Bahrain Islamic Bank (BisB) is looking towards rebounding to profitability and growth in a short time, following the strategic stake acquisition by National Bank of Bahrain and Social Insurance Organisation (SIO), a senior official said.

"The Investment Dar (TID) Kuwait has sold its entire stake (51.6 per cent) in BisB, to NBB and SIO-Bahrain, each taking 25.8 per cent, in a transaction valued at BD75million ($199 million)," the bank's assistant general manager for central operations A Razak A Khaliq Abdulla, told our sister publication the Gulf Daily News (GDN) on the sidelines of the annual general meeting held yesterday (March 26).

This was the last meeting chaired by the existing board, which would be reconstituted to secure representation for the new major shareholders, he added.

According to him, the two entities would bring in a fresh injection of capital and liquidity, boosting the bank's growth prospects.

"All the topics on the agenda were approved by the shareholders present in person and by proxy, with an attendance level of 85.27 per cent," chairman Khalid Abdulla Al Bassam said in a statement following the meeting.

"The discussions during the meeting were constructive and the deliberations were attended by representatives of the Central Bank of Bahrain, Industry and Commerce Ministry, Bahrain Bourse, external auditors and share registrars.

"Last year was one of the most difficult years experienced by the bank owing to the continued consequences of the global financial crisis and slow recovery of the world economy, which adversely affected banking institutions in general and Bahrain Islamic Bank in particular.

"Thanks to the prudent policy pursued by the bank, it was able to compete in difficult circumstances and was able to achieve the required growth and to continue to develop services," he concluded. – TradeArabia News Service