Rozgar Refinance Scheme: Top Performers JS, HBL and BAHL, NBP Stays Low

Karachi (Syed Rizwan Amir): Bank Al-Habib, JS Bank and Habib Bank were top performer among 22 banks under the Government’s Rozgar Refinance Scheme to save jobs in the business sector. Interestingly, National Bank of Pakistan, state owned bank, did not show much interest in this scheme.

State Bank of Pakistan on April 10, introduced a refinance scheme to provide concessional credit at 3% interest rate and generous repayment terms to any business that commits to not lay off workers for 3 months. “As of June 12, 2020 there has been significant take up in the scheme. Banks have approved loan applications worth Rs. 107.5 billion of which Rs. 23.5 billion is for SMEs and small corporates under the risk sharing facility.”

According to SBP’s performance sheet, JS bank was the top performer with a disbursement of PKR 3.783 billion, followed by HBL with PKR 3.624 billion and Bank Al Habib with PKR 3.09 billion.

Bank Al Habib handled most of the clients as it has approved 179 applications, followed by JS Bank 140 and Habib Bank 102 applications.

Interestingly, state owned National Bank did not contributed much in this scheme during the given period as it was second from the bottom in the performance list. National Bank approved 12 applications and disbursed just PKR 114.9 million.

SBP complemented this scheme on May 06 with a 40% percent risk sharing facility (RSF) on first loss basis from the Government of Pakistan for
utilization of this scheme for SMEs and small corporates. This facility was extended to the business with annual turnover not exceeding Rs. 2 billion.

SBP’s complete report is available here

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