MCB Bank Ltd. (MCB.KA) has agreed to buy Royal Bank of Scotland Group PLC's (RBS) operations in Pakistan for PKR7.2 billion (US$87 million), people familiar with the situation said Monday.

This came after MCB Bank, a domestic privately-owned Pakistan bank, said earlier Monday its board has approved a proposal to acquire the assets.

It also comes a week after Australia & New Zealand Banking Group Ltd. (ANZ.AU) announced it was buying the bulk of RBS's Asian banking operations for US$550 million leaving just the Scottish bank's Indian, Chinese and Malaysian assets still on the sale block.

The price MCB is paying translates to 0.73 times Pakistan's book value of about PKR9.9 billion at the end of March, one person said.

MCB will finance the acquisition with its own internal capital, another person said, adding the official announcement of the deal is due within 24 hours.

Royal Bank of Scotland currently operates 79 branches in Pakistan and has a loan book of PKR68 billion, deposits of PKR79 billion and assets of PKR108 billion.

Bank of America Merrill Lynch and KASB Bank advised MCB on the transaction.

-By Amy Or, Dow Jones Newswires; 852-2832 2335; amy.or@dowjones.com