HISTORY OF HABIB BANK

Mohammed Ali Jinnah, Pakistan's first Governor General, understood the importance of (related
to managing money) intermediation while he was working hard (publicly) for the creation of a
separate homeland for the Muslims. He convinced the Habib family to establish a commercial
bank that could serve the Muslim community. His effort to begin (doing something) resulted in
the creation of Habib Bank in 1941, with head office in Bombay (now Mumbai), and fixed
capital of 25,000 rupees. The bank played an important role in (getting ready for action) money
from the Muslim community to finance the All-India Muslim League's (series of actions to reach
a goal) for the creation of Pakistan. Habib Bank also played an important role in channeling
relief money to Muslims hurt in the shared riots and violence that happened before the departure
of the British from British India and the later section.

After the creation of Pakistan in 1947, Habib Bank moved its headquarters to Karachi, Pakistan's
first capital, at the commending of Governor-General Jinnah. This gave Karachi its first
commercial bank of the newly formed Pakistan. The Habib family would own and manage the
bank until the Pakistan government owned it on 1 January 1974.

On 13 June 2002, Pakistan's Privatization Commission announced that the Government of

Pakistan would grant the Aga Khan Fund for Economic Development (AKFED), a smaller
company owned by the Aga Khan Development Network, majority ownership of HBL against an
AKFED's investment in the bank.

During 2002, HBL's UK operation came close to being shut down due to legal issues with the
Financial Services Authority. The issue was settled by converting the operations to a
supplementary. Then Habib Bank Limited and Allied Bank of Pakistan merged their operations
(Habib gave its 6 branches and Allied its 4), into a new bank, called Habib-Allied International
Bank, in which Habib Bank has a 90.5% shareholding, while Allied Bank has 9.5%.

In December 2003, the Government of Pakistan granted AKFED rights to 51% of the
shareholding in the bank against an investment of PKR 22.409 billion (US$389 million). [9] In
February 2004, Government of Pakistan handed over management control of Habib Bank to
AKFED. The Board of Directors was built-up again to have four AKFED candidates, including
the Chairman and the President/CEO and three Government of Pakistan candidates.
In April 2015, the Government of Pakistan sold its 41.5% stake or 609 million shares in the bank
for $1.02 billion.[11] According to the finance ministry, the strike price of Rs.168 per share
(compared to the floor price of Rs.166 per share) was recommended by the Privatization
Commission Board. The bank's owners now include the Aga Khan Fund for Economic
Development (51%) and the remaining 49% of shares are in free float. CDC Group holds 5% and
the International Finance Corporation holds 3% while the rest of the shares are held by people,
institutions and funds.

On 18 April 2016, HBL received license to operate a major in Urumqi, Xinjiang, becoming the
first Pakistani bank to operate in China.