Karachi: Fauji Foundation plans to buy majority shares in SilkBank Limited, it has also applied to conduct due diligence of the bank, SilkBank said in a letter to the Pakistan Stock Exchange today.
“Fauji Foundation have expressed an interest in acquiring the majority stake in SilkBank Limited,” the letter said. The board of directors of SilkBank Limited allowed Fauji Foundation to conduct the required due diligence and evaluate the information that will be provided by the bank in this regard. The due diligence is subject to the approval by the State Bank of Pakistan (SBP), it added.
“Fauji Foundation might be looking to increase its presence in the financial sector, which is quite promising in growth and very well regulated,” said Khurram Schezad, CEO Alpha Beta Core. “SilkBank has been facing some capital issues and that makes it interesting for investors with a strong capital base.”
The financial sector of Pakistan is also very attractive due to developments in governance by the central bank and corporate regulators, he added.
SilkBank declared a pre-tax profit of Rs.601 million for the nine months ended September 30, 2020 which is Rs.4.6 billion higher than the corresponding period of the previous year.
The bank’s net interest income grew by Rs. 416 million reflecting a growth of 27% over the corresponding period of last year. Non-Funded Income reflected a growth of Rs 5.2 billion and expenses were lower by 6% over the corresponding period. Deposits increased by Rs. 5 billion as compared to December 2019, taking the total deposit base to Rs.154 billion.