State Bank of Pakistan (SBP) has officially granted due diligence permission to Habib Bank Limited and Bank Alfalah Limited (BAFL) for the acquisition of Citi Bank Consumers’ portfolio comprising credit card business, auto financing and personal loans.
For EconomyAge readers, if you remember, we break the news of this deal two weeks ago when our sources told us that both banks sought permission from State Bank to conduct due diligence of this said acquisition.
The two banks– HBL and BAFL– will evaluate the consumer business of the Citi Bank, which it planned to sell out for in pursuance of its divestment plans, said SBP’s spokesman Syed Waseemuddin, while talking with EconomyAge.
As soon as the process of the due diligence is completed by the banks, the will offer a price to Citi Bank to be set on negation between the party. Afterwards, the acquisition of the consumers’ portfolio will be carried out after approval of banking regulatory and one of among two banks will buy the consumers division Ciiti Bank.
Citi has entered its sixth decade of continuous presence in Pakistan to serve its corporate clients and retail customers in the country. The bank’s consumers division is possessing handsome number of customers who are mostly belong to elite and upper middle class of the society having good inclination to avail banking services come under consumer financing portfolio such as credit cards, car financing and etc.
Citibank has been cutting back its global branch network for the past five years after global meltdown hits its retail banking and investment operations.
It carried out lay-offs and restructured its operations in many countries including Pakistan. In 2011, it had sealed a deal to sell out its partial division of consumers financing portfolio, that is, housing finance, to BankIslami in early 2011, against the worth of Rs 95 Crore.
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