KARACHI: Speaker, Sindh Assembly Tuesday rejected adjournment motion moved by Pakistan Tahreek-e-Insaf lawmaker, Khurrum Sherzaman against merger of Summit Bank into Sindh government run Sindh Bank.
Senior Minister and Parliamentary leader of the ruling Pakistan Peoples Party, Nisar Ahmed Khuhro opposed the adjournment motion, saying that merger deal was still not finalized.
Speaking on his adjournment motion on floor of the Sindh Assembly the PTI lawmaker said that the bank running in billions of rupees loss is being merged into the Sindh Bank. He questioned that to whom the Sindh government was benefiting through this deal.
Earlier in a notification sent to the bourse by Summit Bank Limited on October 15, it has been notified subject to approval by State Bank of Pakistan and other regulatory bodies its board of directors have given go-ahead to amalgamation of Summit Bank with and into Sindh Bank via a share swap transaction.
In the 83rd meeting of the board of directors of Summit Bank on October 12, 2017, the board approved the revision to the swap ratio from 1:3.85 to 1:4.17, this means that 1 (one) share of Sindh Bank Limited will be issued for every 4.17 ordinary shares of Summit Bank Limited.
Furthermore, the notification informed that an extraordinary board meeting has been convened on November 7, 2017.
Profit had reported back in August that Summit Bank’s board of directors had approved the merger with Sindh Bank via a share swap transaction.
According to the proposed merger, the combined banks would have a market capitalization of over Rs30b and will have 500 branches spread across Pakistan.
Summit Bank had previously been struggling with hard capital requirements under the Basel III regulations. SBP had eased the requirements of Capital Adequacy Ratio (CAR) and leverage ratio for Summit Bank and given it time till June 29th to improve its CAR.