tium of­fers to pur­chase BankIslami shares

The Pak Banker - - FRONT PAGE - Muham­mad Yasir

A Con­sor­tium led by Ali Hus­sain of Je­hanghir Sid­diqui Com­pany Ltd and Alkaram Group has of­fered Dubai Bank to pur­chase its BankIslami shares.

There were nine in­di­vid­u­als who showed their in­ter­est in the pur­chase of shares in BankIslami in­clud­ing Anis Yakoob, No­man Yakoob, Abid Umer, Afzal Umer, Sa­jid Ha­roon, Shafi Sa­jid, Sa­lik Shahid, Shahida Yakoob and Alkaram Fi­nan­cial Lim­ited.

The clar­i­fi­ca­tion was made af­ter an in­quiry was made by Karachi Stock Ex­change. The pur­chase of the shares by the lo­cal in­vestors is likely to im­prove the strength of bank and its oper­a­tions at do­mes­tic level.

BankIslami man­age­ment has de­cided to give first right of re­fusal to Jehangir Sid­diqui Com­pany Ltd and Ran­deree fam­ily to pur­chase the re­spec­tive por­tion of share un­der the found­ing share­hold­ers agree­ment be­tween the share­hold­ers of BankIslami.

BankIslami was con­cep­tu­al­ized by Ja­hangir Sid­diqui & Com­pany Lim­ited and Ran­deree fam­ily in late 2003.

A de­tailed busi­ness plan was then pre­pared and a for­mal ap­pli­ca­tion was sub­mit­ted to the State Bank of Pak­istan on May 26, 2004.

On Septem­ber 26, 2005, Dubai Bank joined the Spon­sors and be­came one of the found­ing share­hold­ers of BankIslami by in­vest­ing 18.75% in the to­tal Cap­i­tal.

Re­cently, State Bank of Pak­istan ap­proved the amal­ga­ma­tion of KASB Bank with and into BankIslami. With this amal­ga­ma­tion all 104 branches of KASB Bank were merged into BankIslami mak­ing it the coun­try's 11th largest bank­ing net­work with 317 branches in 93 cities in a short span of 9 years.

The BankIslami raised its min­i­mum paid-up cap­i­tal to nearly Rs10 bil­lion through is­suance of the right shares in the eq­uity mar­ket.

At present, BankIslami has grown its op­er­a­tion and busi­ness with the amal­ga­ma­tion of KASB Bank which is not only im­proved its prof­itabil­ity but will in­crease the over­all mar­ket share of Is­lami Bank­ing In­dus­try.

BankIslami is con­vert­ing op­er­a­tion of con­ven­tional bank­ing into Sharia bases that will likely to ac­com­plish till the end of first quar­ter of 2016. The pen­e­tra­tion of sec­ond largest Is­lamic bank of the coun­try will be in­creased to 13 new cities which will likely to give bank­ing com­pany an edge over com­peti­tors in­clud­ing tap­ping new mar­kets with Sharia prod­ucts.

BankIslami has man­aged to grow its profit by 69 per­cent in 2014 de­spite all odds in­clud­ing is­sues with paid-up cap­i­tal and is­suance of right shares show­ing its out­stand­ing strat­egy and per­for­mance in the boom of Is­lamic bank­ing in­dus­try in Pak­istan.

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