Bank Islami plans to buy KASB Bank for nominal fee

Published April 29, 2015
In January, Karachi-based Bank Islami received regulatory approval to study an acquisition that would add 105 branches to its existing network of 213. — Courtesy KASB's facebook page
In January, Karachi-based Bank Islami received regulatory approval to study an acquisition that would add 105 branches to its existing network of 213. — Courtesy KASB's facebook page

KARACHI: Bank Islami Pakistan, the country's second-largest full-fledged Islamic bank, said it would submit plans on Wednesday to buy troubled lender KASB Bank Ltd for a nominal fee.

In January, Karachi-based Bank Islami received regulatory approval to study an acquisition that would add 105 branches to its existing network of 213.

The central bank imposed a six-month moratorium on KASB Bank in November as the lender struggled to meet capital adequacy requirements.

Read: KASB Bank placed under six-month moratorium

The proposed deal would see Bank Islami absorb all assets and liabilities in exchange for a nominal cost of 1,000 rupees ($10), a statement on the bank's website said.

The deal would require the conversion of KASB Bank's conventional financial products into sharia-compliant ones.

Islamic banks in Pakistan are expanding, buoyed by a government-wide push to develop the Islamic banking sector in the world's second-most populous Muslim nation.

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