The Principal Bank for Development and Agricultural Credit targets to launch new sukuk instrument before the end of 2012, sources said. Such move came as part of the bank’s strategy to increase the volume of Islamic deposits by EGP 200 million to reach EGP one billion by the end of 2012.
The bank also plans to implement new sharia-compliant financing programs in order to tap into the increasing demand for Islamic finance products and invest the increasing volume of Islamic deposits held by the bank. The bank’s value of Islamic finances (Musharaka and Murabaha) registered EGP 507 million and the value of Islamic deposits stood at EGP 800 million at the end of last August.
Sources added that the bank aims at launching six new branches by the beginning of 2013 in Beheira, Qalyoubia, Beni Suef and Fayoum, while it received approval from the Central Bank of Egypt (CBE) to launch 14 new branches.
The bank has set a strategy to restructure its Islamic banking branches it had since 1980s. The bank has 11 Islamic branches and targets to increase this number to 25 branches in the upcoming period.
