Banking & Finance Stay updated with Business News, Pakistan news, Current world news and latest world news with Business Recorder.. Mon, 24 Nov 2014 15:00:39 +0000 SRA Framework 2.0 en-gb State Bank quells rumors, banking system of Pakistan is stable imageKARACHI: Since the imposition of moratorium on KASB Bank Ltd, rumors are being spread that the financial condition of some banks is weak and they may also face supervisory action.

These are also being accompanied with misleading information attributed to State Bank of Pakistan (SBP).

The SBP has taken strong notice of such misinformation and has clarified that no such information has been circulated through media nor it has been placed on SBP's website, said SBP statement here on Monday.

SBP has emphasized that the public need not to pay attention to such rumors, which are trying to undermine the overall stability and performance of the banking system in the country.

The SBP reassures the general public that country's banking sector is stable and strong.

To strengthen the banking system, the SBP had set certain milestones for enhancing banks' capital base, which are being achieved satisfactorily.

SBP is regularly engaged with banks for capital improvement. Consequently, equity base of the banking system has increased by 11 percent to above Rs. 1,000 billion in Sept. 2014 from Rs. 900 billion in Sept. 2013.

It is reiterated that the banking sector's performance has been quite impressive.

As already reported in the quarterly banking system statistics for end September 2014, the banks in Pakistan earned historical profit before tax of Rs. 176 billion for first 9 months of the year 2014, while its solvency remains strong with Capital Adequacy Ratio(CAR) of 15.5 percent.

The banking sector is the second largest sector in terms of market capitalization and dividend payouts among the companies listed on the stock exchanges.

The capital position of the banking system will further strengthen due to expected fresh capital inflows and improving profitability.

The continuous improvement in capital base of banks clearly contradicts the rumors currently circulating in the media.

The SBP assure the public that its policies are directed towards safeguarding the interest of depositors and stability of the banking system.

Regulatory action like the one taken in respect of KASB Bank only aims at resolving the problems faced by the institution thus protecting depositors' interest.

State Bank of Pakistan reiterates its commitment to ensure the stability of the banking system of the country.

Copyright APP (Associated Press of Pakistan), 2014

]]> (Shoaib-ur-Rehman Siddiqui) Banking & Finance Mon, 24 Nov 2014 14:20:51 +0000
Performance of Banking Sector Remained Impressive: SBP imageKARACHI: Substantial improvement has been observed in the banking sector during July-September quarter of 2014. The profit (before tax) reached historically high level of Rs 176 billion as of end September, 2014 showing 44 percent increase over the end September, 2013.

Similarly, the return on assets (ROA) and return on equity (ROE) inched up to 1.4 percent and 15.9 percent respectively up from 1.1 percent and 12.3 percent a year earlier.

The quarterly banking sector statistics for the quarter ended September, 2014, released by the State Bank of Pakistan today, indicate that Capital Adequacy Ratio (CAR) of the banking system improved to 15.5 percent in September, 2014 compared to 15.1 percent a quarter earlier largely on the back of healthy profits.

The CAR at its existing level is well above the minimum ratio of 10 percent set by the SBP, despite implementation of strict Basel-III capital standard. Encouragingly, the stress test results also show that capital base of the system is strong enough to withstand unusual shocks due to credit, market and liquidity risks.

The indicators of asset quality of the banking sector, with marginal changes, also reflect stability. Non-Performing Loans (NPLs) to Loan ratio net of provisions at 3.2 percent in September, 2014 is far below its peak of 6.4 percent in September, 2011.

Copyright PPI (Pakistan Press International), 2014

]]> (Imaduddin) Banking & Finance Thu, 20 Nov 2014 14:45:06 +0000
Pak forex stand at $ 13.22801bn$-1322801bn.html$-1322801bn.html imageKARACHI: The total liquid foreign exchange reserves of the country stand at dollars 13.22801 billion, said State Bank of Pakistan (SBP). SBP's weekly statement here on Thursday said the foreign reserves held by SBP on Nov.14, amounted dollars 8.49307 billion and the net foreign reserves held by other banks amounted dollars 4.73404 billion. During the week, SBP's liquid foreign exchange reserves increased by dollars 7 million to dollars 8.494 billion compared to dollars 8.487 billion in the previous week.

No major inflow or outflow was recorded during the week.

Copyright APP (Associated Press of Pakistan), 2014

]]> (Imaduddin) Banking & Finance Thu, 20 Nov 2014 14:14:23 +0000
SITE's budget for 2014-15 of Rs1.282bn approved imageKARACHI: Board of Directors of SITE Limited has approved the budget of year 2014-15 of Rs 1.282 billion, with total deficit of Rs 4.6 million and total income estimated is Rs 1.276 billion.

The meeting of the Board of Directors of SITE Ltd, was chaired by Chairman of Board, Commissioner Karachi Shoaib Ahmed Siddiqui, said a statement on Wednesday.

Secretary Industries Abdul Kabeer Qazi, Managing Director SITE limited Nazar Muhammad Bozdar, Secretary SITE limited Imdad Ali Shah, Chief Engineer Abdul Waheed Shaikh, Director Finance Arbab Ali khan, Board Members of SITE Siraj Qasim Teli, Mazhar Ul Haq, Arshad Tanveer and Chairman SITE Association Javed Bilwani also present.

The meeting approved the budget for the financial year 2014-15 and unanimously appreciated efforts of MD SITE Nazar Muhammad Bozdar for construction works of roads and infrastructure development in SITE Area Karachi.

It expressed hope that these development efforts would be continued in other estates of SITE limited including SITE Hyderabad and next budget of SITE Ltd would present on time for approval.

The board presented different suggestions for financial improvement of SITE limited and appreciated also the measure taken against ghost employees.

Copyright APP (Associated Press of Pakistan), 2014

]]> (Parvez Jabri) Banking & Finance Wed, 19 Nov 2014 10:11:26 +0000
SBP clarifies KASB Bank operations not suspended imageKARACHI: In terms of the moratorium placed on KASB Bank Limited on November 14, the State Bank of Pakistan (SBP) has clarified that KASB Bank operations are not suspended, therefore, offices and branches of the bank will remain open as per their normal timings.

The State Bank of Pakistan has already advised the bank to commence payments of up to Rs. 300,000/- to their deposit account holders, with effect from November 17. Consequently, 92.3 per cent of the bank's depositors will be able to withdraw their total balances if they so desire, while others will be able to withdraw up to the Rs. 300,000 limit, said a SBP press release issued here on Sunday.

Moreover Locker Holders of the bank will be free to operate their lockers as usual. Borrowers of the bank will continue to make repayment of their dues to the bank as per already agreed upon terms and conditions.

The SBP reiterates its commitment to safeguard the stability of the banking system of the country. The SBP would like to reassure the general public that country's banking sector is stable and strong. All other banks are operating in a normal manner and will continue to serve their customers as usual.

It may be pointed out that while the total deposit base of all commercial banks is over Rs. 8.7 trillion, the percentage of KASB deposits is less than 0.7 per cent; hence, this bank is a very small segment of the overall system.

Copyright APP (Associated Press of Pakistan), 2014

]]> (Imaduddin) Banking & Finance Tue, 18 Nov 2014 14:32:38 +0000
UBL awarded best deal of the year and CS as Best Investment Bank in Pakistan imageISLAMABAD: In a great achievement for Pakistan, the United Bank Limited (UBL) share placement has been awarded the Best Deal Award by the prestigious "The Asset" publicatio".

This award is given on an annual basis to the best performing capital and bond market transactions selected from the entire Asian countries.

The award demonstrates the strategic importance and value creation achieved from the UBL share placement for Pakistan.

The submission placement was made by Credit Suisse which is the partner of Privatization Commission for UBL share.

Copyright APP (Associated Press of Pakistan), 2014

]]> (Parvez Jabri) Banking & Finance Tue, 18 Nov 2014 09:15:05 +0000
NBP's ATM services will be non-operative on Nov 16 imageKARACHI: National Bank of Pakistan's (NBP) ATM services shall be down on Sunday (Nov.16) from 0000 to 1000 hours due to critical maintenance activity.

During this activity, the NBP ATM services will be impacted and NBP/other banks' customers will not be able to avail the service, said NBP release here on Friday. NBP will try to minimize the downtime and will let 1-LINK inform as soon as the ATM services are operational.

Copyright APP (Associated Press of Pakistan), 2014
]]> (Parvez Jabri) Banking & Finance Fri, 14 Nov 2014 09:40:33 +0000
Overseas Pakistanis remit more than $6bn in 4 months$6bn-in-4-months.html$6bn-in-4-months.html imageKARACHI: Overseas Pakistanis remitted an amount of $ 6.077082 billion in first four months of current fiscal year (FY15).

This shows an impressive growth of 15.21 percent compared with $5.275061 billion received during the same period of the last fiscal year (FY14), said State Bank of Pakistan's statement here on Thursday.

The inflow of remittances during Oct. 2014 from Saudi Arabia, United Arab Emirates (UAE), United States of America (USA), United Kingdom, GCC countries (including Bahrain,Kuwait,Qatar and Oman) and European Union countries amounted to $374.65 million, $318.59 million, $213.39 million, $185.55 million, $153.09 million and $30.28 million respectively compared with the inflow of $353.46 million, $276.48 million, $225.25 million, $197.08 million,$157.32 million and $40.11 million respectively in Oct. 2013.

Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the last month amounted to $107.58 million as against $97.97 million received in the same month of the last fiscal year (FY14).

Copyright APP (Associated Press of Pakistan), 2014

]]> (Imaduddin) Banking & Finance Thu, 13 Nov 2014 14:42:09 +0000
Pak forex surge to $ 13.44309bn$-1344309bn.html$-1344309bn.html imageKARACHI: Total liquid foreign exchange reserves of the country increase to dollars 13.44309 billion, said State Bank of Pakistan (SBP).

According to SBP's weekly statement here on Thursday, the foreign reserves held by State Bank on October 31, amounted dollars 8.61804 billion and the net foreign reserves held by other banks were dollars 4.82505 billion.

During the week ending on October 31, SBP's liquid foreign reserves increased by $ 50 million to $8.618 billion compared to $8.568 billion in the previous week.

Copyright APP (Associated Press of Pakistan), 2014

]]> (Imaduddin) Banking & Finance Thu, 06 Nov 2014 14:38:59 +0000
SBP injects Rs94.400bn into market

imageKARACHI: State Bank of Pakistan (SBP) on Friday injected Rs. 94.400 billion for into market for seven days during its open market operation (OMO).

Out of 19 offered bids amounting Rs. 94.900 billion, 18 of Rs. 94.400 billion were accepted, said SBP statement here.

Copyright APP (Associated Press of Pakistan), 2014

]]> (Shoaib-ur-Rehman Siddiqui) Banking & Finance Fri, 31 Oct 2014 15:30:29 +0000