Growth of Islamic Financing, assets by Sept-2018.

Byline: S. Kamal Hayder Kazmi

The State Bank of Pakistan (SBP) stated that the network of Islamic banking industry comprised of 21 Islamic banking institutions such as; 5 full-fledged Islamic banks (IBs) and 16 conventional banks having standalone Islamic banking branches (IBBs) by end September, 2018. SBP also recorded that the branch network of Islamic banking industry was posted at 2,709 (spread across 111 districts) by close September, 2018. Province/Region wise breakup of branches explained that Punjab and Sindh jointly accounted for 77.2 percent share in overall Islamic banking industry's branch network.

The number of Islamic banking windows operated through conventional banks having standalone Islamic banking branches reached at 1,284.

Furthermore, statistics also showed that assets of Islamic banking industry were posted at Rs. 2,458 billion by end September, 2018 as against to Rs. 2,482 billion in the last quarter. The statement also mentioned that analysis of assets composition explains that financing (net) posted a growth of 3.2 percent (Rs. 42 billion) during the period under review. On the other hand, investments (net) of Islamic banking industry fell by 3.7 percent (Rs. 20 billion). Market share of Islamic banking industry's assets in overall banking industry's assets rose to 13.6 percent by end September, 2018 as against to 12.9 percent in the last quarter. The share of net financing and investments in total assets (net) of Islamic banking industry was posted at 55.6 percent and 21.8 percent, respectively by end September, 2018.

Analysis of assets by breakup among full-fledged Islamic banks and Islamic banking branches of conventional banks explains that assets of full-fledged Islamic banks rose by 2 percent (Rs. 29 billion) and were recorded at Rs. 1,481 billion by end September, 2018. In contrast, assets of Islamic banking branches of conventional banks declined by 5.1 percent (Rs. 53 billion) and reached at Rs. 977 billion by end September, 2018. In terms of share, full-fledged Islamic banks and Islamic banking branches of conventional banks accounted for 60.2 percent and 39.8 percent share, respectively in overall assets of Islamic banking industry.

SBP also mentioned in a statement that Investments (net) of Islamic banking industry were posted at Rs. 535 billion by end September, 2018 as against to Rs. 555 billion in the last quarter. During the period under review, investments (net) of full-fledged Islamic banks rose by...