LAHORE - The NIB Bank Ltd (NIB)’s merger with and into MCB Bank Ltd (MCB) has come into effect from close of business.

This merger has taken place under a share swap arrangement in accordance with the Scheme of Amalgamation as approved by State Bank of Pakistan on June 13, 2017, without involving any foreign exchange transaction. The shareholders of MCB at their extra-ordinary general meeting, held on January 23, have unanimously approved and adopted the scheme of amalgamation of NIB Bank Limited with and into MCB through a share swap arrangement. As a consequence of the approved amalgamation, 73,569,197 ordinary shares of MCB were issued in favour of the shareholders of the NIB Bank.

According to experts, for NIB Bank, the country’s 12th largest bank by market capitalisation, the merger could be a great chance to get out of losses. The bank was struggling to be profitable and it posted profit after tax of Rs2.617 billion in 2015 as against loss after tax of Rs508 million in the year 2014.

According to a press release issued here on Monday, MCB Bank already enjoys the confidence of foreign investors including Malaysia based Maybank, and with this strategic merger, MCB Bank is honoured to welcome Fullerton Financial Holdings (International) of Singapore as another significant international shareholder of the bank.

Now all properties, assets, liabilities, rights and obligations of NIB now stand amalgamated and vest permanently in MCB. The press release said that for now, no changes will be made to the banking services of former NIB customers who will be able to conduct their banking transactions as usual.

Once the full integration of both banks is complete, the merger will provide additional synergies, banking services and added convenience to customers of both banks. Former NIB customers will gain direct access to MCB’s extensive network of branches and ATMs alongside enhanced portfolio of products and services. Additionally, they will also gain access to banking services in several new geographical segments.

MCB Bank is one of Pakistan’s largest bank in the private sector. The bank operates a strong and vast network of over 1300 ATMs, over 1300 branches in Pakistan and 11 branches overseas. With a customer base of over 6 million, it leads the banking and financial services sector in Pakistan and customers across the globe have 24/7 access to MCB Bank via the bank’s world class Internet Banking.