Tarin Meets SBP Governor, SilkBank Wants Time For Annual Report

Mired in financial straits, Silkbank Ltd (SBL) on Wednesday requested the State Bank of Pakistan (SBP) to grant extension for finalization of publication of its annual report and audited accounts for 2020, reported Dawn.

Silkbank, acquired by a consortium led by incumbent Finance Minister Shaukat Tarin in 2008, has sought deadline of June 30 from State Bank of Pakistan (SBP) for publishing its annual report.

The matter came to the fore as Silkbank was asked by Pakistan Stock Exchange (PSX) to render a date as it wanted to hold its Annual General Meeting (AGM).

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Silkbank told the central bank that Habib Bank Ltd (HBL) is currently reviewing its consumer assets before acquiring its credit cards, personal installment loans and ongoing financial activities.

As of reported in September 2020, Silkbank’s CAR rating dropped significantly to 4.16% from 5.81%. CAR is the measure of capital that a bank must possess to handle losses before going bankrupt.

The central bank requires the rate to be at least 11%.

Tarin meets SBP governor

Interestingly on the same day, SBP Governor Dr Reza Baqir called on the finance minister.

The central bank’s apex official briefed Tarin on the initiatives taken by SBP to counter insolvency and unemployment amid pandemic.

In a meeting with Prime Minister Imran Khan before assuming responsibilities as the finance minister, Tarin had ruled out replacing SBP governor as he deemed him as a competent professional who brought substantial reforms.

It is mentionable that on March 31, 2008, a consortium comprising IFC, Bank Muscat, Nomura International and Sinthos Capital led by senior bankers including Shaukat Tarin and Sadeq Sayeed acquired 86.55% stake in Silkbank.