As per the notice released by Habib Bank Limited (HBL), the bank has approached Silkbank Limited (SILK) to divest SILK’s Consumer Portfolio comprising credit cards, running finance and personal loans so that HBL can proceed with the due diligence. To highlight, HBL Bank has the highest advances in the industry at PkR 1.2trn as of Dec20, translating into an ADR of 42%. Meanwhile, SILK’s advances stood at PkR 105bn as per its latest available annual accounts (CY19). SILK has the highest exposure in Real Estate and Construction (PkR 26.1bn), Individuals (PkR 23.4bn) and Wholesale & Retail (PkR 17.7bn) sectors. Note that Consumer/SME segment’s PBT contribution was PkR 3.0bn for CY19. The divestment of SILK’s portfolio would help HBL to increase its portfolio size and NII expansion, eventually.