Sep 03 - 09 , 2001
Limited withdrawal from NDFC allowed
The State Bank announced on Thursday that
individual depositors of NDFC having deposits up to Rs100,000 will be
able to draw the principal amount from September 5.
It said the depositors would get profit on their
deposits up to Aug 27, 2001 which implied that they would not get any
profit on the deposits after this date.
The NDFC sources said 35,000 out of over 100,000
account holders of NDFC have deposits up to Rs100,000 each.
No official word was available about the total
amount lying in the accounts of those who have deposits up to
Rs100,000. But the sources said the amount was equal to or a little
more than 10 per cent of the total deposits worth Rs27 billion.
By end-December 2000, the NDFC had Rs28 billion
deposits but that started declining as investors got wind of the
government plans of either closing it down or merging it with some
The SBP also said payment to individual account
holders having deposits between Rs100,001 and Rs500,000 would be made
by the NDFC in the third week of October before its amalgamation with
the NBP in November. "The deposits of the remaining account
holders will then be automatically transferred to the NBP."
"To facilitate the smooth transfer of
depositors' money to the NBP, their (NBP's) staff will be present at
the NDFC branches to assist in the process," said a SBP press
release. The release was issued after SBP Governor Dr Ishrat Husain
had a meeting in his office with NDFC Chairman Badaruddin Khan and NBP
President Ali Raza.
The SBP said non-performing loans of NDFC will be
transferred to Corporate & Industrial Restructuring Corporation
for disposal through auctions. It said non-performing loans of NDFC
were about 80 per cent of its total loan portfolio. It gave no
Explaining the rationale behind the decision to
amalgamate NDFC with NBP the State Bank said that the first option
before the government was to revive or restructure the corporation as
a viable and sustainable entity but upon close examination this was
not found feasible.
SBP injects Rs7.35bn
The State Bank on Thursday injected Rs 7.35 billion
into cash-strapped inter-bank money market through one week reverse
repo of treasury bills at 9.15 per cent.
This was the second injection within this week.
Earlier on Tuesday, the SBP had injected Rs3.3 billion for one week at
9.24 per cent.
Bankers said the huge injection into the market on
Thursday slightly eased off the tight liquidity conditions adding that
overnight call rate fell from 11.75-11.90 on Wednesday to 9.00 -11.50
per cent. But said most deals were struck on the higher side.
$777m ADB loan by Dec
The Asian Development Bank is expected to approve
financial assistance of $777.2 million during current year for 13
projects and programme loans, depicting surge by $70 million against
sanctioned loans of $707 million during the year 2000.
Of the total expected financial assistance of
$777.2 million, an amount of $209.6 million has already been
sanctioned under six loan programmes while rest of $567.6 million is
scheduled to be approved by December 2001 under seven projects and
programme financial assistance, well-placed sources told APP on
Over $523m has been disbursed by the bank against
sanctioned amount of $707m to date, sources stated, adding another
technical assistance of $3.2 million is expected to be signed between
the ADB and Pakistan by December 2001.
Adamjee reports first loss
Adamjee Insurance Company Limited reported on
Thursday net loss of Rs212 million, which most veterans believe to be
the first red ink in the 40 years history of the company. In the
corresponding six months (January-June) of 2000, the company had
reported after tax profit of Rs137 million.
UK transport co to invest £70m
A UK-based bus manufacturing and operating company
— Arabian Sights Limited — plans to invest 70 million pounds in
Chairman of the company Dr Chaudhry Ghulam Sarwar,
who is British national of Pakistani origin, told a press conference
on Thursday that the Arabian Sights will launch five projects in
different towns of the country.
"The first project — land route travel
service between Lahore and Makkah will be launched on September
15," he said.
14 banks launch KIBOR on trial
When it came to running a trial operation of KIBOR
and KIBID on Wednesday the number of the participating banks rose from
10 to 14 — and even a deal was struck during the trial.
"The trial went very well," said
President of Financial Market Association Dr Naim Abdullah when sought
his comments over telephone. He said the purpose of the trial was to
establish the prices of lending and borrowing in the inter-bank market
and not to do any business. But bankers said a deal was struck between
two of the fourteen participating banks.
Prudential Commercial Bank
The financial figures released on Tuesday shows
that at December 31, 2000, the Prudential Commercial Bank Limited was
in a financial mess. For the year 2000, the bank posted staggering
loss of Rs837 million. The year ago, the bank had posted pre-tax
profit of Rs70 million and after tax profit at Rs56 million.
Rupee makes quick recovery
The rupee on Monday fell to 64.20/64.25 per US
dollar in inter-bank market but closed at 63.95/64.00 after making a
quick recovery on the back of aggressive dollar selling by a foreign
PICIC Bank deposits up 40pc
The deposits of the PICIC Commercial Bank Limited
increased by almost 40 per cent in last four months to over Rs7
billion from a little over Rs5 billion in end February when Pakistan
Industrial Credit and Investment Corporation took over the controlling
shares and management of the Gulf Commercial Bank.