Picic Bank to be functional by September 30

Pakistan Industrial Credit and Investment Corporation (Picic) Managing Director Muhammad Ali Khoja has said the Picic Commercial Bank will be merged with Picic to become Picic Bank by September 30 this year. "The Picic Bank will be the sixth largest bank in Pakistan after this merger with an equity of Rs 11 billion," said Muhammad Ali Khoja in a statement on Thursday.
He said the bank would cater to demand of every sector, including corporate, industry, banking, trade, insurance and consumers, as a true financial supermarket. "Some accounting and tax matters in connection with the amalgamation are taking a little longer," he added.
Khoja said the Central Board of Revenue (CBR) had clearly stated that due to tax losses of Rs 2.5 billion, the Picic couldn't be merged with the Picic Commercial Bank, adding in fact, Picic Commercial Bank had to be merged with the Picic.
"Due to the CBR's suggestion, we have again sought expert opinion from our tax consultant and merger consultant, A.F. Ferguson and Company, on the new situation and asked them to carry out audit of accounts till June 30, 2005," he said.
He said earlier, both the entities were being merged on the basis of December 31, 2004 accounts, but now they would be amalgamated on the basis of accounting period ending June 30, 2005. That was the reason why the merger had been deferred for another three months, he observed.
"We have now set a deadline for this merger by September 30. We have obtained expert opinions from our tax consultants and financial consultants and we are working on a fast track basis on this merger," the Picic chief noted.
He said the State Bank of Pakistan had already communicated its "no objection" on that merger.
Khoja said the audit of accounts of both the Picic and the Picic Commercial Bank was in progress and would be completed by August 15, and merger was expected to take place by end of September this year.
He said the amalgamation scheme was being prepared on a fast track, and Fergusons would calculate and suggest the "swap ratios" to the Picic management as early as possible. Merger scheme would be finalised on the basis of those ratios, he added.
He pointed out that after the completion of audit report, a special annual general meeting would be held to approve that merger scheme and complete that process by September 30.