IslamicFinance.de

Al Baraka Bank (Pakistan) Ltd (ABPL) and Burj Bank Ltd (BBL) will soon merge into a single Islamic Bank in Pakistan under the name Al Baraka Bank (Pakistan) Ltd. Al Baraka Islamic Bank-Bahrain will remain major shareholder subsequent to this merger. All 74 BBL branches will be converted into ABPL branches and the combined network of the merged entity will become 224 branches in over 100 cities across Pakistan. The total asset base of ABPL will cross US$ 1.1 billion. Adnan Ahmed Yousif, Chairman of ABPL said the amalgamated entity would be in a position to offer varied financial products and services.

The State Bank of Pakistan (SBP) has allowed MCB Bank to commence due diligence of Burj Bank Limited for proposed acquisition of its 55 percent share. The management of MCB Bank disclosed to its shareholders that the central bank has given an approval to the bank for conducting a detailed due diligence of the bank to invest in new and existing shares along with additional investment by Islamic Corporation for Development of Private Sector. MCB Bank is conducting due diligence of Burj Bank Limited from March 18, 2014. Burj Bank is operating with 75 branches countrywide, but it is facing some financial complications and failed to meet SBP's minimum capital requirement of Rs 10 billion by end-2013.