The State Bank of Pakistan (SBP) has disposed of all the objections over the valuation of defunct KASB Bank merged with and into Banklslami Pakistan as no reason was raised by the objecting members/shareholders which could necessitate a fresh evaluation.
State Bank has issued a detailed order on KASB Bank valuation issue and said that all the objections were reviewed on merit and the objections have not raised any substantial ground for increase in valuation justifying payment of any compensation to the members/ shareholders of KASB Bank.
The Sindh High Court (SHC), while disposing of the Petitions, vide its order announced on April 17, 2018 in C.P. No. 3007 of 2015, C.P. No. 3076 of 2015 and C.P. No. 4927of 2015 directed State Bank to give notice, within 30 days of this judgment, to those persons who were members/shareholders of KASB Bank on April 27, 2015 inviting objections to the 'negative' valuation of the KASB Bank as set out in the scheme of amalgamation.
As per court's order, the State Bank shall consider all objections that may be received along with any material/record supporting the same and State Bank shall issue a reasoned and speaking order ("Order") within 30 days of the last day for filing of objections.
In compliance of the order of the Sindh High Court, the State Bank initiated the process. On May 14, 2018, the notice inviting objections to the valuation of the Bank was published in leading national and regional dailies informing therein that the valuation Report of KASB Bank is posted on the SBP website.
In order to reach the maximum members/shareholders of KASB Bank, notices were also placed on the websites of the Central Depository Company (CDC), Bank lslami (Pakistan) Ltd. and Pakistan Stock Exchange (PSE). Further, a copy of the notice was also issued to the 3,999 members/shareholders of KASB Bank on the given addresses, as per the list obtained from Bank lslami, CDC and Pakistan Stock Exchange, however, 720 letters were returned as undelivered.
According to the notice, the members/shareholders of KASB Bank, as on 27-04-2015, were invited to file their written objections to the valuation of the Bank as set out in the scheme of amalgamation to the Director, Banking Policy & Regulations Department, State Bank of Pakistan within 15 days of the notice, i.e., by or before May 29, 2018.
A total of 319 members/shareholders submitted their objections by the given date. In addition, objections from 15 members/shareholders were received after the due date. Objections of all the 334 members/shareholders were considered by the State Bank.
The objections of the members/shareholders to the evaluation of KASB Bank were categorized into (i) specific to the valuation and (ii) general comments on the valuation.
According to SBP order, the SBP reviewed all the objections raised by the objecting members/shareholders on merit and based on the assessment of the objections the evaluation conducted by the independent evaluator of KASB Bank was considered reasonable.
"There is no reason raised by the objecting members/shareholders, which could be considered to necessitate fresh evaluation. Therefore, the objections have not raised any substantial ground for increase in valuation justifying payment of any compensation to the members/shareholders of the KASB Bank," SBP's order said and added that the objections stand disposed of accordingly.
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