The management of Bank Alfalah has formally approached the management of Silkbank to acquire its consumer finance portfolio comprising credit cards, running finance, and personal loans.
According to the notification to the Pakistan Stock Exchange, Bank Alfalah will seek the permission of the State Bank of Pakistan to conduct the due diligence process of Silkbank’s consumer finance segment once the Silkbank’s management gives its nod.
Bank Alfalah has taken these initiatives under the directives of its board of directors. Earlier, Habib Bank Limit also has expressed its intention to buy out Silkbank’s consumer financing unit.
Bank Alfalah is one of the major and renowned market players in the banking industry when it comes to the business of credit cards and personal loans.
It can spiral up its consumer finance business to the next level after adding more customers into its portfolio.
The entry of Bank Alfalah after Habib Bank Limited is likely to set a competitive value of Silkbank’s business unit. However, the deal will be finalized once the due diligence is concluded and approval of regulators is received.
Source: Pro Pakistani