The Role of State Bank of Pakistan (SBP) in Recent Amalgamation of Kasb and Bank Islami

Abstract

This study empirically examines the role of State bank of Pakistan (SBP) in recent amalgamation of KASB Bank and Bank Islami. The merger of KASB Bank Limited with Bank Islami has created serious doubts over the performance of the finance managers in the government. Moreover, previous studies regarding mergers displays that SBP role was reasonable but in this amalgamation the SBP role left a question mark over the fate of KASB bank employees. In order to achieve a clear picture of financial position of both the banks, financial analysis has been done with the help of financial ratios. For this purpose sample of two merged banks for analysis has been taken which gets into merger in 2015. With the assistance of qualitative data and quantitative data, the result shows that SBP took the most appropriate and wise decision to amalgamate KASB bank with Bank Islami, while keeping in mind the positions of both the banks and safeguarding the interest of the depositors of KASB bank.