The State Bank of Pakistan, the central bank of the country, has given the go-ahead to the merger of local lenders NIB Bank and MCB Bank.

“We are pleased to announce that the State Bank of Pakistan vide its sanction order dated June 13, 217 has approved the amalgamation of NIB Bank with and into MCB and that it will be effective as of the effective date, to be announced separately,” MCB said in a filing with the stock exchange.

As per the agreed terms of the deal, one new MCB ordinary share will be swapped for every 140.043 shares of NIB.

Under the arrangement, NIB will cease to exist, with all its properties, assets, liabilities, rights and obligations merged into MCB.

The deal, announced last year, already secured the nod of the Competition Commission of Pakistan and other required regulatory approvals.