KARACHI, Sept 19: The National Bank of Pakistan (NBP) has got a licence to open its first Islamic banking branch in Karachi. The State Bank on Tuesday issued a licence to the NBP allowing it to open its first Islamic banking branch, which is located at Cotton Exchange Building in Karachi.

Chairman Shariah Board of the State Bank Dr Mahmood Ahmed Ghazi handed over the licence to Anwar Ahmed Meenai, head of Islamic Banking Division of the NBP at a ceremony held at the central bank in Karachi.

It was attended by Pervez Said, adviser to the governor and director Islamic Banking Department, SBP, and Asif K Brohi, chief Operations group, NBP.

Speaking on the occasion Dr Mahmood Ghazi appreciated the role of the SBP in fostering the growth of Islamic banking in the country and emphasised the need for ensuring Shariah compliance in Islamic banking practices and products.

He expressed the hope that the NBP would deliver excellent Islamic banking service to its customers.

Pervez Said, while congratulating the NBP said, “We believe that the NBP will play a key role in making Islamic banking services available to a large section of the population by using its wide branch network.”

He said the central bank appreciated the entry of a public sector bank in the field of Islamic banking.

He said that the Islamic banking was growing at a fast pace in the country. At present, the assets of Islamic banks stood at around Rs89 billion, which is 2.41 per cent of the total banking industry assets and were comparatively higher in the region.

With the issuance of the licence to the NBP the total number of conventional banks--that are having exclusive Islamic banking branches-- has increased to 12.

Chairman and President of NBP S. Ali Raza in his message appreciated the efforts of the State Bank for promotion of Islamic banking in Pakistan. He said that the Islamic finance, because of its high growth and international acceptability, had become critical for the success of any conventional bank.

He said that being the largest public sector bank, the NBP looked forward to meet the expectations of the industry and “aims to facilitate the customers desirous of availing Islamic banking service all over the country by using its largest branch network.”

The bank is committed to promote Islamic banking on sound footings, he added.