New foreign bank starts operation |15 July 2014

A new bank, Bank AL Habib, has started operation as an offshore bank in Seychelles but has said it will subsequently enter onshore banking in due course.

Headquartered in Pakistan, Bank AL Habib Limited will be doing international banking and also serving the domestic market by providing new products and services as well as employment opportunities to the residents of Seychelles.

It will engage in the business of taking deposits and advancing loans and credit facilities to corporate and individual clients. Additionally, it will also work with other banks and financial institutions by undertaking, arranging or advising on deals in trade finance, working capital finance, project finance, and other financial products.

The Seychelles branch of the bank, which is located in the Capital City building in Victoria, was officially opened yesterday by Vice-President Danny Faure, who said that with a strong forte in international trade finance, Seychelles looks forward to the Bank AL Habib introducing new innovative products in this particular area.

“Covering of the international trade business across Africa from its base in Seychelles will be quite unique and will be instrumental in providing exposures to the Seychellois in cross border trade finance,” added Vice-President Faure.

Present at the ceremony were the Minister for Finance, Trade and Investment Pierre Laporte; Governor of the Central Bank Caroline Abel; general manager and  country manager of Bank AL Habib Ltd Ehtesham H. Ali and Syed Azar Abbas Zaidi respectively; as well as officials of local banks.

In his speech Vice-President Faure noted that during the past years, there has been a growth in foreign banks entering the Seychelles and introducing new products and services to the domestic market, while also serving other African and international markets.

Citing some of the financial highlights of Bank AL Habib Vice-President Faure noted “a very strong balance sheet, excellent credit rating and the numerous awards accorded to it; including the recognition of the ‘Strongest Balance Sheet Bank in Pakistan in 2013’ accorded to it by the Asian Banker during the recent SIBOS conference held in September 2013 in Dubai, UAE”.

The vice-president also noted that the bank is giving serious consideration to starting onshore operation in the very near future and on that point the country also looks forward to the introduction of new products and services to the domestic market which will surely enhance the Seychelles banking system and assist in the economic development.
 
He also said that while the bank primarily focuses on conventional banking, it also undertakes Islamic banking in Pakistan and thus may assist in the development and structuring of Islamic Banking in Seychelles.

For his part, the bank’s GM, Ehtesham H. Ali went through a brief history of the Bank Al Habib Ltd to its current position among other private banks in Pakistan where it occupies the seventh position among the 38 private ones with assets totalling over 2.6 billion dollars.

“Our focus is primarily on trade finance. For the last three years the international trade finance corporation has awarded the bank numerous awards in trade finance at the global level. We would like to bring this expertise to Seychelles. We would like to introduce trade finance transaction across Africa and in bringing new products in relations to international trade finance,” said Mr Ali.

He said the bank will also work in close collaboration with partners and departments  like the Seychelles Chamber of Commerce and Industry and the Central Bank.

Established in Bombay in 1941, Bank AL Habib then shifted to Pakistan after the country’s creation. It was nationalised by the government of Pakistan with all other domestic banks in 1973. After the government allowed private sectors to establish commercial banks in the country in 1991, Bank AL Habib Ltd was incorporated in October that year and began operations in January 1992.

At present, Bank AL Habib Ltd has a network of 433 branches and sub-branches in 125 cities and towns of Pakistan, including overseas branches in Bahrain, Malaysia, China, Turkey, UAE and now in Seychelles.

The bank also has representative offices in Dubai, Istanbul and Beijing.