ISLAMABAD: The central bank has granted concessionary loan worth Rs20 billion to BankIslami, for meeting the capital requirements following the amalgamation of KASB Bank into it.
The State Bank of Pakistan granted the loan, including Rs5 billion at an incredibly low rate of 0.01%. 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.
