The State Bank of Pakistan (SBP) has granted approval to TPL Corp Limited (TPL), a Pakistani financial platform, and Abhi (Private) Limited to initiate the due diligence process for FINCA Microfinance Bank Limited, according to an announcement by TPL Corp on Tuesday.
In its notice to the Pakistan Stock Exchange (PSX), TPL Corp, the investment holding company of the TPL Group, stated, “We are pleased to announce that the SBP, by way of its letter dated December 18, 2023, has granted TPL Corp and Abhi (Private) Limited its approval to commence the due diligence of FINCA Microfinance Bank Limited for a potential acquisition by TPL along with Abhi of a majority shareholding in the bank.”
The notice further mentioned, “The proposed transaction will remain subject to the outcome of the due diligence, obtaining requisite internal and regulatory approvals and entering into definitive documentation.”
In November, TPL Corp and Abhi Limited entered into a non-binding term sheet to explore the possibility of acquiring a majority shareholding in FINCA Microfinance Bank Limited.
Previously, in January, Apna Microfinance Bank Limited (APNA), a microfinance services provider, had signed a Memorandum of Understanding (MoU) with FINCA. However, in July, both FINCA and APNA announced the suspension of merger talks after completing a thorough due diligence process.
The decision to suspend the talks was made as both parties explored other opportunities to safeguard the interests of stakeholders, depositors, borrowers, regulators, partners, and staff.
Senate Finance Committee Raises Alarm Over Proliferation of Counterfeit Rs5000 Notes
Meanwhile, the Senate Standing Committee on Finance expressed worry about the widespread circulation of Rs5000 notes, a situation that officials from the State Bank of Pakistan (SBP) reportedly struggled to identify.
Highlighting the severity of the issue during the committee’s meeting, PPP Senator Salim Mandviwala, who chaired the session, presented a stack of counterfeit Rs5000 notes, emphasizing that even members of parliament are susceptible to fraud.