The SBP invoked the Banking Companies Ordinance of 1962 to hand over KASB Bank to BankIslami in May 2015 in return for Rs1,000. But the case of KASB Bank merger was not mentioned in the official press release. On May 7, 2015, the SBP allowed the merger of KASB Bank into BankIslami, after the former could not meet the statutory paid-up capital requirement of Rs10 billion. SBP version“The resolution/merger transaction of KASB Bank was carried out by the SBP in compliance with applicable laws/rules. BankIslami also got interest-free deposit of $200 million, which had been placed with the defunct KASB bank.

Source: The Express Tribune September 29, 2020 03:00 UTC