It marks the third regional acquisition in two months for Malayan Banking, widely known as Maybank, as it seeks to counter slowing economic growth in Malaysia and increased competition in the domestic financial market.

In a statement, Maybank said it has agreed to buy 15 per cent of MCB Bank, Pakistan's fourth largest bank in terms of assets, for US$686 million.

In addition, it said it has the rights to buy an additional five percent equity in MCB Bank for a maximum US$247 million to bring its stake to 20 per cent.

'It is an attractive opportunity for us to enter a high growth and profitable market. It is extending Maybank's reach in South Asia' in line with its plan to become a key regional player, Maybank Chief Executive Abdul Wahid Omar told reporters.

Despite volatility in the global market, Pakistan's economic outlook remains steady and there is 'limited execution risk', he said.

Maybank expects the deal to be completed by the end of June, he said.

Islamic banking, retail services, credit cards and small medium enterprise banking will be key partnership areas with MCB Bank, the Maybank statement said.

MCB Bank has 1,026 branches and employs 17,000 workers.

In March, Maybank announced plans to acquire Indonesia's sixth largest bank, Bank Internasional Indonesia, as well as a 15 per cent stake in Vietnam's An Binh Bank. -- AP