The State Bank of Pakistan on Friday put a six-month moratorium on Khadim Ali Shah Bukhari Bank (KASB).
According to the State Bank, the decision was taken keeping in view the financial condition of the bank.
It said that the federal government had issued instructions for reorganisation and merger of the KASB.
The State Bank said that account holders having less than Rs 300, 000 in their accounts would be able to withdraw their money.
if account holders having more then 300000 in their accounts would be able to withdraw their full balance?
if account holders having more then 300000 in their accounts would be able to withdraw their full balance reply as soon as possible ?
According to State bank, 92.3% of the depositors would not be affected at all, thus 7.7% would be affected. Therefore, the depositors who would be affected are very small and insignificant.
S.B.P should have also mentioned the amount 92.3% have deposited in the bank. Although no data are available with us yet, a rough estimate could be made. According to state bank, the KASB bank's deposits were only 0.7% of the total deposit based of all commercial banks which stood as over 8.7 trillion. Thus the total deposit base being 8.7 trillion, the share of KASB bank will be 609 million, out of which 92.3% of the depositors account for 27 million only, and the remaining 7.7% of the depositors share 582 million. Let us not count the heads but the people who run the shops, factories, and industries.
We agree that the moratorium has not affected the people in the street. In fact, many of them do not know about it because they are not businessmen and industrialist. Something may be made for this 7.7% of depositors who have 600 millions stuck up in the KASB bank.
Unfortunately, bad news spread like a wild fire. Quite a few banks are already facing heavy withdraws. Wildfire knows no bound. Immediate steps need to be taken to save 7.7% of the depositors of KASB banks who have been forced to suspend their economic activities on account of the moratorium. Needless to mention that rupees 3 lac's limit across the board has not provided any relief to depositors who run the shops, factories and many types of industries. People having deposits of hundred million has been bracketed with people having rupees 3 lac's. Thus the amount of rupees 3 lac's to people having 50 or 100 million is trifle and meaningless. The limit maybe raised, to say 25% of the deposits standing on 17th November. This will have salutary effect on other banks also in meeting the situation. [email protected]
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