State Bank of Pakistan has rejected all the allegations made by the National Accountability Bureau (NAB) in its report regarding Khadim Ali Shah Bukhari (KASB) Bank.
According to NAB, the sale of KASB Bank to Bank Islami was done due to misuse of power and authority, especially when the bank was sold at Rs 1000 as token money. Due to this, NAB claimed that the sponsors and shareholders of KASB Bank lost Rs. 20 billion.
An informed source in SBP told ProPakistani that the central bank has sent a rebuttal to NAB Karachi. It has categorically rejected the allegations made in NAB’s report. SBP further termed the report as baseless, with nothing substantial included in it.
KASB Bank Financial Health
Sources told that KASB Bank’s financial conditions were not looking good. The Bank has not being able to meet SBP’s standards regarding its audit.
The source further said that if the regulator (SBP) doesn’t act soon, depositors at KASB Bank might end up losing their money.
“KASB Bank is bleeding and losing money every day. Bad debts are very high. NAB’s report failed to consider how bad the bank’s balance sheet is currently.
If SBP does not take action, the depositors will lose their money,” told the source.
“SBP has held many meetings with sponsor shareholders of KASB and wrote many letters about its financial condition. Whenever they were asked to increase investment in the bank, they have failed to act in this regard.”
Sponsor shareholders have not shown a serious attitude about this. At one point, Governor SBP asked FIA to put the names of the sponsors on Exit Control List.
Source also told that if the sponsor’s shareholders plea about the bank’s financial condition was good, then why are they trying to sell the bank?
Regarding the news about a China company’s investment in KASB Bank, our source said that the company in question, Cybernaut, was not fulfilling the criteria set by SBP. The Chinese company has failed to prove their legal and financial strength so far.