JS Bank to conduct due diligence of HSBC – Alfalah Securities Limited

Karachi, June 15, 2012 (PPI-OT): State Bank of Pakistan (SBP) has allowed JS Bank to conduct due diligence of Hong Kong Shanghai Banking Corporation (HSBC) for potential acquisition of its Pakistan operation.

According to Alfalah Securities Limited, the other interested banks include KASB Finance, and Isbank of Turkey which have also been allowed to conduct due diligence of the said bank. HSBC had decided to wind up its business in Pakistan. SBP had turned down the due diligence request of the four largest banks including Habib Bank Ltd., MCB Bank, United Bank Ltd. and Allied Bank Ltd. with the intention of providing smaller banks a chance to grow. This bodes well for JS Bank which currently has a paid-up capital of PkR 10.0 bn and reported EPS of PkR0.42 (PAT: PkR 359.7 mn) in CY11.

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