KARACHI: Summit Bank said on Tuesday it was seeking regulatory approvals for holding its long-delayed annual general meetings (AGMs) for 2019 and 2020 in the third and fourth quarters of 2021, respectively.

In a notice to the Pakistan Stock Exchange (PSX), the smallest listed bank by total assets in the country said its external auditors were “close to conclude” the audit for the financial accounts of 2019. The AGMs can take place only after the auditors issue their requisite audit opinion on the bank’s financial statements. The share price of Summit Bank decreased 1.7 per cent to Rs2.34 on the PSX.

Every company must hold its AGM within 120 days of the close of its financial year which, in the case of banks, is the same as the calendar year. Summit Bank has consistently sought extensions in this regard as it struggles to meet capital adequacy requirements.

The bank management can appoint auditors for 2020 only after its shareholders approve the audited accounts for 2019 in the AGM to be held in the July-September quarter. “Considering the intricacies involved and (the) quantum of the audit field work required, the auditors will be requiring at least another three months’ time, post-approval of financial statements of 2019, for (the) completion of audit work and issuance of initialled accounts for onward approval,” it said.

Published in Dawn, June 16th, 2021