The Board of Directors of Silkbank Limited, in their meeting held on February 28, 2016, announced the annual results for the year ended December 31, 2015. Amongst the key achievements of 2015 was the successful raising of Rs 10 billion in capital through a Rights Issue, making the Bank compliant on the Capital Adequacy Ratio (CAR) and the Minimum Capital Requirement (MCR) of the State Bank of Pakistan.
Silkbank's overall deposits reflected a significant growth of 18 percent in 2015 over the previous year, taking the bank's total deposits to Rs 81 billion. CASA deposits were at Rs 54 billion at year end 2015, a 14.8 percent increase over the previous year. Silkbank's balance sheet grew by 30 percent at the year end 2015, taking the balance sheet footing to Rs 133 billion. Given the Bank's overall capital position, the management deemed it prudent to be aggressive in its provisioning, even in cases where settlement had reached final stages and the reversal of the said provision was imminent. The Bank therefore declared an after-tax loss of Rs 1.71 billion. It is expected, that the bulk of the provisions recognised this year will be reversed in the first half of 2016.-PR