KASB Bank has been amalgamated with Bank Islami

8th May 2015

 
 

KASB Bank has been amalgamated with Bank Islami – as per State Bank of Pakistan’s (SBP) regulations. The amalgamation has taken effect from 8th May, 2015 – all KASB Bank customers have been converted to Bank Islami customers. With this amalgamation, Bank Islami becomes Pakistan’s 11th largest bank, with a footprint of 317 branches in 93 cities, and a user base exceeding 600,000 customers.

SBP has also removed the moratorium placed on KASB Bank customers; the withdrawal restrictions are now removed from all accounts. In November 2014, SBP placed the bank on a six-month moratorium – restricting account holder withdrawals to a ceiling of Rs. 300,000.

Bank Islami will initiate conversion of all KASB accounts to Islamic Banking guidelines – all business activities will also be brought under the Shariah-compliant umbrella.

While KASB Bank has seen a nominal attrition in its depositor base since November 2014 – a reduction from Rs. 62 Billion to Rs. 57 Billion, it is pertinent to know that this period involved a withdrawal restriction. The true attrition from KASB depositor base will be witnessed in the coming days as the moratorium is lifted.

 

 
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