SBP fines 19 banks for no recovery of loans

SBP fines 19 banks for no recovery of loans

Updated at: 1954 PST, Friday, November 20, 2009 KARACHI: The State Bank took up disciplinary action against 19 banks and DFIs as they have failed to recover loans given against pledging of sugar, said Syed Wasimuddin, the chief spokesman of the SBP. The SBP spokesman told Geo News that these banks and financial institutions had been directed to take back their loans; however, these 19 banks failed to receive all these payments from sugar mills. A total of Rs10 million fines have been imposed on these banks and DFIs, he added. The SBP has withdrawn its instructions given to banks in February this year which allows banks to recover loans by June 2009. However, the SBP had extended the time limit for another four months but made it mandatory for the borrowers to pay back 25 per cent loan each month and finished the entire debt by end of October 31, 2009.