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Askari Bank launching new retail banking group package

KHALID ABBAS SAIF

FAISALABAD: The Askari Commercial Bank is introducing a new "retail banking group" package along with latest electronic facilities for its customers.

This was stated by Kalim-ur-Rehman, President and Chief Executive of the bank, in a meeting with members of All Pakistan Cloth Exporters Association (Apcea) here.

With these facilities customers will be able to get information about the movements in his account and also the statement right at their desks, Kalim said.

Another new development, Kalim-ur-Rehman said, was formation of three separate groups of customers under this package. One will be the credit card customers for which the bank is installing its own processing system the second is consumer banking in which the customers would be offered car, household items' financing, while the third comprises financing of small business including export credit facility. Modalities of the package will be announced shortly, Kalim said.

About working of the bank, Kalim said contrary to popular concept, the Army Welfare Trust (AWT) was only a shareholder in the equity, while the bulk of the funds were coming from other sources. No doubt the bank has adopted a conservative policy, it was managed by professional executives who were equipped with all modern facilities, he added. The Faisalabad branch of the bank has been carrying on successfully with a strong customer base comprising prominent and well-established business houses. The ratio of bad debt at the branch was almost negligible, he added. The bad-debt experience here was all the more remarkable with such a big portfolio.

He appreciated the performance of Ejaz Ahmad Khan, Manager, Faisalabad branch.

About the bank's performance during 1999, Kalim said the deposits had increased to Rs 24.4 billion, advances by 34 percent to Rs 13.1 billion, exports by 14 percent to Rs 22.8 billion and the imports by 52 percent to Rs 17.5 billion. Despite substantial increase in advances and the foreign trade business, the operating profit fell by about 15 percent to Rs 812 million because of the drastic reduction in the treasury bill rates, where a substantial portion of the funds had earlier been invested.

Earlier, Apcea chairman Mian Naeem Omer welcoming the guest emphasised greater role of banks in export business. The banks, he said, should expand their credit financing facilities to exporters particularly small and new.

The Apcea chairman said the exporters were confronted with the problem of issuing L/C or cheque to their suppliers as they were not accepting the same. Consequently the refinance facility under Part-1 could not be availed of and the exporters were forced to obtain finance on higher mark-up from commercial banks.