ALHAMDULILLAH!

The Bank of Khyber has started Islamic Banking by converting all assets and liabilities of Hayatabad Branch Peshawar w.e.f 27th Ramadan (22nd November 2003).

The Branch is now working according to the guideline of Shariah Supervisory Board.

Aims and target of the IBD is to implement the decision of the Board of Director to gradually convert the whole Bank into an Islamic Bank within three years under the supervision of the Shariah Supervisory Board as per Rules and Regulations of the State Bank of Pakistan. To achieve the target, Islamic Banking Division has devised an action plan for expansion and conversion of the whole bank by December 2006 and to develop the business in various areas. According to the plan three new braches will be opened and six branches of the Bank will be converted into IBBs in 2004. Islamic Banking Division plans to convert 12 more branches in 2005 and the remaining in 2006.

Apart from branch expansion, Islamic Banking Division is planning to start accepting deposits from all branches of the Bank of Khyber as per standing instructions of the State Bank of Pakistan. Disbursement of funds under Islamic Financing Modes through other branches of the Bank will also be started very soon. Development of Business through Internet is also under active consideration. This will cover the dissipation of information on the Internet, collection of information, applications (mainly for consumer products Car, House, and consumer goods), and disposal of application.

Presently Islamic Banking Branch is offering Ijara, Murabaha. Diminishing Musharakha and Guarantees as Islamic Finance Services and investing the idle funds through Treasury in the Capital Market as well as placing funds with other Islamic Banks.

While Consumer Financing Schemes under Islamic modes of financing, Housing Finance Scheme, House Construction Scheme are in launching phase. Future products under planning are Export Finance Scheme, Foreign Exchange Accounts, Musharakah business etc.