StanChart plans to double Pakistan network

KARACHI, Jan 8 (Reuters) - Asia-focused bank Standard Chartered plans to more than double its network in Pakistan in five years to capture a sizable chunk of the country's huge, untapped consumer market, a senior official said on Monday.

Last year, Standard Chartered Bank (Pakistan) Ltd, a subsidiary of Standard Chartered Plc. (STAN.L: Quote, Profile , Research), acquired a 95.37 percent stake in Union Bank for $487 million, making it the fifth largest bank in the country.

"We plan to have 250-plus branches in the next three to five years, meaning our network will more than double," Mike DeNoma, Group Executive Director of Standard Chartered Plc told a news conference in Karachi.

"We currently have a 6.5 percent share of the market in Pakistan, and we want to take that to 10-15 percent in the next five to six years."

The bank currently has a network of 115 branches in Pakistan's 22 cities.

DeNoma said Pakistan had a huge untapped consumer market, and with the country's economy growing steadily, there were was much to capture.

"The product-innovation and service-innovation market is under-served, and we are committed to lead these areas," he said.

"We believe in Pakistan. We have been here for 143 years, and we expect to stay at least another 143 years."

Major banking reforms pushed through by Shaukat Aziz, the finance minister President Pervez Musharraf poached from Citibank and then promoted to prime minister, have helped the economy's rehabilitation.

Banks' profits grew 87 percent in 2005 and are expected to grow at about 44 percent this year, according to analysts.

Singapore state investor Temasek Holdings (TEM.UL: Quote, Profile , Research) is set to take a controlling stake in Pakistan Industrial Credit Investment Corp. (PICIC) (PICI.KA: Quote, Profile , Research) in a deal valued at around $300 million.

Foreign banks, including Barclays Plc. (BARC.L: Quote, Profile , Research), ABN AMRO (AAH.AS: Quote, Profile , Research) and HSBC (0005.HK: Quote, Profile , Research) (HSBA.L: Quote, Profile , Research), are also eyeing investment opportunities in Pakistan, attracted by economic reforms that have laid the platform for rapid growth and rising incomes.

http://investing.reuters.co.uk/news/articl...C1-ArticlePage1

They are going for organic growth or acquiring another bank?

S' Pore company is a monster and if the invest in PICIC, this would be the best bet for our SME, I wish it happens, its going to be new start of PICIC.

I think its through acquisition of Union Bank as Union Bank had a vast network in the country as well. So its probably not organic. But I am not sure if the same company is going to keep Union as a subsidiary or would they merge the two.

Yes they have acquired Union Bank..

PICIC has been acquired by NIB bank which the Singapore firm owns/holds controlling stake in. A couple of other European banks are also in the tow of acquiring Pakistani based banks, this includes ABN AMRO, Barclays and HSBC... possible targets are Prime Bank, Soneri Bank