Bahrain’s Al Baraka Bank looks for acquisitions as coronavirus pandemic hits valuations – The National

Bahrain’s Al Baraka Bank looks for acquisitions as coronavirus pandemic hits valuations – The National

Bahrain's Al Baraka Bank looks for acquisitions as coronavirus pandemic hits valuations. Al Baraka Banking Group, a Bahrain-based Sharia-compliant lender, plans to expand its footprint in Asia including India, China and Indonesia and is eyeing bank acquisitions as the coronavirus pandemic pushes valuations down, its chief executive said.. The pandemic, which has tipped the global economy into a recession, slated to be the deepest since the Great Depression, has dented lending, as businesses fold and non-performing loans rise.. There's no respite in sight in the short to medium term, and Mr Yousif expects valuations to remain low in the coming two to three years as banks will have to continue dealing with bad debts.. Asia remains the focus of Al Baraka's international expansion drive, Mr Yousif said.. If an opportunity to acquire a lender surfaces, the bank "will review it", he said.. In Indonesia, Al Baraka has already explored the possibility of taking a stake in Bank Muamalat three years ago and will continue to look for further opportunities, Mr Yousif said .. The bank also increased its shareholdings in its Jordanian and Egyptian subsidiaries a few years ago.. Banks in the GCC have very good capital adequacy levels and