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Published on June 2nd, 2009 | by Arsalan Mir

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Telecos Entering Banking Sector






Earlier it was just Telenor which acquired 51% stakes in the Tameer Microfinance Bank. Now Orascom (The group Mobilink is part of) a telecommunication company having no experience in banking, has also joined the race to win Royal Bank of Scotland (RBS) operations in Pakistan, while June 5, 2009 has been set as last date for submitting offers for acquiring local assets of the London-based bank.

The State Bank of Pakistan on Friday allowed Orascom to conduct due diligence. Two largest Pakistani banks, MCB Bank and Habit Bank, are in the forefront to acquire the RBS operations. JS Bank, a relatively small bank, is also interested in buying RBS operations in Pakistan and is conducting due diligence. If JS acquires the RBS, it will suddenly put the JS Bank among the list of large banks operating in Pakistan.

Analysts believe that MCB Bank is the strongest candidate for the RBS and HBL despite being a heavy-weight could not go beyond a certain limit. However, JS Bank, which has strong financial backing, could try to get the RBS operations at the highest cost. With three Banks in the competition where does Orascom stand?

It must be noted here that Orascom (Mobilink) among the Telecos holds a strong interest of Mobile Banking scope in Pakistan and this move can make things easier for them.

Lets hope to see Mobile Banking in Pakistan soon.

[via Dawn.com]


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About the Author

is a Telecom enthusiast with engineering background based in Lahore. On professional front, he is the Director Operations at the Target Group. He can be reached at arsalan (at) telecompk (dot) net



5 Responses to Telecos Entering Banking Sector

  1. Umar Ali says:

    It might be possible that Orascom would give the highest bid bcs of Jew lobby involved in this deal. Its an established proof that our Media and telecommunication sector is been transfering in the management of Jew lobby through a planned propagenda against Pakistan. Mobilink (Orascom) is fully sponsored by jewish lobby who are now desiring to penetrate in the financial sector of Pakistan but we can’t deny this these jews banks are not participating in the economic activity of Pakistan nor in future they will do it. Their main area of financing is consumer lending purpose for which is to disturb the purchasing power of individuals. After 5-10 years in a poor economic country like Pakistan where the economy is not stabble at all in case of any recessionary period the common man will be badly stucked under the heavy amounts of markup’s charged by these banks. When a common man have left with no savings and even when he has money to for purchasing it will ultimately effect the Industry, trade and commerce of Pakistan.

    So State Bank of Pakistan, should watch the interest of the country before giving permission to such organizations and must check the sponsors behind such investments.

    Regards
    Umar Ali

  2. It is apparent that Mobilink has got an interest in banking after Telenor bought a majority share in Tameer Micro-Finance Bank last year.

    But simply to have your mobile banking is not the right reason to acquire a complete bank. Would car makers be interested in building roads of their own for their cars to be driven on? Very absurd idea indeed.

    Secondly, RBS is not a deeply rooted bank in Pakistan and doesn’t hold large customer base. Thus this take over wouldn’t provide Orascom reach to the masses.

    Mobile banking has seen to be successfully used by low income groups in African countries. RBS, being a foreign based bank, hasn’t been building such a customer base — but Tameer has. On this count too it will not be advantageous for Orascom to acquire RBS.

    Further, banking is a different beast than telecom. There are more than 40 players already active in the market. Here, Orascom wouldn’t have the early entrant advantage as well.

    Lastly, if Orascom succeeds in taking over RBS Pakistan, it wouldn’t be helping in gaining consolidation of the banking sector that SBP is trying to achieve by facilitating mergers and enhancing paid up capital requirements.

    I think will will be advantageous for all if Orascom builds partnerships with one or more large banks in Pakistan and delivers innovative banking products.

  3. bratsareback 2 says:

    Ana I’m respecting your opinion otherwise look at what happened to their cement venture, sold out to french company. Mobilink rescued from verge of nervous breakdown. LDN is history. Infinity is toast. Please I don’t want to hear that again that RBS is being sold to some Libyan company. I have had simply enough of this. My ears are tired now. I’m almost sleepy hearing all of that and hungry too. No one even hugs me :( Please DND. kati with all of you :(

  4. Ana says:

    I guess if Orascom takes over RBS, it will be better as the industry has a grinch and the market has options for new companies entering rather than local bansk taking over RBS.
    Looking for a dynamic and interesting change in the market.

  5. Pingback: Telecos Entering Banking Sector | Tea Break

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