National Bank of Kuwait (NBK) has announced that it has increased its stake holding in Boubyan Bank to 40%.

 Boubyan Bank is an Islamic lender. The sources informed that NBK has purchased Securities Group's 7.2% stake in the Islamic lender.

NBK functionaries stated in a communiqué that they want Islamic lender to become the subsidiary of NBK.

The sources informed that in July NBK and Securities Group acquired shares in an auction in Boubyan held by the Kuwait Investment Authority (KIA).

The sources further informed that Securities Group has purchased 77 auctioned shares at 560 fils per share.

Earlier this month, Boubyan has announced that it envisages to increase its capital by 50% as it looks to expand in Kuwait.

Islamic banking is one of fastest growing financial sectors around the globe, growing 15-20% per year.

Boubyan Bank, which complies with Islam's ban on interest, competes with larger rival Kuwait Finance House and Kuwait International Bank.

On Monday Kuwait's cabinet sanctioned a new Islamic lender, with capital of $349 million (KD100 million).