Money and banking drive economic activity by facilitating transactions, savings, and investments. Banks manage financial resources, offer credit, and regulate money supply, ensuring stability and growth in Pakistan’s financial sector.
KARACHI: The Pak Rupee gained 45 paisas against the dollar on Friday owing to substantial inflows of export receipts and workers’ remittances.
(more…)
ISLAMABAD: The Banking Mohtasib (Ombudsman) has provided a relief to a person, who lost money through credit card transactions that were made fraudulently by a bank official.
(more…)
KARACHI: State Bank of Pakistan (SBP) on Friday issued procedure for Islamic mode of investments in Naya Pakistan Certificates (NPCs). The SBP said that the government had established a wholly-owned special purpose vehicle, namely Islamic NPC Company Limited (INPCCL), which shall be managed under the mandate of its Board of Directors. INPCCL shall be issuing INPCs denominated in USD and PKR to the agent banks and investors.
(more…)
ISLAMABAD: The Banking Mohtasib (Ombudsman) Pakistan has received 14,587 complaints against banks for the year ended December 31, 2019.
The annual report of Banking Mohtasib Pakistan revealed the number of complaints against each bank in the following table:
| S. No. | Bank | Total |
| 01 | Albaraka Bank (Pakistan) Limited | 56 |
| 02 | Allied Bank Limited | 586 |
| 03 | Askari Bank Limited | 227 |
| 04 | Bank Al Habib Limited | 118 |
| 05 | Bank Alfalah Limited | 764 |
| 06 | Bank Islami Pakistan Limited | 110 |
| 07 | Citibank | 3 |
| 08 | Dubai Islamic Bank Pakistan Limited | 101 |
| 09 | Faysal Bank Limited | 477 |
| 10 | First Women Bank Limited | 12 |
| 11 | Habib Bank Limited | 2511 |
| 12 | Habib Metropolitan Bank Limited | 68 |
| 13 | JS Bank Limited | 262 |
| 14 | MCB Bank Limited | 880 |
| 15 | Meezan Bank Limited | 319 |
| 16 | National Bank of Pakistan | 825 |
| 17 | Samba Bank Limited | 8 |
| 18 | Silk Bank Limited | 586 |
| 19 | Sindh Bank | 32 |
| 20 | SME Bank Limited | 5 |
| 21 | Soneri Bank Limited | 75 |
| 22 | Standard Chartered Bank (Pakistan) Limited | 267 |
| 23 | Summit Bank Limited | 60 |
| 24 | The Bank of Khyber | 20 |
| 25 | The Bank of Punjab | 267 |
| 26 | The Punjab Provincial Cooperative Bank Limited | 24 |
| 27 | United Bank Limited | 1587 |
| 28 | Zarai Taraqiati Bank Limited | 94 |
| 29 | Institutions other than banks | 313 |
| 30 | Complaints received through Prime Minister’s Portal | 3930 |
Relief claimed amounting to Rs 260,985,799/- has been granted to the complainants.
In the year under review, a total number of 1422 formal complaints were resolved against which 160 Representations were made to the President, Islamic Republic of Pakistan.
During the year ending December 31, 2019, one Review Petition was filed and the same was allowed.
The highest number of complaints received from the province of Punjab i.e. 10,074 followed by Sindh 3,094, Khyber Pukhtunkhwa 1,055, Balochistan 131, Azad Kashmir 212, Gilgit Baltistan 21.
KARACHI: The Pak Rupee continued its gaining momentum and further advanced by 31 paisas against the dollar on Thursday as the currency market remained positive.
The rupee ended Rs161.82 to the dollar from previous day’s closing of Rs162.13 in interbank foreign exchange market.
Currency experts said that sufficient inflows and a current account surplus helped the rupee to make gain.
With the latest depreciation the dollar comes at five-month low in the interbank foreign exchange market.
The dollar reached to record high of Rs168.43 on August 26, 2020 in interbank foreign exchange market.
The rupee recovered around Rs6.61 against the dollar from witnessing record low against dollar.
The experts said that ease in exchange rate pressure to help reduce debt pressure by Rs725 billion.
ISLAMABAD: A bank account holder is fortunate to get back an amount of Rs7.6 million on the intervention of Banking Mohtasib (Ombudsman) Pakistan. The amount was fraudulently withdrawn from the account on a foraged cheque and the branch manager was found involved in the fraud.
A case related to cash withdrawn on forged cheque is reported in the fifteenth Annual Report of Banking Mohtasib Pakistan for the year ending 31 December 2019.
The report said that the complainant was maintaining a joint account with his wife with operational instructions “Either or Survivor” since December 18, 2012.
“They had neither applied for a cheque book nor any cheque book was ever delivered to them, yet an amount of Rs 7.600 (M) was withdrawn from their account without their consent and knowledge.
“The Complainant demanded refund, but the Bank paid no heed to his request.
“Complainant, therefore, lodged a complaint with the Banking Mohtasib.”
The Bank was asked to submit detailed investigation report along with copies of AOF, SS Card, KYC, disputed cheque No. 105805316 for Rs 7,600,000/- dated 21.04.2017 (both sides), statement of account and cheque book issuance request and delivery proof thereof.
The Bank provided the requisite documents. On examination of the provided documents it was found that: According to the Complainant, they had never applied for issuance of any cheque book at any time.
“From the Cheque book requisition request it was observed that the signature thereon was clearly different from the signature of Complainant recorded on his AOF and S. S. Card. Clearly, therefore, the cheque book was issued against a fake signature,” the report said.
On perusal of cheque dated 21-04-2017 for Rs 7.600 (M), it was observed that it was not signed at all.
As per Complainant, the cheque was not mandated. It was obvious that the Bank cleared the unsigned cheque which was a nullity in law.
Further, neither any Call-back Confirmation was done nor could the Bank explain in its defence as to how payment was made on a cheque which was void under law and not a cheque at all.
The payment of huge sum of Rs 7.600 (M) in cash was also surprising.
Due to the seriousness of the lapses on the part of the Bank, the case was set for a formal hearing on May 2, 2019 at our Regional Office, Rawalpindi.
The Bank’s representative produced related Cheque Book Requisition slip (CBR) along with paid cheque.
On examination of CBR it was observed that a cheque book of five leaves, bearing number 105805316 to 105805320, was issued on April 21, 2017.
The signature on CBR did not match with the signature of the Complainant available in the Bank’s record i.e. AOF & S. S. Card, whereas the Cheque number 105805316 dated 21-04-2017 against which payment of Rs 7,600,000/- was made found to be un- signed.
On further scrutiny it was observed that cash recipient’s signatures were also not available on the back of the cheque as well as denominational details were also not furnished on the back of the cheque as against general banking practice.
Moreover, the Bank also failed to provide any record of Call-back Confirmation (CBC) to the Account-holder as per its own SOP as the cheque was of a very large sum and payment had to be made in cash.
The Bank officials submitted that the Ex-Branch Manager, who was involved in this scam, has absconded and the Bank has lodged a report with the FIA after its initial enquiry.
It is a well settled principle of law that the employer is vicariously liable for any fraud or other wrong doing of his employee committed in the course of his employment, whether for the benefit of the employer or not.
In view of the above findings and as admitted position, it was concluded that the Complainant is entitled for his lump sum claim of Rs 7,600,000/- from the Bank.
Therefore, the Bank was advised to forthwith refund the sum of Rs 7,600,000/- to the Complainant.
The Bank subsequently, filed representation with the President Islamic Republic of Pakistan against the Order passed by the Banking Mohtasib under Section 14 of Federal Ombudsmen Institutions Reforms Act – 2013 (FOIRA) where the Order of Banking Mohtasib was up-held.
ISLAMABAD: The Banking Mohtasib (Ombudsman) of Pakistan has recommended that at the time of activation of online services Banks/ Microfinance Banks relevant staff shall educate customers about various types of online banking frauds as well as the corresponding preventive measures.
(more…)KARACHI: State Bank of Pakistan (SBP) on Wednesday extended timelines for compliance with various regulatory requirements by banks considering the challenges of COVID-19 faced by the financial industry.
The SBP invited attention to BPRD Circular Letter No 3 of 2020, BPRD Circular No. 02 of 2019, BPRD Circular No. 6 of 2018 and BSD Circular No. 7 of 2003.
The central bank said that in this regard, based on the representation of the banking industry regarding challenges faced by industry in meeting the timeline due to COVID19, it has been decided to extend the timelines for various SBP circulars/guidelines’ requirements as given below:
Compliance Risk Management System from March 2020 to October 31, 2020
Formulation of RCSA and Development of KRIs has been extended form April 2020 October 31, 2020
First external quality review of Internal Audit Function has been extended from June 30, 2020 to December 31, 2020.
System for Internal Audit Function has been extended from December 31, 2020 to September 30, 2021.
The SBP said that In case where the financial institution has already undergone an assessment before issuance of SBP guidelines on Internal Audit Function (IAF), the next assessment would be due after 5 years of the earlier assessment.
In addition to above, following instructions are being issued to facilitate IAF operations during COVID19 situation.
Audit/risk review of international jurisdictions (BPRD Circular No. 6 of 2018):
The banks with overseas operations are allowed a one time wavier from performing annual internal audit and risk reviews of international jurisdictions for year 2020, provided that, the Board Audit Committees (BACs) of respective banks approve adoption of such measures.
Subsequently, the BAC and Chief Internal Auditor (CIA) shall take all required measures to ensure that risks of these jurisdictions are properly assessed and that any major control/governance deficiencies are properly highlighted through extensive off-site assessments, full scope desktop reviews and discussions with management and other relevant stakeholders at international jurisdictions.
Credit risk review of all facilities of borrowers (BSD Circular No. 7 of 2003):
In cases where the credit origination and/or documentation/monitoring is not centralized or digitally accessible, and the risk review teams have to physically visit the branches/credit regions/hubs for review/verification of documentation and monitoring of loans; the banks are allowed a onetime relaxation from conducting physical verification of such documents till October 31, 2020.
However, the risk review function of the bank shall devise a comprehensive action plan to perform credit reviews for such branches/regions/hubs following a risk based approach and must review documentation through desktop/ offsite approach.
Besides, the risk review function shall ensure that adopting such approach does not compromise on assessing the health and quality of bank’s credit portfolio and all efforts shall be made to ensure that control are properly implemented and credit risks are timely identified.
KARACHI: The Pak Rupee gained 15 paisas against the US Dollar on Wednesday, buoyed by a report indicating a surplus current account for the first quarter of the current fiscal year. The rupee ended the day at Rs162.13 to the dollar, compared to the previous day’s closing of Rs162.28 in the interbank foreign exchange market.
(more…)
KARACHI: Meezan Bank Limited on Tuesday announced healthy profit of 65 percent for nine-month period ended September 30, 2020.
According to financial results submitted to Pakistan Stock Exchange (PSX), the bank declared profit after tax of Rs18 billion for the nine-month period ended September 30, 2020 as compared with Rs10.94 billion in the corresponding period of the last year.
The bank also declared earnings per share of Rs12.78 for the period under review as compared with Rs7.73 in the corresponding period of the last year.
Total income of the bank registered 43 percent increase to Rs56.92 billion during the period as compared with Rs39.88 billion in the same period of the last year.
Operating expenses of the bank grew by 22.43 percent to Rs21.88 billion for the period ended September 2020 as compared with Rs17.87 billion in the same period of the last year.
The gross profit of the bank witnessed a growth of 58 percent to Rs30 billion for the nine-month period as compared with Rs19 billion in the same period of the last year.
Alongside result, the bank announced a cash dividend of Rs4.0 share.
Analysts at Topline said that the result came in higher than our expectations due to lower than expected profit expensed on deposits, which is most likely driven by continued focus on Current Account growth and possible re-pricing of maturing Term Deposits.
Profit earned on assets depicted a decline of 9 percent Quarter on Quarter (QoQ). Along with lower interest rates, 1 percent QoQ decline in industry loans amidst slowdown in economic activity has been the cause of the decline.
Profit expensed on deposits substantially declined by 22 percent QoQ amidst re-pricing of liabilities to lower interest/profit rates, where non applicability of Minimum Deposit Rate (MDR) on Islamic banks would have also contributed.
As a result, Net Spread Earned declined by just 1 percent QoQ.
Other Income showed resurgence with a jump of 17 percent QoQ driven by increase in Fee Income growth of 49 percent QoQ as branch operation resumed after lifting of COVID-19 lockdown.
Despite the branch expansion strategy, other expenses were kept in check (down 0.1 percent QoQ). Cost to Income for the quarter stood at 40 percent.