The total assets of the Bank of Khyber (BoK) has shown remarkable increase of Rs 1.5 billion during last three quarters of the current calendar year while the operational profit of the bank remained Rs 414 million in the period, Managing Director, Dr Munir Ahmad told Business Recorder on Friday. The managing director said that the total assets of the bank were of worth Rs 18.9 billion in December 2003 have been reached to Rs 20.4 billion, which show a remarkable increase of Rs 1.5 billion and attributed this achievement to the ongoing reforms in the bank.
He said that advances activities of the bank have also increased and they have reached to Rs 7.4 billion. He informed that the introduction of interest free Islamic banking is also earning handsome profit for the bank and particularly mentioned that Ijara Financing mode, which he said to have increased to Rs 15.4 million.
"The deposits in Islamic banking have also increased from Rs 250 million to Rs 290 million and the profit which was Rs 1.2 million in December 2003 have now reached to Rs 3.7 million, thus showing a remarkable increase by 208 percent," he disclosed.
Dr Munir Ahmad, who is an expert on Islamic banking and have served in Abu Dubai Islamic bank said that Islamic banking is the only way out to protect the national economy said that Islamic banking has achieved historical success in a short span of time in NWFP.
"The bank is ready to support the local industrialists and businessmen and all those who fulfill the rules and procedure of the bank would be issued loans without any delay," he said. He dispelled the impression that the provincial bank is verge of collapse. However, he agrees with the notion that the businesses of some Pakistani banks are decline in the country.
Replying a query, he said that the total volume of the non-performing loans was reached to Rs 2.7 billion. About of Rs 300 million have been recovered from defaulters while banking courts have also moved in this connection and the cases of some defaulters have also sent to National Accountability Bureau (NAB) for making recovery from them.
About opening of more branches of Islamic banking, he said that a branch in Bannu has already started Islamic banking from October 1, 2004 and the formal inauguration of the said branch would be made by NWFP Chief Minister Akram Khan Durrani probably in the last week of the current month.
After the opening Islamic-banking branch in Bannu a branch would also be opened in Nowshera. The requirements in this connection have already completed, he added.
It has worth to mention here that the Bank of Khyber is pioneer public sector bank in Islamic banking and created awareness among the masses for adopting of interest free banking.
A number of other banks are also following the suite of BoK and going to open Islamic banking branches after getting licenses from the State Bank of Pakistan (SBP). "We have changed vision and going towards complete Islamic banking," Dr Munir Ahmad concluded.
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