The merger of Sindh Bank and Summit Bank has been finalized. It is expected that Summit Bank will shut down the operations by December 29. However, it depends on the approval of State Bank of Pakistan.
The merger of Sindh Bank and Summit Bank is a distinctive deal in the banking sector. It this merger a profitable public sector bank run by a provincial government is acquiring a struggling private bank.
Sindh Bank may merge or close such branches Summit Bank as considered essential in terms of the branch licensing policy of the State Bank.
In this merger the Sindh Bank will take over all the Summit Bank’s assets and properties. Furthermore, within consideration for the merger contemplated by the Scheme, every person who is a registered shareholder of Summit Bank shall be entitled to receive 01 (one) share of Sindh Bank for every 4.17 shares of Summit Bank held by such shareholder.
Moreover, the workers of Summit Bank will become employees of Sindh Bank on the same remuneration that they were getting. However, new appointment letters will be given to the employees. The issued letter will be formed on schemes and polices of Sindh Bank.
This merger will help Sindh Bank to compete with other banks like Bank of Khyber and Bank of Punjab as it will boost its size and outreach of the bank.
This unique deal between the two banks is not free from challenges. There are liabilities and there is also need of solving issue of Non-Performing Loans while bringing new cooperation with the wide network, operations and staff members.
