BANKING SCENARIO 2009

S.M. ABBAS ZAIDI, S.KAMAL HAYDER KAZMI,
Research Analyst
, PAGE
Apr 20 - 26, 200

PRIVATIZATIONS AND MERGERS
DEVELOPMENT OF BANKING AND FINANCE
(Rs million)
UNIT NAME SALE PRICE DATE OF TRANSFER BUYER NAME
United Bank Ltd. (51%) -1549465680 12,350.00 Oct-02 Consortium of Bestway & Abu Dhabi Group
Bank Alfalah (30%)(22,500,000) 620 Dec-02 Abu Dhabi Group
Habib Bank (51%) 22,409.00 Dec-03 Agha Khan Fund for Eco Develop.
Allied bank limited (51%) 971.6 Feb-91 EMG
Muslim Commercial Bank (75%) 2,420.0 April-91 National group
Banker's equity (51%) 618.7 Jun-96 LTV Group
Habib Credit and Exchange (70%) (52,50000,000) 1,633.9 Jul-97 Sh. Nahyan Bin Mubarik Al-Nahyan
> Atlas Bank Ltd will be merged into Saudi Pak Commercial Bank (SPCB) announced on 9 April 2009.
Source: Privatization Commission


BANKS IN PAKISTAN
BANKS N0. OF BRANCHES
UBL 1,095
MCB 1,040
HBL 1,489
NBP 1,458
Faysal Bank 107
BankAlfalah 231
Allied Bank Limited 735
NIB Bank 240
Standard Chartered 176
Meezan Bank 166
Askari Bank 136
Bankislami 37
Bank Al Habib 210
Saudi Pak Bank 55
Habib Metropolitan 100
Mybank 70
Soneri Bank 90
KASB Bank 35
Dubai Islamic Bank Pak Ltd 19
JS Bank 13
Arif Habib Bank 13
Dawood Islamic Bank 21
RBS (Pakistan) 80
Various Bank's Sources


NEW MINIMUM CAPITAL REQUIRED FOR BANKS
YEARS ENDING CAPITAL
Dec-2008 Rs 5 bn
Dec -2009 Rs 6 bn
Dec -2010 Rs 7 bn
Dec -2011 Rs 8 bn
Dec -2012 Rs 9 bn
Dec -2013 Rs 10 bn
Various sources


STRUCTURE OF INTEREST RATES
MONTHS/ YEAR RATE %
7-Jun-01 14
19-Jul-01 13
17-Aug-01 12
20-Oct-01 10
23-Jan-02 9
18-Nov-02 7.5
11-Apr-05 9
29-Jul-06 9.5
1-Aug-07 10
31-Jan-08 10.5
23-May-08 12
30-Jul-08 13
13-Nov-2008 till date 15
Source: SBP


FINANCIAL HIGHLIGHTS OF ISLAMIC BANKING IN PAKISTAN
DESCRIPTION DEC.03 DEC.04 DEC.05 DEC.06 DEC.07
Total Assets 13 44 71 119 206
% of Banking Industry 0.50% 1.50% 2.00% 2.80% 4.00%
Deposits 8 30 50 84 147
% of Banking Industry 0.40% 1.30% 1.80% 2.60% 3.80%
Financing & Invest. 10 30 48 73 138
% of Banking Industry 0.50% 1.30% 1.70% 2.30% 3.50%
Full fledged Islamic Banks (IBs) 1 2 2 4 6
Branches of IBs 10 23 37 93 186
Conventional Banks with IBBs 3 9 9 12 12
Branches of CBs 7 25 33 57 103
Total Islamic Banking Inst. 4 11 11 16 18
Total No. of Branches 17 48 70 150 289
FORECAST OF ISLAMIC BANKING
  2008 2009 2010 2011 2012
Expected Deposit Size(mn) 215,938 340,128 499,036 722,109 907,064
Expected Financing Size (mn) 184,641 277,153 413,594 600,014 731,591
Total No. of Branches 436 655 939 1,205 1,351
Source: SBP


REGIONAL INTEREST RATES (%)
COUNTRY END07 END08 9-JAN
Korea 5 3 2.5
Thailand 3.25 2.75 2
Phillipines 5.25 5.5 -
Taiwan 3.375 2 1.5
Indonesia 8 9.25 8.75
India 7.75 6.5 5.5
China 7.47 5.31 -
Turkey 15.75 15 13
Pakistan 10 15:00 15:00
Various Sources


KIBOR (13 APRIL-09)

TENOR

BID

OFFER

1 week

12.46

12.96

2 week

12.66

13.16

1 month

12.97

13.47

3 month

13.1

13.35

6 month

13.25

13.5

9 month

13.42

13.92

1 year

13.61

14.11

2 year

13.98

14.48

3 year

14.22

14.72

Source: SBP


TOTAL INVESTMENT OF SCHEDULED BANKS (STOCK) (mn. Rs)
AS ON LAST WEEK OF 2002 2003 2004 2005 2006 2007 2008 2009
January 328,881 638,583 732,008 602,519 755,725 794,483 1,201,526 1,030,607
February 362,842 663,316 743,778 646,996 759,919 872,426 1,163,455 1,094,731
March 399,657 688,138 757,615 652,473 793,157 929,454 1,107,028 1,148,225
April 390,813 691,313 770,030 670,990 827,850 1,022,787 1,060,154 -
May 432,510 694,598 773,361 658,202 821,399 1,048,978 975,761 -
June 471,020 723,626 712,215 716,119 794,584 1,115,913 1,007,529 -
July 536,300 764,572 780,821 772,187 830,799 1,167,897 1,060,396 -
August 559,542 781,718 776,509 748,250 799,285 1,197,115 1,030,846 -
September 601,577 804,115 771,107 766,550 790,057 1,245,411 930,875 -
October 601,044 771,080 675,617 730,330 790,558 1,243,254 921,043 -
November 605,832 727,910 644,368 697,669 824,966 1,213,543 929,016 -
December 625,201 745,291 626,046 730,067 775,546 1,210,920 980,984 -
Various sources