NBE: Islamic Deposits Reach EGP 1 Bln

The National Bank of Egypt (NBE) said the volume of Islamic deposits reached EGP one billion and loan-to-deposit ratio reached 40% at the end of FY 2011/2012, up from 20% at the end of FY 2010/2011, sources told Amwal Al Ghad.

The bank has set a plan to expand in Islamic banking in the upcoming period, targeting to raise the loan-to-deposit ratio of its Islamic transactions to 80%, so as to meet the increasing demand on Islamic banking services in the current period. However, the bank does not target increasing the volume of deposits in the upcoming period.

NBE also plans to launch a number of sharia-compliant retail products (musharaka, mudaraba and Ijara) including educational loan and Ijara services, sources added.

Sources said the bank’s branch in Dokki acquires 80% of NBE’s Islamic deposits and its branch in Azhar acquires 20% of which.