BNI To Launch Separate Sharia Unit This Year

Indonesia's fourth-largest lender by assets, PT Bank Negara Indonesia, plans to set up its sharia banking business as a separate unit later this year, an executive said on Thursday.

Ismi Kushartanto, head of BNI's sharia unit, told Reuters via a mobile text message that BNI would set aside 500 billion rupiah ($49 million) in minimum paid-up capital for separating the unit, as required by the central bank.

The world's most-populous Muslim country has five sharia banks, while 25 of its commercial banks have sharia units, according to central bank data.

Indonesia's third-largest lender, PT Bank Central Asia , has already announced that it plans to launch a separate sharia bank in September to capitalise on growth of the Islamic banking sector. ($1 = 10,150 rupiah)

From Reuters