Summit Bank, following its recent acquisition by a United Arab Emirates (UAE) investor, disclosed a significant name change to the Pakistan Stock Exchange (PSX) on Tuesday.
The rebranding indicates the bank’s planned shift towards Islamic banking practices. The institution will be known as Bank Makramah Limited (BML), which has already received approval from the State Bank of Pakistan (SBP).
The bank shared in an announcement, “A consent/NOC has already been received from the State Bank of Pakistan on July 17, 2023.” However, the name change will only be fully realized once all other relevant regulatory approvals are secured and the bank’s shareholders consent during an Extraordinary General Meeting.
A Vision for Islamic Banking
This identity change traces back to the recent acquisition of a controlling stake in Summit Bank by prominent UAE investor Nasser Abdul Hussain Lootah. Lootah’s grand vision for Bank Makramah Limited involves transforming into a leading Islamic bank dedicated to providing exceptional financial services and innovative products that align with Islamic principles.
The press release underscored the importance of the name change, marking it as a representation of the bank’s commitment to Islamic finance principles and the delivery of innovative, ethical financial services to its customers. The institution is now developing a detailed plan to transition into a full-fledged Islamic bank.
This transition strategy includes a comprehensive revision of its operations, the launch of Shariah-compliant financial solutions, and strict adherence to Islamic banking practices.
The Dubai-based investor first demonstrated an interest in acquiring a minimum of 51 per cent of Summit Bank in 2021, aiming to procure the bank and its management. Lootah’s acquisition of the bank received the green light from the SBP, the Securities and Exchange Commission of Pakistan, and the Competition Commission of Pakistan earlier this year. A bank’s press release specified that the investor subscribed to 3.98 billion new bank shares at Rs2.51 per share, thereby gaining a majority equity stake.
