Summit Bank is not closing down, despite rumours on social media

August 8, 2018

Speculations regarding Summit Bank closing operations are false and misleading. The bank will continue to provide its banking services as usual.

The rumors stemmed from a notice by National Clearing Company (NCC), dated August 2, which is terminating Summit Bank’s status as a settling bank with effect from August 17.

The directive comes after Summit Bank failed to meet its paid up capital requirement, which means that the money the bank received from investors when they bought its shares in the market is not meeting the minimum requirement. Summit Bank no longer being a settling bank means that it won’t be able to trade shares on behalf of its clients. They now have to find alternative settling banks for this purpose.

This, however, will not affect the bank’s other operations. The central bank had already clarified that the Supreme Court’s ongoing money laundering case against Summit Bank will not affect its banking services or depositors and any rumors in this regard are baseless and misleading.

Summit Bank stock has remained under pressure since news of the money laundering investigation against the bank reached the market. It was trading at Rs1.45 per share on Wednesday afternoon, down 4% from the previous day’s Rs1.51 with 1.3 million shares changing hands.