Amana Bank

Islamic finance legal framework coming

The goverment is setting up regulatory frameworks for the Islamic financing, that is growing fast. In Tanzania at the time, it is only one bank that provides sharia-compliant financial products and services but other three conventional banks habe opened a window for Islamic banking.

Amana Bank gets regulatory nod to bring in fresh capital with exception to single shareholder limit

As an exception to the banking sector single shareholder limit, the Central Bank has allowed one of the shareholders of Sri Lanka’s Amana Bank to own up to 30% of the issued shares of the bank. Currently IDB has 120.4 million shares or 9.62% stake in Amana Bank, Sri Lanka’s first non-interest based Islamic bank. In recent times, the Central Bank had allowed several banks to have their key shareholders own even beyond 70% such as in the case of Union Bank and Cargills Bank. But they must gradually bring those stakes down to the regulatory limits over time. Amana Bank is required to meet its minimum regulatory core capital of Rs.7.5 billion by June 30, 2017. Given the performance of the share price and the non-receipt of dividends, shareholders may not show appetite to contribute for any fresh capital calls by the bank.

Islamic Development Bank to buy more stock in #Sri Lanka's Amana

The Islamic Development Bank will invest more cash in Sri Lanka's Amana Bank through an investment vehicle. Approval has been recently given for the investment group to go up to 29.9% of the stock by subscribing to a cash call. The investment vehicle IB Growth Fund (Labuan) will buy stock in in an upcoming rights issue. The investment deal was inked on May 18 in Jeddah, Saudi Arabia.

Sri Lanka Islamic bank June quarter net profit Rs47.5mn

Amãna Bank, a Sri Lankan bank operating on the non-interest based Islamic banking model, made a net profit of 47.5 million rupees in the June 2015 quarter against a loss of 85.6 million rupees a year ago. Financing income rose 15 percent to 676 million rupees while expenses rose 7.3 percent to 330 million rupees resulting in net financing income rising 24 percent to 346 million rupees during the period. Earnings per share of Amãna Bank were four cents in the quarter. Net fee and commission income rose 16 percent to 38 million rupees. Amãna Bank’s total assets were up 15 percent to 40 billion rupees as at 30 June 2015 from 31 December 2014 while total deposits rose 13 percent to 33 billion rupees.

Islamic banking assets to reach $ 1.5 billion

According to the CEO of Amana Bank, Faizal Salieh, it is expected for the current $ 250 million of banking assets to rise to $ 1.5 billion in the coming years. About 8% of the country's population of 21.5 million people are Muslims. The strong demand for Islamic financial products comes not only from the Muslim population but from non-Muslims as well. Still at a preliminary stage, the local Islamic finance is nevertheless developing. The expected rapid growth of the local Islamic finance is attributed to the increased awareness of faith based concepts and the internalization of the financial markets.

Islamic finance continues to evolve in East Africa

The latest development in Tanzania and East Africa’s emerging Islamic finance industry is the opening of Tanzania’s first Islamic bank, Amana Bank, last month. The headquarters of the bank are in the Kariakoo trade centre in the city, the hub of commerce in Tanzania, where an important portion of merchants are Muslims.
The area is so meaningful that another bank, the People’s Bank of Zanzibar (PBZ) has launched this month a branch specializing on Islamic banking.
President Ali Mohammed Shein encouraged the Bank of Tanzania to create a conducive atmosphere for positive service delivery in Islamic finance.

Tanzania’s first Islamic bank takes off

Tanzania launched its first Islamic bank, Amana Bank, in the capital, Dar es Salaam. Amana Bank’s chairman, Haroon Pirmohamed, stated that the bank was launched to service the request for an ethical and interest-free alternative to conventional banking for Tanzania’s Muslims and anyone else who wished to bank in an ethical and transparent way.
Amana Bank will offer personal saving accounts, term deposit accounts, current accounts and, for religious institutions, Ihsan accounts.

Amãna Bank, Sri Lanka’s first Islamic or Sharia compliant bank, opens for business

Amãna Bank is Sri Lanka's first licensed commercial bank to operate fully under the principles of Islamic banking. The launch was simple, having Central Bank Governor Ajith Nivard Cabraal as the Chief Guest.
Amãna Bank will be offering a range of financial products and services like: Current Accounts, Savings Accounts, Children’s Savings Account, Term Investment Accounts, Home Financing, SME Banking, Corporate Banking, Trade Services and Treasury Services.

Amana Bank receives commercial banking license

Amana Bank confirmed that the bank has been conferred a commercial banking license by the Minister of Finance, President Mahinda Rajapaksa. Amana Bank will appropriately acquire the assets and liabilities of Amana Investments Limited through an asset purchase agreement.

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