IslamicFinance.de

Bank Muamalat Malaysia Bhd is said to be revisiting the idea of a merger, this time with a development financial institution (DFI). Among the possible candidates are Bank Rakyat Malaysia Bhd and Malaysian Industrial Development Finance Bhd (MIDF). DFIs are specialised financial institutions established by the Government with the specific mandate to develop and promote key sectors that are considered of strategic importance. Industry players say the idea of a merger between Bank Muamalat and Bank Rakyat is an attractive proposition as both are Islamic concerns, with Bank Rakyat being the country’s largest Islamic cooperative bank.For the financial year (FY) ended March 31, 2013, Bank Muamalat posted a record pre-tax profit of RM236mil. Bank Rakyat, meanwhile, has been enjoying profitable growth over the years.