KARACHI - The proposed merger deal of Atlas Bank Limited with Silk Bank, formerly Saudi Pak Commercial Bank (SPCB), has been scrapped, The Nation learnt on Wednesday. Both banks also informed the Karachi Stock Exchange they have decided not to proceed further and cancelling the idea of merger. It may be recalled that the Board of Atlas Bank Limited decided the banks merger with Silk Bank for which the State Bank of Pakistan has given a go-ahead. The majority shareholders of Silk Bank and the sponsor shareholders of Atlas Bank had signed a Memorandum of Understanding (MoU) for merger. Atlas Bank, however, in its circular said the Bank remains strong, enjoying continued support and backing by the trusted equity of Atlas Group and Deutsche Institution of Germany (DEG), one of the leading European financial institutions. Atlas Bank would continue to remain dedicated and focused to meeting the customers banking needs and has the ability, stability and capability to meet the challenges of today and the opportunities of tomorrow. At the time of signing of the MoU it was also decided that the swap ratio for the merger would be determined based on the valuation by a mutually agreed firm of chartered accountants and on the results of due diligence to be undertaken by the Silk Bank and Atlas Bank on each other respectively after obtaining SBP approval for conducting such due diligence. It is important to mention here that the sponsors of KASB Group and Atlas Group announced in October 2008 that they had agreed to merge their respective banks. But the KASB and Atlas could not develop understanding for merger and the plan was dropped. Silk Bank (renamed from Saudi Pak Commercial Bank) acquired by an international consortium comprising of Bank Muscat, Nomura and IFC, (World Bank Group) are focusing on rebranding of the bank.