All information given to the point

1. SADIA JAVED
SP15-MBE-022-VHR
COMSATS INSTITUTE OF
INFORMATION TECHNOLOGY

2. Found in mid 1980
 Nine members
 Each selected for three years
 Each year three retired and other selected
 Qaisar qureshi is the CEO and Vice chairman
of Board.
 Ahmad ali, dilawar darr and hajji habib were
decent but held no more than 500 shares In
bank
 The appointment of all was largely due to
their close friendship with qaisar qureshi

3.  Not hugely successful
 It converted into a commercial bank within five
years.
 In 1991the bank showed a small accumulated
profits and loss.
 At that time, The sponsors held only 52% of the
shares
 In 1992 the qaisar qureshi bought all 52% shares
from bank’s original owners.
 In 1992 the banks shares sold at RS 9.85 to KSE
 In 1995 it had risen to 10.50.
 In June 2007 it was quoted at Rs 14.50.

4.  Over the past 8 years, Bank had modest profits
but regular in paying dividends.
 Volume of trading at KSE was not large.
 At the end 2007 the banks paid up share capital
Rs 300 million divided into 30 million shares.
 57 % shares held by QAISAR QURESHI & his
family.
 Rest were distributed among 1520 shareholders.
 Book value of bank’s shares was Rs 16.12 at end
of 2007.

5.  Nine members
 Three executive directors
 Six non executive directors
 All independent directors
QAISAR QURESH
CEO and Vice Chairman
KAMAL KHAN
Chief Operating
Officer
MAJID MALIK
Chief Financial
Officer

6.  Board Run single handedly by qaisar qureshi.
 Board meetings generally of less than one
hour.
 FIB started holding meeting quarterly but no
change in manner of meeting.
 He paid 1000 to every director.
 The directors did not pay attention in board
meeting.

7.  Kamal khan put a proposal for issuing a bank
guarantee to spinning mill.
 Amount of guarantee was 20% of bank’s
equity
 Spinning industry not the hottest sector of
textile industry at that time
 It was proved without any discussion.

8. Amount of guarantee was 20% of banks
equity.
 He knows the proposal did not fulfill the
Merit.
 But he surprised when the BOARD accept it.
 The proposal accepted without any
discussion.
 Exposing the bank in serious cash flow.
 The bank ended up creating a forced loan.
 This all happened in three months.

9.  Not have an affective board.
 Board was staggered board.
 Single handed decision.
 One man show.
 All the directors is under the one man.
 Decisions are made by single person.

10. THANK YOU

11. ?
please