Karachi, Pakistan — Shareholders of the National Bank of Pakistan (PSX: NBP) have approved a Scheme of Arrangement to demerge a specified portion of SME Bank’s lending portfolio, transferring it to NBP.
According to a filing submitted to the Pakistan Stock Exchange (PSX), the plan has been structured under Sections 279-283 and 285(8) of the Companies Act, 2017. The arrangement ensures that the Demerged Lending Portfolio, along with all associated rights, obligations, contracts, and liabilities, will be transferred to NBP. Meanwhile, SME Bank will retain its remaining assets and liabilities.
The resolution, which has already been approved by NBP’s Board of Directors, was circulated among the bank’s members for their endorsement.
Key Steps of the Plan
- Separation of the Demerged Lending Portfolio: The identified portion of SME Bank’s lending portfolio will be segregated.
- Transfer and Vesting in NBP: The portfolio will be officially transferred and vested in NBP.
- Retention by SME Bank: SME Bank will continue to hold its non-demerger assets and liabilities.
The board has authorized NBP’s Head of Legal Division and the National Business Head of the Inclusive Development Group in Karachi to oversee the process. Their responsibilities include completing all corporate, legal, and regulatory requirements, filing necessary documents, issuing notices, and ensuring compliance with court directives.
The scheme remains subject to modifications or conditions imposed by the Islamabad High Court, as noted in the bank’s stock filing.
This move is expected to streamline operations and enhance the lending capabilities of NBP, particularly in the SME segment.
