SBP Slaps Rs. 57.83 Million Fine on 5 Major Banks

The State Bank of Pakistan (SBP) has imposed penalties of Rs. 57.83 million on five major banks on account of violation of rules and regulations during October-December 2021. According to the enforcement order issued by SBP, the banks were found to have committed infringements of regulatory laws related to general banking operations. Among these banks, Bank Al Habib Limited was slapped with the highest penalty of Rs. 13.68 million in the latest action by the banking watchdog. Bank of Punjab was penalized to the tune of Rs. 12.54 million by the SBP. National Bank of Pakistan was fined Rs. 10.26 million in violation of regulatory instructions pertaining to general banking operations. Furthermore, Standard Chartered Bank and Askari Bank have also been hammered with a penalty of Rs. 11 million and Rs. 10 million, respectively. In addition to penal action, these banks have been advised to strengthen their processes with respect to identified areas. The penalties on banks were lower in terms of values imposed by the SBP compared to the last quarter of 2021, which shows that the banks might have improved their operations after enforcement action from the regulator. In the recent media briefing, Governor Reza Baqir also indicated penal action against banks that offer poor consumer services, including digital banking.