KARACHI - The local bidders, HBL, MCB and JS Company are set to submit their due diligence report to Morgan Stanley for the acquisition of Royal Bank of Scotland (RBS), Pakistan, on Monday (May 11), sources said on Friday. Morgan Stanley is a world-reputed financial services providing company, which is advising the RBS on the Asia sales business. It must be recalled here, three local financial institutions have shown interest in acquiring RBS Pakistan operations. According to sources, bids for the sale of overall Asian assets of RBS are due this month while separate bids will be made for its Pakistan business. The interested buyers are also expected to present their due diligence disclosure of all relevant information that applies to security issues, integration plan along bidding cost, branch network and complete operational roadmap on retail and commercial banking to the State Bank of Pakistan before the process of bidding is started. Two larger banks such as Habib Bank Limited, (HBL) and MCB Bank Limited, (MCB) and one medium size commercial bank like Jahangir Siddiqui Company Limited (JSCL) have shown their inclination to buy the complete shareholdings of RBS Pakistan. Sources said that the Habib Bank Limited, MCB Bank and Jahangir Siddiqui Company are the leading financial institutions in Pakistan and they would compete in the bidding to acquire stake of RBS Pakistan. It must be mentioned here that HBL, MCB and JSCL had sent separate notices to the KSE on Monday, showing their interest in acquiring RBS Pakistan operations. MCB Bank posted Rs 15.4 billion profit after tax during calendar year 2008 (CY08) as against Rs15.3 billion of last year. MCB deposits showed a healthy growth of 13 percent and closed at Rs 330 billion whereas its gross advances portfolio increased by 19 percent and closed at Rs 273b in 2008. This along with improved profitability has resulted in an increase in shareholders equity before surplus of Rs 52b - up by 15pc over 2007. Capital Adequacy of the Bank is in excess of 15pc. HBL declared a profit after tax of Rs15.61 billion in 2008. The banks NIM rose by 40bps YoY on account of higher yields on earning assets as interest spreads widened by 33bps during the year. Moreover, Advances to Deposit Ratio increased by 500bps amid slowing deposit growth, which contributed to the growth in NII.