NBP Penalized for Regulatory Violations at Domestic and Overseas Branches

NBP Penalized for Regulatory Violations at Domestic and Overseas Branches

Karachi, August 31, 2023 – The National Bank of Pakistan (NBP), the country’s largest public sector financial institution, has incurred penalties for regulatory violations at both its domestic and overseas branches, as confirmed by official documents.

During the first half of the year ending June 30, 2023, NBP paid approximately Rs 197 million as monetary penalties, marking a significant increase from the Rs 30.15 million paid during the same period in the previous year.

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Out of the total penalty amount of Rs 197 million, a substantial portion, amounting to Rs 184.29 million, was imposed by the State Bank of Pakistan (SBP) during January to June 2023. This represents a substantial rise compared to the Rs 30.15 million penalty imposed in the corresponding period of the previous year.

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In addition to penalties levied by the SBP, the National Bank of Pakistan also faced monetary penalties amounting to Rs 12.63 million imposed by other regulatory bodies overseeing its overseas branches during the first half of 2023. These findings are based on the half-year financial results recently issued by the bank.

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The penalties serve as a reminder of the importance of compliance with regulatory requirements both domestically and internationally. As a prominent financial institution, NBP is expected to adhere to the highest standards of regulatory compliance to maintain public trust and financial stability.

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These developments highlight the need for continuous vigilance and adherence to regulatory guidelines by banks and financial institutions to ensure the integrity and stability of the financial sector.