Islamic Unit of Bank Mandiri Aims for Public Listing on Indonesia Stock Exchange
An unit of Bank Mandiri - Bank Syariah Mandiri - is aiming for an initial public offering (IPO) in 2014. This step would make Bank Syariah Mandiri the first publicly listed Islamic lender of Indonesia. In Indonesia, 11 Islamic lenders are active but total assets of these lenders are small compared to the country's total banking assets. In recent years, however, Islamic financing has experienced substantial growth in Indonesia.
Islamic banking (or Shariah banking) is a form of banking that upholds certain Islamic principles, such as the prohibition of interest rates, and instead use a profit-sharing model.
On today's trading day, Bank Mandiri's shares climbed 1.69 percent.