MCB Bank has planned to inject capital of Rs. 4. billion in its wholly-owned subsidiary MCB Islamic Bank Limited following the approval from the State Bank of Pakistan, according to the notification issued to Pakistan Stock Exchange (PSX).
The additional capital from MCB Bank will strengthen the capital requirement of its subsidiary to scale up its operations to tap into the demand for Islamic banking across the country. This could include the expansion of the branch networks, the introduction of new services and products, and investment opportunities in Sukuks.
MCB Islamic Bank was established in 2015 by the MCB Bank as its subsidiary. MCB Bank Limited transferred its entire operation of Islamic banking at a cost of Rs.7.946 billion as a result of demerger to its wholly-owned subsidiary MCB Islamic Bank Limited.
Since its inception, the bank expanded its operations from 35 branches significantly over the period of nearly 6 years. The bank is operating through 180 branches including one sub-branch in Pakistan.
In the first quarter of 2022, the bank recorded a profit of Rs. 127 million which is 132% higher than the profitability of the same period of the last year.
The bank provides financing through Sharia-compliant financing products mainly through Murabaha, Istisna, Salam, Ijarah, Diminishing Musharaka, Running Musharaka and Export Refinance under Islamic Export Refinance Scheme.
The bank is engaged in corporate, commercial, consumer, microfinance, investment and retail banking activities.
Source: Pro Pakistan