KARACHI: Pakistan’s biggest commercial bank HBL is expected to acquire First Microfinance Bank, the county’s second largest microfinance bank in terms of the value of savings.
HBL said in the notice, “HBL intends to look at acquiring significant shareholding in First Microfinance Bank, which already has a base and presence in the microfinance sector all over Pakistan.”
However, it did not disclose the amount of investment it is willing to commit. However, under the statement of material facts that it published a fortnight ago along with its annual report for 2014, HBL disclosed that it is committed to investing a maximum amount of Rs2 billion in acquiring First Microfinance Bank ‘by way of equity’ over the next three years.
HBL has total assets of over Rs1.7 trillion, HBL operated nearly 1,600 branches at the end of 2014. Although financial statements of First Microfinance Bank are not available publicly, centralised databank for the microfinance banking industry shows its total value of savings at the end of 2014 was Rs8.7 billion with a market share of 20.1%.
