According to local media reports DBS Group Holdings, Singapore's largest bank, said on Monday it would be gradually wrapping up its Islamic banking unit as the business had not been ale to reach its potential and achieve economies of scale.
DBS said it would however continue to develop and distribute Shariah compliant products such as Islamic bonds or Sukuk, within the bank's main operations.
It will also try to absorb the staff of the Islamic Bank of Asia (IB Asia), which was established in 2007 as a joint venture between DBS Bank and prominent investors based in the Gulf.
Piyush Gupta DBS CEO who took control in 2009, has been concentrating on the bank's core businesses to boost profitability while working hard on both recalibrating the banks offerings and on reducing the bank's non-core interests.
