Karachi: BankIslami Pakistan Limited (BIPL), the first Islamic commercial bank in Pakistan, has reinforced its position in the Islamic banking sector following a significant ownership change. In the calendar year 2023, JS Bank Limited increased its stake in BIPL to 75.12%, transforming BIPL into a key component of the JS Group. This transition has facilitated improvements in the bank’s operational and financial performance.

With support from the JS Group, BIPL has enhanced its product offerings, improved operational efficiency, and expanded its market outreach. The bank recently launched a digital mobile app, 'AIK', and plans to transition its core banking system to Temenos (T-24) to meet industry standards.

In calendar year 2024, BIPL expanded its branch network from 440 to 540 branches, primarily in Punjab. This expansion aims to increase customer access in vital economic areas. The bank's deposit base grew by 7% to PKR 559 billion, while net advances increased by 28% to PKR 296 billion, with a decline in the infection ratio to 7.4%.

BIPL's investment portfolio grew to PKR 345 billion due to increased exposure to GoP Ijara Sukuk. Despite a rise in operating expenses by 37%, attributed to branch expansion, the bank maintained a profit after taxation of PKR 11.8 billion. The capital adequacy ratio improved to 24.1%, reflecting enhanced risk absorption capacity.

The bank aims to focus on deposit and trade business growth, risk and compliance enhancements, branch expansion, and strengthening its digital presence. The Pakistan Credit Rating Agency Limited maintained BIPL’s rating, acknowledging the bank's improved risk management and market position.