Acquisition of Pakistan's Askari Bank gets approval

The Fauji Foundation may now acquire majority shares of the Askari Bank.

The State Bank of Pakistan has finally allowed the deal.

“We have issued NOC to the Fauji Foundation that allows the foundation to acquire the Askari Bank,” said SBP spokesman Syed Wasimuddin.

Market sources said the Askari Bank would be jointly acquired by the Fauji Foundation, the Fauji Fertilizer andthe Fauji Fertilizer Bin Qasim.

The price of shares has not yet been negotiated or finalised.

Bankers said the Askari Bank would find a better chance to grow since the foundation has strong footing in terms of assets and finance.

The bank faced tough times as its profitability was hurt during the last few years despite improvement in 2011.

The bank earned a profit-after-tax of Rs1.628 billion in 2011 which was 73 percent higher than last year’s profit of Rs943 million.

The Askari Bank has a network of 245 branches and sub-branches, including 31 dedicated Islamic banking branches. As on Dec 31, 2011, the bank had an equity of Rs17.8 billion and total assets of Rs343.8 billion.

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