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HomeWorldPakistanSilkbank addresses problem loans issueconcludes REIT agreement for disposal of mortgaged land

Silkbank addresses problem loans issueconcludes REIT agreement for disposal of mortgaged land

Arif Habib Limited reports. board that it identified potential investors who could fulfill regulatory requirements

ISLAMABAD: Silkbank said in a press release that in to improve banks financial position, Silkbank entered into an agreement on REIT for order of mortgaged land with Arif Habib’s REIT management company (RMC). This was primarily because of in various provisions in 2020 what bank has undergone against some borrowers were attracted in the first place in in real business property that were secured against mortgage of land.

This development will substantially address the bankNon-Performing Loans (NPL) issue as well as result in large reversals of reserves.

Silkbank also made an agreement for disposal for its properties with RMC. It will not only reduce non-income assets of Bank, but significant capital gains also expected to be implemented by the Bank. The bank has already received ok. rupees 2.6 billion as down payment against the specified REIT structure.

bank It has also entered into an agreement with other large borrowers ensure operational recovery of loans classified in 2020. Most expected of cancel these provisions within next 12 – 24 months through settlement and sale of mortgaged property.

Moreover, in order to improve banks financial performance. bank registered 41% growth in it’s merit cards and consumer credit products boosting pre-tax profits from Rs. 1.57 billion in 2019 to Rs. 2.23 billion in 2020.

Place of Birth of in bank significantly increased by Rs. 21 billion compared to December 2019, taking total deposit base up to Rs. 160 billion. Local currency current account up 32% while CASA deposits improved from 61% in December 2019 up to 63% in December 2020. banknet revenue also increased by Rs. 2.96 billion registered 61% growth while spending declined for Rs 638 million, decline of eight%.

Previously in a notification to the Pakistan Stock Exchange on October 31, Silkbank reported that Park View Enclave ltd is no longer holding its public announcement. of Intention (PAI). Arif Khabib Limited (AHL) manager to the proposal said that due to changes in business priorities, the Park View Enclave will no longer be harassed by PAI. Park View was interested in acquisition of at least 51% of in business with investments of up to 12 billion rubles.

AHL also informed board what they identified various other strong potential investors who have prospects of meeting regulatory criteria. AHL also States that board will be updated with PAI in coming weeks. It’s an injection of capital through investment help in bank with this is post capitalization and with compliance with regulatory capital requirements and will work in hand with in current steps undertaken bank.

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Sandra Loyd
Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

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