Ubaid Yousaf Khan

Amid growing turmoil within the state-owned Bank of Khyber (BoK), sources have painted a grim picture of institutional decay, alleging that “merit is a joke” and that the current Managing Director, along with his team, has systematically squandered public funds under the watch of the provincial government.

As the Khyber Pakhtunkhwa (KP) government scrambles to contain the fallout, shocking revelations have emerged: a defaulted loan of PKR 1 billion granted to a private company with questionable eligibility, and a sitting HR Head embroiled in a serious harassment case.

The Billion-Rupee Black Hole

The most damning allegation centers on the bank’s lending practices. Insiders claim the Bank of Khyber sanctioned a PKR 1 billion loan to a private firm without adhering to standard due diligence protocols.

“The authenticity and eligibility of the borrower were never properly vetted,” a senior banker told [Publication Name] on condition of anonymity. “Today, that company has defaulted, and the public money—money belonging to the people of Khyber Pakhtunkhwa—has been thrown into a bottomless pit.”

With the borrower now in default, the bank is facing a significant non-performing loan (NPL) crisis, raising urgent questions about whether the funds were disbursed based on merit or on extraneous pressures.

MD’s Performance Under Fire

The bank’s top leadership has not been spared from scrutiny. The current Managing Director has been labeled “unsatisfactory” by multiple stakeholders. Critics allege that under the MD’s tenure, the bank has devolved into a playground for political favorites, sidelining professional bankers.

“The MD and the current slot have ruined public funds in all ways under the ‘OTI’ (On-the-Issue) government,” a source said, using a colloquial reference to the provincial administration’s handling of the bank.

The discontent has reached the corridors of power. The Khyber Pakhtunkhwa government has already formed a high-level committee to investigate the affairs of the Bank of Khyber. The committee is expected to probe the loan sanctioning mechanism, the rising default rate, and the overall governance structure.

Harassment Storm at HR: The Asif Case

In an even more disturbing twist, the bank’s human resource machinery appears to be paralyzed by scandal. Muhammad Asif, the HR Head of the Bank of Khyber, stands accused of being personally involved in a harassment case.

While details of the complaint remain sealed, sources confirm that a formal case has been registered against Asif. The fact that the head of human resources—the very department responsible for ensuring a safe workplace and enforcing merit—is facing such allegations has shattered employee morale.

“How can we talk about discipline or merit when the HR Head himself is accused of harassment?” asked an employee.

What is Going on in Khyber Bank?

For depositors and employees, the question is simple: What has gone wrong at Khyber Bank? Once considered a relatively stable provincial financial institution, it is now facing a triple-threat crisis:

• 1. Governance Collapse: Merit is allegedly non-existent, with appointments and loans based on connections rather than capability.
• 2. Financial Recklessness: The PKR 1 billion default raises fears of a larger, hidden crisis on the bank’s books.
• 3. Ethical Bankruptcy: The harassment case against the HR Head points to a deep-seated cultural rot.

KP Government Yet to Issue Final Verdict

While the KP government has formed a committee, critics say the “OTI” administration has been slow to act.

“The committee is a smokescreen,” alleged a political observer. “If the MD’s work is unsatisfactory, why is he still in the chair? Who approved the billion-rupee loan to a defaulting private company?”

As the committee reviews the bank’s affairs, the people of Khyber Pakhtunkhwa are left wondering how long they must pay for the reckless management of their public funds. The future of the Bank of Khyber—and the billions of rupees held in public trust—hangs in the balance.