According to News website Sindh bank and summit bank likely to marged in second quarter 2017 with the official approval of banking ragulation, and Sindh bank and Summit Bank merge name 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.
At present, Sindh Bank is a profitable bank but Summit Bank is in the red.
Sindh Bank showed a double-digit growth in profits by 13 percent and stood at Rs 1.39 billion by the end of 2016. Whereas, the huge and piled up Non-Performing Loans of Summit Bank have dragged the bank into a whopping loss of Rs 2.1 billion in 2016 as against the previous year in which the bank succeeded to book a profit of Rs 217 million.
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.