Five more Alfalah Islamic banking branches soon

Chief Executive, Bank Alfalah Limited, Mohammad Saleem Akhtar has said that the bank will soon open five more branches for Islamic banking. Addressing members of Karachi Chamber of Commerce and Industry (KCCI) on Thursday, he said that at present bank was operating 15 Islamic-banking branches in the country besides 150 conventional-banking branches
Saleem Akhtar said that the bank intends to increase Islamic banking branches to 25 by the end of 2006.
He said that that the bank started operation in 1997, after Habib Credit and Exchange Limited, which had earlier acquired the operations and assets of three branches of the former BCCI was privatised through the sale of 70 percent of its share to Abu Dhabi-based consortium.
Now the bank is at number fifth in the country, Saleem Akhtar said, adding: "We intend to make it number one bank of Pakistan in next few years."
He said that initially the bank share in total import export was only 0.80 percent, but now it has reached 12 percent.
Regarding small deposits, the Alfalah Bank CEO said cost of maintaining accounts is very high and added that it is up to the government to come up with some deposit schemes for small depositors.
The government should offer high rate of return schemes for senior citizens and poor people, he emphasised.
Saleem Akhtar, however, pointed out that State Bank has recently directed the commercial banks to open basic accounts for small depositors with certain conditions like withdrawal facility of twice in a month.
He noted that in last few years small household savings have recorded a drop of Rs 112 billion in the country and added that Alfalah Bank is ready to finance all feasible projects.
In last few years the bank has made largest financing in the textile sector, he said.
Regarding SME sector financing, Saleem Akhtar said that under a project Germans are imparting training to young people in SME sector financing and added that these trained persons will be posted in different branches of the bank for catering SME needs.
Replying to a question, he said that the bank was charging competitive mark up on car financing.
Welcoming the guests, Karachi Chamber of Commerce and Industry President Haroon Farooki said that there was no doubt that Sate Bank has been able to create over the years a good banking system in the country.
He said despite all mobilisation, difference between lending and deposit rates is quite large and for providing benefits to the deposit holders and encouraging savings it needs to be lessened.