KARACHI: The central bank has allowed amalgamation of KASB Bank with BankIslami under Section 47 of Banking Companies Ordinance 1962 after three banks ie Askari, Sindh Bank and JS Bank have conducted due diligence of KASB Bank to acquire its operations.
BankIslami will acquire operation of KASB Bank at a token compensation of Rs1,000 with all its losses and liabilities including its overall shareholding after approval of its shareholders and regulator final review.
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The exercise began after central bank imposed moratorium on KASB Bank in November 2014 for period of six month ending in April. The Bank failed to meet its paid-up capital requirement, which was less than Rs 1 billion along with Capital Adequacy Ratio that was negative 4.63 percent.
With possible merger of KASB Bank with BankIslami, its licence would stand cancelled while its branches would be converted into merging Bank.
