NBP to extend consumer loan product outreach

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KARACHI: In order to extend the outreach of consumer financing towards the deprived segments of the society, the bank plans to increase the budget allocation for its consumer loan product up to Rs10 billion by 2013, said Adnan Adil, head of consumer division, National Bank of Pakistan (NBP), on Monday. Speaking at a press briefing organised by the Consumer and Retail Banking Group of the National Bank at a local hotel, he said that consumer financing portfolio of the commercial banks are expected to improve in the coming years, mainly due to frequent downward revisions in the discount rate.

“However, at the same time, poor macroeconomic conditions and non-recovery of non-performing loans will remain a major source of concern for the banks,” said Adil.

Consumer financing initiatives are directly addressed to the disadvantaged sections of the population, he said, adding that the bank’s advance salary is the single largest personal loan product in the industry with a market share of nearly 52 percent.

“The product is an instant success and to-date, the NBP has disbursed more than Rs210 billion and more than 1.5 million government employees have benefited from the scheme,” he added.

Despite these huge volumes, the injection rate is only two percent. No other private commercial bank comes even close to these numbers, he said.

“With a view to facilitate government employees, the bank has increased the maximum financing limit of advance salary loan up to Rs1 million,” he said.

Permanent government, semi-government employees, autonomous bodies, corporations’ can now can fulfill their financial needs by just entering their respective NBP branch where they are maintaining their salary accounts.

 

Courtesy: The News


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