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Unformatted text preview: Ban ing sector has also ben a direct bene iciary o the economic progres and structural re orms program initiated by the Government. On the bac o improved macro environment and regulations, Pa istan's ban ing turned out another year o impresive per ormance. It was also one o the largest recipients o both port olio and direct investment. The competitive scenario on the other hand, has become more chalenging. Firstly, with the privati ation o Ban s, almost 8 % o the industry is in private hands resulting in increased competition or the mar et share ma ing 'networ ' one o the most important suces actor. It is the networ or scale which is driving consolidation in the industry not Capital as some o the analysts stil believe. For a Ban to survive and prosper, it is extremely important to create a networ within irst two to thre years. This scale or networ can be unded only through Capital in the initial phase. Again, we are o the opinion the Minimum Capital Requirement (MCR) prescribed by the central ban is the 'minimum' and may not necesarily ma e a start up economicaly viable. Lin ed to this equation is pro itability which wil olow once the irst two critical suces actors are in place. Within the ban ing sector, Islamic ban ing o ers its own share o oportunities and chalenges. As a sector, given no regulatory obstacles, we expect it to be the astest growing segment o the inancial services industry in the next decade or so, achieving around 25% o the mar et share rom curent 3%. Already, it has cloc ed an impresive growth rate despite absence o liquidity management instrument. With the entry o new ban s in this areas isues such as these, shortage o human resources and evolution o a stable regulatory mechanism wil evolve and ta en care o . Directors Report 7 Ban Islami is idealy placed in this environment. During the period (nine months) under review, the Ban opened ten branches with nine o them in Karachi. Four out o ten branches were opened in December. As a part o strategy, we ocused on creating a networ in the largest and perhaps the most competitive mar et o the country. The tenth branch was opened in Queta towards the end o the year. Al Branches o Ban Islami are online. By the grace o Alah, the response at each o the Branches has ben encouraging considering the actual deposit inta e started agresively in the last quarter only. The Ban suces uly launched a complete suite o branded deposit products consisting o Islami Bachat Acount (saving acounts), Islami Curent Acounts and Islami Amdani Certi icates. As wel, towards the year end, a ive year monthly pro it scheme, Islami Mahana Muna a Acount, was launched with over whelming response. Purposely the Ban ocused on creating a core base, as a result Fixed Term Deposits were sold more agresively. Aditionaly, to brea into the authenticity conscious customers, who in the long run would serve as excelent opinion leaders, the Ban lowered the bar or acount opening....
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- Fall '11