The bank’s board of directors said that the fusion with Sindh Bank will be revealed as per the authorized rules and guidelines.
But as per the stock filing, the members of board have unquestionably made the mind to check the information given by Sindh Bank to the people linked to prior the fusion with Summit Bank.
This news about the fusion of two banks is unofficial as no solid decision has come by the members of board, nor has come from any leaked report or news from the banks’ surroundings.
If the decision of amalgamation of two banks comes out to be true, then it will be favorable for the long-term reputation of the bank with customers, impacting its services and standards, paving way for it to become viable.
Additionally, the two banks will have to essentially follow requirements prior the merger after which approval from State Bank of Pakistan and SECP will be required.
Talking about the two banks representation at the Stock Exchange, Sindh Bank is at the point of being listed whereas Summit Bank is on ‘Red’ in the Exchange Market.
Not just this, there was news about Summit converting from a conventional head to Islamic Banking. The conversion hasn’t taken place, likely to have delayed due to upcoming merger or probably dissolved.
Summit Bank’s loss after tax of 9 months was recorded as Rs. 233.116 million which last year, in 2015 was Rs. 90 million – profit after tax.
Sindh Bank’s profit before tax of 9 months was recorded as Rs. 1.7 billion which in last year turned up to Rs. 1.51 billion, resulting in an increase.