The boards of directors of MCB Bank and NIB Bank have agreed on a merger of the two banks by way of a share swap agreement.       

Under the arrangement, major operations, clients, business including assets, and clients of NIB Bank will merge into MCB Bank, to create a combined entity known as MCB Bank.

However, shareholders of NIB Bank will have stake in the merged group as well as representation in board.         

The integration is expected to boost MCB’s total deposits to PKR887bn and expand its branch network to 1,395.

NIB Bank company secretary Ather Ali Khan said: “As a consequence of the Proposed Amalgamation, 73,569,197 ordinary shares of MCB shall be issued in aggregate in favour of the shareholders of the {NIB} Bank on the basis of a swap ratio of 1 (one) ordinary share of MCB for every 140.043 ordinary share of the {NIB} Bank.”

The deal is subject to shareholders’ and regulatory approvals, including approvals from the State Bank of Pakistan and the Competition Commission of Pakistan.