MCB Bank Limited (PSX: MCB) announced a significant expansion of its Islamic banking presence through a Scheme of Compromises, Arrangements, and Reconstruction. The plan, revealed in a filing to the main bourse, involves converting 39 branches into Islamic banking entities.
The scheme entails separating the business operations, assets, liabilities, and staff of these 39 branches from MCB Bank. These branches will then be transformed into Islamic banking branches and merged with MCB Islamic Bank Limited (MIB) on a designated effective date, with cash consideration involved.
However, implementing the scheme requires navigating regulatory hurdles. Obtaining No Objection Certificates from the State Bank of Pakistan (SBP), shareholder approval from both MCB and MIB, and court sanction from the Lahore High Court are necessary steps, along with any additional requirements mandated by the court.
MCB Bank Limited, a leading Pakistani banking institution, focuses on commercial banking and related services. This strategic move highlights their commitment to diversifying their offerings and catering to the rising demand for Islamic banking solutions in the market.