Pakistan, March 13 -- Samba Bank has decided to convert from conventional banking to a fully Islamic financial institution. The bank's board has given in-principle approval for the transition. Now, it will submit its roadmap to the State Bank of Pakistan (SBP) for approval. This move aligns with the growing trend of financial institutions shifting toward Shariah-compliant banking.

Following the announcement, Samba Bank's share price dropped by 5.56%, trading at Rs8.49. Investors reacted with uncertainty over the bank's transition plan. However, the shift reflects the increasing demand for Islamic banking in Pakistan. The SBP defines Islamic banking as a system aligned with Islamic values and free from interest-based transactions.

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