Pakistan's top two banks compete for RBS's local assets

14 April 2009

Two of Pakistan's biggest banks, Habib Bank Ltd and MCB Bank, are competing to bid for Royal Bank of Scotland's local assets in Paskistan, which the market values at $266 million.

The Pakistan sale is part of moves by part-nationalised, London-based RBS to sell assets globally as it tries to exit from up to 36 countries and focus on its mainly UK core businesses.

The purchase would give the banks an edge in a nation that forecasts an economic revival starting in the next fiscal year.

Pakistan's economy may expand more than 6 per cent annually on average over the next five years, Shaukat Tarin, adviser to the prime minister, said last month, as the nation seeks $6 billion in aid from countries including the US and Japan.

The two Pakistan lenders may be interested in RBS's assets to gain clients from multinational companies, its consumer banking network and a few prized branches in main cities, analysts said.

Betwen them, the two banks have more than 2,500 branches between them in the country, with MCB trumping Habib's market capitalisation. However, if Habib wins the race to acquire RBS assets, it will become Pakistan's most valuable bank.