Habib Bank in Rs. 100 m strategic private placement to Richard Pieris Finance – Islamic Business Uni

Arij Islamic Business Unit of Richard Pieris Finance Ltd. has received Rs. 100 million from Habib Bank Ltd. – Islamic Banking Division for their Wakala Investment product. 

The bank, through this investment, has demonstrated its confidence in the long-term strategy, senior management expertise and eminent Shari’ah Scholars of the company. The funds will be utilised for its Shari’ah compliant lending portfolio. 

Having started its operations just two years ago, the youngest finance company in Sri Lanka, has achieved a profit after tax of Rs. 200 million, an over 300% growth from the first year of operations. Their asset base has crossed Rs. 7.5 billion and the deposit base is now over Rs. 2.2 billion through a customer base of over 4,000. 

The Arij Islamic Business Unit continues to maintain a quality advances portfolio through effective credit risk management policies and procedures which resulted in a 0% NPL.  

The company is planning to launch Mudharabah Savings and Diminishing Musharakah (partnership financing) facility shortly.  

Another significant milestone was also achieved within a short period as they won the ‘Gold Award as the Emerging Islamic Finance Entity of the year 2014’ at the Sri Lankan Islamic Finance Banking and Finance Industry (SLIBFI) Awards night.