Habib Bank Limited and Silkbank have also shown willingness to acquire Hong Kong and Shanghai Banking Corporation (HSBC) Pakistan, which has decided to wind up its operations in the country under restructuring plans. Sources in banking sector told Business Recorder on Thursday that these two banks were also now in queue to acquire Pakistan operations of one of the largest banking and financial services organisation in the world.
"Two more banks, Habib Bank Limited (HBL) and Silkbank, have formally applied to State Bank of Pakistan, for Non-Objection Certificate (NOC) to conduct due diligence of the HSBC," sources informed. MCB Bank and KASB have already been confirmed as interested parties as they have also sought NOC from SBP.
Sources said there were reports that United Bank limited had also shown interest in HSBC. But it has not applied for an NOC to conduct due diligence so far. Meanwhile, SBP is scrutinising applications that it has received from four banks for due diligence.
HSBC is working in Pakistan for the last 30 years since 1982, it has expanded to all major cities of Pakistan and operates as a full service bank. HSBC Pakistan has earned a profit after tax of Rs 971 million during CY11 as compared to Rs 491.59 million in CY10. Its net assets surged from Rs 6.199 billion in CY10 to Rs 7.505 billion in CY11.
Under the restructuring plan Hong Kong and Shanghai Banking Corporation (HSBC) is examining the potential sale of retail businesses in Pakistan and in this regard HSBC has officially informed State Bank that it had plans to sale out its stakes in the Pakistani financial market, the sources added.
However, as part of HSBC's ongoing cost-cutting drive to axe 30,000 jobs by 2013, the group earlier this month sold its general-insurance businesses in Hong Kong, Singapore, Argentina and Mexico for around $914 million. In December, it offloaded its private banking business in Japan to Credit Suisse for $2.7 billion (2.06 billion euros).
Listed on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by over 220,000 shareholders in 132 countries and territories. HSBC's international network comprises over 9,500 offices in 85 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa.
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