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Nationalised banks in Pakistan.

Nationalized Banks in Pakistan

Allied Bank of Pakistan Limited

Allied Bank of Pakistan Limited is contributing its due share in the revival of national economy. Loans and advances to trade and industry, small businessmen and farmers and other priority sectors have liberally been made in consonance with the policy of Federal Government. The bank has earned a pretax profit of Rs. 53 million which registered an increase of 6.06 per cent over the previous years pretax profits. The deposits have shown a growth of 14.2 per cent while total assets have swelled up by 18.1 per cent. Imports and exports have shown growth at the rate of 35.1 per cent and 34.2 per cent respectively. Prudent currency dealings have resulted in exchange profit which is higher by 65.8 per cent than that of previous year. The labour-management relations have remained cordial during the year and the bank has made a further provision of Rs. 2.795 million to the Staff Welfare Fund.

Habib Bank Limited

The pretax group profit of Habib Bank Limited after making usual and necessary provisions including Rs. 50.3 million for Staff Welfare Fund, amounted to Rs. 955.5 million in 1989 as against Rs. 868.7 million in the preceding year. Domestically the Bank had to operate in conditions generally described difficult. The credit ceiling restrictions, considerably limited the ability to gainfully employ its resources. As a direct consequence the Bank had a little option but to invest its excess liquid funds in low yield Government securities.

In the backdrop of these constraints a 10 per cent growth in profit this year as compared to 2 per cent in 1988 and 1.1 per cent in 1987 is indicative of the Bank's inherent operational strength and its ever increasing share of country's business. The contribution of overseas branches towards the increased profitability has been the highest this year than ever before. The Bank declared a Dividend of Rs. 55.8 million and transferred an amount of Rs. 338.0 million to Reserve Fund which now stand at Rs. 3,643.0 million. This is in line with the Bank's continued policy of strengthening its equity and reserves base.

Muslim Commercial Bank Limited

The pretax profit of the Bank amounted to Rs. 249.62 million in 1989 as against Rs. 227.0 million in the previous year showing an increase of Rs. 22.6 million - 10 per cent over the last year. The rise in profit of the bank was due to increase in volume of business and non-fund based income. A dividend of Rs. 12.96 million as compared to Rs. 8.96 million of the previous year was appropriated. To strengthen equity base, Rs. 155 million has been transferred to General Reserve which as at December 31, 1989 stood at Rs. 945 million and thus total equity increased to Rs. 1,521 million from Rs. 1,366 million in 1988. The deposits as at the close of the year 1989 were Rs. 25,325 million as compared to Rs. 21,899 million of previous year. The fixed savings and current deposits increased by 27.2, 10.5 and 18.5 per cent respectively. At the end of the year 1989 the total advances were at Rs. 15,548 million as against Rs. 13,096 million of last year, showing an increase of 19 per cent. The bank regulated its credit portfolio according to desire of the Federal Government and catered to the needs of Priority Sectors in the line of directives of the Government.

National Bank of Pakistan

National Bank of Pakistan ended the year 1989 on a very high level of performance with spectacular overall improvement in the main spheres of banking and allied activities. The Bank during 1989 has generated record pretax profits of Rs. 346.43 million as against Rs. 315.03 million in 1988 showing an increase of 10.10 per cent Rs. 169.00 million have been transferred to Reserve Fund raising it by 12.5 per cent to Rs. 1523.00 million from Rs. 1354.00 million. Dividend has been paid at the rate of 2.25 per cent as against 1.75 per cent in previous year. An amount of Rs. 18.23 million has been marked for staff welfare. Had the Bank not made this provision, the pretax profit would have shot up to Rs. 364.66 million as against Rs. 331.61 million in previous year.

Consequent upon an improved motivational climate the vigorous deposits mobilising efforts during 1988 brought significant results, raising the deposits by 12.44 per cent from Rs. 71.00 billion to Rs. 80.00 billion. The PLS Deposits have also shown an increase by 14.21 per cent. The Bank's investment have shown record increase of 48.71 per cent (from 19.20 billion to 28.55 billion). Investment outside Pakistan have also gone up by 33.43 per cent (from 689.18 million to Rs. 919.56 million). The total income of the Bank increased at a significantly higher rate of 23.82 per cent in 1989 as against 14.37 per cent recorded in 1988, and an average of 14.62 per cent for the last five years. The total income of the bank increased from 7.14 billion in 1988 to Rs. 8.84 billion in 1989.

The change in policy regarding promotions eliminated frustration and discontent thereby improving the working atmosphere. Improved team work produced innovative approaches and has provided a new framework for providing comprehensive service according to client's expectations and needs. This had earned a substantial increase in the clientele. The bank opened 16 new branches during 1989 including one at the Prime Minister's Secretariat, Islamabad. The number of bank offices in Pakistan and Azad Kashmir stands at 1301 while 21 branches and a representative office at Beijing is conducting business at all important business centres abroad.

United Bank Limited

During the year United Bank Limited made rapid progress in all areas of its operations including deposits, advances, and profit. The Bank's total assets increased by 12.3 per cent in 1989, as compared to a rise of 6.7 per cent in 1988. Total deposits of the Bank in 1989 rose by 10.3 per cent to Rs. 63,517 million from Rs. 57.601 million in 1988, the highest growth achieved during the last three years. There was a growth of 25 per cent in current deposits, which increased from Rs. 9,575 million in 1988 to Rs. 11,973 million in 1989. This was the highest growth achieved in current deposits during the last six years. Consequently, the deposit composition improved significantly.

The Bank's advances, and investments, also increased significantly, Bank credit rose by 14.9 per cent in 1989 to Rs. 37,967 million, as compared to an increase of 5.7 per cent in 1988. Bank's investments increased by 16.7 per cent in 1989 to Rs. 19,290 million, as compared to a fall of 6.2 per cent in 1988. Total income rose to Rs. 5,865 million showing an increase of 11 per cent - the highest during the last five years - as compared to a fall of 0.32 per cent in 1988. Interest, discount and return income increased by 7 per cent to Rs. 4,787 million, as compared to a fall of 0.16 per cent in 1988, and a fall of 2.35 per cent in 1987.
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Publication:Economic Review
Date:Oct 1, 1990
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