Alkhair sells Pakistan bank stake to Al Baraka

Bahrain-based Bank Alkhair says it has gained approval to sell its stake in Pakistan’s Burj Bank to the Pakistani subsidiary of Al Baraka Banking, also of Bahrain.

The approval from Pakistan’s central bank allows the creation of a merged company with total assets of more than $1.1 billion.

In September, Shafqaat Ahmed, chief executive of Al Baraka Bank Pakistan, said, “The size of the amalgamated entity would increase its risk absorption capacity thus enhancing its capacity to manage the potential risks arising out of an adverse and uncertain operating environment.”

In 2006, Bank Alkhair acquired a 22% stake in Burj Bank, a sharia-compliant commercial lender formerly known as Dawood Islamic Bank. The Bahraini firm increased its stake to 38% in 2009.

Al Baraka Banking has been active in Pakistan for 25 years.

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