SBP Cancels Banking License of Insolvent IDBL

The State Bank of Pakistan (SBP) on Friday annulled banking license of Industrial Development Bank Limited (IDBL) and directed its de-scheduling as it has gone into liquidation. A notification issued by Banking Policy and Regulations Department of the central bank reads “In exercise of powers conferred upon State Bank of Pakistan by Section 27 (4) of Banking Companies Ordinance, 1962 the banking license issued to Industrial Development Bank Limited (license No. BL02-2012 dated 29 November 2012) hereby stands cancelled with effect from February 02, 2024 as it has gone into liquidation.” The SBP, through a separate BPRD notification, also directed “the de-scheduling of IDBL in terms of Section 37(2)(d) of State Bank of Pakistan Act, 1956 with effect from February 02, 2024,” due to bank’s insolvency.