Banking regulator clarifies that operations of KASB Bank had not been suspended
The central bank Sunday said that of the total Rs 8.7 trillion deposit base of the country’s banks, the KASB Bank’s deposits stand below 0.7 percent. The banking regulator also clarified that the operations of KASB Bank had not been suspended.
“It may be pointed out that while the total deposit base of all commercial banks is over Rs 8.7 trillion, the percentage of KASB deposits is less than 0.7 percent; hence, this bank is a very small segment of the overall system,” the State Bank said in a late issued statement.
While KASB was placed under moratorium, the central bank said, all others were operating in a normal manner and would continue to serve their customers as usual.
“In terms of the moratorium placed on KASB Bank on November 14, it is clarified that KASB Bank operations are not suspended,” the regulator said.
Therefore, the State Bank said, the offices and branches of KASB Bank would remain open as per their normal timings.
The State Bank has already advised the bank to commence payments of up to Rs 300,000 to their deposit account holders, with effect from November 17.
Consequently, 92.3 percent of the bank’s depositors would be able to withdraw their total balances if they so desire, while others would be able to withdraw up to the Rs 300,000 limit.
Moreover, the SBP said, the locker holders of the bank would be free to operate their lockers as usual.
The bank’s borrowers would continue to make repayment of their dues to the bank as per already agreed upon terms and conditions.
The central bank reiterated its commitment to safeguard the stability of the country’s banking system.
“The SBP would like to reassure the general public that country’s banking sector is stable and strong,” the bank said.
