ACBL in a position to take over Allied Bank

With a vast network of branches, Askari Commercial Bank Limited (ACBL) which is a matured bank is in a position to take over the Allied Bank Limited (ABL), which was for the sale by the State Bank of Pakistan (SBP).
ACBL President and Chief Executive Officer Kalim ur Rahman said this while talking to newsmen at the inaugural ceremony of the Bank's Township branch on Saturday.
He further said that the Bank was very serious on the matter, for which the staff has been asked prepare themselves for the take over. "While the Bank has set-up one offshore banking branch (OSB) in Bahrain, it was also considering to setup one in Sri Lanka and United Arab Emirates (UAE).
At present the UAE government has prohibited opening of new foreign bank branches, however as soon as the prohibition lifted they would open a new branch there," he added.
On car financing, Kalim said that Askari Bank has been the leader in the car financing last year, but due to employment of aggressive marketing techniques by other rival commercial banks, they have taken the lead.
At present the Bank was charging eight to 12 percent mark up on car financing, the rate of mark-up entirely depends upon the documentation. On complete documents the Bank could slash the rate to eight percent, on incomplete information higher interest rate would be charged to cover risks, he said.
The Bank was preparing feasibility on Islamic banking and in near future the bank might enter the market with 15 branches that would offer Islamic financing instruments, he added.
Kalim defended the lowering profits of ACBL during last fiscal year and explained that around Rs 2 billion worth of capital gains of the ACBL have not materialised that squeezed its profit accounts.
"However, some other banks had declared more profits than us, as their capital gains, especially stock market investments and governments commercial bonds, were materialised. However, ACBLs profits were higher from commercial operations as compared to all other commercial banks," he added.
According to him, the Bank has no plan so far to introduce new products, rather they plan to indulge in aggressive marketing of their existing products, especially personal financing, mortgage financing, business financing and car financing.