NBP to Take Over SME Bank’s Lending Portfolio Under Demerger Plan
NBP to Take Over SME Bank’s Lending Portfolio Under Demerger Plan
The Scheme of Arrangement for the demerger of a portion of SME Bank’s lending portfolio was approved by the shareholders of the National Bank of Pakistan (NBP) at an Extraordinary General Meeting (EGM) on January 6, 2025. The sanction was granted during the meeting, conducted electronically and at the NBP Head Office.
The approved scheme entails the separation and transfer of the Demerged Lending Portfolio from SME Bank to NBP, which includes all associated rights, obligations, contracts, benefits, and liabilities. SME Bank will retain the assets and liabilities that are not included in the demerger under its “Retained Undertaking.”
The NBP Board of Directors had already endorsed the scheme before the shareholders’ endorsement, and it was prepared by Sections 279-283 and 285 (8) of the Companies Act 2017. Furthermore, shareholders consented to any modifications resulting from the Islamabad High Court’s review of the scheme, which has been submitted for approval.By the demerger, shareholders have granted key NBP officials the authority to supervise the execution of the requisite corporate, legal, and regulatory measures to guarantee compliance.
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