Banking and finance industry is one of the more important tertiary industries in the world. It provides financial services to the government and people around the world. Pakistan’s banking industry caters to the financial needs of Pakistani residents and abroad. It is regulated by SBP-State Bank of Pakistan. The industry constitutes of nearly 31 banks. Out of theses 5 are public sector banks and 22 local private banks. 6 banks are the largest competitors in the economy and collectively make up more than 57% of deposits of the country. This article highlights the differences between three banks: Al Baraka Bank, Allied Bank Limited and Askari Banks.

Al Baraka Bank

Al Baraka Limited is a private sector bank with 190 branches in 97 cities in Pakistan. Its official website is albaraka.com.pk

Allied Bank Limited

Allied Bank Limited is a public sector commercial bank in Pakistan. It is one of the largest banks in the country. It has over 1350 branches and ATMs throughout the country. Its official website is www.abl.com.

Askari Banks

Askari Bank Limited is a public sector commercial and retail bank in Pakistan. Its headquarters are in Rawalpindi, Pakistan. Its official website is www.askaribank.com.

History

Al Baraka Bank is the pioneer of Islamic banking in Pakistan. It has been operating in the country since 1991 under the aegis of Al Baraka Islamic Bank Bahrain.

Allied Bank Limited was the first Muslim Bank established in Pakistan before independence. It was established on 3 December 1942 with the name of Australasia Bank.

Founded

Al Baraka Bank came into being as a result of merger of Al Baraka Islamic Bank, Bahrain; Emirates Global Islamic Bank, Pakistan and Al Baraka Islamic Bank, Pakistan. It started its operations on 1 November 2010. Burj bank Ltd. also merged with the Al Baraka Bank in 2016.

Allied Bank Limited was founded by Kashmiri trader Khawaja Bashir Baksh with a capital of 0.12 million in 1942. In 1974, Lahore commercial Bank Limited, Sarhad Bank Limited and Pak Bank Limited were merged into it and current name-Allied Bank of Pakistan came into form.

Tariq Mahmood is the president and CEO of Allied Bank Limited. He assumed his office on 17 June 2013.

Askari Bank Limited was founded on 9 October 1991 as a Public Limited Company and was acquired by the Fauji Group.

Head

Al Baraka Bank works according to the guidelines provided by Shariah Board. Head of bank’s Shariah board is Shaikh Essam Mohammad Ishaq Abdul Rahman Ishaq.

Askari Bank Limited is headed by President and CE Mr. Abid Sattar.

Parent company and network

Al Baraka Bank is the pioneer bank that provides Shariah compliant banking products and services. Entire banking services are closely monitored by a Board of Shariah Advisors in Bahrain and Pakistan. Its parent company is Al Baraka Banking Group. Al Baraka Bank has a network of 191 branches in more than 97 cities throughout the country.

Allied Bank Limited’s parent company is Ibrahim group. Its 117 branches across 53 major cities of Pakistan provide Shariah compliant Aitbaar Islamic Banking services.

Askari Bank Limited’s parent company is Fauji Foundation Group.It is a military based group.

Products and services

Al Baraka Bank provides corporate banking, retail banking, investment banking and consumer banking. People from various walks of life are its customers. It provides its services to individuals, retailers, SMEs and corporate sector. Some of the deposit products are: Murabaha, Ijarah, Musharakah and Islamic Export Refinance.

Allied Bank Limited provides various products and services to its customers. It provides personal banking, business banking, Islamic banking and digital banking. Other services; such as extended hours banking, online banking, safe deposits lockers, utility bills payments, Allied phone banking, car financing and customer support, are also available.

Askari Bank Limited provides many services to its customers and employees. It has automated transactions processing systems for office support. All branches are connected through an on-line real-time technological database. Recently, the bank has partnered with Mastercard to launch new payment products to its growing customers in Pakistan. The bank leverages its network, technology and insight to improve banking experience for people across Pakistan.

Assets and revenue

Al Baraka Bank has total assets of 1.1 billion dollars.

Allied Bank Limited’s estimated revenue is 75 billion PKR.

Askari Bank Limited showed highest-ever profit of 7.03 billion PKR in 2020. The profit and loss statement shows an impressive growth in all revenue.

Awards

Al Baraka Bank was declared as the ‘Best regional bank’ at Annual Islamic Business and Finance Awards Ceremony, Dubai in 2010. It also won the Compliance and Corporate Governance Award at the Hawkamah Union of Arab Banks in 2010.

Allied Bank Limited won the Islamic Finance Excellence Award in 2017. This award was given by the Government of Punjab, Pakistan.

Askari Bank Limited was awarded twice as ‘Best Retail Bank in Pakistan’ in 2004 and 2005. It was also given the ‘Best Consumer Internet Bank’ award by Global Finance Magazine in years 2002 and 2003. It has won the prestigious ‘Best Presented Annual Accounts’ award from the Institute of Chartered Accountants in Pakistan.

Conclusion

Pakistan’s banking industry caters to the needs of approximately 195 million people. It has grown to great heights since its establishment. But still it seems to travel on a long road to perfection. Issues like making technology accessible to all is an important step as Pakistan has a great size of rural population. There is a huge potential for development. Growth can be achieved by introduction of Islamic banking, providing high-speed data services and by increasing awareness about the benefits of banking to general public. By adopting these measures, banking and finance industry can grow leaps and bounds in the coming decades. This will be the greatest development for people and government of Pakistan, won’t it be?