MCB Bank Ltd. (MCB.KA) has agreed to buy Royal Bank of Scotland Group PLC's (RBS) operations in Pakistan for PKR7.2 billion ($87 million), a spokesman for MCB Bank said Wednesday.

MCB Bank will acquire 99.37% of the operations for PKR4.22 per share in cash, while the remaining will be bought through a public tender, Kafeel Burney told Dow Jones Newswires.

The transaction will help the local bank to strengthen its operations in urban areas and broaden its product offering to retail and corporate customers, Mian Muhammad Mansha, chairman of MCB Bank, said in a statement to the Karachi Stock Exchange.

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

-By Haris Zamir, contributing to Jones Newswires; 91-11-43563354; meenakshi.ray@dowjones.com