The HSBC Bank is said to have agreed to sell its Pakistani operations to JS Bank Limited. However, the transaction is subject to regulatory approval and the approval of the stakeholders of both the parties, namely the HBME and JSBL. According to market observers, the acquisition would give the JS Bank much more than the customer base. The analysts at InvestCap Research opine that contrary to popular opinion, JSBL’s interest in HSBC’s Pakistani operation has to do with much more than its premium customer base. They said the prime factors that made the former to acquire the latter include HSBC’s strong footprint in the consumer banking segment, something which JSBL lacks, enhancing the tier 1 capital of the bank, as JSBL had fallen short on State Bank’s prescribed Minimum Capital Requirement (MCR) during CY11 and face the music this time around, as the MCR has been raised to Rs9bn (For CY12). Thirdly, they said the superior information technology infrastructure and better risk management parameters of HSBC, which are highlighted by the infection ratio of mere 3% during 1HCY12 against JSBL’s12% during the same period.
