MCB writes-off loans of Rs 1.52 billion of 69 companies

KARACHI (March 16 2003) : The Muslim Commercial Bank (MCB) has written off loans and provided relief amounting to Rs 1.525 billion to 69 companies during the year ending December 2002.

“This write-off does not affect the bank's right to recover the debts from these customers,” the bank submitted in its annual report for 2002 released here on Saturday.

These are loan write-offs of Rs 0.5 million and above.

The report also listed the names of the companies whose loans were written off. Out of these, 30 companies are based in Karachi, four in Rawalpindi and Islamabad, 29 in the Punjab province, two in NWFP, two in Quetta and two based in Sri Lanka.

The MCB issued the statement in respect of written-off loans under sub-section (3) of Section 33A of the Banking Companies Ordinance, 1962.

The profit after taxation was Rs 1.73 billion and pre-tax profit was Rs 3.09 billion as against Rs 2.11 billion during 2001.

The MCB announced two interim announcements, 10 percent bonus shares, and 25 percent cash dividend besides, 15 percent final dividend in the form of bonus.

Recovery of non-performing loans is always an area of priority. During 2002 cash recovery of Rs 2.5 billion was made as compared with Rs 2.19 billion in 2001, the report said.

During the year after tax basic earning per share was Rs 6.52.

The individuals have 36 percent stakes in MCB, 1.2 percent by investment companies, 7.2 percent by insurance companies, 32 percent by joint stock companies, 2.7 percent by financial institutions, 0.2 percent by Modarabas, 1.8 percent by foreign companies, 0.05 percent by leasing companies, 17 percent by others, 0.15 percent by non-residents in US dollars, and 0.5 percent by non-residents in rupees.

During 2002, the remaining shares held by the Government of Pakistan or State Bank of Pakistan (SBP) have been divested, mostly through capital market. Now the government does not hold any shares of the MCB.

The government has also notified that there would be no government nominee director on the MCB board.

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