MBSB on track to becoming full-fledged Islamic bank

If MBSB is part of the deal for the mega merger, then there would be fewer redundancies.

KUALA LUMPUR: Malaysia Building Society Bhd (MBSB) is a step closer of becoming a full-fledged Islamic bank with the completion of its proposed merger with Asian Finance Bank Bhd (AFB) expected by end of March. 

It’s president and chief executive Datuk Seri Ahmad Zaini Othman said more than three quarter of the integration process has been completed and expect the merger to be finalised by end-March. 

The merger would result in MBSB becoming the financial holding company of AFB and a with a new name for the merged entity. 

Ahmad Zaini said this after a press conference at he company’s EGM on Tuesday. 

Under the merger exercise, MBSB would acquire AFB in a RM644.95mil deal that would give the non-bank lender a license to become a full fledged Islamic bank. 

On another note, he added that post integration, there would not be any layoffs or any form of separation schemes such as VSS or MSS although there could be one or two changes at the management staff level. 

As for expansion, Ahmad Zaini said MBSB was looking at maxismising it existing bank branches and possible relocation of some branches post merger. 

At the moment it has 44 branches nationwide.