BANKISLAMI PAKISTAN

One-stop financial shop offering a broad range of Shariah complaint products

By SHABBIR H. KAZMI
Mar 27 - Apr 02, 2006

BankIslami is the first bank to receive the Islamic Banking license under the Islamic Banking policy of 2003 from State Bank of Pakistan in March 2005. The bank will start operations with an authorized capital of Rs. 2.1 billion. It is the first financial institution in Pakistan that is going to focus on Wealth Management as the core area of business. It would be a one-stop financial shop, offering a broad range of Shariah complaint products including financial planning. The system would be designed on Islamic principles with expertise transferred from its shareholders. BankIslami has also put in place technologically advanced platforms that boast one of the most integrated deployment of LINUX in the country which goes right up to the desktop level. Services such as Internet banking and ATMs would be available right from the start.

BankIslami has three main sponsors, each holding 18.75% of the paid-up capital of the Bank. Dubai Bank is 70 percent owned by Dubai Holdings, the investment arm of the Government of Dubai. Emmar, the largest capitalized company in the region at $40 billion, owns the rest. BankIslami would serve as the primary contact point for Dubai Bank for its investment and banking businesses besides collaboration in other areas. Dubai Bank has identified Islamic finance as promising business area. BankIslami would be a platform for them to export their financial products, broadening the base of investors both in Pakistan and Middle East.

DCD Group is a multinational conglomerate with presence in the UK, USA, South Africa, UAE, India, Sudan, Hong Kong and Mauritius. Ahmed Goolam Mahomed Randeree and Shabir Ahmed Randeree are the principal shareholders of the DCD Group. The core businesses remain trade finance and factoring and property and investment management. The consolidated turnover of the Group was over one billion dollars in 2004. The Group also has stake in Dallah Al-Baraka's Islamic Bank in South Africa, the Islamic Bank of Britain in UK and European Islamic Investment Bank. The Group plans strategic investments in the Islamic Banking sector worldwide over the coming decade.

Jahangir Siddiqui & Company (JSC) is the holding company for one of the largest and most diversified financial services groups in Pakistan, involved in investment banking, broker-dealer operations, proprietary trading, insurance, banking and asset management. It is also the only securities company to be a primary dealer for Government securities in Pakistan and is one of the largest bond trading firms in Pakistan. JSC is a listed company on the Karachi Stock Exchange. Some of the other investors in the BankIslami Pakistan are: Suleiman Ahmed Al-Hoqani (UAE), A.M.A Group and Al-Akeel and Sons (Saudi Arabia), Crescent Standard Investment Bank, EFU, Arif Habib Securities, Motiwala Securities, Wesbury and National Bank of Pakistan.

After successfully placing Rs. 475 million in pre-IPO in Pakistan and the Gulf, BankIslami made its Initial Public Offering (IPO) of Rs. 400 million on March 6-8, 2006. It was the first primary issue by a bank over the last decade. On its first day of listing on the provisional counter of KSE, BIPL-PRO rose to as high as Rs.28. BankIslami IPO received overwhelming response from general public as the applications received were nine times higher than the offer, fetching nearly Rs 3.5 billion, against the demand of Rs 400 million. Total number of applications received was 598,198, which also included investment of more than 500 shares.

BOARD OF DIRECTORS

Board of Directors consists of Chief Justice (Retd) Mahboob Ahmed, Ahmed Goolam Mahomed Randeree, Ali Raza Siddiqui, Shabir Ahmed Randeree, Yavar Moini, Zaid Makkawi and Hasan A. Bilgrami, also the Chief Executive Officer of the bank.

BankIslami's Shariah Advisory Board consists of prominent Shariah Scholars. Justice (Retd) Muhammad Taqi Usmani is the Chairman of the Shariah Board. Mr. Taqi Usmani is a world renowned Islamic Scholar of and has held a number of positions in the boards of prestigious Islamic institutions. Mr. Taqi Usmani got his "Takhassus" degree in Islamic education, equivalent to Ph. D. from Jamia Darululoom Karachi in 1961. He also holds a Master's degree from Punjab University in Arabic Literature and a LLB degree from Karachi University. Mr. Taqi Usmani served as a Judge on the Shariat Appellate Bench of the Supreme Court of Pakistan from 1982 to 2002 and as a Judge of the Federal Shariat Court of Pakistan from 1980 to 1982. Moreover, he has written a number of articles on Islamic Banking and Finance in numerous journals and magazines.

Professor Dr Fazulur Rahman is a member of Shariah Supervisory Board of the Bank. He is a renowned scholar and has over 30 years of teaching experience in various countries including Malaysia and Saudi Arabia. Presently, he is the Director of Islamic Guidance Trust and Islamic Institute of Media Research in Karachi. He has contributed several articles on interest, Muslim Personal Law, human rights etc. Moreover one of his writings, a study of commercial interest from the point of view of Fiqah and History, is extensively quoted by Federal Shariah Court in its Judgment in 1991 and again in 1999.

Mufti Irshad Ahmad Aijaz is the full time Shariah Advisor to the Bank. Mufti Irshad graduated from Dar-ul-Uloom Karachi in Fiqah and Takhsees and subsequently passed the Shahadat-ul-Ilmia examination. Mufti Irshad is well versed in Islamic economics. He has also worked in Iqra University as Lecturer in Islamic Studies and is also enrolled in the MBA program of Iqra University.