Due diligence of Burj Bank has been started by the Al Barak Bank for Pakistan’s banking industry to undergo quite a few changes. It was the State Bank of Pakistan spokesman who affirmed the permission had been received from the bank to Al Barak for the same.
It is noteworthy here that since neither Al Baraka nor Burj Bank are on the stock exchange list hence none of them can publicize the current practice as it takes place for a month from 18th April 206.
A source having direct information about the negotiations revealed that Al Baraka has almost gotten the final deal and there are better chances for it to come out as the owner of all of Burj though both are struggling plentiful to meet the average needs.
Due diligence shall be undertaken by every buyer with a central bank approval to proceed with the financial accounts and their value. Since it is the central bank that has the right to bar the group from purchasing the major stake, it is only that which can bring about the banking system’s conformity.
Burj is a small Islamic bank with just 75 branches across the country while Baraka is the sixth such bank to go forth the due diligence plan. The same had been carried out by Bank of Khyber and Summit Bank while the largest banks of the country MCB and NBP also did the same a while back. However at the end, MCB instead of buying the Burj Bank decided to have its own Islamic banking setup announced.
NBP had failed since they gave a really less quote for the majority stake while a big real estate also performed this plan for Burj’s financials with a decent amount. However it was not successful due to reasons unknown by the regulator.
Burj Bank has had a loss of Rs 260.8 million from Jan to Sept 2015 while that of Rs 379 million during the previous year.