Infrastructure Project Financing (IPF) portfolio of banks and DFIs continued to post substantial growth as IPF''s total amount outstanding at the end of Sept-2016 reached Rs 452 billion mark. The State Bank of Pakistan''s (SBP) Quarterly Infrastructure Finance Review (July-September 2016) released on Friday revealed that infrastructure projects have recently seen increase in financing from Banks and Development Finance Institutions (DFIs).
An analysis of the infrastructure financing portfolio shows that during July-September 2016 banks and DFIs disbursed Rs 28.2 billion mainly to power generation, power transmission, oil and gas and road infrastructure sectors. With current disbursement, the total amount outstanding against infrastructure finance recorded an increase of 8.3 percent to reach Rs 452.4 billion at the end of September 2016 compared to the preceding quarter (Apr-June 2016), when outstanding amount stood at Rs 417.8 billion. Power generation, power transmission and roads have noticed a growth in outstanding portfolio on quarter to quarter (QoQ) basis.
On year to year (YoY) basis, outstanding amount increased by Rs 118 billion or 35% as outstanding amount of infrastructure stood at Rs 334 billion in September 2015. The cumulative amount disbursed, reached Rs 570 billion as of Sept-2016 (increased by 9.8% on quarterly basis). The total amount sanctioned by Banks and DFIs for infrastructure projects surged to Rs 1.125 trillion in September 2016 up from Rs 1.024 trillion in June 2016, recording a growth of 10 percent.
A similar trend was observed when compared on yearly basis, where a 76 percent increase was observed. Some 64 percent of amount has been sanctioned to the Power Generation (PG), 9 percent to telecom, 8 percent to road, bridge and flyover (RBF), 5 percent to oil and gas (O&G) exploration/distribution, and 4 percent to water supply projects. On a positive note, non-performing loans (NPLs) as a percentage of Gross Outstanding decreased from 3.39% to 2.76%, QoQ basis and from 4.75% to 2.76 percent on YoY basis. During the period under review, overall NPLs declined 12 percent to Rs 12.5% in September 2016 compared to Rs 14.16 billion in June 2016.
It may be mentioned here that the Quarterly Infrastructure Finance Review is prepared on the basis of quarterly data received from banks and DFIs. It includes infrastructure projects financed (both fund and non-fund based) by banks and DFIs, as defined in the IPF Guidelines.
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