SBP Raises No Objections Against KASB Bank-BankIslami Merger

The State Bank of Pakistan on Thursday released a “no objection” statement on the valuation of the now-defunct KASB Bank which is to merge with BankIslami. The State Bank posted the details on its website saying ‘the objections stand disposed of accordingly.’ On orders of the Sindh High Court, the State Bank of Pakistan has initiated a process of inviting applications from all stakeholders as to the valuations being used for the purposes of the merger. SBP said: After an evaluation of those objections, the State Bank of Pakistan finds no reason to initiate fresh evaluations. SBP said, In order to reach the maximum members or shareholders of the bank, notices were also placed on the websites of the Central Depository Company (CDC), BankIslami (Pakistan) Ltd and Pakistan Stock Exchange (PSX). A copy of the notices was also issued to the 3,999 members and shareholders of the bank on the given addresses, as per the list obtained from BankIslami, CDC, and PSX. ALSO READ Bank Islami and KASB Bank Merger Cost Rs. 3.5 Billion Loss to Pakistan: AGP Report According to the notice, the members or shareholders of the bank, as on 27-4-2015, were invited to file their written objections to the valuation of the bank as set out in the scheme of amalgamation to the Director, Banking Policy and Regulations Department, SBP, within 15 days of the notice. SBP said a total of 319 members/shareholders submitted their objections by the given date i.e. 29-5-2018. In addition, objections from 15 members/shareholders were received after the due date. Objections of all the 334 members/shareholders were considered. It added, There was no reason raised by the objecting member and shareholders, which could be considered to necessitate fresh evaluation, said the central bank. You can read SBP’s order here.