History of the Nib Bank
HISTORY OF THE NIB BANK: NIB Bank Limited started as NDLC-IFIC 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.
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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. 9bn in December 2003 to Rs. 87bn (excluding acquisition of PICIC through rights) as of September 30 2007, a CAGR of 85%.
Loan growth has been equally rapid, increasing from Rs. 7bn to Rs. 43bn 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. 3bn. 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.