Bank Alfalah Wants to Look Into Silkbank’s Consumer Portfolio
HBL is already carrying out the related process for the past two weeks and BAFL is second in the race that is attracted by the consumer portfolio of Silkbank Ltd
Bank Alfalah (BAFL) has displayed interest in acquiring Silkbank’s consumer portfolio after Habib Bank Limited (HBL).
Bank Alfalah has sought permission from State Bank of Pakistan (SBP) to allow it to look into Silkbank’s personal loans, running finance, and credit card business.
HBL is already carrying out the related process for the past two weeks and BAFL is second in the race that is attracted by the consumer portfolio of Silkbank Ltd.
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Tarin Meets SBP Governor, SilkBank Wants Time For Annual Report
As reported in September 2020, Silkbank’s CAR rating dropped significantly to 4.16% from 5.81%.
CAR is the measure of capital that a bank must possess to handle losses before going bankrupt. The central bank requires the rate to be at least 11%.
Mired in financial troubles, Silkbank Ltd had begun negotiations with Fauji Foundation at the start of 2020 for the acquisition of its whole business.
However, Fauji Foundation gave a red signal after a few weeks of due diligence.
It is mentionable that on March 31, 2008, a consortium comprising IFC, Bank Muscat, Nomura International, and Sinthos Capital led by senior bankers including Shaukat Tarin and Sadeq Sayeed acquired 86.55% stake in Silkbank.
Now, Finance Minister Shaukat Tarin owns 11.5% of the shareholding in Silkbank.
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