Grant Thornton Anjum Rahman, a reputable firm of Chartered Accountants, has raised significant concerns regarding the financial viability of Silkbank Limited.
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UBL Board Approves Amalgamation of Silk Bank
KARACHI, December 3, 2024 – In a significant move towards strengthening its market presence, United Bank Limited (UBL) has announced that its board of directors has approved the amalgamation of Silk Bank Limited (SBL) into UBL.
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PHFC offers equity injection up to Rs12 billion into Silkbank Limited
Pakistan Housing Finance Company (PHFC) has offered to inject equity up to Rs12 billion into Silkbank Limited, according to a statement shared with the Pakistan Stock Exchange (PSX) on Wednesday.
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HBL to acquire consumer portfolio of SilkBank
KARACHI: Habib Bank Limited (HBL) has shown interest to acquire consumer portfolio of SilkBank Limited, according to a statement issued on Thursday.
An information shared by the SilkBank to the Pakistan Stock Exchange (PSX) revealed that HBL had requested SilkBank Limited to provide its concurrence to HBL to apply to State Bank of Pakistan (SBP) to proceed with the due diligence of the Consumer Portfolio of SilkBank Limited comprising of credit cards, running finance and personal installment loans in order to explore the possibility of HBL’s potential interest in the same.
The Board of Directors of the SilkBank Limited, in its meeting held on April 07, 2021 has accorded in principle approval, for the same.
The SilkBank further informed that M/s. Fauji foundation will not be proceeding with the due diligence process of SilkBank Limited, in pursuance of its application in this regard.
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Fauji Foundation allowed due diligence to acquire majority stake in Silkbank
KARACHI: The board of directors (BOD) of Silkbank Limited on Thursday approved to allow Fauji Foundation to conduct due diligence for acquiring majority stake of the bank.
The bank in a notice sent to the Pakistan Stock Exchange (PSX) stated that M/s. Fauji Foundation had expressed an interest in acquiring the majority stake in Silkbank Limited.
As part of the process, the bank had been requested to allow Fauji Foundation to conduct due diligence of Silkbank and in this regard the Fauji Foundation intended to apply to the State Bank of Pakistan (SBP) for the requisite approval of the same.
“The board of directors of Silkbank Limited in its meeting held on January 28, 2021, has subject to the approval of the State Bank of Pakistan, given its in-principal approval to allow Fauji Foundation to conduct the required due diligence and evaluation the information that will be provided by Silkbank in this regard,” the bank informed the PSX.
Fauji Foundation (also known as Fauji Group), is amongst the largest business conglomerate in Pakistan which “Earns To Serve” the interests of ex-servicemen.
According to its official website, the group is basically a Charitable Trust founded in 1954 for the welfare of the ex-servicemen and their dependents.
It is incorporated under the Charitable Endowments Act 1890.
The history of Fauji Foundation dates back to 1945, when a Post War Services Reconstruction Fund (PWSRF) was established for Indian War Veterans who served the British Crown during WW-II. At the time of partition (1947) when Pakistan came into being, the balance fund was transferred to Pakistan in the proportion of its post WW-II veterans. Till 1953, the fund remained in the custody of the civilian Government, when in 1954 it was transferred to the Army.
The Army instead of disbursing the balance fund of about Rs 18.2 millions (USD 0.2 million) among the beneficiaries, invested it in establishing a Textile Mill. Later from the income of the textile mill, it established first 50 bedded TB hospital at Rawalpindi.
Fauji foundation is proud that from Rs 18.2 million in 1953, it today runs more than 18 industries, the income from which is utilized to serve about 9 million beneficiaries (5 % of country’s population). Generally, more than 80 percent of the income goes towards the welfare activities every year.
The welfare is conducted through health care, education and vocational/technical training. To a limited extent welfare is also a by- product of employment generated for the beneficiaries through commercial and welfare activities. Presently, the welfare is conducted through 143 medical facilities, 142 Schools & Colleges, 45 Foundation Institute Technology.
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SBP identifies shortfall in collateral obtained by Silkbank
KARACHI: State Bank of Pakistan (SBP) has identified shoartfall in collateral against financial facilities granted by Silkbank Limited.
According to information share with Pakistan Stock Exchange (PSX) on Thursday, Silkbank said that the SBP in its latest inspection of the bank, identified a shortfall in collateral against certain financial facilities granted by the bank.
“In compliance with the SBP requirements, the bank has obtained additional collateral, equivalent to identified shoartfall, details of which have been provided to SBP,” the bank said.
The central bank has required the bank to assess the value of the additional collateral obtained, the bank added.
Silkbank informed that in order to fulfill the valuation requirement, SBP had further given the option to delay the quarterly financial statements, as of September 30, 2019, of the bank, till the conclusion of the said valuation process so that the financial statements reflect the full impact of additional collateral obtained.
“The bank has therefore, sought time from SBP, till December 15, 2019, for the conclusion of the evaluation process and publishing of the quarterly financial statements, as of September 30, 2019, of the bank.”
The 170th meeting of the Board of Directors being in session on October 30, 2019, for review and approval of third quarterly accounts for the period ended September 30, 2019, has therefore, been concluded accordingly.