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.
