Summit Bank of Pakistan has informed the State Bank of Pakistan that it is looking to acquire a majority stake in Burj Bank. According to a securities filing, the bank has sought permission to conduct due diligence of Burj Bank. Although Summit Bank currently operates as a medium-sized conventional bank with 192 branches, it has already announced its intention to convert into a wholly Islamic bank. Acquiring a full-fledged, albeit small, Islamic bank appears to be in line with Summit Bank’s long-term objectives. Burj Bank is a relatively small Islamic bank with 75 branches across Pakistan. It has been looking for a possible investor, as it struggles to meet regulatory requirements for capital adequacy. Bahrain-based Bank Al-Khair is its largest shareholder with 37.9% stakes. It is followed by Jeddah-based Islamic Corporation for the Development of the Private Sector with a shareholding of 33.9%. Burj Bank is not listed on the stock market.
