Decision Regarding KASB Bank Taken on Legally Sound Grounds Despite AGP’s Observations: SBP

The State Bank of Pakistan (SBP) restated that the decision concerning defunct KASB Bank has been taken on merit and in valid exercise of jurisdiction under the Banking Companies Ordinance. In a press statement, SBP said that of late, the case of defunct KASB bank is in news again, supposedly based on audit report of the Auditor General of Pakistan (AGP). SBP has clarified that all the audit observations raised from the office of the Auditor General of Pakistan (AGP) have been duly responded. Although, the AGP observation is still at the stage of draft para, the entire reporting in both print and electronic media has distorted to give the impression as if the observation had attained finality, it added. ALSO READ SBP Denies Rumors of Issuing Rs. 10,000 Currency Notes Further, they stated that all of it is one-sided and do not reflect the SBP’s point of view. It is reiterated that the SBP being the regulatory and supervisory authority of the banking system has legal mandate to safeguard interest of the depositors and to ensure the stability and soundness of the banking system. The decision concerning defunct KASB Bank has been taken on merit and in valid exercise of jurisdiction under the Banking Companies Ordinance, 1962. It was also advised to the media that they should refrain from speculative reporting on audit paras that are yet to attain finality, SBP concluded.