BML Moves Court for Rs 10 Billion Recovery from Omni Group

BML Moves Court for Rs 10 Billion Recovery from Omni Group

Karachi, January 22, 2025 – Bank Makramah Limited (BML) has initiated legal proceedings to recover Rs 10 billion in non-performing loans (NPLs) from the Omni Group and its affiliated entities.

The bank disclosed this development in a communication shared with the Pakistan Stock Exchange (PSX) on Wednesday.

According to the statement, BML has filed a settlement application with the relevant court to facilitate the recovery of the outstanding loans. The settlement involves approximately Rs 10 billion, which the bank aims to recover under the agreed terms of the application. This move underscores the bank’s commitment to addressing long-standing financial issues and strengthening its financial position.

The dispute revolves around non-performing loans extended by BML to various companies within the Omni Group. Over time, these loans have become a significant financial burden, prompting the bank to seek legal intervention for resolution.

In a related development, the TFC (Term Finance Certificate) Holders of BML convened an Extraordinary General Meeting (EOGM) on January 21, 2025, to discuss the matter. During the meeting, the TFC Holders resolved to continue their role within the bank, demonstrating their confidence in its ability to recover the outstanding amount.

Additionally, the TFC Holders reaffirmed their commitment to the ongoing Scheme of Arrangement for the restructuring of BML. This scheme, which has already been approved by the bank’s shareholders, aims to address financial challenges and ensure long-term stability.

The recovery of Rs 10 billion is expected to have a significant impact on the bank’s financial health, potentially improving its liquidity and enabling it to focus on its core banking operations. Market analysts note that such recoveries are crucial for maintaining confidence in Pakistan’s financial sector, especially in light of challenges posed by non-performing loans.

The case highlights the growing focus of financial institutions in Pakistan on addressing NPLs and holding borrowers accountable. As legal proceedings unfold, stakeholders are optimistic about a favorable resolution that will not only benefit BML but also contribute to greater discipline in Pakistan’s banking sector.

The proactive steps of BML signal its determination to recover its dues and reinforce its standing as a key player in Pakistan’s financial landscape.