KARACHI
Bank Islami Pakistan Limited (BIPL) clarified in a statement filed in the stock exchange that it did not receive any financial assistance from State Bank of Pakistan (‘SBP’) which was either for its benefit or out of line, with financial packages given by central banks in Pakistan or abroad.
The Bank said that it received Rs 15 billion against a pledge of its own securities to pay off the depositors of the Defunct KASB Bank once moratorium was lifted. Against that, the Bank paid Rs 27 billion to the depositors and the amount received from SBP was also returned on time. In addition to that, the Bank also received Rs 5 billion long-term financial assistance, against pledge of its own assets, to partly cover the loss in capitalisation due to the acquisition of an entity with negative net worth.
This negative net worth was not arrived at by one firm, but by five leading firms of chartered accountants working independently. The Capital Adequacy Ratio (CAR) of the Defunct Bank was -4.06 per cent against minimum 10 per cent as disclosed in financial statements prepared by its own management. The Bank regretted baseless propaganda against its goodwill and franchise and said that it is contemplating appropriate legal action.
