The Bank of Punjab (BOP) has introduced a special financing plan for the newly launched JAC T9 Hunter in Pakistan, offering an exclusive price, fast delivery, and flexible instalment options under its Islamic Car Ijarah scheme.
(more…)Tag: The Bank of Punjab
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President Alvi directs bank to refund unfair recovery
ISLAMABAD: The President of Pakistan, Dr. Arif Alvi has directed the Bank of Punjab to refund money to a family of a deceased person, which was recovered unfairly.
President Dr. Arif Alvi upheld a decision of the Banking Mohtasib of Pakistan (BMP) ordering the Bank of Punjab to refund an amount of Rs 423,556 to the family of a deceased borrower which the Bank had unilaterally and unfairly recovered from the family.
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The President observed that the bank unnecessarily complicated a routine matter as its own SOPs empowered it to give financial relief in such cases.
Late Mian Allah Wasaya had availed a loan of Rs 3 million in 2015 from the Bank of Punjab and deposited Regular Income Certificates (RICs) issued by the Central Directorate of National Savings, valuing Rs 3.5 million, as Liquid Security with the Bank.
On January 27, 2017, he passed away, and the Bank on its own encashed the RICs then worth Rs 4.155 million and charged a mark-up of Rs 480,489 till October 22, 2018, while the accumulated mark-up at the time of Wasaya’s death was only Rs 57,294.
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The widow of Allah Wasaya (the complainant) requested the bank to charge mark-up till the period her husband was alive and waive off the mark-up thereafter.
The Bank, however, did not accede to her request after which she approached the Banking Mohtasib for redressal of her grievance.
After hearing the case and perusing the available record, the Banking Mohtasib noted that at the time of death the principal outstanding amount was Rs 2.889 million and the accumulated mark-up was Rs 57,294 only.
In the given circumstances, it was the fiduciary responsibility of the bank to guide the legal heirs for adjustment of outstanding liability at this level against encashment of RICs, the BMP observed.
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It further noted that instead of exercising its statutory obligation to set off the loan against liquid security, the bank continued to linger on recovery and unnecessarily piled-up mark-up on the principal outstanding amount which was unfair as per the State Bank’s guidelines.
The Mohtasib termed the claim of the bank as absurd and unprofessional that the matter pertained to the year 2018 and its books have been closed, therefore, it was not in a position to provide financial relief.
It added that no rule, regulations, law, or accountant standard was referred which barred the bank to revisit the old/closed cases as such types of transactions were a routine matter.
The Ombudsman held that unilaterally charging and recovering mark-up without justification beyond Rs 57,294 was an injustice to the deceased borrower’s family.
READ MORE: Alvi praises FTO role in resolving taxpayers’ complaints
It ordered that the Bank had committed maladministration and malpractice by not exercising its rights without any valid reason even though holding fully cashable liquid security under the loan agreement documents and piling up mark-up liability unnecessarily.
The Bank, subsequently, filed a representation against this decision of the BMP with the President. The President upheld Mohtasib’s decision and held that Bank had not provided any justification to upset the original order of the BMP.
The representation is rejected as it is devoid of any merit and the bank had failed to discharge the burden and statutory liability cast upon it under the law, the President noted in his decision.
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Engro, BOP make arrangements for agri financing
KARACHI: Engro Fertilizers Limited and The Bank of Punjab (BOP) have made arrangements to provide financing to farmers through the bank’s branch network across Pakistan, a statement said on Thursday.
Under this arrangement, progressive farmers under Engro Fertilizers Limited’s Shandaar Kissan program will be able to avail financing on easy terms and concessional markup rates from the BOP. These farmers will avail of this facility to invest in their infrastructure, mechanization, and working capital for yield improvements.
This financing arrangement will help farmers to improve farm economics through better production and, thus, increase their income levels as well.
The MoU signing ceremony, held at Engro Fertilizers Limited’s Head Office in Karachi, was attended by Amir Iqbal – Chief Commercial Officer and Imran Ahmed – Chief Financial Officer of Engro Fertilizers Limited, whilst the BOP was represented by Farid Ahmed Khan – Group Chief Corporate Investment Banking and Asif Riaz – Group Head Retail & Priority Sectors Lending.
In a joint statement, Amir Iqbal (Chief Commercial Officer, Engro Fertilizers Limited) and Mr. Asif Riaz (Group Head Retail & Priority Sector Lending, The Bank of Punjab) shared that, “Prioritizing financial inclusion and well-being of farmers is key to develop the agricultural sector, which in turn results in the progress of Pakistan. We are excited to partner on this initiative that has the potential to transform the country’s agricultural landscape by promoting improved agri practices, thereby, enabling better crop yields and food security for the nation.”
This initiative is yet another milestone for both organizations in their journey to create a meaningful impact in the agri landscape of Pakistan. Last year, Engro Fertilizers Limited and the BOP had also partnered to deliver accessible warehouse receipt financing to farmers, traders, and processors, for the winter maize and basmati rice crop.
Under the Shandaar Kissan program, Engro Fertilizers Limited has registered more than 2500 selected farmers and provided them Seed to Harvest solutions to improve their farm productivity. On the other hand, the BOP continues to provide financial assistance under its vast range of agri products and SBP schemes.
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Loan disbursement to young entrepreneurs to start from next month
ISLAMABAD: The disbursement of loans to young entrepreneurs will start from next month after completing all the formalities, it was agreed at a meeting on Thursday to review Youth Entrepreneurship Scheme of Kamyab Jawam Programm.
The meeting agreed that the disbursement of loans to the successful applicants under the scheme would start in December 2019 after completing all the required formalities.
Muhammad Usman Dar, Special Assistant to the Prime Minister on Youth Affairs; along with Asad Umer, Chairman National Assembly Standing Committee on Finance, chaired a high-level meeting with the representatives from State Bank of Pakistan, Presidents and senior officials of National Bank of Pakistan, Bank of Punjab, and Bank of Khyber to review the processing of loan applications received under Youth Entrepreneurship Scheme (YES) of Kamyab jawan Programme.
All the three executing banks of the scheme: National Bank of Pakistan, Bank of Punjab, and Bank of Khyber would strengthen their infrastructure both in terms of human resource and technology to cope with the huge challenge of processing one million applications received so far under the scheme.
Speaking on the occasion, Muhammad Usman Dar reiterated his resolve to strictly follow merit and transparency in the processing and disbursement of loans to the potential entrepreneurs.
This would not only create number of employment opportunities for youth but would also contribute remarkably to the national economic growth.
Muhammad Usman Dar appreciated the commitment and efforts of State Bank of Pakistan and the three executing banks: National Bank of Pakistan, Bank of Punjab, and Bank of Khyber, in making this scheme a real game changer for the creation of jobs through the promotion of SME sector in the country.
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SBP imposes penalty on four banks for violating AML/KYC
KARACHI: The State Bank of Pakistan (SBP) has imposed penalty of Rs184.64 million upon four commercial banks for violating laws related to Anti-Money Laundering (AML)/Know Your Customer (KYC).
The central bank on Thursday said that these penalty amount was imposed during the month of July 2019 against banks included: The Bank of Punjab; JS Bank Limited, Bank Al Habib Limited and Soneri Bank.
The SBP imposed penalty of Rs13.072 million against The Bank of Punjab on July 15, 2019 for violating in areas of foreign exchange operations.
In addition to penal action, the bank has been advised to improve its internal processes, the SBP said.
The Bank of Punjab was again penalized with Rs16.119 million on July 18, 2019 for violating in areas of AML/KYC, unclaimed deposits.
In addition to penal action, the bank has been advised for improvements in the areas of AML/KYC, the central bank added.
The SBP penalized JS Bank Limited with penalty amount of Rs48.211 million on July 23, 2019 for violating in areas of AML/KYC.
In addition to penal action, the bank has been advised to conduct a thorough review of relationship accounts, the SBP said.
The SBP imposed penalty of Rs51.75 million upon Bank Al Habib Limited on July 25, 2019 for violating in areas of AML/KYC, FX Operations.
In addition to penal action, the bank has been advised to update its systems and processes, and provide appropriate trainings to the concerned officials, the SBP said.
The SBP imposed penalty of Rs55.48 million upon Soneri Bank Limited on July 25, 2019 for violating in areas of AML/KYC, Asset Quality, FX Operations.
In addition to penal action, the SBP advised the bank to improve areas of AML/KYC and credit risk monitoring.