State Bank of Pakistan has approved the proposal of Meezan Bank acquiring HSBC Bank’s Pakistan operations within two months. Meezan Bank has proposed complete takeover of HSBC’s banking business in Pakistan and it has been holding negotiations with HSBC Middle East, an indirect wholly owned subsidiary of HSBC Holding. HSBC Pakistan has assets of Rs 48 billion along with 10 operational branches in various cities of the country. The central bank clarified that the merger would be considered separately under section 48 of Banking Companies Ordinance, 1962 keeping in view the compliance of the amalgamation entities with applicable laws, rules and regulations and merits. Meezan Bank has already stated that it intends to make the operations of HSBC Shariah-compliant while ensuring that the existing customer base continues to receive uninterrupted banking services. The bank has acquired Societe Generale in Pakistan through a similar transaction in 2002.
