State bank of Pakistan (SBP) claims that Islamic Banking is progressing in all divisions of their operations across Pakistan.
As per SBP, the chain of Islamic banking institutions (IBIs) has expanded. There are at present 21 IBIs, 5 exclusive Islamic banks and sixteen conventional banks having separate Islamic banking branches. The branch network of IBI has grown up to two thousand three hundred and twenty branches. According to SBP, fifty percent of these branches are in five cities which are Lahore, Faisalabad, Rawalpindi, Islamabad, and Karachi. The count of Islamic banking windows operated by the conventional banks is at one thousand two hundred and fifty-five.
Conventional banks have been beaten up by the Islamic banks because of high and faster-depositing pace, and as people are more inclined towards handling their cash and businesses in an Islamic mode. In the review of Islamic banking for the financial span 2016-17 by SBP says that the deposits in IBIs have risen by rupees one thousand one hundred and fifty-six billion or by ten percent to rupees 11,720 billion.
The general rise of banking industry deposits was 6.5 % during the same period but the deposits by IBIs rose more than double to 13.7 %.
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SBP says that this growth would help Islamic banks to make their asset base much better. It also said that the growth reported by the Shariah-compliant branches of the conventional banks showed much more aggressive growth than the full-fledged exclusive Islamic banks.
For the fiscal year 2016-17 the share of the full-fledged Islamic bank and Islamic banking branches of conventional banks to the Shariah-compliant banking industry was fifty-nine percent and forty-one percent respectively, at the end of the month of June.
It also confirmed that Bank Alfalah (Dubai based) was given the award of the best operating bank in Pakistan for the year 2017. The award was presented by SBP to Alfalah for showing the best management of resources including clients, financials, branches, and employees and for providing the most major contribution to the national development.