PESHAWAR - The Bank of Khyber’s Board of Directors has decided to adopt legal course against MPA Ziaullah Afridi for allegations and spreading rumors against the Bank and any other person involved in tarnishing the image of the Bank.

The Board of Directors of the Bank of Khyber met to review the performance of the bank for the first six months of year 2017. The board showed satisfaction over the Bank’s achievements and noted that the bank had performed well in comparison with other banks.

The Board noted that as per the financial statements duly audited by the Chartered Accountant firm of Grant Thornton, the bank’s deposits had reached Rs.152 billion, advances have shown growth of 78 per cent reaching Rs.57 billion and total assets were Rs.262 billion.

The Bank had earned profit after tax of Rs.939 million up to June 2017. However, the Board showed concern that in spite of the Bank’s stable and growing performance, certain elements were bent upon tarnishing the image of the Bank for political point scoring.

The Board observed that the allegations being levelled against the bank, the provincial government and the management were far from the truth and based on mala fide intentions. The Board noted that Ziaullah Afridi’s allegations were baseless and meant to malign the government and the Bank.

With regards to appointment of the Managing Director, it was clarified that the Managing Director was selected by a selection committee under a transparent process and was not appointed by the Chief Minister. It was pointed out that appointment of the Managing director is done under section 12 of the BoK Act 1999 and neither CM nor Finance Minister has any powers in this regard.

The Board observed that upon instructions of the government all record of appointments in the Bank for the last several years had been probed and it was found that appointments had been made according to the Bank’s service rules and on merit.

With regards to loans outside the province, it was clarified that the Bank, being a commercial bank operating all over Pakistan, lends to good projects all over the country, however the preference of the Bank is to lend in the province and the majority of the bank’s branches are located in KP.

As far as sales of shares of the bank to a private party for privatization of the bank by any individual is concerned, the same is not possible without the approval of the provincial government. It was also clarified that the provincial government at present has no plan to sell shares of the bank as it is earning good dividend of over 1 billion per year from the bank.

The Board refuted all the allegations made by Ziaullah Afridi as incorrect, malicious and based on bad intentions. The Board of Directors therefore decided that all people spreading rumors against the Bank will be confronted and the Bank will file damages suit against Ziaullah Afridi and any other person involved in tarnishing image of the bank.