BankIslami Pakistan
 | |
| Public (KSE: BIPL) | |
| Industry | Islamic banking |
| Founded | April 7, 2006 |
| Headquarters | Principal Office, Karachi Pakistan |
Key people | Hasan A Bilgrami (CEO) |
| Products | Retail Banking, Consumer Banking, Investment Banking, Trade Financing etc. |
| Revenue |
 PKR 7,812 Million - 2014[1] |
|
PKR 314 Million - 2014 | |
Number of employees | 2300 as on 31 Dec, 2014 |
| Slogan | Serving You, the Right Way |
BankIslami Pakistan Limited (“BankIslami”) is located in Karachi, Sindh, Pakistan. BankIslami Pakistan Limited was the first Islamic Commercial Bank to receive the Islamic banking license under the Islamic banking policy of 2003 from State Bank of Pakistan on March 31, 2005. The Bank started its operations from April 7, 2006 and offers shariah compliant retail banking, investment banking, consumer banking and trade finance products. The Bank intends to focus on Wealth Management as the core area of business and plans to soon launch Proprietary products, and Integrated financial planning services.
The Bank has a nationwide presence, its branch network consists of 213 branches & sub branches spread over 80 cites of Pakistan. With the amalgamation of KASB on May 7, 2015, all 104 branches of KASB have become part of BankIslami’s branch network. BankIslami is now the 11th largest banking net work in the country with 317 branches in 93 cities nationwide.
The idea of BankIslami was conceptualized by Jahangir Siddiqui & Company Limited and Randeree family in late 2003. Mr. Hasan A. Bilgrami was appointed as Adviser to the sponsors on March 16, 2004 to formalize the idea. He presented the concept paper of BankIslami to sponsors on March 24, 2004. 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.
Accredition by State Bank of Pakistan
The State Bank of Pakistan issued a No Objection Certificate in no time on August 19, 2004 and BankIslami Pakistan Limited, the second full-fledge Islamic Commercial Bank in Pakistan, was incorporated on October 18, 2004 in Pakistan.
BankIslami Pakistan Limited was the first Bank to receive the Islamic Banking license under the Islamic Banking policy of 2003 on March 31, 2005. The Bank envisioned to focus primarily on Wealth Management as the core area of business in addition to Shariah compliant Retail Banking products, Proprietary and Third party products, and Integrated financial planning services.
Initial Public Offering of BankIslami
BankIslami Pakistan Limited made a public offering of Rs. 400 Million, at par, from 6 to 8 March 2006. This was the first primary issue by a Bank in over a decade in Pakistan. The Initial public offering (IPO) of BankIslami received overwhelming response from the general public as the applications received were 9 times higher than offered, fetching nearly Rs. 3.5 Billion, against the demand of Rs. 400 Million.
Inauguration and Network Expansion
The State Bank of Pakistan declared BankIslami Pakistan Limited as a Scheduled Bank with effect from March 17, 2006. BankIslami started its Banking operations on 7 April 2006 with its first branch in SITE, Karachi. By the end of 2006, the Bank had 10 branches, nine in Karachi and one in Quetta. The Bank further concentrated in building a nationwide network and by the end of year 2007, its branch network grew to 36 branches in 23 cities. In 2008, the Bank opened 66 new branches nationwide which expanded its network to 102 branches in 49 cites. By the end of 2013, the Bank has achieved the target of 201 branches in 77 cities nationwide. Currently BankIslami is operating 213 branches in 80 cities of Pakistan. With the amalgamation of KASB on May 7, 2015, all 104 branches of KASB have become part of BankIslami’s branch network. BankIslami is now the 11th largest banking net work in the country with 317 branches in 93 cities nationwide.
Sponsors
BankIslami is the Joint venture project of three groups namely Jahangir Siddiqui & Co. Pakistan, Randeree family, & Dubai Bank. The Bank is also publicly traded on the Karachi Stock Exchange.
Credit rating
The Bank is assigned a long term entity of 'A' and short term rating of 'A-1' by Pakistan Credit Rating Agency Limited (PACRA), reflecting BankIslami's well conceived business strategy and establishment of effective operating platform by the Bank to execute the business strategy.
Brand image
BankIslami has been able to build a strong image by using smart marketing ideas that resonate well with the public mind. For example, the calligraphy of the Bank's name in Urdu have been done by the same calligrapher Shafiq uz Zaman who has been working in the Holy Mosque of Medina in Saudi Arabia.
Amalgamation with KASB Bank Limited
State Bank of Pakistan (SBP) has proposed amalgamation of KASB Bank Limited (KASB) into BankIslami Pakistan Limited at a token price of Rs 1,000. Sources told Business Recorder Tuesday that SBP has initiated amalgamation process of KASB Bank into BIPL pursuant to the powers conferred on them under section 47 of the Banking Companies Ordinance 1962, as six months moratorium imposed on KASB Bank is being completed next month and before that the regulator is required to complete its restructuring in order to protect the investors' interest.
Initially, some four banks including JS Bank, Askari Bank, BankIslami and Sindh Bank were intending to acquire KASB Bank operations and approached SBP to get NoC for due diligence of KASB for proposed acquisition. However, now SBP has selected BankIslami for amalgamation of KASB Bank.
KASB Bank has been facing severe capital shortfall in terms of both Minimum Capital Requirement ("MCR") and Capital Adequacy Ratio ("CAR") since 2009. As of September 30, 2014 the Bank's MCR (free of losses) was in the amount of Rs 0.958 billion with a CAR of negative 4.63 percent against the required levels of Rs 10 billion and 10 percent, respectively.
On May 7, 2015 KASB Bank merged with BankIslami Pakistan Limited with its branch network of 104 which made BankIslami a Bank of 317 branches in 93 cities.
See also
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