960408

Askari Bank

earns Rs 450m

pre-tax profit

AZMATULLAH

RAWALPINDI: Askari Commercial Bank has recorded a pre-tax profit of Rs 450 million up to the end of last year and registered 40 percent growth in deposit base which increased to Rs 9.8 billion with a growth of 36 percent in its assets.

Commenting on the performance, Shameem Ahmad, President of the Bank said that of late, the Bank had also been authorised to share World Bank loaning facility for social sectors up to $200 million.

The Bank has made reasonable investment in both information technology and human resources to diversify and bolster its risk management process. Towards this end, the Bank made significant headway in enlarging the size of its asset base to build up its quality earnings while maintaining adequate liquidity and ensuring the quality of assets.

Funded advances of Rs 7.03 billion were outstanding as on December 31, 1995. Sector-wise composition of the funded advances was: manufacturing 39 percent, export financing 37 percent, service sector 11 percent, import eight percent retail three percent and trading two percent.

The focus of asset portfolio was on short-term trade-related financing on secured and self-liquidating basis whereby major portion of the credit portfolio had the maturity pattern of less than one year.

The Bank continued to enhance its correspondent banking relationship to effectively respond to the customers' needs.

The Bank President said that the end of last year, the Bank had correspondent banking arrangements with 115 banks of repute all over the world.

The Bank transacted export & import business of Rs 17.9 billion during the year as against Rs 11.7 billion in the last year, posting a growth of 53 percent.

In terms of capital base, the Bank has shown steady progress. The Board recommended transfer of Rs 90 million as compared to Rs 71.1 million in 1994 to the statutory reserve fund, Rs 12 million to the general reserve fund and an appropriation of Rs 74.3 million as compared to Rs 67.5 million in 1994, towards the bonus share issue of 10 percent to its shareholders.

The shareholders' equity increased from Rs 720 million as on December 1994 to Rs 893 million by December, 1995. The management of the Bank continued to lay strong emphasis on enhancing its ability to offer premier financial products to its clients. The Bank has recently installed its first ATM (automated teller machine) in Rawalpindi branch which is fully operational and plans to install ATMs in other major cities of the country.

The Bank has also entered into communication networking arrangement whereby all the branches will be on line via satellite on real time basis by the middle of 1996. This will enable the customers to use the cheque facility at any of the Bank's branches in the country. This facility will also strengthen the Bank's management information system which will have instant access to the financial operating data of the country-wide branch network.