Faysal Bank to lauchen Sharia-compliant operation
The board of directors of Faysal Bank has decided to covert make the bank’s operations Sharia compliant from conventional, but the snail’s pace migration is raising questions about its success in a highly competitive regime and in times when Islamic banking is expanding at a fast pace.
The bank is operating its 277 branches with 63 dedicated Islamic Banking branches having vision to migrate overall operation into full-fledged Islamic banking in next three to four years but its strategy is not being reflected into its plan but seems confusing with its offering to customers and investment in government papers. In a talk show “Aap Aur Karobaar” on Business Plus Tv, Host Khalil Ahmed and Banking Analyst SN Arif discussed business, operations and strategy of bank and its success in its peer in the banking industry.
The bank’s management seemed undecided over conversion because it was first established as Islamic Bank as Faysal Islamic Bank and then converted into conventional bank and become ABN Ambro Bank. Later it acquired Royal Bank of Scotland and then become Faysal Bank Limited. The consistent migration in operations and rebranding may not bode well in its operations but there is still room for growth in the banking industry through fast pace migration of Islamic banking operation with tapping in opportunities in the emerging economy by financial products and financing to private sector.
Islamic banking is booming at present due to its increasing acceptability among masses but bank should prepare themselves on the financial products to meet demands of the business in accordance with Sharia compliant. The bank should align its customers base with markets expansion and demand particularly late comers have to struggle a lot to make room in the market with innovative financial products. Faysal Bank switch to Islamic bank should have been visible in the present year through its pace of conversion which is still doubtful in the market. If they don’t start to focus on lending, new players will come to feed the market.
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