Pakistan banks pad up for a new innings

Habib Bank, National Bank of Pakistan apply for licences.

Habib Bank of Pakistan plans to fly down Shahid Afridi and Danish Kaneria to Mumbai for a cricket match to celebrate its entry into India.

The largest private sector bank of Pakistan has applied for branch licence in India after the central banks of the two countries inked pact to re-establish banking ties.

Habib Bank and National Bank of Pakistan have approached the Reserve Bank of India with permission to establish operations few months ago.

"We (Habib Bank) hope to get a nod from India's central bank soon. When that happens, we would like to hold cricket match in the financial capital of the country", banks executive vice president Zafar Osmani said on the sidelines of World HRD Congress here today.

"Initially, our interest is to focus on trade finance to boost export and import between to the two countries. At a later date, the bank could look at project finance and consumer finance, subject to regulatory norms," Osmani said.

The bank has legacy of having leading cricket players on its employees. Pakistan's two test players - all-rounder Afridi and leg spinner Kaneria - work with Karachi-based private bank.

"We would approach Cricket Club of India in Mumbai to help us in organising match", he said.

Habib Bank inaugurated its operations in August 1941 with the bank's first branch in Bombay. Following formation of Islamic Republic of Pakistan in 1947, the bank shifted its head office to Karachi.

The bank was nationalised in 1974. It was privatised in 2004, wherein the Aga Khan Fund for Economic Development got rights to acquire 51 per cent stake in Habib Bank with investment commitment of US$389 million. The balance stake is held by the Pakistan government.

State Bank of India and Punjab National Bank (PNB), which had branches in Pakistan, are likely to get the regulatory nod to set up shop in Pakistan in the first round. Their branches had been seized by Pakistan's custodian of enemy property during the 1965 war.