August 04, 2015 The State Bank of Pakistan (SBP) Monday cleared the amalgamation of the HSBC Bank Oman S.A.O.G operations in Pakistan with Meezan Bank Limited (MBL), the country's first Shariah-compliant bank. The in-principle approval from the banking regulator means that Meezan Bank now would be allowed to carry out the required formalities that include getting its shareholders' nod, for the proposed merger. The central bank, reads an SBP letter issued Monday, was "pleased to grant you in-principle approval to proceed with completing the required formalities". The proposed amalgamation is subject to compliance with applicable laws, rules and Shariah standards, said the SBP. The SBP said its Islamic banking department was reviewing the conversion of HSBC Bank Oman's conventional portfolio into the Islamic modes. The regulator advised the Meezan Bank to co-ordinate with its concerned department for obtaining the required clearance while completing other formalities. "The in-principle approval... should not be construed as final approval for the proposed merger," the central bank warned. Adding that the bank's request for merger under Section 48 of Banking Companies Ordinance 1962 would be considered separately keeping in view compliance of the amalgamating entities with applicable laws, rules, and regulations and on merit. "SBP at time of final approval may also impose any condition as deemed appropriate," it said. The State Bank advised to develop a plan for complying with any violation(s) especially of legal requirements resulting on account of the proposed merger.
Meezan Bank has gained regulatory approval to acquire reliance plc Oman 's operations ; the investment bank will now seek shareholder approval for the move .