Mettis Global News
Mettis Global News
Mettis Global News
Mettis Global News
Mettis Global News AD
Mettis Global News AD

Trending :

Banks’ non-performing loans drop slightly by 1.28% QoQ during 1QFY20

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp

November 19, 2019 (MLN): The banking sector of Pakistan has witnessed a decline in non-performing loans (NPLs) during 1QFY20, according to the latest data released by the State bank of Pakistan.

NPLs of the banking sector dropped marginally by 1.28% QoQ to Rs758 billion during 1QFY20 versus Rs768 billion in the last quarter of FY19. The Net NPL to Net loans of the banking sector also moved down to 1.85% in 1QFY20, from 2.05% of 4QFY19, indicating the lower-risk investment for investors.

Moreover, the bank’s cash recovery against non-performing loans was recorded Rs15.75 billion, lower by 30.36% QoQ during 1QFY20, from Rs22.62 billion of last quarter of FY19.

Specifically speaking of all commercial banks, their NPLs, however, increased marginally by 0.06% QoQ to Rs697 billion during 1QFY20.  On the other hand, the cash recovery against these loans by commercial banks stood at Rs9.81 billion, showing a decline of 26% QoQ during the said period.  

The State Bank of Pakistan explained to Senate Standing Committee on Finance and Revenue that the rise in NPLs contributed too many factors which include: the slowdown in the economy, tough macroeconomic conditions, and cash flows constraints faced by corporate entities.

Under the category of commercial banks, NPLs of local private banks, foreign banks, and specialized banks went down by 3.6% QoQ, 1.69% QoQ and 14.57% QoQ respectively during 1QFY20 when compared to 4QFY19. According to the central bank, lower NPLs signified contained credit at present.

With regards to Development Finance Institutions (DFIs), their Net NPLs to Net Loans inched up to 6.04% from 5.42% during the aforementioned period.

Copyright Mettis Link News

Posted on: 2019-11-19T14:01:00+05:00