Non-Performing Loans (NPLs) of housing finance fell by 14 percent during the last calendar year (CY15) as banks and DFIs made concrete efforts for the recovery of loans. According to State Bank of Pakistan (SBP), NPLs of housing finance decreased from Rs 15.51 billion in December 2014 to Rs 13.28 billion in December 2015, depicting a marked decrease of Rs 2.23 billion. After witnessing some surge in the third quarter of last calendar year, NPLs of housing finance declined by some 6 percent or Rs 840 million in the last quarter (Oct-Dec) of CY15.
The percentage share of NPLs of all banks and other DFIs (excluding HBFCL) stood at 68.33 percent in total NPLs as on December 31, 2015. HBFCL's percentage share in total NPLs stood at 31.67 percent, the central bank said. Among banks, NPLs of Islamic banks remained unchanged during the year at Rs 1.49 billion. Their NPLs constituted 11.23 percent of total industry NPLs as of December 2015. NPLs of the public sector banks increased by 10 percent from Rs 1.84 billion to Rs 2.03 billion, over the year, which remained 34.74 percent of their gross outstanding as on December, 2015.
Private banks' NPLs decreased by 8.55 percent; from Rs 5.73 billion to Rs 5.24 billion. NPLs of other Financial Institutions remained unchanged over the year. NPLs for Islamic Banking Industry (IBs & IBDs) were reported as Rs 1.81 billion on December 31, 2015, which were Rs 1.86 billion at the end of Dec, 2014, showing a decrease of 2.69 percent over the year.
HBFCL's NPLs decreased by 31 percent or Rs 1.93 billion to Rs 4.21 billion at the end of the year. NPLs of HBFCL fell by 16 percent or Rs 0.8 billion in the last quarter over the last quarter. Furthermore, HBFCL's percentage share of NPLs in its total outstanding has decreased significantly by 20 percentage points over the year. At the end of current quarter, 28.52 percent of its total outstanding constitutes NPLs. The break-up of NPLs in terms of loans disbursed showed that as of December 31, 2015, Rs 3.82 billion against 34,092 borrowers was recorded as NPLs in the category of 'up to Rs 1 million' out of which Rs 3.46 billion belonged to HBFCL and Rs 0.37 billion was reported by all banks & DFIs.
In the second category 'Above Rs 1 million to Rs 5 million', total defaulters were 1,883 with an amount of Rs 3.64 billion, out of which Rs 0.57 billion against 385 borrowers was reported by HBFCL and Rs 3.06 billion against 1,499 borrowers were reported by all banks & DFIs.
In the third category 'above 5 million', total NPLs were Rs 5.82 billion against 844 borrowers. Out of these, 70 defaulters with an amount of Rs 0.18 billion were of HBFCL and Rs 5.64 against 774 borrowers belonged to all banks & DFIs. The gross outstanding finance of all banks and DFIs surged by Rs 7.15 billion to Rs 60.80 at the end of CY15.
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