The State Bank of Pakistan has clarified that offices and branches of the KASB Bank will remain open as per routine because the SBP has not suspended the latter’s operations.
In a press release on Sunday, the SBP said it had already advised the KASB Bank to begin making payments of up to Rs300,000 to its account holders on Monday (today). Consequently, 92.3 per cent of the bank’s depositors would be able to withdraw their total deposits if they so desired. The rest of them would be able to withdraw up to Rs300,000. Similarly, the bank’s customers would be free to operate their lockers. And borrowers of the bank would be able to make repayments as per the agreed terms and conditions.
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,” the handout said. The KASB Bank’s deposits were only 0.7 per cent of the total deposit base of all commercial banks, which stood at over Rs8.7 trillion, it added. This shows the bank is a very small segment of the country’s banking system, according to the SBP. -dawn