- Consent/NOC from State Bank of Pakistan has already been obtained.
- The change will be effective after regulatory, corporate approval.
- Bank committed to Islamic finance principles: Pr.
Months after announcing its formal takeover by a UAE-based investor, Summit Bank informed the Pakistan Stock Exchange (PSX) on Tuesday that the bank’s name has been changed to align it with the bank’s intended Islamic overhaul. .
In a notification to the PSX, the bank announced that its new name is Bank Makarmah Limited (BML), adding that the name has been approved by the State Bank of Pakistan (SBP).
“In this regard, the consent/NOC has already been received from the State Bank of Pakistan on July 17, 2023,” the notification said.
The bank’s notice to PSX further states that the change will be effective subject to further regulatory and corporate approvals.
“The name change will become effective upon obtaining other relevant regulatory approvals and approval of the shareholders of the Bank at the extraordinary general meeting, through special resolution and on restatement of the memorandum. [and] Articles of Association of the bank,” the notification said.
A separate press release from the banks said the name change followed “the recent acquisition of a controlling stake in Summit Bank by prominent UAE investor, His Excellency Nasser Abdullah Hussain Loota”.
Luta’s vision for Bank Makaramah Ltd is to develop it into a “leading Islamic bank”, providing exceptional financial services and innovative products in line with Islamic principles, the statement said.
“The change of name from Summit Bank Limited to Bank Makrama Limited (BML) reflects the bank’s commitment to embrace Islamic finance principles and provide innovative and ethical financial services to its valued customers,” said the press release.
It further noted that BML was “in the process of developing a comprehensive plan for transformation into a full-fledged Islamic bank”.
It added that this would be done through a comprehensive overhaul of its operations, introduction of Sharia-compliant financial solutions and adherence to Islamic banking practices.
The Dubai-based businessman first expressed interest in acquiring at least 51% stake in Summit Bank by 2021, aiming to take over the bank along with management control.
At the time, Luta held a 0.51% or ₹13 million stake in the bank.
In keeping with his interest, he officially acquired the bank earlier this year after the move was approved by the SBP, the Securities and Exchange Commission of Pakistan and the Competition Commission of Pakistan.
A bank presser said at the time, the investor subscribed to 3.98 billion new shares of the bank at Rs 2.51 per share, giving him a majority equity stake.