Bank Alfalah Islamic Banking Business net assets surge by 22.23pct

By Riffat Mughal
KARACHI: Bank Alfalah Limited Pakistan (BAFL) Islamic banking business net assets surged by 22.23 percent during nine months of the calendar year 2011 (9MCY11). The net assets of the bank have reached Rs 5,888.209 million as on September 30, 2011 as against to Rs 4,817.195 million as on December 31, 2011.

Bank’s advances declined during the period by 10.44 percent to Rs 23,247.294 million. Bank Alfalah Islamic banking business net investments increased by outstanding 44.97 percent to Rs 31,938.394 million and fixed assets climbed up by 2.38 percent to Rs 1,677.560 million during the period under review. Balances with and due from Financial Institutions (FIs) also went up by 19.87 percent to Rs 4,631.542 million. With the decline in demand for finance from sound and blue chip companies amid slow economic activity, the bank used the funds more towards investments.

On liabilities side, total deposits and other accounts increased by 14.80 percent to Rs 63,591.669 million as on September 30, 2011 against Rs 55,393.390 million reported on December 31, 2011.

Banks advances to deposits ratio declined to 36.56 percent from 46.86 percent which indicates that bank needs to increase its advances so as to make full use of capital and deposit base. Increase in nonperforming loans and slack in economic activity has made a lot of banks to take caution and be selective in providing finance to industries.

Bank Alfalah Islamic Banking Division (BAL-IBD) started operations in 2003 and is operating 81 Islamic banking branches as at September 30, 2011 in Pakistan.

Bank Alfalah – Islamic Banking Division (BAL-IBD) – presently a division of Bank Alfalah Limited – is gearing up to become a separate, full-fledged Islamic Banking entity. BAL-IBD offers to its customers a broad range of Islamic products under personal, consumer and corporate banking modes.

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