DHAKA/KARACHI: The National Bank of Pakistan (NBP) is closing one of its Bangladesh branches after failing to recover nearly 98 percent of its loans from Bangladeshi debtors, the bank’s country head has said.
The Pakistan government-owned NBP has branches in 21 countries and assets worth $20 billion. It has been operating in Bangladesh as NBP-BD since 1994, with four branches in three cities, serving about 8,000 customers.
The bank ran into trouble in 2013-24, after numerous debtors — mainly from the apparel sector — failed to meet loan obligations, Bangladesh central bank data shows. In December last year, NBP-BD’s defaults amounted to $164 million, or 97.7 percent of its total loans.
“We are going to close the operations at our Sylhet branch due to an extraordinary situation,” Mohammad Quamruzzaman, NBP-BD chief executive, told Arab News earlier this week. “The headquarters in Pakistan has given us the approval, and the shutdown process is underway.”
In the past six years, the bank has filed 143 cases against loan defaulters, recovering about $23 million, Quamruzzaman said, adding that the bank was now trying to recover more without litigation and had suspended loan disbursement last year.
“Our high priority now is to recover the non-performing loans. We are focusing on an alternative dispute resolution (ADR) process where we sit at the negotiation table with the clients,” he said. “The good news is that we are receiving some positive results in the ADR process where the banks offer concessions to the defaulters and they, in turn, get the opportunity to have a clear banking credit record.”
Without clearing their records, Quamruzzaman added, businesses “can’t avail loans from any other banks in the future.”
Manzoorul Alam, managing director of Ibrahim Composite Textile mill (ICTM), which borrowed $8.5 million from NBP-BD in fiscal year 2012-13, said negotiations with the bank were underway.
“During negotiation we offered the bank to repay around $16.5 million. We sent this proposal in December 2019 and there was no work last year due to coronavirus pandemic,” Alam told Arab News. “I had a discussion with the bank around three weeks back and they assured to resolve the matter shortly according to our negotiations.”
Pakistani officials at the NBP’s head office in Karachi were unavailable for comment despite repeated requests. Bangladesh Bank, the central bank, declined comment.
Zahid Hussain, former lead economist of the World Bank in Dhaka, said the Bangladeshi central bank should create a safety net for lenders by enhancing its supervision, and “save the NBP-BD from the deep crisis.”
“There are few options which the central bank may consider, like injection of new funds, merger with a solvent bank, the appointment of an administrator etc. In the current scenario, NBP should run its operations under the close supervision of the central bank,” he told Arab News.
Another Bangladeshi economist, Policy Research Institute executive director Ahsan H. Mansoor, said the NBP’s situation was extraordinary as defaulted loans are about 10 percent of all loans at banks in Bangladesh.
“This is an extraordinary situation that NBP-BD is struggling with around 98 percent defaulted loans,” he said. “There should be an investigation [into] who were these borrowers and how it took place.”
As per the NBP-BD’s Annual Report 2019, its branches recorded a net loss of BDT 664 million in 2019, up 60 percent Year-Over-Year (YoY) as compared to BDT 415 million of 2018.
“The main reasons for this loss were a 20 percent YoY jump in interest expense to BDT 1.6 billion and a whopping increase in total provisioning to BDT 137 million (CY19: nil),” Sana Tawfik, Banking sector analyst at Karachi-based Arif Habib Limited, told Arab News.
The branches incurred an OPEX of BDT 197 million compared to BDT 174 million recorded in the same period last year, marking an increase of 13 percent YoY, which “increased pressure on the bottom-line.”
“As of Dec. 2019, the cumulative ADR and IDR of the branches stood at 74 percent and 79 percent, respectively,” Tawfik said. “Going forward, a turnaround in the overall earnings is dependent upon successful recovery of loans and advances, increasing business volumes, the success of commercial and strategic initiatives and financial and liquidity support from concerned stakeholders, as per the Annual Report (2019).”
'Extraordinary' loan delinquency forces Pakistani state-owned bank to close Bangladesh branch
https://arab.news/7mkvk
'Extraordinary' loan delinquency forces Pakistani state-owned bank to close Bangladesh branch
- The National Bank of Pakistan has branches in 21 countries and assets worth $20 billion
- As of December last year, NBP Bangladesh’s defaults amounted to $164 million, or 97.7 percent of its total loans
Pakistan’s 21st consignment of relief items for Gaza, Lebanon and Syria arrives in Damascus
- Pakistan dispatched 17 tons of relief items such as blankets, food and medicines on Wednesday
- Islamabad has repeatedly demanded an unconditional ceasefire in Gaza amid Israel’s aggression
ISLAMABAD: Pakistan’s 21st consignment of relief items for the war-affected people of Lebanon, Gaza and Syria landed in Damascus on Thursday, the National Disaster Management Authority (NDMA) said.
Pakistan dispatched the consignment from the eastern city of Rawalpindi to Damascus on Wednesday. The relief items, sent with the help of the Pakistan Air Force, comprised 17 tons of supplies which included blankets, food and medicines.
Israel has been attacking what it calls Iran-linked targets in Syria for years but has ramped up such raids since the Oct. 7, 2023, attack by Hamas on Israel, leading Israel to launch a military campaign in which more than 44,000 Palestinians have been killed in Gaza and more than 3,500 people in Lebanon.
“The 21st consignment of humanitarian aid for war affected/displaced people of Palestine Gaza and Lebanon has successfully landed in Damascus, which flew yesterday from the Nur Khan Base via a chartered flight, carrying 17 tons of relief items by GoP/Pak NDMA,” the authority said in a statement.
It said the consignment was received by Air Marshal (retired) Shahid Akhtar, Pakistan’s ambassador in Damascus.
“The Government of Pakistan remains steadfast in its commitment to providing humanitarian assistance to the war-affected people of Palestine (Gaza) and Lebanon,” the NDMA said.
Since the beginning of Israel’s war on Gaza, Pakistan has repeatedly raised the issue at the United Nations, the Organization of Islamic Cooperation and other multilateral platforms and demanded international powers and bodies stop Israeli military actions in Gaza.
Balochistan Assembly passes resolution seeking ban on Imran Khan’s party after violent protests
- Tabled by PPP and PML-N parties’ lawmakers, resolution accuses Khan’s party of spreading chaos in the country
- Government says clashes between Khan supporters and law enforcers led to the killing of three troops and one cop
QUETTA: Provincial lawmakers in the Balochistan Assembly on Thursday approved a resolution seeking an “immediate” ban on former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party following its violent clashes with law enforcers in the capital this week.
Pakistan’s government said three Rangers personnel and a police officer were killed during clashes between thousands of Khan supporters and law enforcers this week when the PTI led a “long march” to the capital to demand Khan’s release, among other things.
The protesters were dispersed after a late-night raid on Wednesday, after which the PTI said at least 20 of its supporters had been killed after being shot by law enforcers. The government denies this while police says it has arrested over 1,151 protesters.
Lawmakers of the PTI’s political rivals Pakistan Muslim League-Nawaz (PML-N) and the Pakistan Peoples Party (PPP) tabled a joint resolution, calling on the federal government to ban Khan’s party. These lawmakers included Meer Saleem Khosa, Muhammad Sadiq Umrani, Asim Kurd Gelo, Raheela Hameed Durrani, Bakht Muhammad Kakar, Hajji Wali Noorzai and Barkat Ali Rind.
“This august house of the Balochistan Assembly calls upon the federal government to impose an immediate ban on the PTI for spreading chaos in the country, and for attempting to make the armed forces of Pakistan and security forces fight with the people,” a copy of the resolution seen by Arab News said.
The resolution accused the PTI of being involved in violent activities in the country, saying it has adversely affected the country’s economy.
“Attacking the capital with provincial machinery and resources was a clear proof of the non-political agenda of a political party,” Khosa said while presenting the motion.
Opposition parties such as the National Party (NP), Jamat-e-Islami (JI) and Jamiat Ulema-e-Islam Pakistan Fazl (JUI-F) opposed the resolution and its lawmakers walked out in protest during the session.
Alam Kakar, a leader of the PTI’s Balochistan chapter, rejected the resolution.
“Let them (center) enjoy this decision but Pakistan Tehreek-e-Insaf is Imran Khan’s party and whatever name Khan would give to this party, the Pakistani nation would stand by him,” Kakar told Arab News.
“The provincial government should focus on maintaining the law and order situation in Balochistan rather than bringing such an absurd resolution,” he added.
Younus Aziz Zehri, an opposition leader in the Balochistan Assembly, told Arab News that the opposition parties strongly opposed the resolution.
“If today we ban the PTI, tomorrow it could be us or the PML-N or the PPP any political party in power would ban its opponents,” he said.
“We strongly condemn the killings of civilians and security personnel during the violence by the state and protesters in Islamabad, but that doesn’t justify that you should ban that political party led the protests in Islamabad,” Zehri added.
Pakistan’s government has said that the protests caused economic losses worth $684 million per day, describing them as deliberate attempts by the PTI to harm the country’s economy.
Pakistan welcomes ceasefire announcement between Israel and Lebanon’s Hezbollah
- Israel approved ceasefire agreement with Hezbollah on Tuesday after nearly 14 months of fighting
- Pakistan’s premier hopes ceasefire leads to permanent cessation of hostilities between two sides
ISLAMABAD: Pakistan’s Prime Minister Shehbaz Sharif on Thursday welcomed the ceasefire announcement between Israel and the Iran-backed Hezbollah group, hoping it would culminate in a permanent cessation of hostilities between the two sides.
Israel approved a ceasefire agreement with Lebanon’s Hezbollah group on Tuesday that halts nearly 14 months of fighting linked to the war in Gaza.
The ceasefire, which came into effect on Wednesday, marked the first major step toward ending the regionwide unrest triggered after Hamas’ attack on Israel on Oct. 7, 2023. However, it does not address the devastating war in Gaza, where Hamas is still holding dozens of Israeli hostages and the conflict is more intractable.
“We welcome the announcement of ceasefire between Israel and Lebanese group Hezbollah,” Sharif wrote on social media platform X.
“And hope that the announcement leads to a permanent cessation of hostilities in Lebanon.”
Sharif wished peace and security for the people of Lebanon.
Since the beginning of Israel’s war on Gaza, Pakistan has repeatedly raised the issue at the United Nations, the Organization of Islamic Cooperation and other multilateral platforms and demanded international powers and bodies stop Israeli military actions in Gaza.
Since October last year, Pakistan has dispatched 21 consignments of relief items such as food and blankets for the war-affected people of Gaza, Lebanon and Syria.
Islamabad does not have diplomatic relations with Israel and has consistently accused it of committing genocide in Gaza. Pakistan calls for an independent Palestinian state with Al-Quds Al Sharif as its capital.
Pakistani banks to remain open on Saturday, Sunday to receive Hajj applications
- Designated Pakistani banks to remain open from 09:00 am to 02:30pm on Saturdays and Sundays
- Deadline to file Hajj applications is Dec. 3 while draw for government scheme will be held on Dec. 6.
ISLAMABAD: Designated Pakistani banks will remain open on Saturday and Sunday to receive Hajj 2025 applications, state-owned media said on Thursday, as thousands apply for the annual Islamic pilgrimage.
Pakistani state media said this week that over 24,000 Hajj applications by Pakistani pilgrims have been received by designated banks.
Saudi Arabia has allotted Pakistan a total quota of 179,210 pilgrims for the upcoming Hajj pilgrimage, to be divided equally between the government and private schemes. Around 15 designated Pakistani banks started receiving applications for Hajj 2025 from intending pilgrims on Monday this week.
“Designated banks will remain open to receive Hajj applications on Saturday and Sunday,” state broadcaster Radio Pakistan reported.
It said that the banks will remain open from 09:00 am to 02:30pm on Saturday and Sunday to receive the Hajj applications.
The deadline to file Hajj applications is Dec. 3 while the draw for the government scheme will be held on Dec. 6.
The religious affairs ministry announced the country’s Hajj 2025 policy earlier this month, according to which pilgrims can pay fees for the annual pilgrimage in installments for the first time.
Under the government scheme, the first installment of Hajj dues, amounting to Rs200,000 ($717), has to be deposited along with the Hajj application, while a second installment of Rs400,000 ($1,435) must be deposited within ten days of the balloting. The remaining amount has to be deposited by Feb. 10 next year.
On Sunday, Pakistan’s religious affairs ministry said it had launched the “Pak Hajj 2025” mobile application to guide and facilitate pilgrims. The app is available for both Android and iPhone users.
Ghulam’s ton inspires Pakistan to 2-1 ODI series win against Zimbabwe
- Pakistan dismiss Zimbabwe for 204 runs in 40.1 overs to win third ODI by 99 runs
- Pakistan’s Haris Rauf, Saim Ayub and Aamir Jamal take two wickets each
ISLAMABAD: Pakistani batter Kamran Ghulam inspired Pakistan to a comfortable win over Zimbabwe in Bulawayo on Thursday, sealing a 2-1 ODI series victory over the hosts.
Pakistan piled on an impressive 303/6 at the end of their 50 overs against Zimbabwe, with Ghulam leading the charge with his 109-run knock from 99 balls while Abdullah Shafique scored 50 runs from 68 balls.
Pakistani captain Rizwan scored 37 runs from 44 balls as Zimbabwe’s Sikandar Raza returned figures of 2/47.
“A 99-run win in the third ODI to wrap up a series victory,” the Pakistan Cricket Board said in a post. “Onto the T20 action.”
Pakistan’s Aamir Jamal, Haris Rauf and Saim Ayub took two wickets apiece to ensure Zimbabwe were skittled out for 204 runs in 40.1 overs.
Zimbabwe skipper Craig Ervine top-scored with a fighting 51 runs from 63 balls.
Pakistan bounced back from a shocking loss in the rain-affected first match with a 10-wicket win in the second, after a maiden ODI century from Ayub.
The tourists retained the same winning combination for the third ODI, with Faisal Akram, Abrar Ahmed and Salman Ali Agha the three spin options.
Zimbabwe brought in wicketkeeper-batter Clive Madande and fast bowling all-rounder Faraz Akram for their first game of the series in place of Brandon Mavuta and Trevor Gwandu.
The ODI series will be followed by a three-match Twenty20 series starting at Bulawayo from Sunday.
