(AIBP), the branch operations of Al Baraka Islamic Bank (AIB) Bahrain, a subsidiary of Al Baraka Banking Group (ABG) Bahrain,

and Emirates Global Islamic Bank (Pakistan) have successfully merged their operations under the name of Al Baraka Bank (Pakistan) Limited (ABPL). The Head office will be located in Karachi. ABPL will have assets in excess of Rs. 50 billion, a workforce of 1400 professionals and a network of 89 branches in 36 cities and towns across the country. ABPL will commence operations from October 29, 2010 and consequently, all branches of AIBP and Emirates Global Islamic Bank will be re-branded as ABPL. The merger, a first in the Islamic Banking sector in Pakistan, positions ABPL to play an important role in further growing an industry which has witnessed tremendous growth over the last 5 years. Substantial capital resources, combined with a nationwide branch network will enable ABPL to provide a full range of Islamic banking services, supported by the experience and expertise of the parent company, ABG. The operations of AIBP dates back to 1991, and at the time of merging its operations it had 29 branches across Pakistan, an asset base of Rs. 31billion and profit before tax of Rs.168million. Emirates Global Islamic Bank began its operations in Pakistan in 2007 with principal shareholders being Emirates Investment Group (through Emirates Financial Holding Company) and Al Rajhi Investment Group (through Mal Al Khaleej Investment Company). At the time of merger, EGIB had a 60 branch network located in 31 cities and towns throughout the country. AIB is a subsidiary banking unit of ABG, a Bahrain Joint Stock Company listed on Bahrain and NASDAQ Dubai stock exchanges. It is a leading international Islamic bank with Standard & Poors long and short-term credit ratings of BBB- and A-3 respectively and offers retail, corporate and investment banking, and treasury services strictly in accordance with the principles of Islamic Shariah. The authorized capital of ABG is US$ 1.5 billion, asset base of US$ 15 billion and total equity is US$ 1.7 billion and is present in Jordan, Bahrain, Algeria, Sudan, South Africa, Lebanon, Tunisia, Egypt, Turkey, and Syria, with a representative office in Indonesia.

The total number of branches of the Al Baraka Banking Group, including Pakistan, will exceed 360 branches.

Al Baraka unit, Emirates Global in Pakistan merger

Manama: Sun, 25 Apr 2010

Bahrain-based Islamic lender Al Baraka said on Sunday it would merge the Pakistani operations of one of its units with Emirates Global Islamic Bank, creating a bank with assets of $582 million. Al Baraka said in a statement the merger of Al Baraka Islamic Bank's Pakistani operations with Emirates Global Islamic Bank was part of its strategy to expand in Pakistan, but did not disclose any financial details of the merger transaction. It said the new entity would be named Al Baraka Bank Pakistan. Emirates Global Islamic bank began its operations in Pakistan in 2007. Its shareholders include the Emirates Investment Group (EIG) and Al Rajhi Investment Group. EIG said last year it planned to expand in Pakistan by more than doubling its retail network. Dubai Islamic Bank, another Gulf lender with operations in Pakistan, has also said it plans to expand in the country this year as Gulf lenders seek to tap opportunities in the country's emerging Islamic finance industry.-Reuters

introduction
Al Baraka Bank (Pakistan) Limited: With a vision for unrivalled services, dedication to Islamic principles of banking, increasing network points, and innovative product line, Al Baraka Bank (Pakistan) Limited is committed to the Banking Industry in Pakistan. Al Baraka Bank (Pakistan) Limited (ABPL) is the result of a merger between Al Baraka Islamic Bank Pakistan (AIBP), the branch operations of Al Baraka Islamic Bank (AIB) Bahrain and Emirates Global Islamic Bank (Pakistan). The merged entity commenced operations on November 1st 2010. The merger, a first in the Islamic Banking sector in Pakistan, positions ABPL to play an last 5 years. With assets in excess of Rs. 50 billion; a workforce of 1400 professionals and a network of 89 branches in 36 cities and towns across Pakistan, Al Baraka Bank (Pakistan) Limited is devoted in providing customers with a range of Shariah compliant products to suit their banking needs. Faced with growing challenges in this rapidly developing market, ABPL strongly relies on its ability to be an effective and efficient market player through renewed focus on superior customer service, development of Islamic alternatives to conventional financing facilities, and strict adherence to Shariah rulings and principles. Al Baraka Bank (Pakistan) Limited, offers a wide array of Islamic financing products such as Murabaha, Ijarah, Musharakah and Islamic Export Refinance etc., catering to a diverse crosssection of the economy including the Corporate, SME and Consumer sectors. Moreover, various Shariah compliant deposit schemes are also available for customers to invest their funds in, along with a variety of other ancillary services such as online branch banking, ATM/debit card, SMS banking, electronic statement of accounts, safe deposit lockers and utility bill payments. The Pakistan Credit Rating Agency (PACRA) has assigned long-term and short-term rating

important role in further growing an industry which has witnessed tremendous growth over the

entity A, and A2 respectively. These ratings denote a lower expectation of credit risk emanating from a strong capacity for timely payments of financial commitments. ABPL is a subsidiary of Al Baraka Banking Group (ABG), a Bahrain Joint Stock Company, listed on Bahrain and NASDAQ Dubai stock exchanges. It is a leading International Islamic bank with Standard & Poors long and short-term credit ratings of BBB- and A-3 respectively and offers principles of Islamic Shariah. The authorized capital of ABG is US$ 1.5 billion; asset base of US$ 16 billion and total equity of US$ 1.8 billion. The group has Banking units and representative offices in 13 countries spanning from Europe to MENA and Asia, with a network exceeding 400 Branches. It is part of ABPLs commitment, to put the customers values foremost, hence providing them with a banking solution that is in line with their beliefs.

retail, corporate and investment banking, and treasury services strictly in accordance with the

The upcoming merger between Al-Baraka Islamic Bank and the Emirates Global Islamic Bank Limited (EGIBL) has been opposed in the Sindh High Court (SHC) on the grounds that it will hurt rights and interests of investors. State Bank of Pakistan (SBP), EGIBL, Emirates Financial Holding (EFH) and AlBaraka Islamic Bank (AIB) have been made respondents in the petition praying that merger is being planned to bury irregularities and cover up all dubious transactions carried out over the years. The court has also been asked to put the name of CEO of EGIBL on Exit Control List till the conclusion of the issue. According to the details, Faisal Vawda proprietor of a construction company FVG, has pleaded through AsimHafeez Advocate that that EFH, the parent company of EGIBL has lured him to buy shares of EGIBL. EFH had offered sale of 24 million non-listed shares of the EGIBL while the sale price was fixed at Rs.300 million. FVG accepted the offer and paid a sum of Rs.60 million as part payment. The balance payment of Rs.240 million had been adjusted against the property bearing No.24-C, Phase-V, Khayaban-i-Tanzeem, DHA, Karachi

Merger between EGIB, AlBaraka challenged

South Asian News Agency (SANA) June 21, 2010

KARACHI, (SANA): The upcoming merger between Al-Baraka Islamic Bank and the Emirates Global Islamic Bank Limited (EGIBL) has been opposed in the Sindh High Court (SHC) on the grounds that it will hurt rights and interests of investors. State Bank of Pakistan (SBP), EGIBL, Emirates Financial Holding (EFH) and AlBaraka Islamic Bank (AIB) have been made respondents in the petition praying that merger is being planned to bury irregularities and cover up all dubious transactions carried out over the years. The court has also been asked to put the name of CEO of EGIBL on Exit Control List till the conclusion of the issue. According to the details, Faisal Vawda proprietor of a construction company FVG, has pleaded through AsimHafeez Advocate that that EFH, the parent company of EGIBL has lured him to buy shares of EGIBL. EFH had offered sale of 24 million non-listed shares of the EGIBL while the sale price was fixed at Rs.300 million. FVG accepted the offer and paid a sum of Rs.60 million as part payment. The balance payment of Rs.240 million had been adjusted against the property bearing No.24-C, Phase-V, Khayaban-i-Tanzeem, DHA, Karachi. EGIBL failed to transfer shares and created unsupported loans in his name. The plaintiff also made SBP party in the case for violating of banking rules by allowing the EGIBL to merge with AIB, despite opposition from shareholders having voting right in Board of Directors. He also alleged that SBP required monitoring and observing the capital adequacy, asset quality, compliance besides confirming as well as verifying the identity and status of the shareholders. But the regulator failed in safeguarding the interests of the depositors.

Shareholders have also submitted complaint to SBP against the EGIBL management, but the regulator didnt initiate any inquiry. Petitioner has prayed to direct SBP to properly inquire the issues to avoid repetition of financial fiascos like Mehran Bank Scandal and Islamic Investment Bank Limited debacle. It may be mentioned here that SHC is already hearing a case against EGIBL filed by the same petitioner for recovery of shares