The Taraqiati Bank Limited (ZTBL) earned over Rs 1 billion net profit during the calendar year 2003, and the repayment of Rs 1.7 billion to the State Bank. It has also achieved a turnaround in terms of financial performance and fiscal management.
"The continuous improvement in both the disbursement and the recovery owing to the restructuring process initiated three years back has made the bank growth-oriented," ZTBL President Istaqbal Mehdi told APP here on Sunday.
He said it was significant to note that the Bank, which was earlier known only for loss, gained over Rs 1 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 the State Bank was also a record as it has made the Bank regular in debt-repayment after 40 years.
He said the bank's performance can also be gauged from the fact that JCR-VIS Credit Rating Company has recently assigned a medium to long-term rating 'AAA' (Triple A) with a stable outlook to the ZTBL.
While the short-term rating has been assigned at A1+ (A-One Plus), he said, adding, previously in 2001, a rating of 'D' was assigned to ADBP - the predecessor of the ZTBL.
Mehdi said the Credit Rating Company has affirmed that "the turnaround 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", he added.
The ZTBL chief said these assertions of an independent credit rating agency endorse 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 has been significantly improved from a mere 3 percent to 22 percent with mark-up rate slashed to 11 percent from 14 percent.
He said the ZTBL has 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 is for three years, growers can get their loans renewed only after paying the interest on the credit without any new documentation, he added.
Istaqbai Medhi said the Bank was also on track with respect to its agreement with the ADB, adding the performance of disbursement and recovery of loans was continuing without any hindrance.
He said the corruption in Bank at all levels has been significantly checked by the introduction of vigilance system and tripartite control system, as during the past one year 1,500 complaints were catered for.
He also said the Bank made a record disbursement of Rs 30 billion in agricultural credit with recovery of Rs 37 billion loans during last year.