moratorium on kasb bank lifted amalgamated with bankislami

KARACHI: State Bank of Pakistan (SBP) on Thursday announced that the moratorium on KASB Bank Limited has been lifted and it has been merged with BankIslami Pakistan.The SBP spokesman said today that all account holders of KASB can withdraw their money from their branches. He added that all KASB depositors have been transferred to BankIslami.The spokesman welcomed the patience of KASB bank depositors for a period of six months.The State Bank had placed the publicly quoted KASB Bank Limited under moratorium for a period of six months to protect the interest of depositors and other stakeholders.The SBP had said the moratorium would be effective from the close of business on November 14.’In order to protect the interest of depositors and other stakeholders and due to the financial health and other circumstances of KASB Bank Limited, the federal government, on the application of the State Bank of Pakistan, has placed the KASB Bank Ltd. under moratorium for a period of six months with effect from close of business as of November 14,’ the statement said.’Consequently, the payment of certain debts and obligations from the bank would be suspended while it would continue to receive all payments/recoveries due to the bank,’ it added.During the moratorium period, the central bank will consider the various options, including amalgamation of the KASB Bank Limited with any other bank and finalise plans in the depositors’ interest.