In a significant development, the Board of Directors of SME Bank Limited has officially approved an action plan to wind down its subsidiary, SME Leasing Limited (SLL). The board is also exploring the option of selling SLL as a complete entity.
The move comes in parallel with the Islamabad High Court’s recent order, under which the State Bank of Pakistan (SBP) appointed Adnan Imran, Chief Manager of SBP’s Islamabad Office, as the official liquidator of SME Bank Limited with immediate effect.
Board Directs Communication with SECP
As part of the resolution process, SME Bank’s board has advised its management to:
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Inform the Securities and Exchange Commission of Pakistan (SECP) about the current status of the liquidation.
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Request a deferral of the SECP’s scheduled hearing related to SME Leasing.
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Allow the incoming liquidator to assess the full scope of SLL’s affairs before further proceedings.
This strategic delay is aimed at ensuring that all matters related to SME Leasing are properly evaluated during the bank’s liquidation process.
Background on SME Leasing Limited (SLL)
SME Leasing Limited was:
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Incorporated in July 2002
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Listed on the Pakistan Stock Exchange in December 2006
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A licensed Non-Banking Finance Company (NBFC) under SECP’s NBFC Rules
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73.14% owned by SME Bank Limited
SLL has long provided lease financing solutions to small and medium enterprises (SMEs) in Pakistan, aligning with SME Bank’s broader mandate to support entrepreneurship and SME development.
Implications for Stakeholders
The liquidation of SME Bank and the planned wind-down of SME Leasing mark a pivotal shift in Pakistan’s financial services landscape, especially for institutions dedicated to SME development. Potential investors may have the opportunity to acquire SME Leasing as a going concern, depending on how the liquidation process unfolds.
