KARACHI, Sept 4: Union Bank Limited—a private sector listed commercial bank—announced on Wednesday that it had received the State Bank of Pakistan approval for take-over of Emirates Bank branches in Pakistan.

Union had first proposed in June this year, to take over all 10 branches of Emirates Bank in Pakistan for $18 million. A statement signed by the company secretary issued on Wednesday said: “Governor SBP, vide his order dated 2nd September 2002 has approved the Scheme of Amalgamation of Emirates Bank International PJSC Pakistan branches into Union Bank Limited under Section 48 of the Banking Companies Ordinance, 1962.”

The Union Bank also released the condensed profit & loss account and the balance sheet of Emirates Bank at June 30, 2002, which showed total assets of the bank at Rs 20.3 billion including loans/advances of Rs7.4 billion. Total liabilities amounted to Rs18.7 billion with Rs11.6 billion held in deposits. The bank was noted to have earned operating profit of Rs193.6 million, pre-tax profit of Rs80.6 million and after-tax profit of Rs47.6 million.

A significant item on the profit & loss account was the “Ex- gratia payments to staff” of the substantial sum of Rs332 million. A responsible bank official could not immediately be reached to confirm whether the amount represented ‘thank you bonus’ or a ‘golden handshake’ to some or all of its employees. Just before the proceedings

for takeover began in June, Emirates was understood to have 514 employees on its rolls. Of those, 69 fell in the executive cadre, 285 comprised senior and junior officers and staff and the remaining 160 were contractual employees. At the end of June, Union

Bank held Rs30 billion in total assets; Rs21 billion in deposits and Rs14 billion in advances. The Bank has 32 branches in 17 cities and employees 858 people.