BoK gains robust growth despite weak economic conditions

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The Bank of Khyber (BoK) Managing Director Bilal Mustafa on Thursday said that despite weak economic conditions and marginalised businesses, the bank has recorded a robust growth in its all sectors during the last five years.

The BoK is in a position to meet all its financial and regulatory requirements liable under rules of the central bank, Bilal Mustafa said while predicting a rosy future of the public sector financial entity of Khyber Pakhtunkhwa at a “Guest Hour” programme organized by Peshawar Press Club. He informed that the Bank has stood at a great financial position as compared to its previously position in 2008. The bank deposits swelled at Rs.60 billion from Rs.22 billion with a growth of 163.73 per cent by the end of December 2012. The MD while highlighting the BoK performance during the last five years, said that the Bank advances to deposits ratio was also jumped at Rs 26b from Rs 10b, while out of the total 96pc lending ratio, the bank has provided 65pc  lending facility in KPK, he maintained. Similarly, the bank assets, he claimed, has also grown up at Rs 82b from Rs 32b.

Complying with the rules of the central bank, Mustafa said the bank added Rs. one billion every year in the federal capital and achieved the Minimum Capital Requirements (MCR) target of the Rs.9 billion of the last year. The bank is currently in a position to meet current MCR target of Rs.10 billion set by the State Bank of Pakistan in this financial period, he predicated.

He while varying the figure of import and export 2008-12, said the import has jumped at Rs 15,355m against the Rs 790m recorded five years back. By the end of Dec 2012, he said the bank’s profits before-tax has also raised at Rs 1.10b from Rs 127m previously recorded, in the last five years. While trade and business recorded Rs 29b during the last five years, he remarked.

Export has also recorded a substantial increased from Rs 496m to Rs 14311m in the same period, he claimed and added total amount in collection of foreign remittances has also soared at Rs 11b from Rs 275m, Mustafa said. “We had also grown branches network of the BoK during the last five years, that raised at 80 from 34 branches, which including both conventional and Islamic banking system, he said, and vowed that the figure would touch at 100 by establishing 20 more new branches in the current financial year.

He claimed that bank has shown progress in various sectors due to outreaching its networks to other parts of the country. Musfata said that Bank had also implemented different social sector schemes initiated by the incumbent ANP-led provincial government during the last five years, notably Bacha Khan Akhpal Rozgar scheme, and Hunarmand Skill Development programme. He informed that a total of Rs1.8 billion had so far disbursed on purely merit basis, while the amount recovery ratio was remained at 99.5 per cent. He said an amount of Rs72 billion funds had transferred to other commercial banks via Bank of Khyber online banking system.

In reply to a query about the non-performing loans, Mustafa said the Bank has a total NPLs of Rs3.8 billion, but the ratio of releasing of loans was declined at only 3 to 4 per cent during the last five years. Similarly, a total loans recovery stood at Rs500 to Rs700 million every year, he added.

To another question about the total share of public and private sector in BoK shears, he informed the government has around 70 per cent share, while 30 percent investment is from private sector.

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