LAHORE: Bank of Punjab (BoP) President Naeemuddin Khan, while talking to the media, has said that the BoP has recovered Rs55 billion in the last six years and is committed to meeting all future minimum capital requirements through its own resources instead of issuing right shares.
He said that the BoP paid up capital (net of losses) was Rs5.5 billion in December 2009, which further dropped to Rs2.9 billion in December 2010. However, by September 2014 it had surged to Rs14.5 billion, much above the minimum capital requirement of the State Bank.
Bank of Punjab has come a long way from capital adequacy ratio of 3.87 percent in December’09 to CAR of 10.01 percent in September 2014 and from investments of only Rs25.67 billion in December 2008 to Rs144.81 billion in September ’14, he added.
Now he added we are in a position to recommend to the board of directors in the next meeting consider paying dividend to its share holders after a lapse of almost seven years. “The nightmare that the bank faced is over after relentless efforts of the bank staff” he added.
“Six years back chaos was all over due to extremely bad loaning done on political grounds” he said adding that non performing loan portfolio of the bank swelled to Rs77.34 billion by end of December 2009. All loans he added were approved before the takeover of the new management.
“We have registered FIRs against the defaulters and have send cases to the NAB for recovery of our loans. He said the courts have granted stay on loans worth Rs40 billion. The efforts he added are on to get these stays vacated. Courts he added have become more active in recent months. We have recently recovered Rs900 million from Harris Steel from Dubai and another Rs500 million has been recovered from the same party in December.
