By OMAR RIDZUAN

BIMB Holdings Berhad which controls Bank Islam, announced its long-awaited restructuring plan yesterday.

But amid the slew of technical and complicated corporate announcements, what does it mean to the rakyat?

In a nutshell, what is the message between the lines?

One thing is certain – the exercise is aimed at pushing Bank Islam’s image to greater heights.

Analyst said the first main purpose of the restructuring is to boost Bank Islam’s image as the star performer and not hide behind its holding company BIMB.

Secondly, Bank Islam is undervalued, under-recognised and its full potential is not realised yet.

Once the listing status is transferred from BIMB to Bank Islam, the bank’s image will be more well known.

“Investors would identify with the Bank Islam name rather than BIMB,” said an analyst at Hong Leong Investment.

Analysts said other banks have done it before such as Alliance Bank and Affin Bank.

“Previously, Affin bank was overshadowed by its parent holding company.

After restructuring, Affin bank can spread its wings farther out of the shadow of its parent company.

It will be the same scenario for Bank Islam,” an analyst at RHB Research told Bebasnews.com.

The main reason with the restructuring is also aimed at propelling the insurance arm Syarikat Takaful Malaysia Berhad further.

Bank Islam is already Malaysia’s seventh largest and with a more prominent image, its assets can augment further.

As said by former Maybank president Tan Sri Wahid Omar, banks with large assets should grow and lead the way.

This is especially true for Bank Islam.

-BebasNews

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