Silk Bank Gets SBP Nod to Receive Investment from Gourmet Group

State Bank of Pakistan has given green signal to Silk Bank to receive an investment from Gourmet Group for 12.05 percent stake which has fulfilled its paid-up capital requirement of Rs 10 billion.

According to details, the central bank approved a Fit and Proper Test (FPT) for its incoming investors and sponsor shareholders including Zulqarnain Chattha and Zubair Nawaz Chattha of Gourmet Group.

The remaining shares of 28.23 percent were finally subscribed by the underwriter Arif Habib Corporation Limited, which had earlier signed an agreement to invest money against all unpaid right shares.

Gourmet Group intended to invest Rs 3.7 billion in the mid-sized bank but its investment will be finalized by the board in the coming days once it okays the result of third quarter for the announcement to its shareholders.

Due to shortfall in the paid-up capital, Silk bank wasn’t allowed to open branches and add new products but now it will look to aggressively expand

Official sources said the bank’s management will set up its branches’ network which will include conventional and Islamic banking , Emaan but these branches will be be relatively smaller compared to operating branches in different cities.

The board of directors has planned to enhance its profitability to Rs 4.8 billion with twofold increase in the assets and expansion of business operations by 2020.

According to the five year strategic financial plan submitted to the central bank, the bank has made projections for its profitability and business expansion in the future.

Revenue and Profit Projections for Silk Bank:

Silk Bank has forecasted that its profit will be increased to Rs 887 million by 2015-end; Rs1.58 billion by end of 2016; Rs 2.8 billion by end of 2017; Rs 3.81 billion by end of 2018 and Rs 4.8 billion by end of 2019.

Similarly, its revenues will be increased to 6.9 billion by 2015-end; Rs 8.2 billion by end of 2016; Rs10.7 billion by end of 2017; Rs 13.08 billion by end of 2018 and billion Rs 15.4 by end of 2019.

However, the bank posted a profit of Rs 49.8 million in first quarter of 2015 but now it recorded a huge loss of Rs 95.6 million by end of first half of 2015 mainly because of 8 percent increased in interest income and impairment of non-banking assets impairment having affect of Rs 286 million​

  • This exactly is our sorry tale. Halwaee, mochi, chamaar running banks, media, and what not. Gourmet desserts are good. But are they good at plumbing? No. Talk about banking. yeah..

    • Pulp Mill -> Power Company -> Rubber Products -> Military Equipment -> Mobile Phones

      Can you name the company? … It’s Nokia, which for over a decade led the mobile phone world.

      Your words, “Halwaee, mochi, chamaar” prove that you’re a racist.

      • dawood habib group of bank al habib and house of habib group of habib metro group who were founder of HBL(firest private bank in oakistan) is only family who are into banking business and they have proved it to run a bank or a company is two different things. brother running a manufacture facility and establishing a bank or media houses is different things to do.

        • They are coming in as shareholders and not bank management. Bank will continue to be run by professional banking management led by Shaukat Tareen who alone has more shares than the Gourmet group after this transaction. So yes, the comment on mochis, halwaais is a bit ignorant if nothing else.

          On the same note, MCB (Mansha owned, who is primarily a manufacturer), Allied Bank (Mukhtar family owned who are textile manufacturers), Soneri Bank (Feerasta family owned who are again textile manufacturers) seem to be doing just fine.

          • providing services and earning profit are two different things, between i didnt know that they will only purchase shares they wont be in managment but they will have thier directors for sure. between who cares who own whom all does matter is best services which are big 4 and small banks liks samba, silk, islami etc unable to provide to their customer. being in export/import i had worsts exprinces with almost all banks expect bank al habib and askari. so instead chaing mangment and name atleast provide good services.

    • You need to upgrade your knowledge in this regard, buying 12% shares do not give you right to run the organization but buying 51% shares do. BTW, negative thinking at its best.

    • Best in this case is a relative term. The Best for you may not be suitable for me. I am very happy with services of Meezan bank. I use some services of Bank Alfalah too, that is going great. A service from MCB I am using is unique and only being offered by one other bank in Pakistan.

      • brother heard good abt meezan defo will open my company account their but dont tell me if you are satisifed with any of big 4, had bad exprinces with every bank except bank al habib and askari (where manager is friend).

  • Message to up and comers: Grow your business in an unregulated sector and than buy your way into the formal sector. Great going.

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