A Bank in Pakistan is Splurging on 200 New Branches
- Faysal Bank expects growth in Islamic deposits after switch
- About three quarters of nation does not have a bank account
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As banks around the world shut branches and lay off tellers, Pakistan’s Faysal Bank is headed in the opposite direction in the hope that a drive into Islamic financial services will boost deposits and shareholder returns.
The Karachi-based lender plans to open 200 new branches offering Shariah-compliant deposit accounts in the next two years, and convert 40 regular branches to Islamic outlets this year, according to Chief Executive Officer Yousaf Hussain. By the end of the program more than three quarters of the network will be Islamic, one of the most effective ways to attract new deposits in Pakistan, Hussain said in a recent interview.