Corporate Alert: HBL reaches a settlement New York State Department

In a notice issued to relevant stakeholders, via PSX, Habib Bank Ltd. has announced that it has reached a settlement with New York State Department of Financial Services through a consent order under New York Banking Law.

Under the settlement, the charge mentioned in earlier notices has been revised. However, HBL still has to pay a hefty penalty under the new settlement. The amount has been brought down to US $225 Million.

In addition to the penalty, HBL has decided to close its banking operations in New York and shut down its branch in US. Formal steps of voluntary closure of HBL New York branch are under way, mentioned the notice.

Habib Bank Ltd. (HBL) suffered steep declines in share prices after the announcement came to surface that Department of Financial Services is investigating 53 counts of offences against it.