National Bank of Pakistan (NBP) shareholders approved the scheme of arrangement to spin off part of the SME Bank’s lending portfolio at the Extraordinary General Assembly meeting held on January 6, 2025. The approval was given during the meeting, which took place at the NBP’s headquarters and electronically.
The approved scheme includes the separation and transfer of the separate lending portfolio from the SME Bank to the National Bank, including all rights, obligations, contracts, interests and obligations associated therewith. The SME Bank will retain assets and liabilities not included in the merger under a “retained undertaking”.
The scheme has been prepared in accordance with Sections 279-283 and 285(8) of the Corporations Code of 2017 and has already been approved by the Board of Directors of the Philippine National Bank prior to shareholder approval. In addition, the shareholders agreed to accommodate any changes that may arise from the Islamabad High Court’s review of the scheme, as it has been submitted for approval.
In line with the separation process, the shareholders have authorized the key officials of the National Bank to supervise the implementation of the necessary institutional, legal and regulatory steps to ensure compliance.