Suroor’s acquisitions: Three commercial banks and now a microfinance bank

The takeover of three commercial banks by Suroor Investment has been followed by acquisition of a microfinance bank.

KARACHI: The takeover of three commercial banks – Arif Habib Bank, Atlas Bank and MyBank – by Suroor Investment has been followed by acquisition of a microfinance bank in Pakistan.

Suroor Investment, a United Arab Emirates-based group, has acquired a microfinance bank and an announcement in that regard will be made soon, said Summit Bank Senior Vice President Anwar Lutfullah in a talk with The Express Tribune after a press briefing on the re-launch of Summit Bank, formerly Arif Habib Bank.

The group made a decision about entering the crowded market of Pakistan which has more than 30 commercial banks with an aim of making a mark in the financial sector, said Summit Bank Chief Executive Officer Husain Lawai.

In December 2008, Suroor Investment made its first step in the domestic financial sector by acquiring Arif Habib Bank followed by Atlas Bank. MyBank merger with the two banks has been approved by both the bank’s shareholders and the transaction is expected to be completed by March, said Lawai.

Suroor Investment has invested around $125 million in Pakistan’s financial sector over the last four years while another $50 million is on the cards, he said.

E-banking comes to the country

“We will not ‘copycat’ services offered by local banks,” Lawai said while unveiling a plan to become the first bank to offer e-banking services. E-banking will be online in two months, he added.

Customers will be able to transfer funds, pay utility bills, re-charge mobile phones among other e-banking services from their offices and homes, he said.

The bank will not only focus on e-banking but also aims to establish 50 new branches every year. It currently has a network of 80 branches in 20 different cities.

Mergers were not easy as 200 employees were laid off, mostly from Atlas Bank, who had been recently recruited for a new department which the new management had no plans of opening, informed Lawai.

However, these former employees have been kept on the priority list and will be considered when the bank starts fresh recruitment. From next year, the bank will add 250 people to its workforce annually, he said.

The bank’s customer deposits have gone up to Rs62 billion and advances top Rs44 billion following the mergers.

Published in The Express Tribune, February 8^th, 2011.