SBP allows Mobilink to begin due diligence on APNA Microfinance

Pakistan’s central bank has allowed Mobilink Microfinance Bank Ltd. to begin due diligence on APNA Microfinance Bank Ltd., a preliminary step that could lead to a merger, the lenders said in regulatory filings.

The State Bank of Pakistan issued the approval in a letter dated Feb. 6, according to disclosures made by APNA to the Pakistan Stock Exchange on Feb. 9.

Under the approval, Mobilink may conduct a two-month due diligence exercise, running roughly through April 6, subject to compliance with all applicable laws, rules and regulations.

The central bank set specific conditions for the review. Members of the due diligence team must sign confidentiality undertakings in line with SBP circulars, and copies of the signed agreements, along with the due diligence report, must be submitted to the regulator.

SBP emphasized that the permission does not constitute final approval for any acquisition or merger under the Banking Companies Ordinance. Any proposed transaction would be reviewed separately on its merits and could be subject to additional conditions, including a satisfactory funding plan.

The regulator also barred the use of depositors’ funds from either bank at any stage of the process and said it reserves the right to take action if any material information is misrepresented.

APNA said the process remains at a preliminary stage and does not have any immediate impact on the company’s financial position or operations. The bank said it would keep the market informed of any material developments.