The growing reliance on offshore funding highlights a central challenge for Communist Party chief To Lam’s economic agenda, with banks expected to bankroll most of the planned infrastructure projects worth about USD200 billion and support annual growth of at least 10percent through 2030 despite mounting funding strains. Chinese, Taiwanese and Middle Eastern banks are among those said to have shown interest as Vietnamese lenders seek offshore funding, said Willie Tanoto of Fitch Ratings, noting the size of discussed syndicated deals has reportedly been around several hundred million dollars. Several foreign banks operate in Vietnam through branches, and more could enter under the government’s plan to establish international financial centres, analysts said, though key details remain unclear.

Japanese and South Korean banks are already strategic investors in some of the country’s largest lenders. Last month, HDBank, a mid-sized private bank linked to budget carrier VietJet, said it had secured an international syndicated loan agreement worth USD721 million, exceeding the initial fundraising target by approximately 60percent.

Lenders included Standard Chartered, Germany’s Commerzbank and Japan’s MUFG Bank. That followed a USD1.44 billion offshore loan signed in June by VPBank, one of Vietnam’s largest private banks, with Japan’s Sumitomo Mitsui playing a key role in the deal. Techcombank, another top private bank, is also seeking a foreign loan of USD1 billion pending regulatory approval, its CEO Jens Lottner told Reuters, confirming an earlier Bloomberg report.

“As domestic interest rates are rising, this becomes economically sensible again for medium to long term funding,” he said, noting the bank raised a similar amount overseas in 2022 and routinely taps international markets when conditions are favourable, including currently, with dollar funding relatively cheap.

“I think there is appetite for Vietnam,” Lottner said. Interest rates on long-term deposits in Vietnam rose in June to a range of 5.9percent-7.8percent from 4.8percent-7.1percent a year earlier, according to the central bank, amid high inflation.

Offshore loans to Vietnamese banks often carry interest below those paid on domestic deposits, one consultant at a Vietnam-based securities firm said, declining to be named because the information was not public. Offshore borrowing appears to be increasing, but many of the transactions are bilateral, making it difficult to estimate the total amount raised, Tanoto said.

RISKS

The drive to tap offshore funding is being fuelled by Vietnam’s ambitious growth agenda, analysts and bankers said. At the start of the year, the central bank lowered the banking system’s credit-growth target to 15percent from 20percent in 2025, after a lending boom stoked concerns over asset bubbles.

In Communist-ruled Vietnam, the central bank assigns annual credit-growth quotas to individual lenders. Yet by the end of June, credit growth had exceeded 18percent year-on-year. Large infrastructure projects, including a railway being developed by conglomerate Vingroup, are exempt from those limits.

As banks struggle to bridge the gap between short-term funding and the long-dated financing needs of infrastructure projects, the central bank in July relaxed prudential rules.

Yet, deposits remain increasingly difficult to attract, pushing funding costs higher. Loans have consistently exceeded deposits in the period from 2021 to 2025, resulting in a gap of nearly USD77 billion now, the central bank said in an August 12 report, warning of risks to financial stability.

Previously the bank, under pressure to boost economic growth, revised the way it calculates the loan-to deposit ratio, effectively giving banks greater room to extend credit.

“While banks diversifying their funding sources is not a bad thing, especially if they are disciplined enough to stagger maturities and hedge their FX exposures, it does not resolve the deposit shortage in the domestic system,” Tanoto of Fitch said. He warned of growing risks from Vietnam’s excessive reliance on banks to finance rising investment needs.

The ​rupee was steady on the back of the intervention ​at 95.40 per ​dollar. It managed to hold above ‌the ⁠psychologically important 95.50 level, similar to price action seen over much ​of ​this ⁠week where interventions have kept a ​firm lid on ​the ⁠currency’s losses.

Indian rupee logs weekly decline, with RBI intervention curbing losses

Over the week so far, the rupee ⁠has ​hovered in ​a 95.17-95.4450 range.

The reserves jumped $14.1 billion week-on-week, the largest rise since January, the Reserve Bank of India said on Friday. The rise was led by a $9.9 billion weekly gain in the central bank’s foreign currency assets.

The central bank’s FX pile has been rising over the last six weeks, which have witnessed an accretion of about $40 billion.

Measures to draw dollar inflows announced in June include discounted hedging facilities for overseas borrowings by state-run firms and banks alongside tax cuts on foreign investments in government bonds and a free-of-cost hedging facility for banks to raise overseas FX deposits.

Between June 8 and July 31, the swap facilities drew flows worth over $40 billion while foreign investors net purchased Indian government bonds worth over $2.5 billion under the so-called fully accessible route.

Changes in foreign currency assets, expressed in dollar terms, include the effect of appreciation or depreciation of other currencies held in reserves.

India’s forex reserves hit three-month peak, see biggest weekly rise in six months

Analysts have said that recent central bank interventions to defend the rupee have likely offset the impact of some of the overseas dollar inflows.

Foreign exchange reserves include India’s Reserve Tranche position in the International Monetary Fund.

Foreign exchange reserves (in million U.S. dollars)

Aug 07 July 31

2026 2026

Foreign currency assets 574,625 564,680

Gold 108,738 104,743

SDRs 18,745 18,666

Reserve Tranche Position 4,894 4,778

Total 707,002 692,866

New Delhi sold 50 billion rupees ($524 million) of 30-year sovereign green bonds, at a so-called greenium of four basis points on Friday, leading to an average premium of four bps in the fiscal half-year, the highest since such sales began in the second half of fiscal 2023.

A greenium is the lower yield investors are willing to accept for bonds that finance environmentally sustainable projects.

“Green bonds are eligible for classification under the infrastructure category, which provides an added benefit for insurance companies from an asset allocation and regulatory perspective,” said Shobit Gupta, chief investment officer, Generali Central Life Insurance.

“The existing demand-supply dynamics have resulted in a noticeable greenium, with green bonds trading richer than comparable conventional government securities,” he said.

Including the latest issuance, India now has sovereign green bonds worth 877 billion rupees or $9.2 billion outstanding. Notes with 30-year maturities are the most issued, crossing the 500 billion rupee mark.

Indian bonds mirror gains in Treasuries as oil slips

Strong demand has led to calls by market participants for some increase in the supply of such papers, as insurers manage a growing corpus and find a lack of sufficient substitutes.

“We believe the market is well positioned to absorb a higher supply of green bonds in the second half of FY27, particularly if the issuance is concentrated in the longer part of the curve,” said Sachin Bajaj, chief investment officer at Axis Max Life Insurance.

“Demand for these bonds continues to be supported by insurers’ ALM requirements.”

After starting with five-year and 10-year green bonds in January 2023, New Delhi had to cancel or cut the size of a few issuances, before ultimately selling these papers at yields above those ofcomparable government bonds.

However, the greenium returned with the government sticking to issuing 30-year green bonds in the last 18 months.

“Long green bond issuance has remained consistent over the past three fiscal years, adequately matching current investor demand,” Rahul Bhuskute, CIO at Bharti AXA Life Insurance said.

BOB, India’s second largest state-run lender by assets, plans to raise funds through a dual-tranche bond issue maturing in three years and five years, and has provided initial guidance.

The bank has offered a spread of 120 basis points above U.S. Treasury for the three-year option and 130 bps on the five-year sale, the bankers added, requesting anonymity as they are not authorised to speak to media.

BOB did not reply to a Reuters email seeking comment.

“Ideally, they are eyeing $500 million through each maturity, but if the cutoffs are aggressive, they could choose to upsize one of the maturities,” one of the bankers quoted above said.

SBI sees strong demand for 5-year dollar bond, tightens pricing

Indian banks have been making a beeline for dollar issues after the Reserve Bank of India’s swap facility announced in June made overseas borrowing cheaper.

State Bank of India on Wednesday raised $500 million through a five-year issue at 5.25% coupon payable semi-annually. The issue was sold at a spread of 88 bps over Treasuries, sharply lower from a guidance of 120 bps, with bidding nearly touching $2.5 billion.

Private peers such as HDFC Bank, Axis Bank and ICICI Bank also raised funds through dollar bonds in June and July.

Bank of Baroda will issue these papers through its branch in International Financial Service Centre Banking unit at GIFT City. The proceeds will be used towards funding requirements of the bank’s head office as well as foreign branches, along with general corporate purposes.

The bonds will be rated BBB, BBB– and BBB+ by S&P, Fitch Ratings and CareEdge Ratings, in line with the issuer’s ratings.

The rupee managed to hold its ground on the back of the intervention and was last at 95.41 per dollar, little changed from its close at 95.4350 in the previous session.

Indian rupee nudges up on RBI intervention; investors eye inflation data

The currency has hovered in a 95.40-95.4325 range through the session so far. Brent crude oil futures were last up 0.3% at $89.2 per barrel.

SBI raised $500 million through a five-year dollar bond issued via its London branch, the lender said in a stock exchange filing late on Tuesday.

These bonds will be priced at a spread of 88 basis points over U.S. Treasuries, sharply below initial guidance of 120 bps. The notes carry a coupon of 5.25%, payable semi-annually.

The final spread was broadly in line with CreditSights’ expectation of 90 basis points, although the research firm expects it to tighten further to around 80 basis points in the secondary market.

Spreads on dollar bonds issued by Indian borrowers have widened in recent weeks on expectations of heavy supply following the Reserve Bank of India’s swap concession window, while demand has been tempered by attractive rates on foreign-currency deposits.

SBI returns to dollar debt market, bankers see strong demand

“As we had anticipated, some of this spread premium has begun to fade as supply is absorbed… We have an outperform recommendation on SBI,” CreditSights analysts said in a note.

The lender witnessed tightest pricing, after ICICI Bank sold notes at 100 bps, while HDFC Bank sold notes at a spread of 90 bps over Treasuries.

SBI had planned to raise $1 billion through a public dollar bond issue in June, but deferred the sale due to higher borrowing costs following heavy issuance by Indian lenders.

The bank subsequently raised $600 million through a private placement of three-year dollar bonds at a spread of 100 basis points over the Secured Overnight Financing Rate (SOFR).

The issue comes at a time when Indian banks are making a beeline for dollar issues after the RBI’s swap facility announced in June made overseas borrowing cheaper.

Large private lenders, including HDFC Bank, Axis Bank and ICICI Bank have raised funds through dollar bonds in June and July.

Meanwhile, bankers expect SBI to tap the market again in a few weeks for raising dollars, as the board has approved raising of up to $2 billion through bonds sold in dollar or any other major currency in this financial year.

The listed bank announced the development in a filing to the Pakistan Stock Exchange (PSX) on Wednesday.

“We are pleased to inform you that pursuant to the FPT clearance received from the State Bank of Pakistan, Adil Salahuddin will assume the charge of his office as the new CEO/Director of the bank with effect from 13 August 2026,” read the notice.

It is pertinent to note that an FPT clearance, or a Fit and Proper Test clearance, is a formal regulatory approval certifying that a proposed candidate meets the criteria to assume key executive positions in a bank or financial institution.

Last month, Standard Chartered Bank (Pakistan) Limited appointed Adil Salahuddin as its incoming CEO and director.

Salahuddin brings more than 30 years of banking experience and has been associated with the Standard Chartered Group for 25 years, Standard Chartered informed the bourse in a notice back then.

“During this period, he has held various leadership roles across markets, coverage and transaction banking in different geographies. While his primary focus has been Pakistan, Salahuddin has also worked in the UAE and Saudi Arabia, gaining a deep understanding of the Middle East and African markets,” it added.

Standard Chartered Bank (Pakistan) Limited was incorporated in Pakistan on 19 July 2006 and was approved for the commencement of banking business by the State Bank of Pakistan, with effect from 30 December 2006.

The ultimate holding company of the bank is Standard Chartered Plc., incorporated in England. The bank is engaged in the banking business as defined in the Banking Companies Ordinance, 1962.

Copyright Business Recorder, 2026

The bonds will be issued through SBI’s London branch, with initial price guidance set at roughly 120 basis points over U.S. Treasuries.

The issue comes at a time when Indian banks are making a beeline for dollar issues after the Reserve Bank of India in June a opened a swap facility, making overseas borrowing cheaper.

SBI is expected to raise at least $500 million, although the final size will depend on investor demand.

The lender has begun marketing the bonds and is expected to complete the sale by the end of the week, the bankers said, declining to be identified as they were not authorised to speak to the media.

SBI did not immediately respond to a Reuters email seeking comment.

One banker said SBI was offering a sizeable spread premium, although final pricing could tighten by as much as 30 basis points. The banker also expected the deal size to reach $1 billion or more.

Fitch Ratings has assigned an expected BBB- rating to the proposed senior unsecured notes.

India’s largest lender SBI beats quarterly profit view on healthy loan growth

The notes will be direct, unsecured and unsubordinated obligations of SBI, ranking equally with its other unsecured and unsubordinated debt, the rating agency said.

SBI had planned to raise $1 billion through a public dollar bond issue in June, but deferred the sale due to higher borrowing costs following heavy issuance by Indian lenders.

The bank subsequently raised $600 million through a private placement of three-year dollar bonds at a spread of 100 basis points over the Secured Overnight Financing Rate (SOFR).

Large private lenders, including HDFC Bank, Axis Bank and ICICI Bank, raised funds through dollar bonds in June and July.

The BRICS organisation includes Brazil, Russia, India, China and South Africa, among others. India is hosting the 2026 edition of the annual summit.

“Cross-border payments is an area of interest for all of us, including the BRICS, because we feel there is a lot of scope for reducing cost,” Malhotra said in Mumbai.

“Various options are on the table, but it is still at discussion stage, including CBDCs (central bank digital currencies) and linkages of fast payment systems,” he added.

Reuters reported earlier this year that the RBI recommended to the government that a proposal to connect CBDCs be included in the agenda for the 2026 BRICS summit.

The central bank will also continue its efforts to internationalize the rupee and promote the use of local currencies for cross-border payments and trade, Malhotra said.

Indian rupee retreats to near two-week low as US-Iran standoff pushes oil higher

Responsible AI use

The governor also said that the RBI sees artificial intelligence as a capability to be harnessed and not just a risk that needs to be contained.

“Indian banks cannot afford to sit on the sidelines and watch,” he said, urging lenders to inventory all AI models in use and establish board-approved AI governance policies.

Central banks globally have been paying close attention to lenders’ usage of AI amid worries over cyberattacks alongside operational and governance risks.

“Innovation and safety are not opposing goals, they are in fact complementary requirements of a durable financial system,” Malhotra said.

The transaction remains subject to all applicable statutory, corporate, shareholder and regulatory approvals. The proposed capital injection marks an important milestone in BOP’s ongoing transformation and is designed to strengthen the Bank’s capital base in support of its future growth ambitions.

The shares will be issued at Rs 38.20 per ordinary share; if, however, the prevailing market price of the Bank’s ordinary shares at the time of issuance is higher, the issue price will be the prevailing market price plus a premium of five percent Rs 38.20 per share therefore serves as the floor price for the issuance.

Over the past several years, BOP has undergone a far-reaching transformation — substantially expanding its balance sheet, strengthening its financial performance and building leading market positions in segments most vital to Pakistan’s economy. The Bank today ranks as the country’s number one bank in SME, agriculture and affordable housing finance, women’s leadership, credit card issuance and digital lending, while steadily deepening its presence in export-oriented commercial and corporate banking. Together, these franchises place BOP at the heart of economic activity, employment generation and financial inclusion in Pakistan.

The pace of this expansion has, however, placed growing demands on a capital base that has historically remained thin relative to the scale of the Bank’s operations and its growth potential.

The proposed equity injection will strengthen and deepen BOP’s capital base, creating headroom for the Bank to keep growing in its core markets and expanding low-cost deposits without capital constraints, while ensuring financial resilience and prudent balance-sheet management.

Importantly, this is growth capital. It comes at a time of strong underlying performance: during 2025, BOP recorded revenue growth of approximately 29 percent and earnings growth of more than 40 percent year on year, alongside significant appreciation in the Bank’s share price.

The capital raise will support the next stage of BOP’s expansion, including the Bank’s international venture recently approved by the State Bank of Pakistan.

Copyright Business Recorder, 2026

Through its Easy Home financing solution, the Bank has helped 490 families realise their dream of home ownership through 100 percent Shariah-compliant financing, supporting the Government’s vision of promoting affordable housing and greater financial inclusion.

The milestone reflects the growing preference for Meezan Bank’s Shariah-compliant housing finance solutions and the Bank’s continued commitment to making home ownership more accessible through ethical, transparent and customer-centric financing. Leveraging its nationwide branch network and dedicated housing finance teams, Meezan Bank continues to play a leading role in advancing affordable housing across Pakistan.

Building on this momentum, the Bank has approved more than 3,000 housing finance applications under the GHTA Programme, representing a cumulative approved financing amount exceeding PKR 22.557 billion. This strong pipeline underscores the increasing demand for Shariah-compliant housing finance and positions the Bank for significant future disbursements as customers complete the property acquisition process.

Commenting on the achievement, Ahmed Ali Siddiqui, Group Head – Consumer Finance & Digital Banking, Meezan Bank, said that surpassing PKR 3 billion in disbursements under the Ghar Ho Tu Apna Programme reflects the trust our customers place in us and our commitment to providing authentic Shariah-compliant housing finance.

With more than 3,000 approved applications in the pipeline, we remain committed to supporting the Government’s affordable housing agenda and enabling thousands more Pakistani families to own a home through ethical Islamic financing, he added.

Copyright Business Recorder, 2026

According to announcement, despite the downward rationalisation of market rates, FBL maintained its profitability through healthy balance-sheet growth, with total assets crossing PKR 1.8 trillion. The Bank continued to optimise its deposit mix, with increased emphasis on current accounts, supported by trade and transactional flows, an expanding customer base, and its wide and growing branch network.

Deposits grew by 9.5 percent to PKR 1.56 trillion, while current accounts increased by 21 percent to PKR 646 billion. The current account mix improved to 41.4 percent from 37.5 percent in December 2025, while CASA strengthened to 86.8 percent from 81.9 percent.

The Advance-to-Deposit Ratio moderated to 51.7 percent from 61.1 percent, while asset quality remained strong with an infection ratio of 2.3 percent. The successful issuance of a PKR 7 billion Tier II Sukuk further reinforced the Bank’s capital base.

Overall, FBL’s results demonstrate the strength of its Islamic banking franchise, business fundamentals, disciplined risk management and focused growth strategy, increasingly supported by digital, technology-led, women-focused and customer-centric solutions.

Mian Muhammad Younis, Chairman, Faysal Bank, said that these results reflect the growing maturity and strength of Faysal Bank’s Islamic banking and network-led growth journey. They demonstrate the effectiveness of the Board’s long-term strategic direction-expanding the Bank’s network and steadily building a low-cost core deposit base. “We remain sincerely grateful to our customers, whose enduring trust is central to our continued progress”, he added.

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He expressed these views during his visit to the Lahore Chamber of Commerce and Industry.

He was accompanied by SBP Deputy Chief Manager Bilal Shafqat, Deputy Director Umar Makhdoom and other officials. LCCI Acting President Tanveer Ahmed Sheikh welcomed the delegation, while LCCI executive committee members Sheikh Fayyaz and Nadeem Ansari were also present during the meeting.

Anser Iftikhar Butt further said that the Lahore Chamber should identify sectors and companies where SME financing was most needed so that effective financing mechanisms could be developed for these sectors. He said guarantees provided by large companies for SMEs could help resolve documentation and other financing-related issues to a significant extent.

He also asked the Lahore Chamber to nominate a focal person to address issues faced by SMEs, while the State Bank would work jointly with the Lahore Chamber for the promotion and financing of SMEs. He emphasised that making SME financing more effective was essential for sustainable economic growth and employment generation.

Acting President LCCI Tanveer Ahmed Sheikh said instead of relying solely on collateral-based financing, alternative financing models should be introduced for SMEs.

He said SMEs could also be facilitated through local LC models and insurance-based financing mechanisms. He said the textile sector was facing serious difficulties in obtaining financing and opening Letters of Credit (LCs).

“Banks are not ready to provide even a single rupee of financing to the textile sector,” he said, adding that this situation was affecting industrial production and export activities. He urged the State Bank to take practical measures for the immediate resolution of financing issues faced by the textile sector and other key industrial sectors.

On this occasion, LCCI Acting President Tanveer Ahmed Sheikh proposed establishing a permanent State Bank desk at the Lahore Chamber so that financing-related cases and issues of the business community could be resolved directly.

He said the initiative would facilitate businesses and help eliminate unnecessary delays in resolving banking-related matters. He also stressed the need to simplify the procedure of the Asaan Karobar Scheme further so that more small and medium-sized businesses could benefit from the facility. They also discussed in detail SME financing, value chain financing, issues faced by the textile sector, opening of LCs, alternative financing models and the provision of banking facilities to the business community.

Copyright Business Recorder, 2026

Here are a few details of the issue, according to a termsheet seen by Reuters:

Indel Money aims to raise at least 2.50 billion rupees through public issue, which includes a similar greenshoe option.

The company will issue bonds maturing in 400 days, two-years, three-years and six years, with a monthly and a cumulative coupon payment option.

The coupons on these instruments will range from 9.00% to 11.50%, with the cumulative yield for the six-year papers at 12.25%, and the principal amount more than doubling till the maturity.

The company will also sell five-year bonds with only monthly payment option and a coupon of 11.00%.

Indian rupee weakness cushioned by central bank intervention, shorts grow wary

The bonds are rated A- by India Ratings and will close for subscription on August 31.

This would be the biggest public debt issue by the firm, surpassing its previous 3 billion rupees raised last fiscal year.

So far in fiscal 2027, only six companies have raised around 17.42 billion rupees through public issue of such bonds, sharply lower than the more than 42 billion rupees raised in the first four months of fiscal 2026.

The bank disclosed the development in a notice to the Pakistan Stock Exchange (PSX)

“We wish to inform you that the newly elected Board of Directors of the bank, at its first meeting held on August 10, 2026, appointed Shahid Hussain Jatoi as Chairman of the Board, effective August 10, 2026, for a term of three years,” read the notice.

Rizwan Ata takes charge of BankIslami as its new President & CEO

Meanwhile, the Board decided that Rizwan Ata will continue to serve as the bank’s President and chief executive officer (CEO) until the completion of his current three-year term on September 28, 2026.

“The Board recognised and appreciated the efforts of Rizwan Ata,” BankIslami said in a separate notice.

The bank further announced the appointment of Imran Haleem Shaikh, currently serving as deputy CEO, as the incoming President and CEO for a three-year term effective September 29, 2026.

“The appointment of Imran Haleem Shaikh is subject to the requisite regulatory clearance from the State Bank of Pakistan (SBP),” it added.

BankIslami Pakistan Limited was incorporated in Pakistan as a public limited company in 2004, founded by Jahangir Siddiqui & Company Limited and the Randaree family.

 Dubai Bank later joined as a founding shareholder in 2005.

The bank was granted a license as a “Scheduled Islamic Commercial Bank” in 2005 under the Islamic banking policy of 2003 from the SBP, and it officially began operations on April 7, 2006.

The listed bank disclosed the development in a notice to the Pakistan Stock Exchange (PSX) on Monday.

The Board of Directors of BoP have proposed, “subject to obtaining all applicable regulatory and corporate approvals, the issuance of ordinary shares, otherwise than by way of right issue, to the Government of the Punjab, against a proposed equity subscription of up to Rs30 billion to be undertaken in two tranches: up to Rs20 billion by December 31, 2026 and the balance by June 30, 2027,” read the notice.

The price for the proposed issue shall be Rs38.20 per ordinary share; provided that, where the prevailing market price of the bank’s ordinary shares at the time of issuance exceeds Rs38.20 per share.

“The applicable issue price for such issuance shall be the prevailing market price plus a premium of 5%,” it said.

BoP said that the proposed issuance shall be subject to obtaining all requisite approvals from the shareholders of the bank through an Extraordinary General Meeting and the relevant regulatory authorities, including the State Bank of Pakistan and the Securities and Exchange Commission of Pakistan.

The Bank of Punjab (BOP), established in 1989, is a prominent public sector commercial bank in Pakistan. It has grown significantly, becoming the second-largest public-sector commercial bank in the country.

Last week, BoP received in-principle approval from the State Bank of Pakistan (SBP) to establish an Overseas Wholesale Banking Unit in Bahrain, marking a key step in the lender’s plans to expand its international footprint.

“The milestone reflects the growing preference for Meezan Bank’s Shariah-compliant housing finance solutions and the bank’s continued commitment to making home ownership more accessible through ethical, transparent and customer-centric financing,” read a statement on Monday.

The ‘Wazir-e-Azam Apna Ghar Programme – Ghar Ho Tu Apna’ (GHTA) is a nationwide subsidised housing finance initiative launched on April 30, 2026, by PM Shehbaz Sharif.

It aims to address Pakistan’s housing shortage by providing affordable, long-term financing to low- and middle-income families for homeownership and by stimulating economic growth through increased construction activity.

GHTA Programme: Meezan Bank achieves Rs2bn in disbursements

The program was developed after extensive consultations with the private sector, the finance ministry, and the State Bank of Pakistan (SBP).

As per the statement, Meezan Bank approved more than 3,000 housing finance applications under the GHTA Programme, representing a cumulative approved financing amount exceeding Rs22.557 billion.

Commenting on the achievement, Ahmed Ali Siddiqui, Group Head – Consumer Finance & Digital Banking, Meezan Bank said, “affordable home ownership is one of Meezan Bank’s key strategic priorities”.

“With more than 3,000 approved applications in the pipeline, we remain committed to supporting the Government’s affordable housing agenda and enabling thousands more Pakistani families to own a home through ethical Islamic financing,” he said.

In terms of growth, remittances increased by 4.5% on a month-on-month basis and 13% on a year-on-year basis.

Overseas workers’ remittances to Pakistan increased by 9% to $41.6 billion during Jul-June FY26, up from $38.3 billion in the previous fiscal year.

“We expect remittances for FY27 to clock in at $40.1 billion,” said Topline Securities in a note.

Remittances play a significant role in supporting the country’s external account, stimulating Pakistan’s economic activity, and supplementing the disposable incomes of remittance-dependent households.

Meanwhile, the government promotes remittances through incentives and formal channels to sustain steady growth and ensure their role in economic stability.

PM expresses satisfaction

Prime Minister Shehbaz Sharif on Monday expressed satisfaction over $3.6 billion in remittances sent by overseas Pakistanis.

“The consistent and positive contribution of overseas Pakistanis to the stability and growth of the national economy is commendable. Pakistanis are a valuable component of our national economic mainstream, said PM Shehbaz.

Breakdown of remittances

Overseas Pakistanis in Saudi Arabia remitted the largest amount in July 2026, sending $914 million. The amount was up 11% compared to the $824 million sent by the expatriates in the same month last year. Moreover, the amount was up by 10% compared to $830 million in June 2026.

Inflows from the United Arab Emirates rose by 11% on a yearly basis, from $665 million in July 2025 to $737 million in July 2026. However, on a monthly basis, remittances declined by 7%, down from $792 million registered in June 2026.

Remittances from the UK amounted to $555 million in July 2026, up 23% from $450 million in the same month last year.

Overseas Pakistanis in the US sent $317 million in July, a 7% increase from $296 million in June.

Meanwhile, remittances from European Union (EU) countries clocked in at $462 million in July, recording an increase of 11% on a monthly basis from $415 million in June.

The US Labor Department’s report showed that the economy shed 23,000 jobs in July, defying expectations of 80,000 additions, according to economists polled by Reuters. As a result, the US dollar index fell 0.4 percent, hitting a seven-week low.

Money markets scaled back bets for a September Fed rate hike, with traders pricing in a 44 percent chance of an increase, down from 55 percent before the employment data, according to CME Group’s FedWatch tool.

“With not a solid belief in the Fed, terrible labor situation, and Yen intervention…it’s helping LatAm improve. The monetary policy divergence is what’s mattering right now,” said Juan Perez, director of trading at Monex.

The US payrolls surprise capped a week of central bank decisions and inflation data across Latin America, offering fresh cues on the region’s monetary policy path.

MSCI’s index tracking Latin American currencies

rose 0.2 percent, heading for a sixth straight week of gains. The equities gauge, however, slipped 0.8 percent and was poised to mark its sixth consecutive session of losses, its longest such streak since late April.

Most assets in the resource-laden region were on track to log weekly gains helped by firmer commodity prices that improved risk sentiment.

Among currencies, the Mexican peso traded 0.5 percent higher, while its stocks gained 0.6 percent, led by a 1.6 percent advance in Grupo Mexico, tracking higher copper prices.

Data showed annual inflation in Mexico slowed in July to its lowest level in more than six years, a day after the central bank kept rates unchanged and pushed back its timeline for inflation to return to target levels.

“Softer food prices, weak domestic demand, restrictive financial conditions and the lagged effects of the MXN’s appreciation earlier this year continue to support lower headline inflation,” said Andres Abadia, chief LatAm economist at Pantheon Macroeconomics.

In Chile, annual inflation also eased in July, while copper export revenue jumped 22.7 percent year-on-year. The equities benchmark

declined 0.2 percent after hitting an over three-month high in the previous session, and the peso gained 0.4 percent.

Brazilian stocks fell most among Latin American peers, down 1.9 percent, with a 3 percent loss in state-run oil firm Petrobras despite reporting strong second-quarter results, dragging the index lower. The real strengthened 0.5 percent.

Copyright Business Recorder, 2026

The new lounge takes HBL Prestige’s presence to 22 cities, including its international lounges in Jumeirah, Dubai, and London, UK. The expansion reinforces HBL’s commitment to providing a world-class banking experience to high-net-worth individuals (HNWIs) across the province.

The lounge was inaugurated by Muhammad Nassir Salim, President & CEO – HBL. The ceremony was attended by distinguished clients, senior leadership and other valued guests. HBL Prestige offers personalized financial solutions, dedicated banking services, delivering an elevated banking experience to clients in Sukkur.

HBL also inaugurated its first Trade Business Centre in Sindh in Hyderabad. The centre brings comprehensive trade services under one roof for Commercial and SME clients, offering greater convenience and a more seamless experience for businesses.

Further expanding its reach, HBL inaugurated a new branch within the Liaquat University of Medical and Health Sciences (LUMHS) campus in Jamshoro. HBL now has 133 branches across Hyderabad region, extending banking services to individuals, businesses and institutions.

Copyright Business Recorder, 2026

The government on Wednesday signed off on Prime Minister Sanae Takaichi’s flagship plan to slash the sales tax on food items to 1percent from 8percent for two years, pressing ahead despite mounting concerns over the nation’s already strained finances.

Takaichi has pledged not to rely on fresh debt issuance and instead look for non-tax revenues to fund the revenue shortfall, estimated around 5 trillion yen (USD31.71 billion) annually.

Daishiro Yamagiwa, a senior lawmaker of the ruling Liberal Democratic Party’s (LDP) tax panel, said proceeds from selling the BOJ’s 37-trillion-yen ETF holdings could be considered as an idea to fill the shortfall.

“Under the BOJ’s current plan, it would take a century to sell all of its ETF holdings. Stock prices are so high now that it won’t hurt to think about speeding up the pace of sales,” Yamagiwa, a senior lawmaker of the Liberal Democratic Party’s (LDP) tax panel, told an online programme aired on Tuesday.

Under a plan set in September last year, the central bank is currently selling its ETF holdings in the market at an annual pace of around 330 billion yen as part of its efforts to dismantle remnants of its massive stimulus.

The BOJ has said it opted to move slowly to avoid disrupting the stock market in unloading the 37-trillon-yen worth of ETFs left on its balance sheet during 13 years of purchases aimed at reflating a moribund economy.

The International Financial Services Centres Authority (IFSCA), the regulator for the international financial services hub, granted the in-principle approval, and Standard Chartered expects to roll out its retail wealth management offerings over the next few months. “Building on our deep roots in the GIFT City ecosystem, this distribution approval enables us to bring Standard Chartered’s global wealth management capabilities, while supporting GIFT City’s ambition to become a leading international financial services centre,” P D Singh, CEO, India and South Asia, Standard Chartered, said in the statement.

Standard Chartered, the first foreign bank to commence operations in GIFT in 2020, joins HSBC in offering wealth products via the hub. The lender was earlier tapped by policymakers to manage US dollar clearances for a foreign currency settlement system set up in the country’s tax-neutral zone. GIFT City is being promoted by the Modi government as a financial centre to rival Singapore and Dubai.

In February, the government extended the tax holiday for firms operating there to 20 years and regulations have also been eased. Earlier in the year, the finance hub also issued its first license to establish a family investment fund, marking a significant step in managing private wealth within the financial hub.

The Board of Directors of Meezan Bank, in their meeting approved the financial statements of the Bank for the half year ended June 30, 2026. The meeting was chaired by Riyadh S A A Edrees Chairman of the Board.

Concurrently, basic Earnings per Share were recorded at Rs 27.15 (H1 2025: Rs 25.72). The Board approved an interim cash dividend of 80 percent (Rs 8.00 per share) for the second quarter of 2026.

The Bank continues to maintain a strong capital position, with a Capital Adequacy Ratio above 19 percent, well above the regulatory requirement. Additionally, Meezan Bank remains one of the most valuable Banks in Pakistan with market capitalization exceeding USD 3.3 billion.

Total assets remained broadly stable, with the Bank closing the first half year of 2026 at Rs 5.14 trillion, compared with Rs 4.81 trillion as at December 2025. The Bank continues to demonstrate strong asset quality, with a non-performing financing ratio of 1.83 percent, among the lowest in the banking sector. It also maintains a prudent level of provisioning against non-performing financings, reflected in a coverage ratio of 152 percent.

The Bank’s net spread stood at Rs 128.79 billion (H1 2025: Rs 125.76 billion), representing an increase of 2 percent. Non-funded income increased to Rs 21.63 billion from Rs 15.92 billion in the corresponding period last year, reflecting a growth of 36 percent. This increase was primarily driven by higher foreign exchange income, branch banking fees, and debit card-related fees. Overall, the Bank’s Profit After Tax (PAT) rose by 6 percent year-on-year compared with H1 2025.

Copyright Business Recorder, 2026

ICICI Bank will issue five-year bonds at a coupon of 5.3520%, payable semi-annually.

Axis Bank will raise these funds through reissue of its 5.3480% June 2031 bonds, which will take the outstanding issuance to $600 million.

Both the debt placements will close for subscription next week and will be placed privately.

ICICI Bank sets initial guidance for first dollar bond in nearly 9 years, bankers say

Last month, ICICI Bank raised $1 billion through five-year bonds at a coupon of 5.46%, in what was the largest such issue by an Indian lender in nearly 14 years.

In June, Axis Bank had raised $800 million through a dual-tranche debt issuance, which included the primary sale of the five-year papers and $500 million of perpetual notes at a 6.875% annual coupon, payable semi-annually.

The notes will be listed on the India International Exchange IFSC and NSE IFSC.

India’s Axis Bank misses profit forecast on lower trading income, approves $2bn equity fundraise

The bonds are being issued under the Reserve Bank of India’s lower-cost hedging facility that allows eligible external commercial borrowings by banks and state-owned companies to be hedged at a fixed rate of 1.5% per annum, compounded semi-annually, and lowers overall cost of borrowing.

Credit growth has been robust in Asia’s third-largest economy as firms borrow due to rising working capital needs and households make a beeline for consumption and gold-backed loans.

The state-run SBI posted a 10.2% rise in net profit to 211.21 billion rupees ($2.22 billion), above analysts’ estimates of 191.02 billion rupees, as per data compiled by LSEG.

Its gross loan book grew 18.63% year-on-year, while deposits grew 9.73%. Loan growth at SBI, the country’s largest lender, is closely watched as an indicator of broader economic trends.

Across the sector, analysts and investors have also been closely watching bank margins as strong loan growth has coincided with intense competition for deposits at a time when deposit growth has lagged growth in loans.

SBI’s domestic net interest margin expanded 7 basis points to 3% from three months ago. Net interest income, the difference between interest earned on loans and paid on deposits, grew nearly 15% year-on-year to 469.92 billion rupees for the quarter ended June 30.

State Bank of India, HSBC and ICICI lead India’s overseas deposit drive, data shows

Top lenders such as HDFC Bank, Axis Bank and Kotak Mahindra Bank reported sequential margin declines in the first quarter.

SBI’s gross non-performing assets improved to 1.47% of total loans from 1.49% three months earlier and 1.83% a year earlier.

Slippages, or loans that turned bad, stood at 70.46 billion rupees in the June quarter, compared to 55.21 billion rupees the previous quarter and 79.45 billion rupees a year earlier.

SBI’s shares trimmed some gains to close 1.1% higher.

Subsidised foreign currency deposits from non-resident

SBI said it has mobilised $6 billion in subsidised foreign currency deposits till now, helped by the Reserve Bank of India’s concessional swap facility, and is on track to raise $10 billion.

The RBI introduced the swap facility in June to encourage foreign currency inflows, and banks have raised $36.73 billion through FCNR(B) deposits as of July 31, according to data from the RBI.

“We are proud to announce Pak Oman’s continued role in supporting Daewoo Pakistan Express Bus Services Limited with the successful issuance of its PKR 4 billion Short-Term Sukuk – Issue 3,” said Pak Oman Investment Company Ltd in a post on a social media platform on Thursday.

Pak Oman Investment Company Limited, acting as mandated joint lead financial advisor, arranger and investment agent, said that the issue was oversubscribed 2.24x, “reflecting strong investor confidence in Daewoo and Pakistan’s capital markets”.

“We are committed to enabling Shariah-compliant solutions that advance clean, sustainable, and efficient transportation in Pakistan,” it added.

Daewoo Pakistan Express Bus Service Limited had earlier issued two short-term Sukuk instruments. The first raised Rs2 billion in December 2025, and the second raised Rs4 billion in March 2026.

The company, established in 1997, is a leading intercity transport and logistics operator in Pakistan, managing over 400 buses, 200 cargo trucks, and 200+ delivery centres.

It has expanded into regulated public sector mass transit projects, including Lahore Feeder, Multan Metro, Orange Line Lahore, BRT Peshawar, and BRT Karachi.

What’s a Sukuk?

A Sukuk is basically the Islamic version of a government bond.

Normally, when governments need money, they borrow it by selling bonds. Investors lend the government cash and earn interest in return.

But under Islamic finance, charging or paying interest isn’t allowed. So instead, Sukuk are structured around real assets that generate income, such as rent, allowing investors to earn Shariah-compliant returns.

The Board of Directors of MCB Bank, under the Chairmanship of Mian Mohammad Mansha, reviewed and approved the Bank’s financial statements for the half year ended June 30, 2026.

The Board of Directors declared a second interim cash dividend of Rs 9.00 per share (90pc), taking the cumulative cash dividend for 2026 to Rs 18.00 per share (180pc). The consistent dividend payout underscores the Bank’s strong capital position, prudent financial management, and unwavering commitment to delivering long term value to its shareholders.

MCB reported a Profit Before Tax (PBT) of Rs 55.1 billion and a Profit After Tax (PAT) of Rs 26.5 billion, translating into Earnings Per Share (EPS) of Rs 22.34. On a consolidated basis, PBT and PAT stood at Rs 58.8 billion and Rs 28.1 billion, respectively.

Total income for the half year stood at Rs 93.9 billion, reflecting a 6 percent year-on-year increase. The improvement was primarily driven by net markup income, which rose to Rs 75.3 billion (H1’25: Rs 71.3 billion), supported by a higher low-cost deposit base and effective yield optimization despite the relatively lower average policy rate compared to last year.

Non-markup income rose to Rs 18.7 billion (H1’25: Rs 17.5 billion) representing a 7 percent year-on-year increase. Fee and commission income increased by 21 percent year-on-year to Rs 11.9 billion, supported by sustained momentum in the Bank’s digital banking franchise and higher transaction volumes. Within this segment, card-related income increased by 13 percent, branch banking fee income rose by 5 percent on the back of improved customer engagement and cross-selling initiatives, while consumer banking fee income recorded a robust 27 percent increase, reflecting higher customer activity and greater uptake of consumer financing products. Foreign exchange income and dividend income further contributed Rs 4.1 billion and Rs 2.1 billion respectively to the non-markup income base.

Operating expenses increased by 9 percent year-on-year, reflecting continued investment in technology, human capital, and brand development to strengthen the Bank’s long-term growth platform. Despite these investments, the Bank maintained a healthy cost-to-income ratio of 39.20 percent, underscoring disciplined cost management while continuing to enhance operational efficiency.

On the balance sheet side, total assets of the Bank increased to Rs 3.430 trillion (YE’25: Rs 3.247 trillion). Gross Advances registered growth of Rs 67 billion (9pc), reflecting improved credit uptake. The investment portfolio stood at Rs 2.067 trillion (YE’25: Rs 1.947 trillion).

Asset quality remained satisfactory, with non-performing loans (NPLs) reported at Rs 50.3 billion. The infection and coverage ratios improved to 6.26 percent and 93.13 percent, respectively. The Bank continues to focus on proactive management of its delinquent portfolio through targeted recovery efforts, timely resolution of non-performing exposures, and disciplined measures to contain credit losses.

Total deposits of the Bank stood at Rs 2.604 trillion, with the current account mix improving to 55 percent (YE’25: 54pc), reinforcing the Bank’s strength in low-cost deposit mobilization. This favorable mix, along with the lower interest rate environment, reduced the domestic cost of deposits to 4.43 percent (H1’25: 5.23pc). The Bank reported Return on Assets (ROA) of 1.59 percent and Return on Equity (ROE) of 21.49 percent.

MCB Bank maintained its position as one of the leading players in the home remittance market, with a market share of 10.38 percent, processing USD 2.27 billion in remittance inflows during the period. Leveraging its extensive branch footprint and expanding digital channels, the Bank continued to support the State Bank of Pakistan’s financial inclusion and formal remittance initiatives, contributing meaningfully to foreign exchange inflows and overall economic stability.

The Bank’s capital and liquidity positions remained robust, with the Capital Adequacy Ratio (CAR) standing at 19.65 percent and the Common Equity Tier-1 (CET1) ratio at 14.93 percent, well above minimum regulatory requirements. Liquidity buffers remained strong, reflected in a Liquidity Coverage Ratio (LCR) of 233.41 percent and a Net Stable Funding Ratio (NSFR) of 161.14 percent.

MCB’s credit ratings were reaffirmed by the Pakistan Credit Rating Agency (PACRA) at ‘AAA’ for long-term and ‘A1+’ for short-term through its notification dated June 23, 2026.

MCB Bank operates one of the largest branch networks in Pakistan on a consolidated basis, with over 1,700 branches and continues to rank among the top capitalized banking stocks traded on the Pakistan Stock Exchange.

Looking ahead, the Bank remains well-positioned to deliver sustainable growth, supported by a strong capital base, ample liquidity, diversified revenue streams, and disciplined risk management, while continuing to focus on operational efficiency and customer-centric innovation.

Copyright Business Recorder, 2026

“Any bank failing to settle the proceeds of sale transactions on the same day shall be liable to pay use of funds for the period of delay, calculated at the SBP Overnight Reverse Repo (Ceiling) rate prevailing on each day during such period,” a circular issued by SBP’s Currency Management Department outlined.

Referring to the SOP for issuance of registered PPBs through commercial banks and other relevant instructions, the central bank has informed that the decision was taken after reviewing the prevailing mechanism for reporting PPB sale transactions.

As per the decision, the settlement mechanism will involve reporting of Sale transactions of PPBs through DAP as per the prescribed timelines while SBP BSC Karachi office will debit the account of the bank based on the amount of sale reported by the concerned bank on daily basis. SBP BSC Karachi office is also made responsible for calculation and recovery of use of funds from the concerned bank.

Any commercial bank shall be liable for the gross amount in cases where profit or prize money is paid erroneously due to non-reporting, delayed reporting, or misreporting of sale or encashment or transfer transactions by the concerned bank, subject to adjustment of income tax, if so possible, the CMD circular read.