Bank of Punjab engages KPMG to explore feasibility of Islamic
Banking transformation
The Bank of Punjab (BOP) has taken a significant step toward
potentially transitioning its conventional banking operations to Islamic
banking by appointing M/s. KPMG Taseer Hadi & Co. as its consultant. This
strategic move aims to conduct an exhaustive analysis of the feasibility and
conversion process involved in transforming BOP's operations into Islamic
banking.
The official ceremony marking this collaboration occurred at the
BOP Head Office, with senior management from both BOP and KPMG in attendance. The
overarching goal of this comprehensive study is to comprehensively evaluate the
potential ramifications, challenges, and operational complexities that could
arise from transitioning to Islamic banking. While this initial phase holds
considerable importance, it forms part of a broader process that will
ultimately define the trajectory of BOP's banking operations.
BOP holds a prominent position in the country's financial
landscape, boasting impressive PACRA Ratings of AA+ for the Long Term and A1+
for the Short Term. The bank's network encompasses 780 branches and
sub-branches across Pakistan, comprising 640 Conventional branches (82%) and
140 Islamic Banking branches (18%).
Islamic Banking has gained increasing traction among faith-based
clientele due to its cost-effectiveness and significant potential for market
expansion. It has emerged as a strategic growth avenue for the bank, aligning
with the evolving financial landscape, especially following the recent decision
by the Federal Shariat Court advocating for a transition from an interest-based
system to an Islamic financial framework. In light of this, BOP is exploring
the possibility of transforming its Conventional Bank into a full-fledged
Islamic Bank.
Guided by the vision of its Board of Directors (BOD), The Bank
of Punjab has dedicated the past three years to enhancing the capabilities of
its Islamic Banking Group (Taqwa). This journey involved introducing
state-of-the-art Shariah-compliant products and services. The bank has
delivered exceptional customer experiences through dedicated Islamic banking
branches and over 50 integrated Islamic banking windows (IBWs) within its
conventional branches nationwide.
With resolute determination, The Bank of Punjab is committed to
extending the reach of Islamic banking across Pakistan in the forthcoming
years. Special attention will be placed on regions like Khyber Pakhtunkhwa,
merged areas, Gilgit-Baltistan, Sindh, and Balochistan. This expansion strategy
involves establishing full-fledged Islamic banking branches and integrating
Islamic banking windows (IBWs) to cater to a diverse range of customers.
Source: Daily Pakistan