KARACHI: Islamic banking continues to gain popularity in Pakistan as it outshined conventional banking over the quarter by showing remarkable growth in deposits and assets. Deposits of Islamic banking industry showed a quarterly growth of 9 percent (Rs 156 billion) during the quarter October to December, 2017 to reach Rs 1,885 billion compared to Rs 1,729 billion in the previous quarter. In contrast, deposits of overall banking industry witnessed a quarterly growth of 3.2 percent during the period under review. As a result, market share of Islamic banking industry’s deposits in overall banking industry’s deposits increased to 14.5 percent by end December, 2017 compared to 13.7 percent in the previous quarter. Similarly, 213 new branches were added to branch network of Islamic banking industry during last quarter of 2017, taking total number of Islamic banking branches to 2,581 across country. The network of Islamic banking industry consisted of 21 Islamic banking institutions; 5 full-fledged Islamic banks and 16 conventional banks having standalone Islamic banking branches by end December, 2017. During the period under review, 213 branches were added to branch network of Islamic banking industry. With this addition, the aggregate number of Islamic banking branches reached to 2,581 branches, across 111 districts of Pakistan by end December, 2017 compared to 2,368 branches in the previous quarter. The State Bank of Pakistan (SBP)’s latest data revealed that the number of Islamic banking windows operated by conventional banks having standalone Islamic banking branches was recorded at 1,277 by end December, 2017. Similarly, assets of Islamic banking industry grew by 9.1 percent to Rs 189 billion during the quarter October to December, 2017 and were recorded at Rs 2,272 billion, compared to Rs 2,083 billion in the previous quarter. On the funding side, deposits of Islamic banking industry reflected a quarterly growth of 9 percent to Rs 156 billion during the period under review to reach Rs 1,885 billion, compared to Rs 1,729 billion in the previous quarter. During 2017, assets and deposits of Islamic banking industry witnessed year-on-year growth of 22.6 percent and 19.8 percent, respectively. Market share of Islamic banking assets and deposits in the overall banking industry increased to 12.4 percent and 14.5 percent, respectively by end December, 2017. Meanwhile, profit (before tax) of Islamic banking industry was recorded at Rs 23 billion by end December, 2017 compared to Rs 17 billion in the same quarter last year. On the back of growing asset base, market share of Islamic banking industry’s assets in overall banking industry’s assets increased to 12.4 percent by end December, 2017 compared to 11.9 percent in the previous quarter. The share of net financing and investments in total assets (net) of Islamic banking industry stood at 53.1 percent and 23.5 percent, respectively by end December, 2017. The SBP unveiled that current (non-remunerative) and saving deposits of Islamic banking increased by Rs 77 billion and Rs 48 billion, respectively; while, fixed deposits recorded an increase of Rs 21 billion during the period under review. Published in Daily Times, April 13th 2018.