NPLs Of Banks, DFIs Raised By Rs 11 Billion

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KARACHI:The Non Performing Loans (NPLs) of banks and DFIs have increased by Rs 11 billion to a new peak level of Rs 250.594 billion during the second quarter of current calendar year 2008 due to its major rise in agriculture and consumer sectors.

Tremendous increase has been registered in the NPLs’ of commercial banks including the National Bank of Pakistan (NBP), United Bank Limited (UBL), Muslim Commercial Bank (MCB), Ailed Bank Limited (ABL) and Habib Bank Limited (HBL). Out of all the banking groups, only Specialised Banks have experienced a sharp decline in their NPLs.

The central bank statistics shows that overall NPLs of banks and DFIs including domestic and overseas operations, have raised by 4.6 percent to 250.594 billion during the second quarter of 2008 that previously stood at Rs 239.565 billion in the first quarter of 2008.

While banks and DFIs have also recovered Rs 12.294 billion during the April-June period against the recovery of Rs 7.549 billion in January-March of 2008. The NPLs of commercial banks have surged by 6.6 percent or Rs 13.165 billion during the second quarter of 2008 and with current surge and have increased to Rs 212.365 billion as on June 30, 2008 from Rs 199.200 billion in the first quarter of current calendar year.

However, specialised banks have presented healthy performances by reducing their NPLs and has decreased by Rs 3.263 billion to Rs 28.969 billion during the second quarter form Rs 32.232 billion in first quarter. Specialised banks also have recovered some Rs 3.715 billion from NPLs during April-June against the recovery of Rs 2.004 billion in January-March of 2008.

The NPLs of local private banks have surged by Rs 8.331 billion to Rs 153.372 billion, while public sector banks’ NPLs stood at Rs 57.396 billion from Rs 52.588 billion with a surge of Rs 4.808 billion during the second quarter of the calendar year 2008.

In addition, NPLs of foreign bank with a raise of Rs 25 million, has reached Rs 1.597 billion, those of DFI stood at Rs 9.259 billion after an increase of Rs 1.126 billion in April-June 2008. Similarly, net NPLs to net loan ratio have decreased by 0.05 percent to 1.20 percent in second quarter from 1.25 percent in first quarter and have declined to Rs 35.306 billion from Rs 37.803 billion.