Maybank targets RM300m new deposits

KUALA LUMPUR: Malayan Banking Bhd (Maybank) is targeting deposits of RM300mil for its newly launched structured Islamic deposit product STRIDE-i.  

The bank's first syariah-compliant negotiable instrument deposit (NID) is aimed at offering 100% capital protection and a minimum 9.8% guaranteed return if held to maturity.  

STRIDE-i has a four-year maturity tenure and is redeemable at face value on the maturity date. 

Maybank Islamic banking head Ibrahim Hassan said the appealing feature of the product was the potential upside offered by the underlying investment, which was as high as 39.8% upon maturity.  

“Earnings will be derived from the NID that will invest in two underlying commodities – copper and wheat,” he said at the product launch yesterday. 

Left to right : Maybank executive vice president and head treasury business group Hijah Arifakh Othman, executive vice president and head islamic banking Ibrahim Hassan and executive vice president and head wealth management , consumer banking Teh Cheah May at the launch of the Maybank's STRIDE-i on Monday

He said industrialisation and population growth were driving the demand for copper and wheat respectively in the two nations in recent years. 

“These two countries have overtaken the US as the largest copper consumer since 2002.  

“They are expected to absorb 41% of the world's copper supply in 2009, up from 36% in 2006,” he added. 

STRIDE-i's minimum investment is RM50,000 with subsequent investment in multiples of RM50,000 and above. The initial offer period ends on Nov 4.  

Ibrahim also said the bank had identified Islamic wealth management as one of the areas of focus for its Islamic banking business. 

He said it was targeting to raise at least RM600mil via syariah-compliant wealth management products for its current financial year ending June 30, 2008.