KARACHI: In terms of the moratorium placed on KASB Bank Limited on November 14, the State Bank of Pakistan (SBP) has clarified that KASB Bank operations are not suspended, therefore, offices and branches of the bank will remain open as per their normal timings.
The State Bank of Pakistan 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 per cent of the bank's depositors will be able to withdraw their total balances if they so desire, while others will be able to withdraw up to the Rs. 300,000 limit, said a SBP press release issued here on Sunday.
Moreover Locker Holders of the bank will be free to operate their lockers as usual. Borrowers of the bank will continue to make repayment of their dues to the bank as per already agreed upon terms and conditions.
The SBP reiterates its commitment to safeguard the stability of the banking system of the country. The SBP would like to reassure the general public that country's banking sector is stable and strong. All other banks are operating in a normal manner and will continue to serve their customers as usual.
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 per cent; hence, this bank is a very small segment of the overall system.
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