Supreme court dismiss KASB Bank merger petition

The Supreme Court of Pakistan (SC) has dismissed the petition filed by Khadim Ali Shah Bukhari, former CEO of defunct KASB bank and other minority shareholders challenging the KASB merger with BankIslami.

“The Honourable Supreme Court of Pakistan by an order has dismissed applications by Mr. Nasir Ali Shah Bukhari and other minority shareholders of the Defunct KASB Bank Limited challenging merger of the Defunct Bank with and into BankIslami Pakistan Limited,” announced BankIslami in a notice sent to Pakistan Stock Exchange (PSX) on Monday.

Earlier, in July the State Bank of Pakistan (SBP) disposed of all objections raised regarding the merger of defunct KASB Bank into BankIslami in the light of orders of the Sindh High Court.

In April, the Sindh High Court (SHC) ordered the SBP to reconsider valuation of the defunct KASB Bank and gave its ruling that the central bank did not adequately fulfill its statutory duty to protect the interests of all stakeholders.

The KASB-BankIslami merger saga has remain a hot topic since 2015,  after the SBP amalgamated KASB Bank with BankIslami after invoking section 47 of the Banking Companies Ordinance of 1962 at a token price of Rs.1,000.