Summit Bank, has shown interest in acquiring a majority stake in the Burj Bank, an Islamic commercial bank, said a filing
According to local media reports, the Summit Bank said, "We have indicated our interest in acquiring the majority shareholding in Burj Bank Limited and in this connection have applied to the State Bank of Pakistan…for permission to conduct due diligence of Burj Bank Limited," in a statement issued to the Pakistan Stock Exchange (PSX).
Summit Bank is the fourth bank that has sought permission from the central bank to conduct due diligence of the Burj Bank. Seeking due diligence approval from the central bank is a requirement, in order to carry out a comprehensive examination of its financial accounts and determine its actual worth.
Previously, National Bank of Pakistan, Bank of Khyber and MCB Bank have conducted due diligence, but did not offer a price to acquire Burj Bank Ltd.
Burj Bank is a small Islamic bank with 75 branches present across Pakistan. Whereas, Summit Bank is operating 192 branches nationwide as on December 31, 2015.
The Summit move came as the bank seeks to expand its Islamic banking network, “Moreover, for offering Shariah compliant banking services, the Bank has 10 Islamic Banking Branches and two Islamic Banking Windows as on December 31, 2015," according to the Summit Bank annual report 2015.
Summit Bank earned a net profit of Rs217.22 million in the year ended December 31, 2015, down 5.3pc against Rs229.45 million posted in the preceding calendar year.
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