With over Rs one billion net profit, earned by Zarai Taraqqiati Bank Limited (ZTBL) during 2003 and the repayment of Rs 1.7 billion to the State Bank (SBP), the bank has achieved a turn-around in terms of financial performance and fiscal management.
"The continuous improvement in both disbursement and recovery, owing to the restructuring process initiated three years back, has made the bank growth oriented," ZTBL President, Istaqbal Mehdi told APP here on Wednesday.
He said, it was significant to note that the bank, which was earlier known only for loss, gained over Rs one billion profit in one year, despite extra provision of Rs 2 billion in various heads and the payment of Rs 1.4 billion in tax.
Istaqbal Mehdi said, the repayment of Rs 1.7 billion to SBP was also a record, as it had made the bank regular in debt repayment after 40 years.
He said, the bank's performance could also be gauged from fact that JCR-VIS Credit Rating Company had recently assigned a medium to long-tern rating 'AAA' (Triple A) with a stable outlook to ZTBL.
While the short-term rating had been assigned at A-1+ (A-one plus), he said adding, previously in 2001 a rating of 'D' was assigned to ADBP - the predecessor of ZTBL.
Mehdi said, the Credit Rating Company had affirmed that "the turn-around of the bank has been achieved by way of effective restructuring of all facets including legal, financial, operational and organisational."
"The management has successfully directed efforts towards addressing the undisciplined environment of the bank and has succeeded in improving the bank's operations with prudent policies aimed at consolidation.
Istaqbal Mehdi said, these assertions of an independent Credit Rating agency endorsed the management's claim that the bank was now in a solvent position with sound footing unlike the past default and uncertain position.
He said, the bank's capital adequacy had been significantly improved from a mere 3 percent to 22 percent, with mark-up rate slashed to 11 percent from 14 percent.
ZTBL President said, the bank had introduced one-window operation and credit revolving scheme to facilitate the farming community in getting agricultural credit without any hassle.
Under the revolving credit facility, which was for three years, growers could get their loans renewed only after paying the interest on the credit without any new documentation, he added.
Istaqbal Medhi said, the bank was also on track with respect to its agreement with Asian Development Bank (ADB), adding, the performance of disbursement and recovery of loans was continuing without any hindrance.
He said, the corruption in bank at all levels had been significantly checked by the introduction of vigilance system and tripartite control system, as during the past one year 1500 complaints were catered for.
He further said that the bank made a record disbursement of Rs 30 billion in agricultural credit with recovery of Rs 37 billion loans during the last year.
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