The Silkbank Board in its Meeting held on August 27 approved the accounts for the 2nd Quarter/Half-year ending June 30, 2014. The Bank made a significant turnaround by declaring an operating profit of Rs.308 million for the Half-year 2014. The results reflect an increase of 173.6% over the corresponding period of last year. The Bank’s Net Interest Income posted an impressive 77% increase and Profit after Tax (PAT) was recorded at Rs.72.63 million for the Half-year ending June 30, 2014. Earnings per Share reflect a remarkable growth of 119% compared to the same period last year. The Bank’s balance sheet footing improved by Rs.5.4 billion and the deposits showed a robust growth of Rs.9.5 billion (an increase of 13.75% over Dec 2013). The Bank is actively working towards replacing high cost deposits with core CASA deposits, evident from the CASA deposit increase to 58.73% of total deposits. Furthermore, Gross Advances also reflected a growth of Rs.1.3 billion and NPLs were reduced by Rs.1.17 billion. Overall, Silkbank Half-Year financial results ending June 30, 2014 reflect a positive trend on all indicators. Furthermore, the Board of the Bank approved the issuance of Rights totaling Rs.10 billion to enhance the capital base of the Bank. The process of this Rights issue will be completed within 90 days. The Rights issue will result in an increase in the capital base of the bank to Rs.16 billion, versus a minimum capital requirement of Rs.10 billion. Post completion of this process, Silkbank will become fully compliant with the Minimum Capital requirements (MCR) and Capital Adequacy Ratio (CAR) of the State Bank of Pakistan. The present consortium of Silkbank is led by Mr. Shaukat Tarin who continues to be a principal shareholder of Silkbank along with Nomura Investments, Bank Muscat and International Finance Corporation (IFC). The Bank has also entered into an agreement with an external investor who has conveyed his commitment to make the investment subject to regulatory approvals. The State Bank of Pakistan has approved the capital injection into the Bank by this investor.
