Karachi October 4 2022: The outreach of Islamic Banking Institutions (IBI) continues to grow in Pakistan and their branch network crossed 4,000 mark in the fourth quarter of fiscal year 2021-22 with the addition of 103 new branches across the country.
Assets of Islamic Banking Industry (IBI) witnessed an all-time high quarterly increase of Rs 836 billion during the quarter April to June, 2022 and crossed six-trillion mark to reach Rs 6,781 billion by end June, 2022.
The growth in assets emanated from net investments and financing, which exhibited a quarterly rise of Rs 470 billion and Rs 269 billion, respectively. On the funding side, deposits of IBI also posted a largest quarterly leap of Rs 610 billion during the period under review and were registered at Rs 4,856 billion by end June, 2022. On a year on year (YoY) basis, assets and deposits of IBI were up by 41.4 percent (Rs 1,984 billion) and 27.1 percent (Rs 1,034 billion), respectively by end June, 2022.
Market share of Islamic banking assets and deposits in the overall banking industry stood at 19.5 percent and 20.5 percent, respectively by end June, 2022. While, the market share of financing of IBI in advances of overall banking industry increased to 27.2 percent by end June, 2022 as against 24 percent as of June, 2021.
According to State Bank of Pakistan’s Islamic Banking Bulletin for the period April- June 2022, the number of Islamic banking windows reached 1,463 with the opening of 45 more dedicated counters at conventional branches by end June this year.
However, the IBI composition remained the same with 22 Islamic Banking Institutions (IBIs), including 5 full-fledged Islamic Banks (IBs) and 17 Conventional Banks having Islamic Banking Branches (IBBs).
During the period under review, the branch network of IBI was recorded at 4,086 spread across 129 districts of the country.
The data showed that full-fledged Islamic Banks had 1,718 branches while conventional banks had 2,208 standalone Islamic Banking branches besides 1,463 Islamic banking windows at conventional branches while both the Islamic and conventional banks had 160 sub-branches as well.
The data further revealed that 2,025 Islamic Banking branches and widows were in province of Punjab, 1,107 in Sindh, 505 in Khyber Pakhtunkhwa, 204 in Islamabad, 155 in Balochistan, 58 in Azad Kashmir and 32 in Gilgit Baltistan.
