Al Baraka bank has at last received Burj bank including its operations, branches, human resources, clients, deposits and liabilities.
for this reason, Burj financial institution belongings and operations are being converted to merge with Al Baraka financial institution. The transfer is expected to be successfully consolidated beginning November 01, 2016. Burj financial institution assets embrace 74 branches and Rs 20 billion plus deposits, along with its shoppers and employees.
After acquisition of Burj bank, Al Baraka financial institution will now have 224 branches in 100 cities of Pakistan with deposits value exceeding to over Rs one hundred ten billion.
Al Baraka bank’s paid-up capital has been increased to Rs 12 billion from Rs eight billion whereas it has absorbed Burj bank liabilities of Rs 25 billion and losses of nearly Rs 450 million in future.
In April 2016, financial institution Al Baraka was granted permission to conduct due diligence of Burj bank. in addition to, bank of Khyber and Summit financial institution also expressed their intention to obtain the smallest full-fledged Islamic financial institution in Pakistan.
In August 2016, financial institution Al Baraka concluded due diligence and due to this fact entered into negotiations with the administration of Burj bank on sale buy deal. The parties in the end reached an settlement between them for the acquisition.
Afterwards, State financial institution of Pakistan (SBP) gave green signal to Al Baraka financial institution for buying Burj financial institution which also prepared the ground in opposition to consolidation of two struggling banks to transform a much better bank.
to not be talked about, both national bank of Pakistan (NBP) and MCB bank tried to acquire Burj bank again in 2014 and 2015 but in both instances, they remained unsuccessful.
About Burj financial institution
Burj financial institution restricted was rebranded from Dawood Islamic financial institution restricted (DIBL), which used to be arrange as Pakistan’s sixth full-fledged Islamic commercial bank in 2007.
The bank used to be the results of an initiative of the first Dawood crew, with the Islamic business enterprise for the improvement of the personal Sector (ICD) in Jeddah, Unicorn investment financial institution in Bahrain, Al Safat investment company in Kuwait, Gargash companies (LLC) in Dubai, the Singapore-based entrepreneur Azam Essof Kolia and Shaikh Abdullah Mohammad Al-Romaizan, an entrepreneur from the dominion of Saudi Arabia.
In July 2011, the financial institution was once renamed Burj financial institution Ltd. Being a smallest financial institution, it confronted financial concerns comparable to assembly requirement of paid-up capital. Its loss after taxes stood at Rs 292 million by means of the top of half of 12 months of 2016.
Burj bank car financing product Carsaaz is one of the most popular in the banking industry.
About Al Baraka bank
Al Baraka bank used to be dependent as the result of a merger between Al Baraka Islamic bank Pakistan (AIBP), the branch operations of Al Baraka Islamic bank (AIB) Bahrain and Emirates world Islamic bank (Pakistan). The merged entity commenced operations on November 1st 2010.
The merger, a primary within the Islamic Banking sector in Pakistan, positions Al Baraka for a very powerful function in growing an trade which has witnessed marvelous boom during the last 12 years.
The bank’s balance sheet is sure, exhibiting a profit of Rs a hundred twenty five million through the end of 1/2 year of 2016.