Pakistan's MCB Bank has acquired a 99.37 per cent stake in the Royal Bank of Scotland-Pakistan for Rs 7.2 billion ($87.4 million).

The deal, which represents a price to book value ratio of 0.73 times based on the first quarter 2009 book value for the UK bank, effectively gives MCB access to a 79-branch network, including eight Islamic banking units, to add to its existing 1,026 branches. RBS' solid private banking operations in the country also pave the way for the Pakistani bank to further bulk up its wealth management services.

Bank of America Merrill Lynch and its local partner KASB advised MCB on the purchase. Morgan Stanley represented RBS.

The sale is in line with RBS' recent divestments of its Asian assets to the Australia and New Zealand Banking Group. A large proportion of the UK bank's Asian operations are in India and China.