Banking & Finance Stay updated with Business News, Pakistan news, Current world news and latest world news with Business Recorder.. Fri, 31 Oct 2014 08:17:28 +0000 SRA Framework 2.0 en-gb SBP auctions Rs 183.531bn MTBs imageKARACHI: State Bank of Pakistan (SBP) on Wednesday auctioned Government of Pakistan's market treasury bills (MTBs) of Rs 183,531.259 million; with their face value of Rs 194,508.42 million.

The total bids offered for 3,6 and 12 months MTBs were accepted, said an SBP press release here on Wednesday.

Copyright APP (Associated Press of Pakistan), 2014

]]> (Imaduddin) Banking & Finance Wed, 29 Oct 2014 14:29:14 +0000
SBP declares rental coupon rate of GoP ijara sukuk imageKARACHI: State Bank of Pakistan (SBP) on Wednesday declared 6th rental coupon rate at 9.9791 per cent per annum for the Government of Pakistan Ijara Sukuk 3-year (GIS-11).

The coupon rate amount will be paid on April 23, 2015, said SBP statement here on Wednesday. The Ijara Sukuk was auctioned on April 23, 2012. This profit will be applicable to all accepted bids in this auction.

Copyright APP (Associated Press of Pakistan), 2014

]]> (Imaduddin) Banking & Finance Wed, 29 Oct 2014 13:16:16 +0000
NBP's earns profit of Rs 18bn in nine months imageKARACHI: National Bank of Pakistan (NBP) earns pre-tax profit of Rs 18 billion during nine months period ending Sept. 30, 2014; 143% higher than last year corresponding period's Rs 7.4 billion.

NBP's Board of Directors, in their meeting here on Wednesday, approved the financial statements of the bank for the last nine months, said NBP release.

The bank recorded after tax profit of Rs 12.1 billion during the period, an increase of 107% from last year.

Earnings per share for nine month period ending Sept. 30, 2014 stood at Rs 5.67 as against Rs 2.74 (restated) of last year. The bank in third quarter 2014 recorded after tax profit of Rs 3.9 billion which is again a complete turnaround as compared to comparative quarter last year, when the quarterly profit was only 97 million.

Non-interest/markup income increased by Rs 3.9 billion or 22 % compared to the corresponding period last year. Fees / commission income is showing increase of 6% despite downward revision in agency commission as lower rate was offset through higher volumes.

The bank capitalized on record high stock exchange index and recorded capital gains of Rs 6.0 billion which compared to corresponding period of last year are higher by Rs 2.7 billion or 83%.

The provision charge against advances has reduced by Rs 8.8 billion or 73% mainly on account of better recoveries.

Deposits compared to September 2013, increased by Rs.76 billion. Compared to year ending Dec. 2013 advances are marginally lower by 1.4% due to seasonal adjustments.

The bank is strongly capitalized with capital and reserves of Rs 166 billion.

Copyright APP (Associated Press of Pakistan), 2014

]]> (Imaduddin) Banking & Finance Wed, 29 Oct 2014 13:15:55 +0000
Agri credit increases by 38pc in 3 months: SBP imageKARACHI: Agriculture credit disbursement surges by 38% to Rs 98 billion in the first quarter of FY14. During the first quarter of current fiscal year (Jul- Sep 2014) the banks have disbursed Rs 98.1 billion which is 20% of the overall annual target of Rs 500 billion; 38% higher than disbursement of Rs 70.8 billion made during the corresponding period last year, said statement issued by State Bank of Pakistan (SBP) here on Tuesday.

The outstanding portfolio of agriculture loans has increased by Rs 36 billion i.e. from Rs 270 billion to Rs 306 billion at end of Sept. 2014 as compared to same period last year.

Amongst the major banks Allied Bank Limited (ABL) and United Bank Limited (UBL) have achieved 24.7% each of their annual targets. HBL achieved 23.1% and Muslim Commercial Bank (MCB) achieved 20.0% of its individual annual targets.

Under the specialized banks category Zaraee Tarqiatee Bank Limited (ZTBL) disbursed Rs 7.8 billion or 8.7% against its target of Rs 90.0 billion while PPCBL could disburse only Rs 1.1 billion i.e. 10 % against its target of Rs 11.5 billion during the period under review. Within fifteen domestic private banks, Summit Bank has achieved 40.4%, Faysal Bank 31%, Bank Alfalah 30%, Silk Bank 29.2 %, Bank of Khyber 26.3%, NIB bank 25.8% and Bank Al Habib 23% of their annual targets during Jul-Sep 2014 whereas Standard Chartered Bank has disbursed Rs 3.5 billion against its annual target of Rs 2.5 billion for 2014-15.

Under microfinance category, seven microfinance banks as a group has disbursed Rs 3.1 billion against their annual target of Rs 28.2 billion while under Islamic mode of financing, 4 Islamic banks collectively disbursed Rs 618.7 million against their targets of Rs 2.3 billion to agriculture borrowers.

Copyright APP (Associated Press of Pakistan), 2014

]]> (Imaduddin) Banking & Finance Tue, 21 Oct 2014 13:28:01 +0000
SBP issues guidelines to strengthen internal controls in payment instruments imageKARACHI: State Bank of Pakistan (SBP) has issued the guidelines to banks and micro-finance banks for strengthening internal controls in payment instruments.

SBP's has issued these guidelines in view of the inherent operational risks in processing, cancellation and issuance of payment order, demand draft, cash deposit receipt or banker's cheque ( collectively referred as the payment instruments), said SBP release here on Monday.

Now, banks/MFBs shall strictly observe the following controls in addition to those already in place for the purpose. According to CPD circular letter No.05 of 2014, before processing the request for purchase of the payment instruments, the banks/MFBs shall ensure that the purchaser has properly narrated the name, computerized national identity card number or smart national identity card number, national tax number (for corporate entities), complete address, and contact details of both the purchaser and the beneficiary in the payment instrument purchase form and described the purpose for which the Payment Instrument is required.

Before issuance of duplicate payment instrument, the banks/MFBs shall obtain from the purchaser the police daily diary report No./copy of the FIR regarding loss of the original payment instrument, affidavit on non-judicial stamp paper to the effect that original payment instrument has been lost before its delivery to the intended beneficiary, wherein he/she shall provide indemnity bond favoring the bank/MFB against all claims, suits, proceedings, actions, costs, losses, charges and expenses, which may arise against or suffered by the bank/MFB in consequence of paying the amount of the Payment Instrument.

The related format may also be got vetted from the bank's Legal advisor/Legal Department. The banks/MFBs shall immediately mark the original payment instrument as 'cancelled' in the system before issuance of duplicate payment instrument to the purchaser, specifically mark the subsequent payment instrument as 'duplicate'.

The banks/MFBs shall prescribe limits on the amount of payment instrument that may be subjected to the following requirements for cancellation/refund of duplicate payment Instrument, lawful discharge of the beneficiary for cancellation/refund of the duplicate payment instrument in favor of the purchaser, the purchaser's undertaking as to the genuineness of the beneficiary's discharge in the payment instrument cancellation/refund request.

The banks/MFBs shall promptly process request for cancellation/refund of the payment instruments where no duplicate payment instrument, irrespective of any amount, has been issued; the purchaser is the holder of the original payment instrument.

The banks/MFBs shall devise a standardized payment instrument verification form; upon request from the beneficiary, verify the genuineness of the payment instrument along with other related details (number, amount, date, beneficiary/purchaser detail, etc.) free of cost/service charges; retain a copy of the payment instrument verification form in line with record retention policy; put in place stringent internal controls for printing, stock taking, issuance and storage of stationery used for printing of the payment instruments.

All these arrangements shall be subject to regular review by the internal audit of the banks/MFBs; customize and adopt the security features for printing of the payment instruments as prescribed for printing of cheques by the State Bank of Pakistan from time to time; make available instant verification markers at branches as well as at all clearing units whereby authenticity of the payment instruments, for an amount over a limit to be specified by the banks/MFBs, is to be verified; endeavour to immediately resolve the disputed payment instruments transactions in accordance with applicable laws/rules/regulations and banks'/MFBs' own policies.

The banks/MFBs shall adhere to above instructions in letter and spirit. Any deviation or non-compliance of the above instructions shall attract punitive action against delinquent banks/MFBs under the relevant provisions of the laws.

Copyright APP (Associated Press of Pakistan), 2014

]]> (Imaduddin) Banking & Finance Mon, 20 Oct 2014 13:17:23 +0000
Pak forex reserves enhance to $ 13.43509bn$-1343509bn.html$-1343509bn.html imageKARACHI: Total liquid foreign reserves of the country increase to dollars 13.43509 billion, said State Bank of Pakistan (SBP). SBP's weekly statement here on Thursday said that the foreign reserves held by State Bank on October 10, amounted to $ 8.88201 billion and the net foreign reserves held by other banks figured $ 4.55308 billion.

During the week ending Oct. 10, SBP's liquid foreign reserves increased by $ 25 million to $ 8,882.1 million compared to $ 8,857 million in the previous week.

During the week, SBP received $ 44 million from multilateral and bilateral sources. There was no significant outflow during the week, the statement said.

Copyright APP (Associated Press of Pakistan), 2014

]]> (Imaduddin) Banking & Finance Thu, 16 Oct 2014 14:16:09 +0000
SBP may outright purchase or sale of Ijara Sukuk (GIS) as part of open market operations imageISLAMABAD: The State Bank of Pakistan (SBP) has decided that it may outright purchase or sale Government of Pakistan Ijara Sukuk (GIS) either on deferred payment basis (Bai-Muajjal) or on ready payment basis through Open Market Operations (OMOs) based on multiple price competitive bidding auction process.

This initiative has been taken by the Central bank in order to facilitate Islamic Banking industry in their liquidity management and more effective transmission of monetary policy, a statement of the Bank issued on Thursday said.

Following transaction modalities will be adopted for OMOs against GOP Ijara Sukuk by SBP.

All Islamic banks and conventional banks having Islamic branches will be eligible to participate in these OMOs.

Notice for OMO will be issued by SBP through Reuters/Bloomberg. To participate in the OMOs all eligible participants will send their bids as per required format through Fax/Reuters detailing face value of security and deferred price (in case of Bai-Muajjal or price (in case of ready payment basis).

Price should include accrued profit and can be quoted up to four decimal places.

Each eligible participant will be allowed to submit maximum three bids in an OMO.

Minimum bid size will be Rs. 25 million and its multiple thereof. SBP reserves the right to reject all or any of the bids without assigning any reason. If the deferred payment date falls on public/bank scheduled or un-scheduled holidays, then the contracts will be extended to the next business day and there will be no change in deferred payment price.

SBP will have the discretion to accept the bids on a `pro-rata volume' basis as par rules stipulated in DMMD Circular No. 02 of 2007 dated September 29, 2007.

The OMO result will be announced by SBP through Reuters/Bloomberg on the same date.

Successful bidders will send a contract to SBP for confirmation and settlement.

In case of purchase or sale of GIS on deferred payment basis, the GIS will be transferred to the SGLA of the buyer on deal date, while payment will be made on deferred payment date.

The deal cannot be terminated before the deferred payment date. In case of Sale of GIS on deferred payment basis to SBP, banks cannot include the GIS in their SLR calculations from the deal date.

In case of purchase or sale of GIS on ready payment basis, the GIS will be transferred to the SGLA of the buyer on the deal date against payment on the same date.

Copyright APP (Associated Press of Pakistan), 2014

]]> (Imaduddin) Banking & Finance Thu, 16 Oct 2014 13:34:54 +0000
Overseas Pakistanis remit $4.69bn in 3 months$469bn-in-3-months.html$469bn-in-3-months.html imageKARACHI: Overseas Pakistanis remitted an amount of $ 4694.69 million in first three months of current fiscal year (FY15) ; showing an impressive growth of 19.52 percent compared to $ 3927.94 million received during the same period of the last fiscal year (FY14), says State Bank of Pakistan.

SBP statement here Wednesday said, the inflow of remittances during September 2014 from Saudi Arabia, United Arab Emirates (UAE), United States of America, United Kingdom, GCC countries (including Bahrain, Kuwait, Qatar and Oman) and European Union countries amounted to $495.63 million, $394.10 million, $235.99 million, $218.38 million, $213.11 million and $34.05 million respectively compared with the inflow of $373.58 million, $276.03 million, $173.87 million, $190.09 million, $151.24 million and $33.85 million respectively in Sept. 2013.

Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the last month amounted to $125.33 million as against $84.75 million received in the same month of the last fiscal year (FY14).

Copyright APP (Associated Press of Pakistan), 2014

]]> (Imaduddin) Banking & Finance Wed, 15 Oct 2014 13:52:08 +0000
More than 80pc tax target achieved imageFAISALABAD: Regional Tax Office has achieved more than 80 percent of the recovery target set for the first quarter of 2014-15.

Regional tax office source said on Wednesday that Federal Board of Revenue had fixed recovery targets for Regional tax office Faisalabad including Rs. 3992 million income tax, Rs. 1750 million Sales Tax and Rs. 51.100 million Federal Excise duty.

Regional tax office recovered Rs. 78.944 million Federal Excise Duty which exceeds the target set.It also got Rs. 3777 million and Rs. 790 million in the heads of Income tax and Sales Tax respectively.

Copyright APP (Associated Press of Pakistan), 2014

]]> (Parvez Jabri) Banking & Finance Wed, 15 Oct 2014 10:26:41 +0000
Pak forex increase to $ 13.40008bn$-1340008bn.html$-1340008bn.html imageKARACHI: The total liquid foreign reserves of the country increase to dollars 13.40008 billion , said State Bank of Pakistan.

According to SBP's weekly statement here on Thursday, the foreign reserves held by State Bank on Oct.3, amounted to dollars 8.85702 billion against the previous weekly balance of $ 8.60908 billion. The net foreign reserves with other banks figured at $ 4.54306 billion against $ 4.60007 billion.

During the week ending on October 3, SBP received $ 484 million from multilateral, bilateral and other sources which includes $ 364 million received on account of Coalition Support Fund (CSF).

Over this period, SBP made payment of $ 133 million on account of external debt servicing and other payments.

Copyright APP (Associated Press of Pakistan), 2014

]]> (Imaduddin) Banking & Finance Thu, 09 Oct 2014 13:49:17 +0000