Habib Bank Limited (HBL) has decided to cease its banking operations in the Sultanate of Oman, as reported by a Middle Eastern newspaper. This decision aligns with the bank’s broader strategic focus on consolidating operations and reinforcing its domestic presence in Pakistan.
According to an official notice published in the Official Gazette No. 1,559, the closure of HBL’s Oman branch complies with Article 84 of the Omani Banking Law, as stipulated in Royal Decree No. 114/2000. The Central Bank of Oman has authorized and facilitated this process by issuing a formal notice announcing the cessation of the bank’s activities in Oman.
In light of this development, HBL has requested that all depositors and individuals with claims against the bank submit their documentation and claims between August 18, 2024, and October 20, 2024. This requirement is in accordance with Articles 82 and 84 of the Omani Banking Law, which govern the voluntary dissolution and liquidation of banking institutions. Specifically, Article 82 allows banks to voluntarily terminate their operations with the Central Bank of Oman’s approval, while Article 84 mandates that depositors and claimants be given at least a sixty-day notice before the final date for claim submissions.
HBL, founded in Pakistan in 1974, is one of the oldest and most established commercial banks in the region, with a significant global footprint comprising over 1,728 branches worldwide. The bank underwent privatization in 2004 when the Aga Khan Fund for Economic Development acquired a majority stake, with the remaining shares subsequently sold by the Government of Pakistan.
The decision to exit the Omani market is part of a larger strategic realignment by HBL to prioritize its core operations in Pakistan. This strategy has already led to the closure of branches in the United States, France, and Seychelles, and plans are underway to end operations in Afghanistan, Lebanon, and Mauritius. These moves reflect HBL’s intent to optimize its resources and enhance efficiency by focusing on markets where it can achieve the most impact.
In Pakistan, HBL continues to strengthen its local presence through various initiatives aimed at expanding its services and customer reach. Notably, the bank has launched HBL Konnect, a branchless banking service designed to offer financial solutions to unbanked and underbanked populations, and HBL Zarai Services, which focuses on providing specialized financial services to the agricultural sector. These initiatives are part of HBL’s broader commitment to fostering financial inclusion and supporting economic development in Pakistan.
With over 1,700 branches across Pakistan, HBL remains a dominant player in the country’s banking sector, continuously adapting to meet the evolving needs of its customers while aligning its operations with its strategic goals. The closure of its Oman branch and other international locations marks a significant step in HBL’s journey to streamline its operations and reinforce its leadership in the domestic market.
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