Consortium offers to purchase BankIslami shares
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.