BoK shows historic growth

Bank of Khyber

ESHAWAR: The management of the Bank of Khyber (BoK) has performed well and showed historic growth in all sectors included deposits, advances, profit, imports, exports and home remittances and is expected to achieve better results during the year 2012, provided the economy continue to grow with the same pace and government policies continue to encourage foreign and local investments in the country.

These appreciative remarks regarding the bank have been made in the White Paper of the Provincial Budget, Khyber Pakhtunkhwa for financial year 2012-13. The Bank of Khyber, is mainly operating in Khyber Pakhtunkhwa, substantially owned by the government of Khyber Pakhtunkhwa has showed remarkable growth into total assets, deposits, advances and profit over last year figures. The total assets of the bank have been increased by 36 percent i.e. from 50 billion to Rs.68 billion, advances increased by 22 percent i.e. from Rs.18 billion to Rs.22 billion and deposits by 25 percent i.e. from Rs.36 billion to Rs.45 billion.

The bank has booked a profit of Rs.872 million after tax for the year 2011 showing an increase of 55 percent over last year. The total imports, exports and home remittance during the year 2011 has increased by 57 percent i.e. from Rs.8.17 billion to Rs.12.83 billion, 49 percent i.e. from Rs.7.01 billion to Rs.10.43 billion, 27 percent i.e. from Rs.10.50 billion to Rs.13.31 billion, respectively, over the year ended 31.12.2011. The banks’ minimum capital requirements for the year ending December 31, 2011 has been met by issuing right shares amount to Rs.3.224 billion. Major portion of the right issue has been subscribed by government of Khyber Pakhtunkhwa.The credit rating of the bank has been improved to A-(Single A minus) and A2 (A two) and now the bank is enjoying the status of A rated bank. Branches network has increased by 24 percent i.e. from 50 branches to 62 branches.

The expected performance of the bank for the current calendar year 2012 are included increasing paid up capital to Rs.9.00 billion by issuing right/bonus shares during the year 2012 while in head of advances, deposits and profits, the bank is expected to increase its total assets to Rs.70 billion, deposits from Rs.45 billion to Rs.50 billion and advances from Rs.22 billion to Rs.33 billion and profit before tax to Rs.1.312 billion. The target for total imports, exports and home remittance for the year 2012 has been set at Rs.14.47 billion (2011: Rs.12.83 billion), Rs.13.48 billion (2011: Rs.10.43 billion) and Rs.15.50 billion (2011; Rs.13.31 billion), respectively.

In non-performing loans it is expected that year 2012 will show better results. Further it is expected that reversals/cash recovery will having a positive impact on profit in 2012. The bank during the year will increase its network of branches and with the issuance of licenses by State Bank of Pakistan for additional 16 branches for the year 2012 makes the total network to 78 branches i.e. rise of 25 percent. The bank was established in 1991 through Act XVI of the Provincial Assembly of Khyber Pakhtunkhwa main purpose was to cater to the growing banking requirements of Khyber Pakhtunkhwa (formally N.W.F.P). The bank commenced commercial operations in November 1991, and was designated as a scheduled bank by the State Bank of Pakistan in 1994.

The bank is listed on the Karachi Stock Exchange (KSE). Established in 1991, the bank has completed 20 years in banking industry, what makes them celebrate this unique moment is not only owing to the journey of 20 years they have traveled as a bank but it is much more than that. Just like the name of the bank is synonymous with the name of Khyber Pakhtunkhwa; it represents and reflects the aspirations of the people of our province. Fascinating feature of the bank is virtual beginning of the new journey of the bank confined to only one province to a bank that is now growing to each province of Pakistan and beyond.

With the organisational and technical assistance from the Bank of Khyber, the government of Khyber Pakhtunkhwa has launched Bacha Khan Khpal Rozgar Scheme for income and employment generating opportunities in the province, which is badly affected by war on terror and devastating floods. The main objective of the scheme is promoting of entrepreneurship and generating economic activities, particularly in terror and flood affected communities, affected families, small traders, low income entrepreneurs and unemployed skilled men and women. The interest free scheme with three years maturity, 30 percent quota for women and 2 percent quota for disable persons. The second self-employment scheme of Pakhtunkhwa Hunermand Rozgar Scheme has also been launched under the auspices of the Bank of Khyber -Brecorder