KASB BANK FOR EXCELLENCE IN FINANCIAL SERVICES

NON-FARM SEGMENT OF AGRICULTURE SECTOR HAS HUGE UNTAPPED POTENTIAL FOR BANKS

KANWAL SALEEM
(feedback@pgeconomist.com)
Mar 8 - 14, 2010

KASB Bank is part of KASB group, established by Khadim Ali Shah Bukhari in 1958, which has a tradition of excellence in financial services in Pakistan, known primarily for brokerage, investment banking, research, and asset management.

The group comprises of KASB Securities, KASB Funds, KASB Bank and KASB Modarba. The group has also diversified its interest with investments in technology, food and dairy, oil and gas exploration and production. "Our continued success and growth are a reflection of our innovative approach to business and commitment towards customers and community," a spokesman of KASB Bank told Page.

According to him, KASB Bank is presently serving its clients through 100 branches in 38 cities of Pakistan offering unique and innovative financial solutions to a large portfolio of investment, corporate and consumer banking customers. The bank has been assigned medium to long term entity rating by PACRA of A (Single A) and short term rating of A1 (Single A One). The Bank's aim is to assist its clients in fulfilling their banking needs of today and realizing their ambitions for tomorrow, by offering a comprehensive range of financial services, while ensuring services excellence.

Further, we provide our customers' access to a broader range of funding sources, made possible by the group's strong network of local and international relationships, he said. The bank also offers a host of financial services offered by the KASB group.

Corporate banking unit of KASB operates as a strategic partner for corporate entities. The business unit is managed by a team of experienced and skilled professionals who have the requisite understanding and technical ability to deliver towards varied business needs. Corporate banking unit's mission is to serve all corporate needs by adding efficiencies and values through personalized relationship management.

"We understand the expectations of our corporate customers, and offer tailor made products and services to meet their demands. The core strategy is to focus on customer's needs and meet their perceived value by delivering the utmost quality of services in quick turnaround time," he said.

The unit is fully equipped with innovative tools to provide services to its valued customers for:

- Working capital and trade finance solutions including imports, exports, guarantees, forex options, remittances.

- Long term needs through debt financing. Tailor made balance sheet structuring are offered through investment banking unit's expertise.

- Off Balance sheet solutions for derivatives are catered through highly skilled treasury derivative unit.

- Cash Management serves through a dedicated and innovative cash management unit.

He said that KASB's "Maheena Asaan" is a term deposit account, with profit payment options on a monthly or maturity basis. Additional value added features give the flexibility to meet interim liquidity needs of clients. It is a product ideally suited to corporate as well as individual clients, who want a good return on their money. Maheena Asaan account is like an additional source of income every month or a second pay cheque with no extra effort.

"As the leading investment banking firm in Pakistan today with one of the largest and most active teams, we have intimate knowledge of domestic markets and industries, a well-established relationship with local and international investors and a global affiliation with Bank of America - Merrill Lynch. We facilitate governments, local and multinational companies with independent, objective advice on privatizations, mergers and acquisitions, and the issuance of debt and equity capital."

KASB Bank and Nestle Pakistan signed an agreement in Lahore to facilitate livestock farmers associated with Nestle for the procurement of dairy animals. Speaking at the signing ceremony, Munir Saleem, group executive, commercial banking KASB Bank and Raymond Franke, country head of finance and control Nestle Pakistan expressed their pleasure on signing the strategic partnership agreement.

While signing the agreement, Raymond expressed his satisfaction over the systems and capabilities of KASB bank to address the needs of its customers. He also expressed his desire to undertake more initiatives in other areas with the bank. Faith Ermis, business development manager milk collection said that achieving economy of scale and bringing efficiencies in this traditional business is the need of the hour and Nestle Pakistan is already executing various projects to achieve the same.

Munir Saleem added that KASB Bank is a mid size bank having one of its strategic objectives to extend structured financing in agriculture sector as it thinks future for banks lies in agriculture sector. He also expressed that it is a misperception that agriculture sector is a more risky sector than industrial sector as NPLs of banks in agriculture sector are much lesser than in industrial sector.

He also said that livestock sector constitutes 11 percent of GDP of Pakistan and can not be ignored by the banks.

Hamayoun Khan Babar, head SME and agriculture KASB Bank said that non-farm segment of agriculture sector has huge untapped potential available for the banks and banks can earn good margins from this neglected segment through highly structured products.