5 big banks had written off 1240 billion PKR in the year 2018

ByShehryar Makhdoom
5-big-banks-had-written-off-1240-billion-pkr-in-the-year-2018

During 2018, five major banks reported Rs. 1.24 billion in thirty-nine incidents.

That the State Bank of Pakistan (SBP) shared a Special Inspection Report for the write-off of banking institutions including Zarai Taraqiati Bank Ltd (ZTBL) with the Finance Ministry, which revealed that, from 1 January 2018 to 31 December 2018, five banks had €1.24 billion write-off cases in 39 cases.

In 28 cases, the ZTBL wiped down Rs. 271.144 and granted a settlement of Rs. 067 million.

Similarly, bank Al Habib Limited had, in five cases, cut Rs. 245,890 million, bank Islami Pakistan limited Rs. 690,161 million, and in four cases Habib Metropolitan Bank limited Rs. 35,325 million, sources stated.

Additionally, sources stated that the State Bank of Pakistan (SBP) is required to submit a special report to the federal government every year on instances of loan write-offs, mark-ups and other dues, or financial relief by banking companies in which established banking practise or authorised procedures had been violated with the intent of causing the wrongful bank loss or conferring wrongful gain on the bank.

Suppose the questions highlighted by the Report about the public interest. In that case, they may be submitted by the federal government to the Parliament or Standing Committee of a Chamber of Parliament dealing with the finances, as they have added.

Sources stated that SBP did not agree with two write-off cases worth Rs. 249.5 million and Rs. 4.8 million ZTBL during the inspection period and also asked the federal government, through the Ministry of Finance, to submit these ZTBL cases to the Permanent Committee for Finance, Revenue and Economic Affairs of the National Assembly.

The SBP also urged the banks, according to the specifications of the policy and monitoring deficiencies that led to discrepancies in the conduct of the SBP Inspection teams, to take remedial measures. Money fines are levied according to the usual timetable in the event of specific infractions of SBP regulations.

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