The private sector borrowed only Rs2 billion from banks for fixed
investment in the first nine months of this fiscal year against Rs11 billion in a yearago
period. But its borrowing for meeting working capital requirements rose to Rs 18 billion
from Rsl5 billion a year ago.
Bankers say low borrowing for fixed investment shows slowing down of
industrial expansion in nine months to March 2000 but many of them hope the trend may
The State Bank says industry grew only 1.5 per cent in first nine
months of this fiscal year against the full-year target of 5.5 per cent. Its third
quarterly report says the pace of growth may remain all the same at the end of the fiscal
year in June.
But this does not imply that the private sector borrowing for fixed
investment would also remain stagnant.
Top bankers say the demand for long-term credit has started picking up
and private sector borrowing for fixed investment may rise by the end of the fiscal year.
A senior executive of staterun National Bank said his bank had
sanctioned Rsl.5 billion for BMR projects of some textile mills in four months to April.
When asked how much of the amount had so far been disbursed, he said: "Normally there
is a four to six week lag in sanctioning and disbursement." This means that by the
end of the year the bank would have disbursed this amount.
A senior executive of staterun United Bank said his bank had also
sanctioned more than Rsl.5 billion for BMR projects in the private sector mostly in
He said actual disbursement of funds might cross this mark by June.
Merger move in Prudential Group
The Prudential Group plans to make certain strategic moves, which are
understood to be aimed at facilitating the merger of its commercial bank with the other
two financial services companies: The Discount & Guarantee House and the group's
Notices published by the group in newspapers on Wednesday said that the
Prudential Commercial Bank Limited has called an Extra Ordinary General Meeting (ExGM) of
members on June 8, when a special resolution would be moved to raise the bank's authorized
capital from Rs600 million to Rs2 billion. The registered office of Prudential Commercial
Bank Limited is situated in Islamabad.
Al-Mezan to float Rsl80m shares
Al-Meezan Investment Bank Limited proposes to float shares of the value
of Rsl80 million for public subscription, Chairman Karachi Stock Exchange, Arif Habib
confirmed to on Thursday.
Less than three years after it had received permission to commence
business in the autumn of 1997, the Al-Meezan Investment Bank Limited has decided to go
for public flotation.
26 ICP funds valued at Rs6.3bn
The aggregate market value of portfolio of 26 Mutual Funds under the
Investment Corporation of Pakistan (ICP) amounted to Rs 6,339 million, but their market
capitalization stood at about a half of that at Rs 3,199 million, a statement by the ICP
on May 10, showed.
Crescent Spinning to issue right shares
To strengthen the capital base of the company, the directors of
Crescent Spinning Mills Ltd intend to inject fresh equity of Rsl2.2 million by offering
right shares at 10% discount, that is, Rs9 per share to the existing directors.
PTCL pre-tax profit up 46.5pc
Pakistan Telecommunication Co (PTCL), has shown an increase of 46.5% in
the pretax profit for the nine months accounts ended March 31, as compared with
corresponding period of the last year, an official announcement said. Total revenues
during the period stood at Rs42.91bn as compared with Rs37.96bn of nine months period
ended March 31, '99 showing an improvement of 13.0%.
Reserves at $1.416bn
Gross liquid foreign exchange reserves stood around $1.416 billion on
May 13 down from $1.479 billion about a month ago.
The latest State Bank statement released on Thursday put total approved
foreign exchange reserves at $1.185 billion and balances held abroad in cash and short
term securities at $231 million. The gross forex reserves include more than $300 million
worth of foreign currency deposits of banks placed with the State Bank.
Askari Commercial Bank Ltd.
"While Army Welfare Trust continues to be a major sponsor of
Askari Commercial Bank Ltd., the two have an arms-length relationship with each other.
Askari Bank continues to remain very liquid, despite freezing of the foreign currency
accounts, as there was no run for deposits withdrawals in the post blast scenario a
positive reflection of the trust that the public has in the Bank.
Because of the high liquidity, ACBL had invested large sums in
government securities. However in view of the rapid decline in the returns from Government
paper, ACBL has aggressively, but prudently, increased its advances portfolio in a well
diversified manner to improve the yields of its assets portfolio. In particular, Askari
Bank is going into retail banking in a focused manner and is poised to give tough
competition to local and foreign banks, in this area of activity, for which the bank
enjoys considerable skills and expertise.".