Islamic Banking industry showing promising signs of sustainable growth: Shamshad Akhtar

KARACHI:Governor State Bank of Pakistan Dr. Shamshad Akhtar has said that Islamic Banking industry is showing promising signs of sustainable growth. She expressed these views while briefing the media while inaugurating Meezan Bank’s 100th branch here on Thursday.

She said that the beauty of Islamic finance system is that if it is adapted in letter and spirit it is the most transparent and ethical system of finance.

She said that Islamic finance system has a great potential to meet the financial requirements of society at large and would continue to grow its market share exponentially in the years to come in Pakistan Congratulating the Meezan Bank’s management for 100 branches network in just five years time, Governor State Bank said that Meezan Bank’s historic growth is the success story of Islamic banking in Pakistan.

She said that Meezan has been very innovative in creating the Shariah compliant products for its diverse clientele. She said that she is impressed by the growth of Meezan bank and it’s the vision and the mission of the bank management that has made it possible.

Speaking on the occasion Mr. Irfan Siddiqui, President and CEO of Meezan Bank said that Meezan Bank, the first and largest Islamic Bank in Pakistan is committed to fulfilling its vision of establishing Islamic Banking as banking of first choice.

He said that Meezan Bank is now present in 31 cities of Pakistan and branch expansion will continue during 2008 making the Bank one of the fastest growing Banks in the history of Pakistan.

Mr. Siddiqui said that currently six dedicated Islamic Banks are operating in Pakistan with a total of 186 branches besides 102 standalone Islamic Banking Branches of Conventional banks. Meezan Bank’s share of branch network is now 55% of the total, making it therefore the largest Islamic Bank operating in Pakistan by a significant margin.

He said that Meezan bank would continue to expand its branch network in 2008 with the addition of 50 more branches thus establishing a network of 150 branches across Pakistan by the end of 2008.

Meezan Bank President said that bank’s total deposit base is over Rs. 52 billion which is 42% of total Islamic banking industry, its financing stands at 30 billion which is 34% of total Islamic banking financing and bank’s total assets are worth 64 billion making it 36% of overall Islamic banking assets. Meezan Bank has more than 150,000 customers, he added.

The Meezan Bank Shariah Board consists of world-renowned Shariah scholars such as, Justice (Retd.) Muhammad Taqi Usmani, Dr. Abdul Sattar Abu Ghuddah, Sheikh Essam M. Ishaq and Dr.

Muhammad Imran Usmani. He said that to ensure strict Shariah compliance in all Bank’s operations Meezan Bank has a dedicated Product Development & Shariah Compliance (PDSC) unit for the centralization of Product development activities, new product research, Islamic banking training and Shariah Compliance audit functions.

The department works under the direct guidance & supervision of the Bank’s Shariah Advisor - Dr. Muhammad Imran Usmani and the Shariah Supervisory Board of the Bank.

Meezan Bank has a large product menu offering a complete range of Islamic banking products and services, such as: Corporate and Investment Banking, Commercial and SME, Consumer Finance, Treasury & Financial Institutions, and Asset Management.

The Asset Management business is managed through a subsidiary Al Meezan Investment Management Limited and offers a number of mutual funds.

The Retail Banking is organized through the network of 100 branches spread in the three Regions across Pakistan, namely South, Central and North Region, he added. All branches are ’on-line’ and are supported by state of the art 24/7 Banking services to all its customers, which includes 77 ATMs, Internet Banking and a Call Center that operates 24 hours a day seven days a week.

The Bank also offers a comprehensive Debit Card that is accepted at over 3,000 outlets across Pakistan. Meezan Bank also has a dedicated Customer Care Unit for all its valued customers.