Silk Bank has entered into confidence with potential investors with strong credentials to raise its capital. According to a press release received by WealthPK, Silk Bank will be receiving the letters of intent from these potential investors in a few days. “The Bank will be able to maintain its regulatory capital requirements and acceleration in growth after these agreements,” read the press statement.

The presser showed that the Silk Bank’s Consumer Business continues to give positive results, with a growth of 41% from 2019 to 2020. The Bank’s products of Credit Cards and Personal Loans generated a profit of PKR 1.57 billion in 2019, whereas in 2020 the same figure reached PKR 2.23 billion.

According to the press release, the deposits of the Bank also increased to PKR 160 billion in 2020, registering an increase of PKR 21 billion over 2019. The local Currency Account of the Bank grew by 32%, while CASA deposits improved from 61% in December 2019 to 63% in December 2020.  

The bank’s Net Revenue also increased by Rs. 2.96 billion registering 61% growth while expenses declined by Rs. 638 million, a decline of 8%. The upward positive momentum continues in 2022 as well.

The press statement further elaborated that the Bank will also be giving up its mortgaged land after entering into a REIT agreement with M/s Arif Habib Dolmen REIT Management Company (RMC). The Bank will be able to reduce its non-earning assets after it signs the agreement to dispose-off its owned-properties with the RMC.

The presser continued that these agreements will address the Bank’s NPL issue and result in the reversals of major provisions. Following these developments Bank will be gaining a lot of capital of which PKR 2.6 billion as down payment against the said REIT structure, has already been received.

“Besides,” read the press release, “the Bank has also entered into arrangements with other major borrowers to ensure expeditious recovery of loans classified in 2020. The Bank expects most of these provisions to reverse within the next 12-24 months through the settlement and sale of mortgaged properties.”

Credit : Independent News Pakistan-WealthPk