HSBC Oman operations have been obtained by Meezan Bank in Pakistan, a stock filing said on Friday.
Owned 51% by HSBC Holdings, the businesses in Pakistan of HSBC Bank Oman consisted of only one division. At the end of the first quarter of 2015, the bank had gross assets amounting to Rs4.1 billion.
The business of HSBC Oman Pakistan will be converted into a Shariah-compliant mode, a statement released by the bank said. It added that the single HSBC Oman branch’s acquisition marked Meezan Bank’s 500th branch.
HSBC Bank Oman presently operates in Oman, India and Pakistan. It’d decided in 2012 to sell off its India and Pakistan operations. It signed an agreement a year ago to offer its banking company to Doha Bank QSC in April.
Individually, HSBC Oman announced in November that it was in dialogue with Meezan Bank regarding the potential sale of its own operations in Pakistan.
Earlier on, Meezan Bank additionally acquired Pakistan branch operations of HSBC Bank Middle East. This resulted in most customers of HSBC Pakistan automatically becoming customers of Meezan Bank.
Meezan Bank already had the experience of acquiring a foreign bank and converting its businesses from conventional to Islamic. Societe Generale was acquired by it through the same transaction in 2002 in Pakistan.
Based on Reuters, the selling of HSBC Bank Pakistan was portion of a strategy by the biggest bank in Europe to exit from countries where it is not profitable or lacks scale.
Being the second most populous Muslim nation, Pakistan has been a lucrative marketplace for Islamic banks.
Deposits of Islamic banking associations crossed the Rs1-trillion mark for the very first time, registering year-on-year growth of 23.3% in 2014.