Sindh Bank and Summit Bank are likely to be in the final stages of being merged, media sources have reported. The newly merged bank is likely to be named Sindh Summit Bank.
A senior banker supervising the merger of the two banks is reported to have said that the due diligence for the two entities has been completed and they are ready to merge their operations as per the mandatory requirement of the central bank.
A No-Objection Certificate (NOC) is expected to be issued to the banks in the coming weeks while Summit Bank will obtain shareholders’ consent via an extraordinary general body meeting – a process requirement for listed companies.
Following the merger plan, Summit Bank has shelved the plan to convert its operations into Sharia-based Islamic banking while Sindh Bank has withdrawn its application seeking listing on the Pakistan Stock Exchange.
At present, Sindh Bank has been carrying out its operations profitably exhibiting profits worth Rs 1.39b in 2016 whereas, Summit Bank has been in the red after a major pile-up of Non-performing Loans leading to the bank declaring losses of Rs 2.1b in 2016.
It is pertinent to mention that Summit Bank was formed following a merger of Arif Habib Bank, My Bank and Atlas Bank. All these banks will be merged into Sindh Bank, solely owned by the Sindh Government.
