KARACHI, Aug 4: The State Bank of Pakistan on Wednesday issued a licence to Bank Al Habib Limited for its first Islamic Banking Branch located in Karachi.

Director Islamic Banking Department, SBP, Pervez Said handed over the licence to chief executive of Bank Al Habib Abbas D. Habib at a simple ceremony held at State Bank of Pakistan here.

With the issuance of this licence, the total number of conventional banks that are having stand-alone Islamic banking branches has increased to six. Five other banks that have been issued licences for Islamic Banking Branches include Muslim Commercial Bank (three branches), Bank Alfalah (seven branches) and one branch each of Habib Bank AG Zurich, Bank of Khyber and Standard Chartered Bank.

One full-fledged Islamic bank - Meezan Bank Limited - with licence for 14 branches is already operating since March 2002. These licences have been issued pursuant to a three-pronged strategy adopted by the SBP for the promotion of Islamic banking in the country.

Speaking on the occasion, Mr Pervez said the central bank was committed to promote Islamic banking and it was now issuing licences for setting up of Islamic banks, Islamic banking subsidiaries and Islamic banking branches. He expressed the hope that the addition of new players in the market would ensure better services to the customers of Islamic banking. -APP