Islamabad: The Board of Directors of SME Bank Limited has approved an action plan for the winding down of its subsidiary, SME Leasing Limited. This decision, made during the board's 136th meeting on May 6, 2025, follows a previous approval by the Board of Directors of SME Leasing itself. The action plan, however, requires endorsement by the shareholders in a forthcoming general meeting.

The situation unfolds as the Islamabad High Court granted approval for the liquidation of SME Bank Limited on March 17, 2025. Consequently, the State Bank of Pakistan (SBP) has been appointed as the liquidator. According to an SBP notification dated May 9, 2025, Mr. Adnan Imran, Chief Manager of the Islamabad Office, has been designated as the liquidator of SME Bank Limited. Mr. Imran assumed his responsibilities as the liquidator on the same day.

In addition to approving the winding down of SME Leasing, the Board of SME Bank has proposed the option to sell SME Leasing as an entity. The Board has also advised the management to update the Securities and Exchange Commission of Pakistan (SECP) on the status of SME Bank's liquidation. There is a request to defer a scheduled hearing for SME Leasing to allow sufficient time for the new liquidator to assess the situation comprehensively.

According to information available from the Pakistan Stock Exchange (PSX), the need for synchronizing the winding down of SME Leasing with the liquidation of SME Bank has prompted management to seek a deferral for the scheduled hearing initially set for mid-May 2025. This deferment is aimed at providing the newly appointed liquidator with an opportunity to thoroughly review the operational and winding down status of SME Leasing, ensuring alignment with the broader liquidation process of SME Bank Limited.

The developments reflect the ongoing efforts to streamline the liquidation and winding down processes in a coordinated manner, considering both SME Bank and SME Leasing's current operational dynamics and legal obligations.