Details

Case

Privatisation of United Bank Limited

Bashir A Khan, Nabeela Naeem

INDUSTRY : Banking

AREA : Finance

ORGANIZATION : United Bank Limited

LENGTH : 17

LUMS No : 02-553-97-1

PUBLICATION YEAR : 1997

KEYWORDS:

Privatisation,UBL,United Bank,Limited,Banking,Industry,Sector,IMF,International Monetary Fund,NDFC,Commercial Banks

DESCRIPTION:

The privatisation process started in Pakistan, in 1991, at the insistence of the World Bank and the International Monetary Fund in order to generate financial resources and curb losses continuously suffered by the industrial units. Initially, the production and trading units were put up for sale, but after the successful privatisation of Muslim Commercial Bank and Allied Bank in 1991, the government was encouraged to advertise the remaining banks and financial institutions namely, Habib Bank Limited (HBL), United Bank Limited (UBL), National Development Finance Corporation (NDFC) and Industrial Development Bank of Pakistan (IDBP), in October 1991. In response to the call for prequalification applications and financial offers, only nine bids were received - three each for HBL and IDBP, two for NDFC, and only one for UBL. The Privatisation Commission had an agenda in which they worked out the modalities to privatise the commercial banks1 first i.e. HBL and UBL and therefore rejected all the other offers1. The financial size of Habib Bank and United Bank together was then placed at Rs 58.1 billion.

LEARNING OBJECTIVES:

N/A

SUBJECTS COVERED:

Finance