ISLAMABAD:
The State Bank of Pakistan has granted a Rs20 billion concessionary loan, including Rs5billion at an incredibly low rate of 0.01%, to BankIslami, for meeting the capital requirements following the amalgamation of KASB Bank into it.
Two members of the SBP central board of directors confirmed to a local media source that the central bank has extended the money to BankIslami.
The money was given after May 7-the day KASB Bank was merged into BankIslami.
It has highlighted transparency issues pertaining to the BankIslami and KASB Bank amalgamation, as the central bank did not extend the facility through competitive bidding.
In protest against the move, a minority shareholder of KASB Bank has lodged a complaint with the National Accountability Bureau (NAB).
The complainant, Shaheena Wajid Mirza, requested the anti-corruption watchdog to investigate the SBP governor and other officials of the central bank and Ministry of Finance for alleged corrupt practices and misuse of authority.
