BankIslami calls for more Islamic banking

CEO says Islamic KIBOR can be introduced after Islamic banking reaches 40%

KARACHI:

The proposed Islamic Karachi Inter-bank Offered Rate (Kibor) can be introduced only when the proportion of Islamic banking in Pakistan reaches 40%, said a high official of an Islamic bank. At present, the share of Islamic banking in the country stands at 22%.

Talking to media on Tuesday, BankIslami President and CEO Rizwan Atta, accompanied by Deputy CEO Imran Shaikh and Group Head Consumer Banking Bilal Faiz, announced that 100 more branches of BankIslami would be opened in the current year, which would take the total number of branches to 550 by the year-end.

“The establishment of new branches will provide employment opportunities for more than 600 people,” he said. “The bank is also considering opening branches outside of the country.”

The CEO pointed out that BankIslami was the only bank that had installed three Cash and Cheque Deposit Machines (CCDM) where apart from withdrawing cash through depositing cheques, other banking services could also be availed.

Read ‘Islamic banking to expand 35%’

He announced that the bank had targeted to embrace 100% digital banking.

He was of the view that the financial ecosystem in the entire country should be based on the Islamic model, adding “we will introduce the first fully one-touch banking/ fingerprint branch soon.” He disclosed that 60% of BankIslami transactions were being done through digital means while 40% transactions were taking place at the counter.

Responding to a question, Atta said that due to the excellent security features, the deposits of BankIslami accountholders were safe and all of them had been provided Takaful (Islamic insurance) coverage.

Published in The Express Tribune, January 10^th, 2024.

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