Banking System Resilient Against Risks

Karachi: India's banking industry improve solvency position of SK through the major risk factors continued to show resilience against, State Bank of Pakistan for the quarter ending June 2009 according to the quarterly performance review of the banking system S . Says, however, increased credit risk for banks remained the major source of concern, review the report released Friday.

That this increase in non-down loans (NPLs) during the performance and submit a quarterly increase of 8.2 per cent stronger after showing lethargy. During the first six months of 2009 banks profit before tax of Rs28.6 billion posted in April, while 13.5 percent improvement in risk-based capital for the banks -2009 June (12.9 percent in Jan, March 2009 for the adequacy ratio (CAR) ). Increase in equity as a car as well as due to lack of risk-weighted assets at banks lending to riskier private sector debt in their asset mix public sector and government documents were transferred in reform, the report said. It said the banking system's asset base grew by 6 percent in the quarter to Rs6, 087 billion to reach. Asset mix, however, as witnessed significant changes to banks to focus on government paper and public sector debt continued. A 5 percent increase in advances mainly credit and public sector enterprises operate objects (public sector) for the public sector had contributed. However, due to increased credit risk as well as private sector demand for loans less than S, the private sector lending to banks declined by 1.8 percent, it said. According to the report, NPLs quarter and 4.9 per cent rise in the ratio of infection was less than 11.5 percent. However, loan loss provisions due to an increase, pure infection ratio June, 2009, 3.7 per cent decline (Mar09 at 3.9 per cent) 70 per cent of NPLs and provisions set. During the quarter loan loss provision earnings more impressed, however. Corresponding period of last few years of pre-tax level is lower than, CY08 was more than a full year's results, reported return on assets of 1.7 percent added.Courtesy though.