The private Saudi-Pak Industrial & Agricultural Investment Company Limited announced that it had finalized an agreement by which it had gained majority control and management of the Prudential Commercial Bank (PCB) in Pakistan.
The Saudi-Pakistani joint venture plans to expand its presence in Pakistan by focusing on retail banking and insurance. The company decided to launch an insurance company and a bank in Pakistan by year’s-end.
Saudi-Pak has assumed the responsibility for managing and operating the PCB, Saudi-Pak CEO Abdullah Al-Thanyan told Al-Hayat after the signing. The bank’s name will be changed to the Saudi Pakistani Commercial Bank.
In March the Pakistani government placed a six-month moratorium on PCB after serious financial irregularities were detected in the bank’s management. It is hoped that the acquisition of the bank by Saudi-Pak would restore public confidence in the bank.
PCB’s previous paid-up capital was valued eight million dollars. The bank’s capital value presently stands at 1.5 billion Pakistani rupee ($24 million) and its total value assets total eight billion PR ($125 million).
The Board of Directors of Prudential Commercial Bank has already given permission to issue an additional stock of shares of the value of one billion PR to Saudi-Pak. The State Bank will provide all financial support in case of need to the bank.
Established in 1981 under an agreement signed between the governments of Saudi Arabia and Pakistan, Saudi-Pak’s primary goal is to promote industrial development in Pakistan, a market of over 150 million people.
Saudi-Pak provides financial assistance for medium and large industrial projects in private sector. Its initial paid-up capital of one billion PR has since increased to 1.756 billion PR, contributed in equal proportion by the two governments. The company’s core activity, disbursing loans to companies, had achieved 25 percent growth in 2000, disbursing nearly $30 million in loans last year. — (menareport.com)
© 2001 Mena Report (www.menareport.com)
