September 21, 2023
Banking Pakistan

Summit Bank Will Become An Islamic Bank In 3 Years

The administration of Summit Bank has scheduled to remake the procedure of the bank from interest-based to Shariah-based banking mode in the following three years.

In accord with the agenda, intellectuals of the Shariah Board have newly examined the surveillance’s judgment and provided its green indication for the modification of the bank from a traditional to a full-fledged Islamic bank.

It is appropriate to say that the board of managers of the bank before had the same modification agenda in 2016 which was rescinded in the successive months as the administration and the board inclined toward a chance to seek another plan, that is, the bank’s merger with Sindh Bank.

Accordingly, the two banks began again to work on shutting the consolidation deal in agreement with the mandatory procedure and permission of the applicable sovereignty successfully but the amalgamation strategy of the two banks was opposed to in the Supreme Court of Pakistan (SCP), which canceled the deal eventually in 2019.

In the meantime, various cases were filed against the Chairman and CEO of the bank for their alleged involvement in financial embezzlement.

In 2021, the bank once again came into the limelight after Dubai-based investor Nasser Abdulla Hussain Lootah announced the acquisition of the majority shareholding (51 percent) of the bank at 2.51 per share. Media tycoon, Salman Iqbal also joined him as part of the consortium.

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