The government has decided to convert Rs100 billion overdues of Zarai Taraqiati Bank Limited (ZTBL) and House Building Finance Corporation Limited (HBFCL) into the Group’s equity, said SBP report issued recently.
The State Bank and its subsidiaries, SBP Banking Services Corporation and National Institute of Banking and Finance Limited are collectively called the Group.
“In a tripartite meeting held on July 11, 2014 between Ministry of Finance (MoF), ZTBL and the SBP, it was decided that the total outstanding amount of Rs89.490bn, will be converted to an equity investment of the Group in ZTBL,” said the SBP report. Exposure to the agricultural and industrial sectors include Rs50.174bn and Rs1.083bn respectively, representing the cumulative government guaranteed financing of Rs51.257bn to ZTBL in addition to the unsecured subordinated loan to ZTBL amounting to Rs3.204bn.
The suspended markup of Rs35.029bn also included in the total amount of over Rs89.49bn.
