The Board of Directors of KASB Bank has announced its annual results for 2013. The operating profit was Rs 237 million. The bank has remained in a comfortable liquidity zone throughout the year. Current and Saving deposits (CASA) were 76 percent of total deposits as at 31st December 2013. The management plans to generate additional deposits without distorting its low cost deposit base.
The Bank's focus has remained on recoveries of its stuck up advances (NPLs). The good news is that the bleeding of NPLs is coming to an end. The net NPLs reduced to Rs 3.1 billion whereas the coverage ratio has increased to 72 percent from 52 percent last year. Furthermore, NPLs worth Rs 4 billion stand fully provided for. The future plans show significant recoveries from the stuck up portfolio of NPLs going forward.
The management has successfully completed conversion of 20 branches into business branches. These branches have been separated from Branch Banking and have become part of Business Group broken down into North and South. Resulting from strict cost control measures, the bank has managed to show a reduction in its operating expenses compared to last year. Service quality and HR were the major focus of attention during 2013. As part of the capital plan of the Bank, the sponsor shareholders have placed, so far, 50 million dollar towards capital and advance against issue of future rights in 2011/2013. Further, in order to address the capital deficiency and financial condition, the Board of Directors have approved a restructuring and recapitalization plan of the Bank.-PR
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