Summit Bank is set to bring stability to its financial management step by step, as the bank’s shareholders authorized the equity injection of Rs. 10 billion from a UAE-based investor in a special resolution in an extraordinary general meeting.
Accordingly, the UAE-based investor Nasser Abdulla Hussain Lootah will subscribe to 3.98 billion new shares of the bank at Rs. 2.51 per share to gain management control as well as 51 percent shareholdings, which will generate Rs. 10 billion in equity for the commercial bank.
The injection of fresh liquidity is meant to fix the bank’s capital adequacy issues. Without naming Summit Bank, the International Monetary Fund recently urged the State Bank of Pakistan (SBP) to take a “more proactive approach” in addressing the matter of its undercapitalization.
A spokesperson for the bank said the investor has already placed the promised equity with the bank as an advance against the proposed issuance of shares. “Going forward, the investor intends to convert the bank to a full-fledged Islamic bank,” he added.
Nasser Abdullah Hussain Lootah is the former Chairman and director of Summit Bank who already owns 0.51 percent shares in the bank. Besides, Suroor Investments Limited holds a 66.77 percent stake in the bank, while Rupali Bank owns 1.24 percent shares in the bank.
