State Bank permission awaited for NDLC and IFIC merger

KARACHI (September 08 2003) : The State Bank of Pakistan permission is awaited for formation of a joint venture bank between National Development Leasing Corporation (Pakistan) (NDLC) and IFIC Bank paving way for acquisition of branches of French bank Credit Agricole International in Pakistan, it is reliably learnt.

The JVC on 80:20 has been branded as NIB.

It has succeeded in concluding an agreement for Credit Agricole assets in Pakistan at a much lower price then other suitors because the French bank wanted to pull out in a shortest possible time frame.

NIB is believed to have paid less than Rs 50 million for the acquisition while offers as high as Rs 120 million were on the table but the buyer being a non-bank needed a issuance of banking license which takes a longer time in Pakistan.

The NDLC had entered into an agreement on November 10, 2002 with IFIC, a banking company incorporated under the laws of Bangladesh for amalgamation of the existing business of NDLC and Pakistan operations of IFIC into NDLC-IFIC Bank Limited, a locally incorporated bank.

It is learnt that at SBP is awaiting a nod from Securities Exchange Commission of Pakistan (SECP) – the regulator of NDLC prior to approval of the amalgamation.

NDLC officials said they were only waiting for an approval from SBP which would enable the NDLC to merge with IFIC and acquire CAI.

The paid-up capital of NDLC-IFIC is expected to be Rs 1.110 billion with 80 percent shareholding by NDLC and 20 percent by IFIC.

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