Agrobank intends to go fully Islamic by 2015

AGROBANK (formerly Bank Pertanian Malaysia Bhd), which currently offers both conventional and Islamic banking services, will go fully Islamic by 2015, said managing director Datuk Ahmad Said.

The bank has been offering Islamic banking products since it was corporatised in 2008.

“They are popular among non-Muslims with the ratio presently 60:40 in favour of Islamic banking. We have actually targeted to go fully Islamic this year, but we felt we have to continue with conventional banking for some more years as we are not that stable.

“So, we are doing it slowly by reducing conventional banking products. It will also be costly if we change abruptly as we have to cancel all previous agreements and sign new ones,” he told reporters in Tanah Merah, Kelantan, on Sunday.

Ahmad was speaking after the opening of the bank’s new building by Deputy Finance Minister Datuk Dr Awang Adek Hussin. Also present was its chief financial officer Kiswah Mohammad.

Agrobank at present has 167 branches throughout the country.

“New branches are set up annually depending on our planning. Our target this year is 10 including Kubang Kerian, Kota Baru, Pahang, Johor and Sabah.

“However, the Finance Ministry has requested us to open in districts which presently have no banks, especially in Sabah and Sarawak. So, the number (of new openings) this year will be more than 10,” Ahmad said.

He added, however, that the services would not necessarily be full-fledged branches, but could come in as electronic banking centres, mobile banks or representatives.

source : bttimes