Supreme Court (SC) on Saturday maintained stay order on the proposed merger of Summit Bank and Sindh Bank and left the matter to be decided by Chief Justice of Pakistan because it has been taken up under a suo motu notice.
A two-member Sc bench comprising of Justice Faisal Arab and Sajjad Ali Shah heard the case in Karachi Registry. Deputy Governor State Bank of Pakistan Jameel Ahmed told the court that SBP has no objection over the proposed merger. He informed the court that SBP is monitoring the merger plan to ensure transparency and compliance of rules and regulations in the said case.
Justice Faisal Arab remarked that Summit Bank was running into losses and observed whether a loss-making bank would impact Sindh Bank''s financial health.
Justice Sajjad Ali Shah asked about the gains Sindh Bank would achieve if the merger scheme of two banks is materialized.
Director Sindh Bank told the court that his bank would pay salaries to employees of Summit Bank for one year when Justice Faisal Arab inquired about the payment of salaries once the merger took place.
Moreover, employees of Summit Bank would have the option to seek jobs or renew contracts for continuation in the merged entity, he explained to the court. Director Sindh Bank assured the court that the merger scheme would cause no adverse impact on the bank.
In response to a point raised Summit Bank''s lawyer Ali Zafar, Justice Faisal Arab said that since the matter has been taken up under a suo motu notice, Chief Justice of Pakistan will decided the case.
The bench directed the parties concerned to furnish more reports about the merger plan and adjourned the proceedings for May 05 by maintaining the stay order on the proposed merger.
Cleaning of Nullas Supreme Court on Saturday directed the authorities concerned to carry out the cleaning of nullahs in Karachi before onset of rainy season. A two-member bench comprising Justice Faisal Arab and Justice Sajjad Ali Shah was hearing the case pertaining to provision of clean drinking water and drainage of waste water in the city in Karachi Registry.
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