MIDF explores merger with Al Rajhi Bank’s local arm

Deliberations by MIDF and Al Rajhi(filepic) are at an early stage, and the firms would need approval from Bank Negara to formally start detailed negotiations, the source said.

KUALA LUMPUR: Malaysian Industrial Development Finance Bhd (MIDF), the state-backed lender, is exploring a combination with the local unit of Saudi Arabia’s Al Rajhi Bank as it seeks to become a universal Islamic bank, sources said.

The potential merger would expand the scope of MIDF’s business and give it the right to take deposits, according to a source, who asked not to be identified because the information is private.