Baku, Azerbaijan, Sept. 27
By Taleh Mursagulov - Trend:
The National Bank of Pakistan plans to gradually increase the authorized capital of its branch in Azerbaijan, a source in Azerbaijan’s banking circles told Trend.
The source noted that according to bilateral agreements between Azerbaijan and Pakistan, the bank’s Azerbaijani branch may not carry out capitalization for 20 years.
In the first half of 2018, the authorized capital of the bank was 10.1 million manats, and the total capital amounted to 10.2 million manats. In accordance with the minimum requirements of the regulator, the bank’s total capital must be at least 50 million manats.
As for the activity of the bank’s branch in Azerbaijan, the license of the bank allows carrying out all kinds of banking activities in Azerbaijan, according to the source.
However, presently, the bank doesn’t accept deposits and actually stopped lending. The reason - due to the risks that the bank may face.
Previously, the bank issued all loans at the expense of its capital. In the first half of this year, the loan portfolio of the bank amounted to 1.6 million manats.
Meanwhile, the source added that approximately 47 percent (one million manats) of loans issued by the bank are problem loans. At the same time, the value of collateral raised by the bank is approximately 4 million manats.
The Baku branch of the National Bank of Pakistan has been operating in Azerbaijan since July 2005.
The National Bank of Pakistan was established in 1949. The Pakistani government owns a 75 percent stake. Presently, the bank has 39 foreign branches.
(1.7 manats = 1 USD on Sept. 27)