Pakistan's Summit Bank eyes Burj Bank for Islamic banking entry

Summit Bank (Oregon)

03/05/2016 08:04

May 3 (Reuters) - Summit Bank  SBKO.PK  has received 
approval from Pakistan's central bank to conduct due diligence 
on Burj Bank, it said in a stock exchange filing, in the latest 
bid for the unlisted lender, which is seeking to boost capital 
through a stake sale. 
    The acquisition of a majority shareholding in Burj Bank 
would fit the long term strategy of Summit Bank, which is 
planning to convert its operations to conform to Islamic 
principles that include bans on interest and gambling. 
    Burj Bank, one of the country's five full-fledged Islamic 
banks, held 4.4 billion rupees ($42 million) in paid up capital 
as of December, compared with the regulatory minimum of 10 
billion rupees. 
    Last month, Burj Bank said it had shortlisted three 
financial institutions to conduct due diligence on a 
non-exclusive basis. It also received an extension from the 
central bank to meet the mimimum capital requirement until June 
30. 
    The Islamic lender has previously attracted interest from 
state-owned National Bank of Pakistan  NBPK.KA  and MCB Bank Ltd 
 MCB.KA , both conducting their own due diligence in 2014, but a 
sale has not materialised. 
    The largest shareholders of Burj Bank are Bahrain's Bank 
Alkhair with a 37.9 percent stake and the Jeddah-based Islamic 
Corporation for the Development of the Private Sector, which 
holds a 33.9 percent stake. 
($1 = 104.7500 Pakistani rupees) 
 
 (Reporting by Bernardo Vizcaino; Editing by Biju Dwarakanath) 
 ((Bernardo.Vizcaino@thomsonreuters.com; Telf: +61293218168; 
Reuters Messaging: 
bernardo.vizcaino.thomsonreuters.com@reuters.net)) 
 
Keywords: PAKISTAN BANKS/M&A