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Tag: SBP

  • Banks make cash recovery of Rs21.17bn against Non Performing Loans

    Banks make cash recovery of Rs21.17bn against Non Performing Loans

    KARACHI: Banks have made cash recovery of an amount of Rs21.17 billion against non-performing loans (NPLs) during the quarter ended March 31, 2021, according to data released by State Bank of Pakistan (SBP) on Friday.

     The cash recovery against NPLs was Rs49.23 billion for the quarter ended December 31, 2020. Therefore, the recovery fell by 57 percent when compared the two quarters.

    The breakup revealed that all commercial banks made cash recovery of Rs15.98 billion during quarter ended March 31, 2021 as compared with Rs27.4 billion in the quarter ended December 31, 2020.

    The data showed that the public sector banks could only made recovery of Rs2.55 billion during the quarter under review as compared with Rs11.06 billion in the preceding quarter.

    It also revealed that the local private banks made cash recovery of Rs13.4 billion against NPLs during the quarter ended March 31, 2021 as compared with Rs16.33 billion during the quarter ended December 31, 2020.

    Total NPLs of all banks and Development Financial Institutions (DFIs) for the quarter ended March 31, 2021 increased to Rs866.74 billion while net NPLs for the quarter were Rs110 billion.

    Whereas, the total NPLs for all banks and DFIs for the quarter ended December 31, 2020 were Rs844.66 billion while net NPLs for the quarter were Rs100 billion.

  • SBP hailed for allowing opening of banks during Eid Holidays

    SBP hailed for allowing opening of banks during Eid Holidays

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Friday hailed the State Bank of Pakistan (SBP) for allowing banks to open their branches during Eid holidays to facilitate general public.

    Chairman Businessmen Group (BMG) Zubair Motiwala and President Karachi Chamber of Commerce & Industry (KCCI) Shariq Vohra appreciated the central bank for paying attention to KCCI’s legitimate demand and accordingly deciding to keep those authorized branches of banks operational on May 10th and 11th who are dealing in foreign exchange & trade activities.

    “We are very grateful to the government and SBP for keeping the authorized branches operational on first two days of next week to facilitate trade & industry, particularly the exports during the extended holidays before Eid-ul-Fitr,” said Chairman BMG Zubair Motiwala.

    While welcoming Sindh government’s move to keep all businesses operational on Friday and Saturday from 6am till 6pm, Chairman BMG reiterated KCCI’s demand to allow small traders and shopkeepers to keep their businesses operational throughout the remaining few days of Ramazan ul Mubarak while the business hours have to be redefined from 12am till 12pm instead of existing 6am to 6pm. 

    President KCCI Shariq Vohra said that SBP’s move would certainly give some breathing space to the exporters by enabling them to carry out important banking transactions and dispatch shipments either on 10th or 11th May, 2021. Although the Sindh government has issued holidays notification from May 10th to 15th but this needs to be reissued under Factories Act in which holidays should be categorically mentioned from May 12th to 15th which would help in dealing with confusion amongst many circles.

    He also requested the Sindh government to allow shopkeepers to keep their businesses operational during the remaining days of Ramazan and urged the shopkeepers to ensure strict implementation of Standard Operating Procedures (SOPs) at the commercial markets.

  • SBP allows opening of banks during Eid holidays

    SBP allows opening of banks during Eid holidays

    KARACHI: The State Bank of Pakistan (SBP) on Thursday directed banks to open their 50 percent branches on May 10 and 11, 2021 during Eid holidays to facilitate trade and industry.

    In a statement, the central bank said that in order to ensure the availability of banking services to trade and industry in particular and public in general during the extended holidays before the forthcoming Eid-ul-Fitr, it has been decided that banks shall open 50 percent of their total authorized branches dealing in foreign exchange and trade activities on 10th May, 2021 (Monday) while the remaining 50 percent of such branches on 11th May, 2021 (Tuesday) from 9:00 a.m. to 2:00 p.m. (without break).

  • Pakistan’s foreign exchange reserves fall by $777 million

    Pakistan’s foreign exchange reserves fall by $777 million

    KARACHI: Pakistan’s foreign exchange reserves have fell by $777 million during a week owing to repayment of government’s external debt, State Bank of Pakistan (SBP) said on Thursday.

    The country’s foreign exchange reserves fell to $22.746 billion by week ended April 30, 2021 as compared with $23.52 billion a week ago ended April 23, 2021.

    The official reserves of the central bank fell by $830 million to $15.598 billion by week ended April 30, 2021 as compared with $16.428 billion a week ago. The SBP said that during the week government’ commercial loan of $ 1.0billion was paid, whose impact on SBP’s reserves was partially offset by official inflows.

    The foreign exchange reserves held by commercial banks however increased by $53 million to $7.145 billion as compared with $7.092 million a week ago.

  • Renewable energy projects avail financing Rs36bn for producing 850MW

    Renewable energy projects avail financing Rs36bn for producing 850MW

    KARACHI: Dr. Reza Baqir, Governor, State Bank of Pakistan (SBP) has said that as of February 2021 financing of around Rs36 billion have been extended for 521 projects producing approximately 850 MW.

    He was addressing a webinar jointly hosted by SBP and Unilever Pakistan to create awareness about the SBP’s Renewable Energy Financing Scheme which has been used by Unilever to convert 30 percent of its factories to renewable energy

    Dr Reza Baqir has said thatfinancing for sustainable development is the need of the hour and Financial Institutions have a crucial role in this area.

    Dr. Baqir stated that the Pakistan faces challenge as a result of climate change and adopting prevention strategies are of paramount importance.

    In this regard he pointed out that the SBP has issued Financing Scheme for Renewable Energy with a view to promote renewable energy projects.

    Governor Baqir highlighted the key features of the scheme that can be beneficial for the stakeholders ranging from the corporates to the individuals. The scheme has evolved over time and received strong response and Dr. Baqir urged participants to benefit from this facility.

    Pakistan is member of Global Sustainable Banking Network (SBN) since2015 and green/ sustainable finance policies are being aligned with global environmental and social standards and best practice.

    Chairman and CEO of Unilever Pakistan, Amir Paracha in his address said that the Renewable Energy Financing Scheme offers tremendous social and business value to companies and producers both in terms of their environmental footprint and cost savings ambitions.

    The financing scheme in Pakistan has enabled them to fast-track their renewable energy goals whilst remaining financially feasible. He mentioned that Unilever is sharing this as a best practice for other corporate players, as its sustainability in its best form. They are benefitting the country and environment whilst their own business has seen a positive impact.

    SBP’s Renewable Energy Financing scheme is an innovative solution that aims to encourage investments for clean energy in Pakistan. This is part of the country’s efforts to diversify the energy mix and reduce climate change impact.

    The scheme offers varied financing options ranging from Rs400 million to Rs6 billion for a range of entities and persons. This includes captive energy units as well as commercial projects and individual consumers who may share excess production with the national grid.

    The SBP issued its Financing Scheme for Renewable Energy in 2016 and based on positive feedback the scheme was revised in July 2019. SBP also introduced a Shariah compliant version of this Scheme in August 2019.

    The scheme aims at meeting Pakistan’s growing electricity demand through renewable energy and promoting clean energy projects as part of Sustainable Development Goals (SDGs).

    It promotes the use of indigenous resources such as wind, solar and hydro to generate electricity as well as encourages the use of renewable energy at consumer level to support NEPRA’s Net Metering Regulations.

    As part of this financing scheme, Unilever availed a loan of Rs833 million through Standard Chartered Bank to set up 8.85 MW of renewable energy production facilities across four factories in Punjab. This effort is in line with Unilever’s global mission for carbon neutrality and sustainability in its manufacturing process.

    Unilever has committed to remove carbon emissions from operations by 2030, as well as net zero emissions from their products by 2039, which will be 11 years ahead of the 2050 Paris Agreement.

    The renewable energy solution was implemented by Reon Energy Limited, producing 13 million KW units of energy per year, resulting in annual savings of PKR 182 million and a reduction in 5,075 tons of CO2 emissions. The impact of projects such as the one implemented by Unilever prove the benefits of adopting renewable energy solutions by the wider industry in Pakistan.

    The webinar was attended by various chambers, media organizations, Presidents and CEOs of banks, energy experts, representatives of Pakistan Business Council and senior officials from SBP.

  • Bank holidays for Eid announced

    Bank holidays for Eid announced

    KARACHI: Banks shall observe six days holidays on the occasion of Eid-ul-Fitr. The State Bank of Pakistan (SBP) on Tuesday said that it will remain closed from 10th to 15th May, 2021 (Monday to Saturday) on the occasion of Eid-ul-Fitr.

    Simultaneously, banks shall also observe the holidays on the said dates. However, through another notification the SBP allowed the banks to open all the branches on Saturday May 08, 2021 to facilitate their customers.

    “In the wake of forthcoming Eid-ul-Fitr holidays from 10th to 15th May, 2021 and to cater the banking needs of public at large, it has been decided that all branches of banks / MFBs shall remain open on May 8, 2021 (Saturday) from 9:00 a.m. to 2:00 p.m. (without break).”

  • Banks to remain open on May 08

    Banks to remain open on May 08

    KARACHI: State Bank of Pakistan (SBP) on Tuesday directed to banks to observe working hours on May 08, 2021 to facilitate their customers ahead of Eid-ul-Fitr.

    The central bank said that in the wake of forthcoming Eid-ul-Fitr holidays from May 10 – May 15, 2021 and to cater the banking needs of public at large, it has been decided that all branches of banks/microfinance banks would remain open on May 08, 2021 (Saturday) from 9:00 am to 2:00 pm (without break).

  • Govt. to borrow Rs4,100 billion through sale of MTBs

    Govt. to borrow Rs4,100 billion through sale of MTBs

    KARACHI: The government has announced to borrow around $s4,100 billion through auction of market treasury bills (MTBs) during three months in order to meet budget financing.

    The State Bank of Pakistan (SBP) on Monday issued schedule for the auction of three-, six- and 12-month treasury bills.

    Out of scheduled sale of Rs4,100 billion treasury bills, an amount of Rs3,453 billion for the payment of maturities during the period of May – July 2021.

    The SBP to auction the treasury bills on May 05, May 19, June 02, June 16, June 30, July 14 and July 28 of the current year.

    The SBP set a target of Rs1,000 billion for the sale of 3-month treasury bills, Rs1,500 billion for the sale of six-month bills and Rs1,600 billion for the sale of 12-month treasury bills during May – July 2021.

  • What is last date for redemption of Rs40,000 prize bonds

    What is last date for redemption of Rs40,000 prize bonds

    ISLAMABAD: Regulators are at odds over the last date for conversion/redemption of Rs40,000 denomination national prize bonds, which created distress amongst the prize bondholders.

    A public notice was issued by the Central Directorate of National Savings (CDNS) in February 2021, that the government had discontinued the sale of National Prize Bonds (Bearer) of Rs25,000 and Rs40,000. “The deadline for redemption/encashment of these bonds is May 31, 2021.

    On the other hand, the State Bank of Pakistan (SBP) through its CMD Circular No. 07 dated December 08, 2020, stated: “the finance division, the government of Pakistan has extended the last date for encashment/replacement / conversion of Rs40,000 denomination National Prize Bonds (Bearer) till December 30, 2021, vide their Notification No. F.16(3)GS-1/2014-1603 dated November 26, 2020.”

    The finance division issued notification for withdrawal of Rs25,000 denomination national prize bonds from circulation in December 2020.

    Another SBP CMD Circular No. 08 dated December 10, 2020, stated: “National Prize Bonds of Rs25,000 denomination shall not be sold with immediate effect and will not be encashed/redeemed after May 31, 2021.”

    The public notice issued by the National Savings warned the holders who have not encashed their bonds so far, to redeem/encash Rs25,000 and Rs40,000 prize bonds before the deadline of May 31, 2021, using the following options:

    — Replace with Rs25,000 & Rs40,000 Premium prize bonds (registered)

    — replace with special saving certificates (SSC) / Defence Saving Certificate (DSC)

    — Encashment through Bank Account

    “After the deadline no such bonds will be redeemed/encashed,” it said.

    Sale of Prize Bonds Rs7,500, Rs15,000 stopped forthwith
  • SBP directs banks to provide tracking numbers against housing loan applications

    SBP directs banks to provide tracking numbers against housing loan applications

    KARACHI: State Bank of Pakistan (SBP) has taken notice of delayed processing of housing loans by banks and issued directives in this regard to ensure speedy process of applications.

    The central bank on Friday said that it was receiving a number of complaints especially regarding delayed processing, long turnaround time and no mechanism to track the financing application after submission.

    In this regard, banks/DFIs are directed to take the following measures:

    a. Immediately start providing to the applicants a receipt with unique tracking number against each housing finance application. Meanwhile, banks/DFIs are advised to put in place within 30 days from the date of this Circular an online e-tracking mechanism and a phone based help line to provide, on query of applicant, status and expected time required for decision on application.

    b. Devise a system to monitor 30 days Turn Around Time (TAT) for decision on applications received.

    c. Record and convey reasons of rejection of housing finance application to the applicant in simple and clear form.

    d. Equip the branch officials, through trainings and alignment of systems and procedures, to perform initial scrutiny and inform the customer about missing requirements/documents at the time of submission of application.

    e. Conduct rigorous trainings of branch officials to enhance their knowledge on G-MSS and improve their behavior towards customers.

    f. Conduct capacity building of call center officials to adequately address queries of customers.

    It has also been observed that complaints lodged on State Bank complaint portal remain pending with banks for unduly long times.

    The banks/ DFIs are advised to adopt appropriate measures to resolve complaints in timely manner.

    Moreover, policy for designation of focal person for State Bank complaint portal must be reviewed and it should be ensured that at least one focal person is present in each region to handle the complaints.

    Furthermore, potential borrowers under G-MSS have complained about exorbitant processing charges. Accordingly, banks/DFIs are advised to review and rationalize their processing fee for financing considering their actual costs and provide breakup of these charges to the applicants at the time of receipt of applications.

    In order to increase prospects of applicants to avail housing finance under G-MSS, banks/DFIs are advised to guide the applicants regarding the options of 100 percent clubbing of income of up to four co-applicants and enhancing their credit worthiness through third party guarantee as allowed vide IH&SMEFD Circular No. 01 of 2021.