SBP approves Atlas Bank, Summit Bank merger

The State Bank of Pakistan has accorded sanction to the scheme of amalgamation of Atlas Bank Ltd with and into Summit Bank Ltd (SBL), formerly Arif Habib Bank Ltd under Banking Company Ordinance 1962.SBP, in its letter sanction letter of December 15, 2010, has directed Summit Bank Ltd (SBL) to comply with conditions stated in its order while implement the scheme of amalgamation.According to information reaching KSE here Tuesday, the Central Bank has asked SBL to meet any shortfall in minimum capital requirement (MCR) from its own resources as a consequence of this merger.Under the requirements, Suroor Investment Ltd, the consortium will inject fresh equity of at least Rs 2.5 billion through right offer in SBL.In addition, SBL will at all times meet the MCR and capital adequacy ratio as prescribed by SBP from time to time. The depositors’ fund will not be used on account of this transaction.It may be noted that the board of SBL has already approved valuation and swap ratio for the issuance of 0.45 share of SBL for one share Atlas Bank Ltd – Brecorder