MCB Bank Limited (PSX: MCB) has approved the Scheme of Compromises, Arrangements and Reconstruction for converting 39 branches into Islamic banking entities, the bank informed the main bourse on Wednesday.

According to stock filing, the scheme has essentially greenlit demerging the existing business, assets, liabilities, and operations of 39 branches of the bank for conversion into Islamic banking branches and the same shall be merged with and into MCB Islamic Bank Limited (‘MIB’) on the Effective Date against payment of cash consideration.

‘The Scheme shall inter alia be subject to the No Objection. Certificates of the State Bank of Pakistan (‘SBP’), approval of the shareholders of MCB and MIB, sanction by the Honorable Lahore High Court, Lahore (the ‘Court’) and other consents as may be directed by the Court and conditions attached thereto,’ the filing added.

MCB Bank Limited is a banking company incorporated in Pakistan and is engaged in commercial banking and related services.

Source: Pro Pakistani