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We are pleased to see an article in the newspapers regarding the SBP's special audit of HBL. After a long time and effort made by different firms and your esteemed newspaper for the heavy mark-up on mark-up charged by Habib Bank Ltd the State Bank of Pakistan has decided to form an inspection team headed by Mansoor H. Siddiqui comprising eight members. The State Bank of Pakistan issued a Circular No 29, Habib Bank has charged a lot of markup on markup from borrowers which is clearly a violation of the rules and regulations of State Bank of Pakistan which can be verified/checked from the record.
Habib Bank charged crores of rupees. Some top bosses of the HBL allegedly wanted to help their friends and relatives and were trying to take over some mills which could not pay the heavy amount of mark-up on mark-up.
Moreover the names of many companies were placed in the CIB list by the HBL on the State Bank's list. Thus these companies were blacklisted for an unlimited time and had to suffer hardship as other banks refused any facilities to them.
We hope this inspecting team when giving a full report penalises the top bosses of the bank.

Copyright Business Recorder, 2005

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