Business

Bank Islami plans to buy KASB Bank for nominal fee

KARACHI: Bank Islami Pakistan, the country’s second-largest full-fledged Islamic bank, said it would submit plans on Wednesday to buy troubled lender KASB Bank Ltd for a nominal fee.

In January, Karachi-based Bank Islami received regulatory approval to study an acquisition that would add 105 branches to its existing network of 213.

The central bank imposed a six-month moratorium on KASB Bank in November as the lender struggled to meet capital adequacy requirements.

The proposed deal would see Bank Islami absorb all assets and liabilities in exchange for a nominal cost of 1,000 rupees ($10), a statement on the bank’s website said. (bit.ly/1P4X7ES)

The deal would require the conversion of KASB Bank’s conventional financial products into sharia-compliant ones.

Islamic banks in Pakistan are expanding, buoyed by a government-wide push to develop the Islamic banking sector in the world’s second-most populous Muslim nation. ($1 = 101.6500 Pakistani rupees) -Reuters

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