ISLAMABAD (November 12 2002) : Though mild but encouraging signals from banking sector have been recorded as the non-performing loans reduced by Rs 7.68 billion, and the stock position of overdue amount of loans (365 days and more) of one million rupees and above & recoveries have declined by Rs 3.41 billion. It has simply arrested the growth of defaulted loans.
Position of overdue amount of loans (365 days and more) of one million rupees and above & recoveries was Rs 157.88 billion on September 30, 2002 against Rs 161.29 billion on the same date last year.
Non-performing loans (NPLs) were Rs 257.13 billion on September 30, 2002, as against Rs 264.81 billion on the same date last year.
The total NPLs of the nationalised commercial banks were Rs 109.39 billion and Rs 99.43 billion during 2002 and 2001, respectively, showing an increase of Rs 9.96 billion during one year.
Specialised banks and DFIs have NPLs of Rs 90.76 billion on September 30, 2002, against Rs 108.29 billion on the same day previous year. It exhibits a cut of Rs 17.53 billion in a year.
As per break-up, Rs 66.25 billion were stocked by specialised banks and Rs 24.05 billion were from DFIs on September 30, 2002. Rs 58.85 billion were stocked by specialised banks and Rs 49.46 billion were from DFIs on September 30, 2001. It shows that NPLs of specialised banks have been reduced by Rs 7.4 billion and those of DFIs have been cut by RS 25.41 billion largely due to merger of NDFC to the National Bank.
In both the years at end-September the private and foreign banks have not registered any significant change in their figures of NPLS, which seems quite similar. According to break-up, privatised banks had Rs 30.95 billion, private banks Rs 18.5 billion and foreign banks Rs 7.62 billion for September 2001. For September 2002, privatised banks had Rs 29.75 billion, private banks Rs 20.153 billion and foreign banks Rs 7.08 billion.
The ratio of NPLs to advances of the commercial banks is around 17% in both years and 54% in case of specialised banks and DFIs.
Position of overdue amount of loans (365 days and more) of one million rupees and above & recoveries for all commercial banks was Rs 74.37 billion (September
2001), Rs 78.23 billion (Sep 2002), nationalised commercial Rs 21.75 billion (September 2001), Rs 23.56 billion (September 2002), privatised banks Rs 15.27 billion (September 2001), Rs 17.44 billion (September 2002) and foreign banks Rs 5.69 billion (September 2001), and Rs 6.01 billion (September 2002).
