Treasure Magazine

Treasure Magazine

HBL expresses its intention to acquire ‘Consumer Portfolio’ of Silkbank Ltd

2 min read
silkbank

KARACHI: After rejecting offer of M/s Fauji Foundation for the due diligence process of Silkbank Limited, Habib Bank Limited (HBL), the country’s biggest bank of Pakistan, has expressed its intention to acquire its ‘Consumer Portfolio’.

Shaukat Tarin is the owner of the Silkbank, who is likely going to become the Special Assistant to the Prime Minister on Finance in place of Dr Abdul Hafeez Shaikh.  Silkbank is among those categories who are performing low and have low paid-up capital. The central bank had asked the management of the Bank several times to enhance its paid-up capitals.

In a notice to the Pakistan Stock Exchange (PSX), the HBL said that “HBL as part of its strategy and pursuant to an in-principle decision by Silkbank limited to divest its Consumer Portfolio comprising credit cards, running finance and personal Loans (Consumer Portfolio) has in-principle requested Silkbank limited to provide its concurrence to HBL to apply to SBP to proceed with the due diligence of the Consumer Portfolio of Silkbank Limited in order to explore the possibility of HBL’s potential interest in the same.”

However, the Silkbank claimed that M/s Fauji Foundation will not be proceeding with the due diligence process of Silkbank, in pursuance of its application in this regard. Fauji Foundation had applied to acquire the full bank (Silkbank Ltd) in August 2020.

However, the Habib Bank ltd has requested the Silkbank’s management to provide its concurrence to acquire only consumer portfolio of the bank.