The Bank of Khyber (BoK) is going to formally convert its Bannu Branch into Islamic banking branch in Bannu on Friday (November 26). Chief Minister NWFP Akram Khan Durrani would be the chief guest on the occasion. The Bank of Khyber, a provincial bank of the NWFP government is a pioneer public sector bank which started Islamic banking in the country last year. Mir Zafarullah Khan Jamali then prime minister launched the Islamic banking during last week of November 2003.
The Bannu branch of the bank has already started Islamic banking from October 1, 2004. However, the Chief Minister would make the formal inauguration on Friday.
The bank has also got license for the conversion of Nowshera branch into Islamic one. According to the 9-month financial statement ended on September 30, 2004 the Islamic bank branch had earned a handsome profit and particularly, Ijara financing of the Islamic mode of banking, which has increased to Rs 15.4 million. Similarly, Islamic deposits have also increased from Rs 250 million to Rs 290 million.
The profit of the Islamic banking which was Rs 1.2 million in December 2003 has reached to Rs 3.7 million in September, showing a remarkable increase by 208 per cent.