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The NIB Bank Limited (formerly NDLC-IFIC Bank Limited) was incorporated in March 2003 as a publicly listed company. In October 2003, all assets and liabilities and all rights and obligations of the former National Development Leasing Corporation ("NDLC") and Pakistanmarker operations of IFIC Bangladeshmarker were amalgamated with and into NIB Bank. In April, 2004 the Pakistan operations of Credit Agricole Indosuez (the Global French bank) were also amalgamated with and into NIB Bank.

In June 2005, Temasek Holdings of Hongkongmarker through Bugis Investments (Mauritius) Pte. Limited acquired over 70 percent shares in the capital of NIB Bank. Presently NIB Bank has a countrywide network of 41 branches and 15 new branches were planned for 2007.

NIB Bank has recently acquired another local financial group, Pakistan Industrial Credit and Investment Corporation (PICIC), with nearly 170 branches. Together the bank have the 7th largest branch distribution in Pakistan, and place the bank in top-10 Pakistani banks in terms of Balance Sheet size and capital.

About the Bank

NIB Bank Limited started as [1]NDLC-IFIVIACK Bank Ltd. which was incorporated in March 2003 as a public limited company. It started operations in October 2003 when all assets , liabilities , rights and obligations of the former National Development Leasing Corporation (NDLC) and Pakistan operations of IFIC were amalgamated with and into the bank with a paid up capital of Rs.1.2bn. In April 2004 the Pakistan operations of Credit Agricole Indosuez were also amalgamated with and into NIB. In March 2005 Temasek Holdings of Singapore acquired 25% shareholding in NIB Bank, through Bugis Investments.

This shareholding was further enhanced to over 70% in June '05 following an increase in NIB's paid up capital to Rs.3.4bn.

NIB Bank has since grown rapidly from a base of 2 branches in 2003 to 45 in the 4th quarter of 2007. Total assets have grown from Rs. 9 bn in December 2003 to Rs 87 bn (excluding acquisition of PICIC through rights) as of September 30 2007, a CAGR of 85%. Loan growth has been equally rapid, increasing from Rs 7 bn to Rs 43 bn in the same period (a CAGR of 64%), resulting from successes in both the commercial and consumer business.

Deposits for the same period have grown at a CAGR of 95%, reaching Rs. 45.3 bn. The overall client base of NIB has also witnessed a tremendous growth in the same period as of September 2007, from a few thousand to over one hundred thousand.NIB Bank's vision is to rank amongst the top 5 banks in the country.Therefore towards end of June 2007 it acquired majority shares of PICIC with the aim of merging PICIC and its commercial banking subsidiary PICIC Commercial Bank Limited into NIB . The acquisition was financed through the country's largest private sector rights issue, with resultant increase in NIB's paid up capital to Rs.21.4bn. The PICIC acquisition has bought with it another subsidiary "PICIC AMC" and an affiliate "PICIC Insurance". NIB already has a shareholding in NAFA, an Asset Management Company (AMC); thus its asset management business will now also be increased, with diversification in the insurance business.

The legal merger of PICIC, NIB & PCBL took place on 31 December 2007, once all regulatory approvals were in place. NIB Bank is led by Khawaja Iqbal Hassan, supported by four business heads and ten business enabling function heads. The merger has resulted in a vastly expanded network of 240 branches and total assets of around Rs.185 bn . Consequently NIB has the second highest paid up capital of around Rs 28.4 bn and ranks number 7 amongst commercial banks in terms of distribution network. Merger synergies will accrue through lower cost deposits, enhanced customer service delivery channels and overall improved efficiencies. These would provide a competitive edge in the face of increasing competition. Temasek Holdings remains the largest single investor in NIB Bank with a shareholding of 63%.

This merger is one step forward in demolishing the banking sector as envisioned by State Bank of Pakistan and enhancing FDI as per the Government of Pakistan's objectives. The powerful franchise of the three merged entities has now been brought together to form a large and powerful bank. Going forward management is confident that the combined bank will be a top performer delivering a wide range of financial services through an extensive branch network. The asset management arms and insurance affiliate are also expected to perform well and provide an attractive dividend stream.

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