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Public Bank sets up Public Islamic Bank

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Points of Essence:

  • Another new shariah financial player has emerged in Kuala Lumpur as Public Islamic Bank was just set up and now already in operation. This outfit is a wholly subsidiary of Public Bank, the fifth largest bank in Malaysia by market capitalization. Ismail Ibrahim has been appointed the CEO of the new bank.

KUALA LUMPUR: Public Bank Bhd has set up Public Islamic Bank Bhd, its wholly-owned subsidiary, to undertake Islamic banking business with effect from Nov 1.

The Islamic banking business of Public Bank, which was conducted via the window concept, would be transferred to Public Islamic Bank.

Public Bank chairman Tan Sri Teh Hong Piow said on Monday that Public Islamic Bank would continue to share its parent bank’s infrastructure, IT platform and branch network including the use of Public Bank’s automated teller machines (ATMs).

“Thus, the Islamic banking customers of the Public Bank Group will enjoy uninterrupted service and continue to perform all their Islamic banking transactions at all 242 Public Bank branches and 26 hire purchase centres in Malaysia,” he said.

Teh said the existing savings passbooks, cheque books and ATM cards will remain valid and customers can continue to use them until further notice.

“Moving forward, the setting up of Public Islamic Bank reflects the group’s strong commitment to further enhance the group’s Islamic banking business in line with the objectives of Bank Negara Malaysia’s Financial Sector Masterplan,” he said.

Teh added Public Islamic Bank would leverage on the Public Bank Group’s proven management team, strong PB brand and large network of branches.

He added Islamic banking products and services will continue to be made available through multiple delivery channels, from over-the-counter services to online access such as telebanking and Internet banking.

Public Bank’s Islamic banking business posted an average annual rate of growth of 25% over the last five years, contributing significantly to Public Bank’s profitability.

As at Sept 30, Islamic banking assets stood at RM 14.6 billion or 7.7% of the group’s total assets.

Islamic financing stood at RM12.4bil or 10.5% of the group’s total loans and advances while customers’ deposits stood at RM11.9bil or 7.6% of the total customers’ deposits.

He also said Ismail Ibrahim was appointed chief executive officer of Public Islamic Bank. He was the general manager of Islamic banking of Public Bank prior to his appointment to head the Islamic banking subsidiary.

Source: biz.thestar.com.my

Note: For more information about Public Islamic Bank, please click here.

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Written by Suapi Shaffaii

November 3, 2008 at 8:24 pm

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