'BoP focusing on SMEs'

The profitability of all banks during the last fiscal year remained exceptional due to overall economic growth and it is likely to remain strong during the coming years.
Banking industry's growth is also expected to remain solid, Bank of Punjab (BoP) President Hamesh Khan stated this during an interview with Aaj Markets.
He said that the bank's focus for the current fiscal year would be on commercial banking, small and medium enterprises (SMEs), agricultural and consumer financing sectors.
The BoP provided Rs 5 billion to the agriculture sector last year and for the current year it is targeting around Rs 7 billion. He said the government is keenly focusing on livestock and the federal government has taken a few initiatives. These schemes not only provide loans to outright cattle farming, but also support in upgrading dairy farms and promoting dairy products.
He added that the bank has designed two to three schemes with the help of public sector enterprises and economic agencies for the agriculture sector. These schemes would see tremendous credit off-take in coming years.
About the bank's share in the National Investment Trust (NIT), he said that the decision to acquire its share is subject to BoP board meeting outcome though he mentioned that NIT performance is good and that whatever be the decision of the board, it will benefit BoP. He said that the bank might consolidate as it is revamping and restructuring its structure. He said the bank's focus on corporate financing would be limited. About advance deposit ratio, he said that the bank targets 70 percent and the figures are in line with the targets. About non-performing loans (NPLs), he said, it was a problem though the bank has reduced the percentage significantly. At present, the bank's gross NPLs are less than 2 percent, whereas net NPLs are less than 1 percent.
Talking about the overall banking sector, he said that Pakistan's economic growth was solid during the last three years and as it is expected to remain strong in the coming years as well. He said that as in the past, robust economy led to banking sector growth and the trend is expected to remain for coming years as well.