The government seized control of KASB Bank on Friday when its owners could not meet the minimum capital requirements.
The government also cancelled all the contracts of KASB Securities, where it was a leading partner in consortiums of financial advisers hired for privatisation transactions, including divestment of stakes in Habib Bank Limited.
“In order to protect the interest of depositors and other stakeholders and due to financial health and other circumstances of KASB Bank Limited, the federal government has placed KASB Bank Limited under moratorium for a period of six months with effect from close of business as of November 14, 2014,” said a statement issued by State Bank of Pakistan (SBP).
A senior government official said KASB was falling short of capital adequacy ratio by Rs6 billion. The government took the step on the advice of the SBP. It has suspended all kinds of payments from the bank but allowed the account holders having up to Rs300,000 balance to withdraw their amounts.
Published in The Express Tribune, November 15th, 2014.
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Which four banks have applied for merger with KASB? What is the link to web page for his story?
Four Banks have applied to State Bank for Merger with KASB.
Details at :
https://www.facebook.com/groups/kasbaccountholders/
Dear All,
I am thinking to take this matter to the High Court, there is genuine legal issues with the decision by the SBP.
I would like all interested parties to email me at zulfiqar@bslegal.net
Kind Regards Zulfiqar Ali Syed
It seems like that the SBP governor is doing huge crime, we are on the road. There is not money to pay school fee, running the business, pay utility bills and paying rent. We account holders are the most educated people and the SBP governor along with the federal government is taking advantage of it. I think enough is enough we have to come out and the SBP governor out of his office. We have current account, we are not getting any benefit from our money and paying interest on the loan which we have taken from the other banks. We also have to go to the supreme court against the SBP governor, SBP and Federal Government...
I visited KASB Hyderi Branch today. Almost all their staff have resigned. Only the branch manager who joined the bank just before this incident happened was present in the branch. Tomorrow I shall visit SBP for further clarification and update the status on this blog.
MY ADVISE TO ALL ACCOUNT HOLERS IS TO VISIT STATE BANK AT I.I. CHUNDRIGHAR ROAD AND PUT PRESSURE IN TNE CONCERNED OFFICER TO SOLVE THE MATTER AS SOON AS POSSIBLE.
The staff at Hyderi Branh told me that it shall take complete 6 months to get the accounts released.
when will my account released.I need money but I am not allowed to draw my own money. please tell me soon.when govt is going to take step.Who will try to satisfy the account holders.
Dear All
what is the recent update about our money. Is there any deal with the other bank regarding the merger issue. please update as we need to pay for other's.
Regard's
Naveed Ahsan
Dear,
What is the recent update for our money which are stucking on KASB bank?
Please update us as we need to pay for other's.
Regard's
Noman Jamil.
Well, Let's put it in a simple way, powers or no powers, this is wrong. People's money, their savings, their holdings, can not be retained by any bank, and by any law. It is not any one's fault. The State Bank of Pakistan, failed to carry out timely due diligence,
I am going to look into, and will put a case against state bank of Pakistan, I am not an account holder in KASB bank, but invite all those effected by these steps taken by bank to make contact with me, so we can mount a strong challenge.
Zulfiqar Ali Syed Barrister Blackstone Legal
If SBP has sent some notices to KASB Bank about fulfiment of McR then it is KASB responsibility to do, now all business people which have Accout in KASB what can do. The problem is the SBP and KASB but suffering Pakistani people. What is our government is doing. As businessman I am facing great problem with my suppliers which I have issued checks an how I can perform my sell contract which I have signed foreign buyers. What kind of reasons I explain to buyers and who is responsible for loss if my contracts could not perform. We are requested to our Governemant specially finance and trade minesters to lookfoward this matter at urgent basis and realise our amount which are blocked in KASB. We are facing big problem with our suppliers and also buyers and we can loss too much. Pls immediate relief to us. Thanks
Is anyone has any idea how we can protect KASB and other banks from failure because market rumours are very strong in this regard.
i have 3 lack in kasb bank. i need money what will i do?
Please provide list of banks which are in target of SBP for CAR...i heard that 10 banks are targeted can you please state their names?
I am having more than 9 lac balance in the KASB bank.
My mother is seriously ill.
i want to withdraw my amount..
plzzzzz pray for me..
Ghulam sajjad 0333-2682662 Rawalpindi
The State Bank had written in its notification that 92 percent of the account holders would not be disturbed due to the new scheme of operations at the KASB Bank.
According to the details, KASB Bank has around 85,000 account holders with deposits worth Rs 62 billion.
As many as 12,000 account holders have more than three lacs deposits individually which in total amount to 59 billion.
Reportedly, there are many account holders whose businesses are likely to get bankrupt due to this new notification of the State Bank.
Dear Masood , i agree with you same situation is with me i had deposit all my amount on Kasb current account , now i had already given my cheques to the supplier and the due date is going to come , and KASB said we can withdraw only 3 lac in six months , which amount is not sufficient for me? how i am going to survive ?
Please KASB look in to this matter as we are not getting the clear picture?
my suggestion to all vicitim we should demand by the SBP to assure us that amount will be return after six month in their letter head.
Is this banking????? Will people have to run after their amount for years? Do we remember the BCCI?
I am a Pakistani who came from abroad after 8 years and deposited my complete saving in KASB bank saving account. My complete amoumt is blocked now. How will I survive? What will i say to my due payment collectors? I have already paid a token amount for purchase of house and have payment due in 1 month. If u do not pay the balance amount my token amount shall be forfeited. IS THIS HOW SBP SAFEGURD ITS DEPOSITERS.???
Is this another stupid action by the government to acquire a small bank and then sell it to its beloved Mian Mansha?
What will happen?
According to State bank, 92.3% of the depositors would not be affected at all, thus 7.7% would be affected. Therefore, the depositors who would be affected are very small and insignificant. S.B.P should have also mentioned the amount 92.3% have deposited in the bank. Although no data are available with us yet, a rough estimate could be made. According to state bank, the KASB bank's deposits were only 0.7% of the total deposit based of all commercial banks which stood as over 8.7 trillion. Thus the total deposit base being 8.7 trillion, the share of KASB bank will be 609 million, out of which 92.3% of the depositors account for 27 million only, and the remaining 7.7% of the depositors share 582 million. Let us not count the heads but the people who run the shops, factories, and industries. We agree that the moratorium has not affected the people in the street. In fact, many of them do not know about it because they are not businessmen and industrialist. Something may be made for this 7.7% of depositors who have 600 millions stuck up in the KASB bank. Unfortunately, bad news spread like a wild fire. Quite a few banks are already facing heavy withdraws. Wildfire knows no bound. Immediate steps need to be taken to save 7.7% of the depositors of KASB banks who have been forced to suspend their economic activities on account of the moratorium. Needless to mention that rupees 3 lac's limit across the board has not provided any relief to depositors who run the shops, factories and many types of industries. People having deposits of hundred million has been bracketed with people having rupees 3 lac's. Thus the amount of rupees 3 lac's to people having 50 or 100 million is trifle and meaningless. The limit maybe raised, to say 25% of the deposits standing on 17th November. This will have salutary effect on other banks also in meeting the situation.
SBP-PROTECTORS OF THE DEPOSITORS The business recorder has been making very useful study for the common people of the country. The recorder has made in depth study about imposition of six months moratorium on KASB Bank. The state Bank has done what it should have done a little earlier to protect the interest of unwary depositors. Business recorder has mentioned that the law does empower the state Bank to take all necessary steps to protect the interest of the depositors. The state Bank is undoubtedly the Bank of last resort. Thus they provide in fact, an insurance cover to the depositors. The business recorder has mentioned that this is not the first time when SPB has taken such measure to protect depositors’ savings. According to them no depositors have ever lost any saving when a Bank has folded. This is a positive assurance aimed at providing a solace to hungry depositors especially small ones engaged as grossers, tailors, shop keepers, builders etc… Living in a flat near the KASB Bank is situated , we find that the officers and staff of the Bank are sitting without any work as the limit of 3 lacs has already been availed by depositors in two or three days. Right or wrong, the KASB Bank have been assuring the depositors that the problem would be solved and the limit would be increased in the near future.
Dear friends , this is not the first time you are getting fooled , it happens every 10 years past, first it was bhutto who nationalise all assests of people in 80s then bankers equity bank acquired by government and paid White collar people money after 1 years , and finally Its the Forex fraud of 5 billion rupees, White collar people doesnt get a penny instead until Now, it is a suggestion to block all the roads of Pakistan and get your legal write otherwise you Will be cooler by bankers or government that one day you get your paymeny back.
Now what is the solution of it and who will resolve it?
All Banks being run by Stock Exchange Brokers like KASB Bank shall fail in the long run as Speculative Business is always risky & all such Banks indulge in placing depositors Funds into Stock Exchange where Brokers are the gainers.JS Bank is also in the same category
This is unfair. Can you plz clarify how retired person is going to manage without money that's stuck in bank. Do we deposit money in bank that we can't withdraw it. Its our more ney we want it back. Government or secp can't do that to senior citizens. Are they going to run their kitchens. Do you have any answers ????
KASB is under moratorium. I am an account holder in KASB. Upon questioning my branch on this subject, the branch manager who seemed very nervous failed to give explaination and I was told to be patient .... which means that I should forget about my deposit for 6 Months... This is frustrating...
now anyone have any idea we will withdraw our amount after six months
whats the financial condition of silk bank suggests? is silk bank ltd save from this kind of cumbersome situation...reply..??? what does silk bank financial balance sheet tells.... ???
Dear sir . Can't u exceed the payment limit at least 3 lac to 10 lac...I had 12 lac ...How can delay my due payments
Dear sir Plz let me know the actual position...six months is too much time..How can I delay my due payments...I had only 12 lack in my account. Can't they exceed the paymental limit .3 lac to 10 lac
suspension of kasb security operation by secp on morning of nov 18, is unjustified. It will loose confidence of public on government,which is already facing charge of not providing justice. was management of SECP sleeping before taking this harsh action?. SECP atleast should have provided an oppertunity to public to settle their trading. i am confidence that gop will intervene into the matter soon. Gop is running after foreign investment, on the other hand SECP is spoiling GOP reputation by doing such action.foreig account holders are also suffering from this unjustified of secp.
suspension of kasb security operation by secp on morning of nov 18, is unjustified. It will loose confidence of public on government,which is already facing charge of not providing justice. was management of SECP sleeping before taking this harsh action?. SECP atleast should have provided an oppertunity to public to settle their trading. i am confidence that gop will intervene into the matter soon.
"Finally,kasb's subsidiaries i,e kasb direct (securities) also suspended.I have an account with but today,I m not able to trade through their terminal with K.S.E. It would affect badly to the business of Kasb,should be taken necessary measures by the owners.Hunderds of thousands account holders now stuck.What the SBP doing and what about Govt? Isnt it raised a Big question mark on Govt. of Pakistan?
Kasb modaraba and Kasb Securities are the subsidiaries of Kasb Bank .It means Kasb Bank owns them ,so there stalkholders are also at risk . So if your broker is Kasb securities you are at high risk.
The next target is NIB Bank Limited, because they can't meet the MCR requirement of SBP
@Shazia: KASB Modaraba is not affected except KASB Bank only!
State Bank should have done it six month back because it has huge issues in its balance sheet. They were not earning any income more than a year ,check its income statements.In Pakistan awareness should be given to depositors and its share holders though print media or electronic media. KASB Securities,Mudaraba, My solution operation should also be closed because they are the whole subsdaries of Kasb Bank. State Bank should also close or tkae apporate measures in its subsdaries operation because they are directly related to the Kasb Bank.
either Silk or MCB will merge with KASB
What about Business accounts. to make 300,000/- one need to circulate the money in millions. When Govt stopped business account they are stopping Kitchens expenditure of millions. SBP and Govt Think Broadly. capital adequacy ratio is already short of various banks which SBP knows better. Before insider news get leaked please revert what SBP has done....
Dear,
Please update as in this case my money will be stuck ? what is the outcome and solution i need to withdraw my money and the bank telephone number is even not responding any 1 know’s about this solution let me know please. Regard’s
Mujtaba
Is the KASB Modaraba affected too ???
Total amount of Rs. 300,000 can be withdrawn from each account as per press release of SBP. Keeping this in view that 93% of KASB depositors have less than or equal to 300,000/-. So main Junk of depositors will be entertained. Further instructions for heavy depositors are awaited.
There is some political issue between KASB and Government however SBP trying to sale this KASB to someone else Bank like HSBC bank was sold to Standard Chartered few months ago and the same they want to do with KASB.
I spoke to regional officer and this issue will resolve soon so not worry about it. You can withdraw deposit any time and they will send an email to all there customer on Monday 17th of November regarding this issue information.
Is anyone has any idea what will be the next step. Is there any risk with the large depositors? When they will be able to transfer the money or withdraw? Is there any example like this in Pakistan before?
financial joke of the country. it sums up the unstable economic conditions of pakistan. I hold State Bank of Pakistan for that,
KASB Bank website has been down