ISLAMABAD, July 17: SME Bank recovered Rs2.5 billion out of Rs15 billion during the last one-and-a-half years from those who had taken loans from the Regional Development Finance Corporation (RDFC) and Small Business Finance Corporation (SBFC).

This was stated by the bank's vice-president, Sohail Ishtiaq Khan, while speaking at an award giving ceremony here on Saturday.

The recovery target for this year is Rs1 billion, he added.

He said the bank had given an assignment to three different companies after 70 per cent bank employees had availed themselves of golden handshake.

The bank management had tasked the companies with recovering a Rs3 billion loan. He hoped that the companies would recover Rs300 million before the end of this year.

The bank continues to follow its restructuring programme by outsourcing the recovery of about Rs3 billion of the non- performing portfolio it inherited from the SBFC.

With 70 per cent reduction in its regular staff strength and rationalization of its branches, the management envisages a reduction of 37 per cent in the cost of its recovery operation, he said.