BankIslami is now all set to acquire Citibank Pakistan's house financing portfolio as Citibank has accepted the offer price for a portfolio amounting to Rs. 1.1 Billion. This acquisition will now go through necessary regulatory approvals.This kind of transaction of acquisition of conventional housing portfolio by an Islamic Bank on the principles of Shariah is a first of its kind transaction in the World. This acquisition will give an impetus to the rising demand of the Islamic Banking products in the market and pave the way for more such transactions.
Speaking on the occasion CEO BankIslami, Mr. Hasan Bilgrami said that This acquisition will serve as a ice breaking factor for the Islamic Banking industry in Pakistan" Further he stated that "The deal took time because we had to ensure that the acquisition is shariah compliant. He also added that funds for acquisition would be provided through its internal resources.
A total number of 415 Citibank's customers will now switch to Islamic mode of financing. "With the terms we would be offering to the customers, I don't think there would be anyone who would not want to join us". CEO said.
BankIslami with a network of 102 branches in 49 cities is the second largest Islamic Bank of the country. The Bank has a credit rating of A and short term rating of A-1 (PACRA). On the capital front, the Bank is also engaged in a dialogue with State Bank with various options which include issuing right shares and/or acquisition of another Bank. The Bank is all set to show the profit on full year basis.
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