BankIslami acquires Citibank’s house financing portfolio

Published: December 28, 2010
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Expanding: 72% was the compound annual growth rate of BankIslami over the past two years.

Expanding: 72% was the compound annual growth rate of BankIslami over the past two years.

KARACHI: BankIslami has signed a first-of-its-kind deal to acquire Citibank Pakistan’s house financing portfolio amounting to Rs953 million. This is the first time an Islamic bank has acquired mortgage assets of a conventional bank.

“This acquisition will serve as a milestone for the Islamic banking industry in Pakistan and elsewhere,” said BankIslami CEO Hasan Bilgrami. He added that the acquisition of the housing portfolio is in line with BankIslami’s growth strategy in this segment.

Citibank’s house finance customers will now be required to switch to the Islamic mode of financing. “The transition for customers to BankIslami will be made easy and convenient,” said the CEO. Despite a general slowdown in the banking industry, BankIslami has expanded to 100 branches in less than three years.

A compound annual growth rate of 72 per cent over the last two years has made it one of the fastest growing banks in the country.

Published in The Express Tribune, December 28th, 2010.

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Reader Comments (2)

  • Dec 28, 2010 - 11:20AM

    great work of bank islami pakistan, as a student of Islamic Banking & Finance in my point of view bank islami provides an excellent opportunity for the islamization of economy…Recommend

  • Ahmed Iqbalabadi
    Jan 19, 2011 - 3:07PM

    What is Islamization of the economy? That people will stop lying in business transactions? Pay on time? No front running? No speculation? Or simply if you have no riba then the economy is Islamic???!Recommend

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