Karachi, May 09, 2012 (PPI-OT): The State Bank of Pakistan (SBP) has given a go ahead signal to KASB Bank by issuing a No-Objection Certificate (NOC) to conduct due diligence for the potential acquisition of HSBC’s operations.
According to Alfalah Securities Limited, KASB Bank would conduct a feasibility analysis for the acquisition of HSBC’s operations in Pakistan and would then negotiate the purchase of shares with HSBC.
The SBP had earlier turned down the request of ABL, HBL, MCB and UBL to conduct due diligence for the acquisition of HSBC owing to their large market share in the banking sector. After the removal of four big banks only Silk Bank and KASB Bank were left in the queue for the acquisition of HSBC, where KASB possesses enough capital to buy HSBC from its Chinese investors and hence was given a NOC to conduct due diligence. Alfalah Securities Limited believes the acquisition of HSBC by KASB bank, if happens, would result in increased deposit base for the bank thus providing it to earn better returns from advances and investments.