HBL Planning to Acquire Silkbank’s Consumer Banking After Fauji Foundation Withdraws Interest

Habib Bank Limited (HBL) plans to acquire the Consumer Banking Portfolio of Silkbank Limited.

In this regard, the management of HBL has approached Silkbank for the due diligence of the Consumer Banking Portfolio comprising credit cards, running finance, and personal installment loans.

According to a notification issued to the Pakistan Stock Exchange (PSX), HBL is seeking permission from the State Bank of Pakistan (SBP) to allow the bank for the due diligence of the Silkbank’s business unit.

HBL’s management is set to explore the opportunity of acquisition of Silkbank’s Consumer Banking Unit after Fauji Foundation withdrew its interest in the acquisition of shares in Silkbank.

Silkbank retains its plan to divest its Consumer Banking Portfolio, and that provides an opportunity to Habib Bank Limited to pursue the process with the permission of the banking regulator.


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In 2013, HBL had acquired a Consumer Banking Portfolio comprising the business of personal and auto loans and credit cards. It also acquired operations of Barclays Bank in 2015 and amalgamated the operations and businesses of other banks successfully without any major challenges.

Now, HBL is poised to acquire the business of Silkbank’s Consumer Banking Unit. The Silkbank has been famous for its credit cards and personal loans business with a handsome customer base.

On the other hand, Silkbank has also been struggling to maintain its regulatory obligations with a shortfall of paid-up capital and capital adequacy ratio that stood at Rs. 9.5 billion and nearly 6 percent.

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