Its head of payments services division, Zaukifele Ibrahim, said Kelantan was the first state BSN that stopped its conventional banking services.
"Of BSN's 44 branches offering Islamic banking, Kelantan is the only state in the country to offer solely Islamic banking.
"This tranformation is positive to enable BSN to further boost Islamic banking nationwide in line with the government's plan to make Malaysia a world hub for Islamic banking," he told a media briefing after the opening of an Islamic banking branch in Pengkalan Kubor here Monday.
BSN chief executive, Datuk Adinan Maning, officiated the event.
At the function, BSN handed over a zakat contribution of RM160,667 to Majlis Agama dan Adat Istiadat Melayu Kelantan and 18 other organisations.
Zaukifele said the Pengkalan Kubor branch was its 19th in Kelantan and BSN expected to open another branch in Jeli before year-end.
"With the Jeli branch, BSN's services would cover the whole districts in Kelantan," he said.
He said nationwide, BSN planned to open 25 more Islamc banking branches in various states in stages.
On other developments, Zaukifele said being a community bank, BSN would implement various measures to strengthen its services like Internet banking and transactions via mobile phones in line with new developments. - Bernama