Description
MCB Bank Limited (the Bank) is a banking company incorporated in Pakistan and is engaged in commercial banking and related services. The Bank ordinary shares are listed on the Pakistan stock exchange The Bank Registered Office and Principal Office are situated at MCB -15 Main Gulberg, Lahore. The Bank operates 1,433 branches (2016: 1,227 branches) within Pakistan and 11 branches (2016: 11 branches) outside the country (including the Karachi Export Processing Zone branch).
During the current year, the Bank completed the merger of NIB Bank Limited with and into MCB Bank Limited. This is effective from the close of business on July 07, 2017 (the effective date).
The State Bank of Pakistan (SBP), through its letter BPRD (RP-02)/2017/14329 dated June 13, 2017, has approved the scheme of amalgamation and granted sanction order for the amalgamation of NIB Bank Limited with and into the Bank. The Committee of the Board of Directors of MCB Bank Limited (MCB), in their meeting held on December 07, 2016, approved and resolved to present the draft Scheme of Amalgamation of NIB Bank Limited (NIB) with and into MCB before the shareholders of MCB for their approval. The shareholders of MCB approved the Scheme of Amalgamation in the Extraordinary General Meeting (EOGM) held on January 23, 2017 as per the procedure provided in Section 48 of the Banking Companies Ordinance, 1962.The Bank has issued 72,029,258 ordinary shares of MCB in aggregate in favour of the shareholders of NIB on the basis of a swap ratio of 1 (one) ordinary share of MCB for every 140.043 ordinary shares of NIB Bank.
International Financial Reporting Standard (IFRS) 3, Business Combinations, requires that all identified assets (including intangible assets) and liabilities acquired in a business combination should be carried at their fair values on the acquirer balance sheet and any intangible assets acquired in the business combination should be separately recognized and carried at their fair values. IFRS - 3 allows the acquirer a maximum period of one year from the date of acquisition to finalize the determination of the fair values of the assets and liabilities and to determine the value of any intangibles separately identified. The Bank has carried out fair valuation exercise and incorporated fair value adjustments in these financial statements.
The Board of Directors in their meeting held on October 25, 2017 had approved the Scheme of Compromises, Arrangements and Reconstruction (the Scheme) between the Bank and its wholly owned subsidiary MCB Islamic Bank Limited (MIB). The Scheme envisages transfer of banking business of ninety (90) branches of the Bank subject to the approval by the shareholders of the banks and sanction by the Honourable Lahore High Court where under the assets, rights, liabilities, operations, systems, staff, assets of back office functions and obligations of the Bank relating to banking business of these branches will be transferred to and vested in MIB. The banking business of these branches will also stand converted into Islamic banking business on the effective date pursuant to the compliance of applicable regulatory permissions
Both the banks have filed a petition before the Honourable Lahore High Court for sanction of, and for other orders facilitating implementation of the Scheme under Section 279 to 283 and 285 read with other enabling provisions of the Companies Act, 2017. The shareholders approved the Scheme in the Extra Ordinary General Meeting (EOGM) held on February 10, 2018.
Contact Information
Website:
Address:
6th Floor, MCB House 15 - Main Gulberg, Jail Road Lahore
Phone Number:
111-000-111 42-36041998-9
