Summit Bank’s board of directors said that merger with Sindh Bank will be disclosed as per official rules and regulations.
According to the stock filing, the board members have decided to evaluate the information released by Sindh Bank to the public related to its merger with Summit Bank.
The news about the merger of two banks was either leaked before any concrete decision had being taken by the board members of the two banks, or either leaked as a rumor around the banking circles.
There are possibilities of the merger and amalgamation of the two banks which will not only strengthen one bank but will also be elevate its standards and quality of services, leading it to become competitive.
However, there are mandatory requirements for the merger of two banks especially due diligence which will be followed by approval of authorities such as State Bank of Pakistan (SBP) and SECP.
Hussain Lawai, Chairman of the Summit Bank, used to be a financial advisor and friend of Asif Zardari, former President and Co-Chairman of Pakistan Peoples Party (PPP).
Summit Bank is listed at the Pakistan Stock Exchange (PSX) but it has remained in the red. On the other hand, Sindh Bank is in the initial stage to get listed but it is a profitable and a growing bank.
Summit Bank earlier planned to convert its operation from conventional banking system to Islamic Banking system which seems likely to be dissolved or delayed with the merger/ amalgamation of Sindh Bank.
Summit Bank’s posted Rs 233.116 million loss after tax in nine months of 2016 as compared to after tax profit of Rs 90 million recorded in the corresponding period of 2015.
Sindh Bank’s pre-tax profit for the nine months ended September 30 stood at Rs 1.7 billion as against Rs 1.51 billion earned in the corresponding period of 2015, registering an increase of 17.6 percent.