Islamic Banking Sector has been growing its operations across the country as it explored 111 districts of Pakistan over setting up 2,589 branches’ network. The network of Islamic banking Sector contained of 21 Islamic banking institutes; five full-fledged Islamic banks and 16 conventional banks having separate Islamic banking branches by end 31st March 2018.
According to the State Bank of Pakistan (SBP), branches of full-fledged Islamic banking stood at 1,306 in different districts. The number of Islamic banking windows operated by conventional banks having separate Islamic banking branches was recorded at 1,283.
The jump of growth of Islamic banking industry has been pretty inspiring as it added 272 branches in mere one year despite many challenges with availability of spaces, utility services, and human resource etc…
On the other hand regular clients are not the challenge but they incorporated Islamic Banking Sector at large with the rise in the awareness of Sharia-compliant financing and its benefits. The number of customers and utility of Islamic banking industry also observed constant growth at locations where branches of several Islamic banks are available.
The resources of Islamic Banking Sector touched Rs. 2.334 trillion by end of March 2018. It is observed that a growth of 2.8% (Rs. 62 billion) from previous quarter. Deposits of Islamic banking Sector grew to Rs. 1.916 trillion with an increase of 1.7% (Rs. 31 billion) throughout the period under review. The financing and linked assets (net) of Islamic banking industry sustained its growing style and registered a quarterly growth of 6.4% (Rs. 77 billion) throughout the review quarter to reach Rs. 1.284 trillion by end March 2018.
Overall, profit before tax of Islamic banking sector was recorded at Rs. 7 billion by end March, 2018 compared to Rs. 5 billion in the same quarter last year.