Isbank allowed conducting due diligence of HSBC – Alfalah Securities Limited

Karachi, June 06, 2012 (PPI-OT): The State Bank of Pakistan (SBP) has given approval to Isbank, a leading bank of Turkey, by issuing a No-Objection Certificate (NOC) to conduct due diligence for the potential acquisition of HSBC’s operations.

According to Alfalah Securities Limited, Isbank, if succeeded in acquiring HSBC, would become the first Turkish bank to start operations in Pakistan. Isbank would conduct a feasibility analysis for the acquisition of HSBC’s operations in Pakistan and would then negotiate the purchase of shares with HSBC.

SBP gave approval to only KASB Bank for conducting due diligence of HSBC while turned down the request of ABL, HBL, MCB and UBL for its potential acquisition owing to their large market share in the banking sector. Alfalah Securities Limited believes the acquisition of HSBC by Isbank, if happens, would provide a platform to the Turkish bank to increase its presence in the growing banking industry of Pakistan.

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