Turkey's Halkbank plans to raise capital by 1.0 bln lira (352 mln euro)

The bank will use the proceeds from the capital hike in the capital commitment of the Islamic bank that it plans to establish as a wholly-owned subsidiary, Halkbank said in a bourse filing on Friday.

At the beginning of December, Halkbank applied for regulatory approval to set up an Islamic banking unit.

Four Islamic banks are currently operating in Turkey - also called participation banks because they do not collect interest but share the profit or loss of their borrowers.

State-controlled lender Ziraat Bank received, in October, regulatory approval to establish an Islamic banking unit with a registered capital of $300 million.

(1 euro = 2.8427 Turkish lira)