Pakistan's MCB Bank (MCB.KA) said Friday its deal to acquire the local operations of Royal Bank of Scotland Group PLC (RBS) has lapsed because of not getting some regulatory clearances.

Under the in-principle agreement to buy 99.37% of RBS Pakistan, the banks had to close the transaction by Dec. 31, MCB Bank said in a notice to the Karachi Stock Exchange.

The agreement had provided that if they couldn't close the transaction by then, the share-price agreement would lapse, the statement added.

RBS officials weren't immediately available for comment.

-By Haris Zamir, contributing to Dow Jones Newswires; 91-22-6145-6115; harsh.joshi@dowjones.com