13 Iranian banks pay $3.4 billion in dividends to shareholders

Business Materials 6 January 2013 11:38 (UTC +04:00)

Azerbaijan, Baku, Jan. 6 / Trend F.Mehdi/

Thirteen Iranian banks paid 41 trillion rials in total (about $3.4 billion) in dividends to their shareholders in the previous fiscal year ended on March 19, 2012, the Fars News Agency reported.

Pasargad Bank gained the highest net profit (about $897 million), which was paid to its shareholders.

About $57 billion of outstanding receivables are still owned to Iran's banking system, Iran's weekly newspaper "Tejarat-e Farda" reported on December 6, 2012.

The newspaper said that since Mahmoud Ahmadinejad came to power in 2005, the amount of outstanding receivables has risen by 7 percent, in 7.5 years.

The newspaper compared the huge difference, as the same 7 percent increase in outstanding receivables amount Iranian banking system witnessed only in 76 years previously.

"Tejarat-e Farda" reported that during the last Iranian year (March 2011-March 2012), the amount of outstanding receivables increased by 19 percent.

The reasons for such jumps, according to newspaper, are either unwillingness for legal and private entities to return debts, or economic factors, such as inflation, and high exchange rates.

Khabar Online website brought up Iranian Central Banks' statistics, reporting in November, that government's debt to the banking system has seen a sharp increase in the last three years, as the mount reached $38,3 billion (by the official USD rate in Iran) of the before mentioned $57 billion.

Khabar online reported that since June of 2008 to June 2009, government's debt has risen by $5 billion, and later somewhere in 2011-2012 it has already increased by $12 billion.

Minor Iranian banks are also in debt to Iran's Central Bank, as it has reached 370 trillion rials (some $30 billion) in the first quarter of the past calendar year.

Debts of commercial banks and specialized banks amounted to 136 trillion rials and 239 trillion rials, respectively.

The total debts of banks to the central bank hit 168 trillion rials, 231 trillion rials and 135 trillion rials respectively in three to five years ago.

Central Bank Governor Mahmoud Bahmani has said that the banking system has around 500 trillion rials (some $40.7 billion) in bad loans.