March 20, 2002	Wednesday	Muharram 5, 1423

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ISLAMABAD, March 19: Four leading nationalized financial institutions are expected to refer shortly around 431 fresh default cases worth Rs55.767 billion to the Corporate Industrial and Restructuring Corporation (CIRC) for restructuring and auction.

Official sources told Dawn that these include 198 cases worth Rs28.799bn against which suits have been filed but not decreed and hearing has been executed in 233 cases worth Rs26.968bn.

This non-performing portfolio was updated last week for clearance from the federal government and the State Bank. The banks include Habib Bank, National Bank, Agricultural Development Bank and Industrial Development Bank.

Habib Bank has the highest non-performing portfolio of Rs24.887bn due to 207 default cases. These include 118 cases of Rs13.518bn against whom hearing has been executed and suits have been filed in 89 cases worth Rs11.369bn.

The NBP’s non-performing portfolio stands at Rs15.087bn in 118 cases. Suits have been filed in 63 cases worth Rs10.2bn and hearing has been executed in 55 cases worth Rs4.887bn.

The IDBP’s total non-performing portfolio is Rs9.8bn in 74 cases. In this case, hearing has been executed in 37 cases of Rs4.833bn and suits have been filed in 37 cases of Rs4.980bn.

The ADBP is referring 32 cases of Rs5.98bn to the CIRC. These include 23 cases worth Rs3.73bn in which hearing has been executed and suits have been filed in nine cases of Rs2.25bn. though these have not been decreed as yet.

Till early this month, the CIRC disposed of 33 cases worth Rs4.7bn in two years of its inception against an outstanding debt of Rs60bn in 339 sick units. Twenty-two cases were settled in Punjab, nine in Sindh and one each in NWFP and Balochistan.

The total purchase price of these units had amounted to Rs436 million and gross sale price amounted to Rs768m. Of the gross sale price, the CIRC’s share amounted to Rs540m and its running surplus amounted to Rs104m.

Of the total, 106 cases involving Rs13.7bn were referred by the UBL, 154 cases of Rs36.8bn by NDFC, 31 cases of Rs3.2bn by IDBP, seven cases of Rs1.199bn by National Bank, 32 cases of Rs3.349bn by the HBL and nine cases of Rs1.1bn by the ADB.

After return/withdrawal of around 139 cases worth Rs32.8bn, a total of 161 accounts worth Rs21.341bn were finally acquired by the CIRC. Of these, 64 cases worth Rs7.345bn came from UBL, 46 cases worth Rs8.689bn from NDFC, 13 cases worth Rs1.242bn from IDBP, seven cases of Rs1.199bn from NBP, 22 cases of Rs1.762bn from HBL and nine cases of Rs1.104bn from ADBP.

On a province-basis, 161 accounts acquired by the CIRC included 59 in Punjab, 90 in Sindh, 10 in NWFP and two in Balochistan. Of the total, 65 cases were disposed of by CIRC, 31 belonged to NWFP, 32 to Sindh and two to NWFP. Furthermore, out of the total 33 cases auctioned by the CIRC, 23 were sold in Punjab and 10 in Sindh.

Forty-one cases of Rs5.2bn were acquired by the CIRC but had no assets at all. These included 25 cases worth Rs3.179bn belonging to UBL and 16 cases of Rs2.028bn to NDFC.

In this way, net accounts acquired in 120 cases finally amounted to Rs16.134bn. These included 39 cases worth Rs4bn from UBL, 30 cases worth Rs6.6bn from NDFC, 13 cases worth Rs1.242bn from IDBP, seven cases of Rs1.199bn from NBP, 22 cases of Rs1.7bn from HBL and nine cases of Rs1.1bn from ADBP.

At present, the CIRC is in the process of acquiring 39 cases of Rs5.286bn. These included 12 UBL cases of Rs871m, 19 NDFC cases of Rs3.456bn, six IDBP cases of Rs733m and two HBL cases of Rs226m.