The Gourmet Group will be injecting an additional Rs. 2 billion in Silk Bank. The cash injection is in keeping with the bank’s expansion plans in the country. The bank hopes to achieve the target of opening additional new 200 outlets in the ongoing year.
After successfully meeting the minimum capital requirement criteria by SBP for commercial banks, Silk Bank posted a healthy net profit after tax of Rs. 1.048 billion, which is 305% more than the previous year’s.
Now the bank is focused on aggressively introducing new consumer products, with an eye on reaching new customers as a result of its plans to opening 200 new branches. These branches are expected to capitalize on mostly the CPEC routes for strategic reasons.
Silk Bank currently has 180 branches, making it the 4th largest bank in terms of branches in Pakistan.
The Bank is backed by sound sponsors/owners such as the Gourmet Group and Arif Habib Corporation Limited.
At current levels, and in keeping in view its bright future ahead, Silk Bank offers a healthy upside outlook of at least 100 to 150%, given its short-term target price being set at Rs. 3.80 to 4.25 per share.