Islamic banking shows 'tremendous' 30pc growth in assets for CY2020

KARACHI: The State Bank of Pakistan said Wednesday it recorded the highest growth since 2015 in Islamic banking assets and deposits for the period of the calendar year 2020, ARY News reported.

“The overall assets and deposits of the Islamic banking industry (IBI) have shown tremendous growth of 30 per cent and 27.8 pc, respectively, during CY2020,” said the press statement by the central bank.

The Islamic Banking Bulletin for Oct-Dec 2020 quarter, by the country’s financial hub, noted this was the highest increase in assets in a year since 2012, while on the deposits,  since 2015.

“Over the last five years, both assets and deposits of the Islamic Banking Industry have more than doubled.”

It said the growth is encouraging “particularly due to the fact that the industry was also faced with the Covid19 pandemic challenges during 2020”.

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According to its bulletin, the assets of the IBI increased to Rs4,269 billion, whereas deposits reached Rs3,389 billion by the end of December 2020 which mark a 17.0 pc composition in total assets while respectively, an 18.3 pc in total deposits recorded by the overall banking industry in this period.

The regulator added, “Financing of the Islamic banking industry has also grown by 16 percent during CY20.”