The Board of Directors of Sindh Bank has given a go-ahead signal to its management for conducting conduct due diligence of Summit Bank mainly for possible acquisition of its operations and merger as the second option.
A statement of Sindh Bank recently clarified the situation regarding the acquisition and removed any ambiguity regarding the plans to acquire Summit Bank.
According to the communiqué released by Sindh Bank’s Company Secretary Shamsuddin Khan, the board of directors also decided to step up the process of acquisition or amalgamation of Summit Bank. This is contingent on the condition that it receives regulatory approval from the authorities including State Bank of Pakistan and Security and Exchange Commission of Pakistan.
Summit Bank is an older bank than Sindh Bank but its financial health is vulnerable due to Non-Performing Loans amounting to Rs 17 billion. Sindh Bank is owned by Government of Sindh having deposits of Rs 102 billion, depicting a solid edge over Summit Bank. It has been operating subsidiaries including Sindh Insurance Company, Sindh Modaraba and Sindh Leasing.
Sindh Bank operates 250 branches, 13 Islamic Banking Branches and 8 Sub-Branches whereas Summit Bank is running 192 branches including 10 Islamic Banking Branches.
Sindh Bank’s pre-tax profit for the nine months ended September 30 stood at Rs 1.7 billion as against Rs 1.51 billion earned in the corresponding period of 2015, registering an increase of 17.6 percent.
Summit Bank’s posted Rs 233.116 million loss after tax in nine months of 2016 as compared to after tax profit of Rs 90 million recorded in the corresponding period of 2015.
The management of Sindh Bank has postponed its decision to get listed at Pakistan Stock Exchange (PSX) till the results of deals are concluded in the coming weeks. Sindh Bank might get listed easily after the acquisition of Summit Bank.
With the acquisition and merger deal between the two banks, Sindh Bank will have 442 branches countrywide with the increased penetration throughout the country due to Summit Bank.
Summit Bank Employees k tou mazay hogaye. Sindh Government k employees ho jayien ge.
Mazaay???
Even NBP is hiring on contract and there are no “SARKARI” jobs. Same will be the case with Sindh Bank.
really? they won’t be given status of civil servant?
No. I am a Banker and we all work in three months notice contract. Banks can get rid of employee on three months notice or by paying three salaries. Same is valid from employee side.
Sarkari naukris are getting rare.
So what will this mean for account holders. Their account details will remain the same or will they have to go through the trouble of opening another bank account?
For account holders, it is just change of name on bank documents.
So in short, they are not going to be troubled in any manner?
Yes sure.
Bhai jaan Job ke lalay par jayen ge, very very appropriate that huge down sizing is expected in Summit Bank.
phir tou it is sad news.
Summit Bank is also a merger of Arif Habib Bank, Atlas Bank and MyBank and in 2011 because of Summit Bank many employees were jobless.
Sindh Bank ke through PPP ki hukumat ne apni black money ko white money kar diya.. ab Sindh Bank ki zaroorat nhn rahi.
You are wrong… They are putting all liabilities of Summit bank to Sindh government and selling dead elephant…. Zardari owns summit bank
U mean Summit Bank Ada aur Adi ka hai?
only Ada he got 3 banks in gifts from different business mens and merge them into summit now summit have much liabilities and it will transfer to sindh bank
Summit Bank was a merger of Arif Habib Bank, Atlas Bank and MyBank now Summit Bank itself is being merged in Sindh Bank, In 2011 many employees were jobless because of Summit Bank.
Arif Habib Bank was Arif Habib Rupali Bank which later became only Arif Habib Bank, Atlas Bank acquired Dawood Bank and became Atlas Bank Limited and MyBank acquired Bolan Bank which later became MyBank so all these bank later became Summit Bank Limited in 2010 now SINDH BANK is the final destiny of all these banks.