LAHORE  -  President Bank of Punjab Naeemuddin Khan has said that the BoP has recovered Rs55 billion in past six years still the Non Performing Loans (PLs) are very high.

President BoP stated this while talking to the newsmen here on Monday.

Naeemuddin Khan said that BoP from now onwards would fulfill all future minimum capital requirements of the country through its own resources instead of issuing rights shares.

Bank of Punjab has come a long way from capital adequacy ratio of 3.87 percent in December’09 to CAR of 10.01 percent in September 2014 and from investments of only Rs25.67 billion in December 2008 to Rs144.81` billion in September ’14.

Now he added we are in a position to recommend to the board of directors in the next meeting consider paying dividend to its share holders after a lapse of almost seven years. “The nightmare that the bank faced is over after relentless efforts of the bank staff” he added.

“Six years back chaos was all over due to extremely bad loaning done on political grounds” he said adding that non performing loan portfolio of the bank swelled to Rs77.34 billion by end of December 2009. All loans he added were approved before the takeover of the new management.

“We have registered FIRs against the defaulters and have send cases to the NAB for recovery of our loans. He said the courts have granted stay on loans worth Rs40 billion. The efforts he added are on to get these stays vacated. Courts he added have become more active in recent months. We have recently recovered Rs900 million from Harris Steel from Dubai and another Rs500 million has been recovered from the same party in December.

Most of the loans are secured against collarateral. We have attached properties of the defaulters and are auctioning them as the stays vacate, he added. He said among the major defaulters Rs 6 billion has been recovered from Harris Steel out of Rs8.44 billion loan. The amount has gone up to Rs11.50 billion after adding mark up which has been accepted by Supreme Court as well. “We will recover the balance of Rs4.5 billion from this major defaulter soon” he added. Similarly he said Colony Group has paid back Rs4.5 billion but Chenab Group has created problems and its case has been handed over to NAB.

Khan said the deposits of the bank have increased from Rs164.07 billion in December 8’08 to Rs327.24 billion by September ’14 and are still rising. He said cost of deposits has been drastically reduced from 10.89 percent in December ’08 and January 09 to 6.85 percent in September’14.