HSBC Bank Oman entered into an agreement to sell its banking business in Pakistan to Meezan Bank Limited through a scheme of merger.

The indirect 51% owned subsidiary of HSBC Holdings noted that gross assets of the business to be sold amounts to about $40 million (PKR 4.1 billion).

The transaction is projected to complete during the second half of 2015.

The sale will be at a small discount to the net asset value of the business, and will not impact the full year profits of HSBC Bank Oman.