In a strategic shift, Samba Bank Limited has received in-principle approval from its board to convert from a conventional bank to a fully Islamic financial institution.
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The bank announced this decision in a regulatory filing to the Pakistan Stock Exchange (PSX), stating that it will now submit a tentative transition plan to the State Bank of Pakistan (SBP) for approval. This move aligns with the broader industry trend of financial institutions in Pakistan adopting Shariah-compliant banking models.
Islamic banking in Pakistan has been expanding rapidly. According to SBP data, the assets of the Islamic banking sector rose by Rs192 billion in the quarter ending September 2024, reaching Rs9,881 billion. Deposits also increased by Rs233 billion in the same period, climbing to Rs7,596 billion. Year-on-year, the industry recorded a 17.4% growth in assets and a 23.3% rise in deposits, with its share in the overall banking sector reaching 19% in total assets and 23.2% in deposits.
Samba Bank’s transition follows a similar move by the Bank of Khyber, which recently initiated its own conversion to Islamic banking. With growing consumer demand for Shariah-compliant financial services, the sector is expected to continue its upward trajectory, further integrating Islamic finance into Pakistan’s mainstream banking landscape.
