Bank of Khyber (BoK) Managing Director Dr Munir Ahmed has said that the bank would generate over Rs 1 billion through its Initial Public Offering (IPO) for 49 percent shares to be put on sale through stock exchanges of the country.
He was talking to newsmen here at BoK headquarters on Monday. He said that the present paid up capital of Rs 1 billion would be raised to Rs 2.1 billion after floating the shares before the end of the current calendar year. He said that the bank is expected to earn a profit of Rs 700 to Rs 800 million through IPO.
He said that for this purpose the balance sheet which is a prerequisite for the IPO has been prepared. He said according to the bidding the price of Rs 10 share has gone to Rs 17 and Rs 18 in the initial bidding.
Munir said that by going on stock exchange and sale of shares would strengthen the indicators and equity besides increasing volume of the bank and would certainly attract more deposits as well.
About reshuffling in the bank he said that it was a routine matter and every official, as per State Bank rules, has to be posted out after completion of three years' tenure at one station.
Regarding working relationship with the State Bank of Pakistan, he said, "It is good and improving with the passage of each day," and added that the impression of BoK being naive in terms of finances and management has been removed.
He said that there was no political interference, whatsoever, in the affairs of the bank, and added that the NWFP government "is not ready to show any let-up" in waiver of loan cases.
Regarding sending of two senior officials on forced leave, he said that the charge sheet against both would be ready before the expiry of their three months leave. However, he said, they would be given full opportunity to clarify their position before taking any action.
The MD said that policies of Finance Ministry, State Bank and other concerned quarters have altogether changed about the Islamic banking. The SBP has banned issuance of licence for the establishment of commercial banks except Islamic bank. As of now, $350 billion are invested in Islamic mode of banking, of which major chunk is in Europe and USA, he said, adding that interest-based banking is disastrous.
He said that since his assumption of office, Rs 1.5 billion loans have been extended to deserving and genuine applicants. The BoK is the only bank in the NWFP which is offering best facility to the clients, he added.
Dr Munir agreed to review macro financing scheme of the bank in order to make it more safe and secure. Consumer financing, he said, was also progressing successfully, and added that the investment in it was safe.