KARACHI: The Habib Bank of Pakistan has expressed interest in acquiring Silkbank’s consumer portfolio after conducting due diligence of the consumer business.
After the diligence, the HBL will apply for permission from the State Bank of Pakistan (SBP) to initiate the process, the bank said in a statement.
“HBL as part of its strategy and pursuant to an in-principal decision by Silkbank Limited to divest its consumer portfolio, comprising credit cards, running finance and personal loans, has applied for Silkbank’s approval to proceed with an application to the central bank for permission to proceed with the due diligence,” a statement issued at the Pakistan Stock Exchange said.
Earlier this year, Fauji Foundation was allowed to conduct due diligence by Silkbank as it agreed to sell majority of its stake to the army-owned conglomerate that also owns Askari Bank.
“Silkbank hereby notifies the Pakistan Stock Exchange that the Board of Directors of Silkbank Limited in its meeting held on January 28, 2021, has subject to the approval of the State Bank of Pakistan, given its in-principle approval to allow Fauji Foundation to conduct the required due diligence,” a statement issued by Silkbank had read.
The financial terms of the deal were not made public.