RHB Capital Berhad (KLSE:RHBCAP) may revisit earlier plans to merge with AMMB Holdings Berhad (KLSE:AMBANK) to create the country's third-largest bank by asset size, sources said. The sources said the plan was to form a mega Islamic bank to tap the lucrative global Islamic market. "Discussions are still at preliminary stage.

It is being talked at the higher levels. Both RHB Cap and AmBank Group, however, have not met on a serious note to discuss the potential merger," a source said. The source said RHB Cap would also meet Abu Dhabi's sovereign wealth fund Aabar Investments PJS, which owns a 21.6% stake in the banking group, to discuss and support the plan.

RHB Cap Chief Executive Officer and managing director Datuk Khairussaleh Ramli did not reply to Business Times queries. Its Chief Financial Officer Yap Choi Foong said she was unaware of any plan to merge with AMMB.