Standard Chartered to expand consumer, Islamic banking in Pakistan

To grow its business in Pakistan, Standard Chartered plans to focus on expanding its consumer banking line as well as its Islamic banking portfolio, according to the bank’s Pakistan head, Mohsin Nathani.

“We have a fairly bullish view to Islamic banking in Pakistan,” said Nathani in an interview with The Express Tribune.

Islamic banking is one of the fastest growing sectors within financial services in Pakistan, with growth rates often exceeding those of their conventional competitors by over 15%. Standard Chartered won an award in the Islamic finance sector in Pakistan, with its financing of the Karachi Electric Supply Company (KESC) declared the deal of the year in 2010.

Pakistan short-lists consortia to launch OGDCL exchangeable bonds

Pakistan has short-listed two consortia for the sale of bonds exchangeable into Oil and Gas Development Co (OGDCL) shares, with the aim of raising more than $500 million, privitisation commission said on Monday.

The first consortium, which also ranked on top, consists of Citibank, JP Morgan, Credit Suisse and BMA Capital. The privatisation commission has authorised a six-member committee to negotiate with them.

The second consortium consists of Barclays Bank, Standard Chartered Bank, Merrill Lynch/Bank of America and KASB.

Pakistan is gearing up for its second attempt to launch an offshore exchangeable bond and the deal would mark the country’s return to the international capital markets for the first time since 2007.

Standard Chartered to be listed on bourses

Badar Kazmi, Chief Executive Officer of Standard Chartered Bank (Pakistan) Limited, said on Monday that three bourses of the country have cleared listing application of the new banking entity and consent of Securities and Exchange Commission of Pakistan (SECP) will be obtained in coming weeks.

Addressing a press conference after unveiling re-branded branch at Khayaban-Hafiz, he said that after the listing, the present shareholding pattern will continue. He said the bank is in the process of preparing new liability products, which will offer new investment opportunities to deposit holders besides meeting the instructions of the central bank to the banks to offer such products having more rates of profit.

Union Bank approves share swap ratio

The board of directors of Union Bank Limited has approved swap ratio of shares in the wake of amalgamation of the bank with Standard Chartered Bank.

The Union Bank has informed the regulators “the board of directors of Union Bank Limited in their meeting held on September 22, 2006 approved the draft scheme (of amalgamation).”

“In terms of the draft scheme, shares of Union Bank will be swapped in the ratio of 2.5:1 that is 2.5 shares of face value of Rs10 each in Standard Chartered Bank (Pakistan) will be issued for each one share of Union Bank having face value of Rs10.”

Standard Chartered acquires Union Bank

Standard Chartered PLC announced on Tuesday that its subsidiary company, Standard Chartered Bank (Pakistan) Limited, has completed the acquisition of 95.37 per cent interest in Union Bank Ltd.

The bank said it had paid an amount of $487 million for the purchase of Union Bank.

Pursuant to the acquisition, Standard Chartered Bank will submit a scheme of amalgamation to the State Bank of Pakistan. On approval, Union Bank and Standard Chartered Bank would amalgamate into Standard Chartered Bank (Pakistan) Ltd, said a press release issued by the bank.

ABN AMRO to acquire PICIC Group

Pakistan Industrial Credit and Investment Corporation (PICIC) is preparing for a complete sell-out and ABN Amro has shown interest in the group.

The current wave of foreign investments in the financial sector of Pakistan could take a new turn if the PICIC like institutions are sold to an international bank.

“We have information that ABN Amro has shown interest and initiated a dialogue with the PICIC officials,” said a highly-placed banking source.

However, no official confirmation was available from both the entities involved in the initial talks for a possible deal.