Fahad Rauf, Deputy Head Research at Ismail Iqbal Securities, noted that banks have underperformed at the KSE100 this year. “SBP through loan deferral facility has delayed NPL recognition, where 11pc and 3pc of the private sector loans have been approved for loan deferral and restructuring respectively,” Rauf stated. As a result, rather than customers applying for the facility, banks were seen chasing customers. Moreover, the textile sector with a surge in capacity utilization has resulted in NPLs being realized in this quarter. This is a positive sign as the textile sector has often been seen to be a concern with regards to NPLs.

Source: Pakistan Today November 23, 2020 17:21 UTC