LAHORE, Aug 23: The National Bank of Pakistan is restructuring its non-performing loans and sifting circumstantial default from wilful abstention so that industry could be revived in the country.

This was stated by NBP President Syed Ali Raza while talking to newsmen at a workshop organized by the bank on “Delivering quality customer service” here on Friday.

Mr. Raza averred that once it was established that someone fell victim of the circumstances and defaulted on loans, his loan would not only be restructured but would also be given a working capital to help revive that particular sick unit. Under this policy the bank has already restructured loans worth Rs8 billion during 2001.

Regarding the volume of non-performing loans (NPLs), he admitted that it increased from Rs30 billion to Rs42 billion during the last financial year. But he pointed out the reason behind this increase was taking over of the National Development Finance Corporation (NDFC).

Rate of default would come down as now banks have adopted a very professional approach for evaluation of loan applications, he hoped and claimed that now three different people evaluate such a request in the NBP.

Commenting on the Committee for Revival of Sick Units and working of the Corporate and Industrial Restructuring Corporation (CIRC), he said that where banks agree about an NPL, they help restructure the loans while in other case it goes to CIRC for auction. He said that both had revived about 140 units till date and helped restructure loan of Rs35 billion. Revival of these units has generated almost 100,000 jobs, he said.