Askari Bank, Zong’s Partner in its branch-less banking business, has intended to acquire KASB Bank, which has been facing a moratorium imposed by the central bank in November for its failure to meet mandatory capital requirement, we have confirmed with sources.
Askari Bank’s board of directors has given the go-ahead signal to the bank’s management to submit application in the State Bank of Pakistan (SBP) seeking Non-Objection Certificate (NOC) for carrying out due diligence of the bank.
This is very initial stage though the central bank is likely to give permission to Askari Bank having expanding business in the banking and financial industry. Later on, Askari Bank will quote a price to KASB Bank management after due diligence related to financial evaluation and legal assessment processes.
The acquisition of the KASB Bank by Askari Bank, if it happens, will also benefit Zong for its branchless business of Timepey in terms of addition of branches and customized services to corporate and commercial sector.
There are 105 branches of KASB Bank in 44 different cities of the country, which could be financial center for branchless banking in providing services of G2P, foreign remittances, salary disbursement and BISP.
There are more than 25,000 retail outlets of Timepey including 291 branches of Askari Banks.