The State Bank of Pakistan (SBP) has announced de-scheduling of Burj Bank after its merger with Al Baraka Bank (Pakistan)
In the first week of September this year, Al Baraka Bank announced merger with Burj Bank Limited, including its Pakistan operations. With this merger, all 74 branches of Burj Bank will be converted into Al Baraka Bank (Pakistan) branches to form a combined network of 224 branches across the country.
According to a SBP announcement, the State Bank has sanctioned the scheme of amalgamation of Burj Bank Limited with and into Al Baraka Bank (Pakistan) Limited under Section 48 of the Banking Companies Ordinance, 1962. The scheme of amalgamation would become effective from close of business today, ie, October 31, 2016. Accordingly, all the branches of Burj Bank shall continue their normal course of business/operation under the name of Al Baraka Bank (Pakistan) Limited.
Therefore, in exercise of the powers conferred on it by clause (b) of Sub-Section (2) of Section 37 of the State Bank of Pakistan Act, 1956, the State Bank of Pakistan has announced de-scheduling of Burj Bank Limited with effect from close of business on October 31, 2016, on account of its merger with and into Al Baraka Bank (Pakistan) Limited, in terms of the Sanction Order dated October 14, 2016, issued under Section 48 of the Banking Companies Ordinance, 1962.
Earlier this year, Bank Al Baraka expressed intention to acquire Burj Bank and accordingly conducted due diligence of Burj Bank. After completion of conducted due, both bank entered into negotiations for sale purchase deal and the deal was finalized with the approval of SBP in September this year.
With this merger, according to Bahrain-based Al Baraka Banking Group, one of Gulf's top Islamic banks, its Pakistani unit merger with Burj Bank will create an institution with assets totalling more than $1.1 billion.
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