KARACHI: 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 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.
While accepting a plea of the shareholders in April 2018, the Sindh High Court (SHC) had ordered the SBP to reconsider valuation of KASB Bank and ruled that the central bank did not adequately fulfill its statutory duty to protect the interests of allstakeholders.
The court had asked the State Bank of Pakistan (SBP) to revisit the whole process set out for determination of the valuation. Previously, shareholders of defunct KASB Bank had sought a minimum compensation of Rs14.2 billion from the, terming the Rs5.9 billion negative valuation of the bank, determined by AF Ferguson, mala fide and dubious.
On the basis of the negative valuation given by AF Ferguson chartered accountancy firm, the central bank had amalgamated KASB Bank with BankIslami at a nominal price of Rs1,000 in 2015.