KARACHI, June 6: Sindh Governor Mohammedmian Soomro said it was gratifying that PICIC had turned around and emerged as a strong and vibrant financial institution.
Speaking at the inauguration of New Challi branch of PICIC Commercial Bank, the Governor observed that by resuming long-term financing PICIC had taken a major step towards fulfilment of its principal mandate of accelerating economic growth through industrialization.
He stated that since the takeover by PICIC, the PICIC Commercial Bank had shown an impressive performance and hoped that it would continue to show even better performance, on sustainable basis.
The Governor said he appreciated far-sighted approach of the PICIC’s management, who had documented its target and plans in the form of ‘PICIC vision 2005’. “A vast array of financial products and services by Mr Khoja (MD) such as long-term and short-term financing, leasing, commercial banking and introduction of Islamic mode of financing will transform PICIC into a ‘true financial supermarket,” the Governor hoped.
Soomro stated that the steps taken by PICIC Commercial Bank to facilitate exporters by opening “export facilitation counters” were praiseworthy. The Governor acknowledged that since its inception, PICIC had been playing an active role in promoting the cause of industrialization of the country. “By extending financial assistance to agriculture and small & medium enterprises and Talimi loans through PICIC Commercial Bank, it has enhanced its contribution towards national economic development,” Soomro said and stated that the government would extend all possible help to PICIC in its endeavours to achieve industrial and commercial development in Pakistan.
Earlier in his welcome address, PICIC Commercial Bank chairman Mohammad Ali Khoja said that PICIC had been able to recover more than Rs19 billion in cash in a matter of only six years, out of the non-performing advances. “We have now regained our strength and consolidation and again started our core business, that is ‘long-term financing’,” he said. Khoja pointed out that at the time of his assuming office of MD on July 11, 1996, PICIC had huge non-performing portfolio of more than 75 per cent, extremely poor cash flow, operating loses in excess of Rs300 million, a demoralized work-force and an equally adverse national economic scenario.
He said that PICIC’s first objective of commencement of leasing operation was achieved. Acquiring a commercial bank was the second major achievement. It now plans to acquire or establish an Asset Management Company and had prequalified for acquisition of NIT & ICP.
Mr Khoja stated that PICIC Commercial Bank had 15 branches, when PICIC acquired it on February 26, 2001. Five new branches were added by December 2001. The SBP had granted permission to open another 22 branches, based on good performance. The branch at New Challi, Karachi, inaugurated on Thursday was the first of those; another 9 branches would start functioning before June 30, 2002 and the remaining 12 would be operative up to October 2002. All that would expand the bank’s branch network to 42.