Peshawar: The Bank of Khyber has announced its decision to convert from a conventional banking model to an Islamic banking system. This strategic shift was communicated in compliance with Section 96 of the Securities Act, 2015, and Clause 5.6.1(a) of the Rule Book of Pakistan Stock Exchange Limited.

The announcement was made on February 20, 2025, and represents a significant transition for the bank, which has been operating under a conventional banking framework. The process for this conversion has been formally initiated, marking a notable shift in the bank's operational and strategic direction.

According to information available from the Pakistan Stock Exchange (PSX), the transition aims to align the bank's operations with Shariah principles, which govern Islamic banking. This move is expected to position the Bank of Khyber in a growing market category that caters to clients seeking financial services compliant with Islamic law.

The bank has urged the TRE Certificate Holders of the Exchange to take note of this development as it proceeds with the conversion process. The transformation to Islamic banking involves restructuring financial products, services, and operations to ensure compliance with Islamic financial regulations.

The decision to shift to Islamic banking aligns with broader trends in the financial sector, where there is a growing demand for Shariah-compliant financial products. The Bank of Khyber's conversion is part of a strategic initiative to tap into this expanding market and to meet the needs of its clientele with religiously compliant banking solutions.