Azerbaijani bank intends to increase loan portfolio up to $ 640 million
Baku, Azerbaijan, May 8
By Emin Aliyev - Trend:
Azerbaijani "PASHA Bank" intends to increase its loan portfolio up to 500 million manats this year, the bank's chief financial administrator Shahin Mammadov told Trend.
"In 2013, the bank's loan portfolio grew by 24 percent and reached 350.96 million manats. We have successfully used a strong position in the capital market and provided impressive growth of portfolio," he said.
The effective rate of the bank's portfolio reservation made up 6.2 percent in 2013, according to Mammadov.
"The share of non-business loans in the total loan portfolio grew from 10.93 percent to 15.24 percent. This indicator is based on the bank's internal methodology, meeting national regulatory requirements. More than half of the troubled loans belong to non-complied liabilities of two corporate clients, one of which already redeemed them at the end of last year. Nevertheless , "PASHA Bank" provides a conservative policy and does not take troubled loans from the status of "non-working " to "working" immediately after making deficient amount, while continuing to keep such loans under control. A reserve fully covering its volume was created for other troubled loan in the bank," chief financial administrator said.
Slightly more than half (50.41 percent) of the loan portfolio of the "PASHA Bank" are secured loans, collateral amount of which equal to not less than 150 percent of the loan amount. Some 37.63 percent of the loan portfolio accounted for unsecured and 11.96 percent - partly secured loans.
Pasha Bank is a leading corporate bank in Azerbaijan. Founded in 2007, the bank provides a wide range of corporate banking services including lending, operations in the securities market and asset management and treasury services. Some 207 people are working at the Pasha Bank represented by the head office and four branch offices. The bank was declared the "Best Investment Bank" in Azerbaijan by the Europe Banking Awards 2011.
"Pasha Bank" with authorized capital of 333 million manats remains the most capitalized private bank in Azerbaijan.
Pasha Bank is part of the PASHA group of companies, a major investment holding company in Azerbaijan, which is well represented in sectors such as insurance, construction, building materials production, tourism and other business areas. Kapital Bank, one of the largest banks in Azerbaijani retail market also belongs to the PASHA group of companies.
The official exchange rate on May 8 is 0.7844 AZN / USD.
Translated by S.I.
Edited by C.N.