Karachi 27th December 2010: BankIslami has signed first of its kind deal to acquire CitiBank Pakistan’s House Financing portfolio amounting to Rs. 953 million. This is the first time a Bank has acquired mortgage assets of another Bank. It is expected that this transaction will open door for other similar transactions enabling banks to acquire entire business or product lines. The added significance of the transaction is that this is the first time an Islamic bank has acquired business of a conventional bank. The transaction will be viewed closely by Islamic banks and regulators around the world, as globally Islamic banking Industry is more liquid than their conventional counterparts, there by creating an alternate route of deployment of liquidity and further accelerating the growth of the Industry.
Speaking on the occasion CEO BankIslami, Mr. Hasan A. Bilgrami said that this acquisition will serve as a milestone for the Islamic Banking industry in Pakistan and elsewhere. Further, he stated that the acquisition of the Housing portfolio is in line with BankIslami’s growth strategy in this segment.
CitiBank’s Housing finance customers will now required to be switched to Islamic mode of financing. “The transition for the customers to BankIslami will be made easy and convenient” CEO BankIslami said.
Earlier, the Bank raised upto 102 branches in less than three years which is a record in itself. Despite a general slow down in the Banking Industry, BankIslami has recorded CAGR of 72% in the last two years alone making it one of the fastest growing bank in the country.