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Presented By:
OUR QUAID SAID:
INTRODUCTION
HISTORY
Development of PIFCO
Conversion of PIFCO into IDBP
VISION
MISSION
BOARD OF DIRECTORS
MR. JAMAL NASIM MD/Chairman
MR. MUHAMMAD IQBAL HUSSAIN Director
MR. MAHMOOD AKHTAR Director
MR. TARIQ IQBAL KHAN Director
MR. PERVEZ HANIF Director
FUNCTIONS
DBB ( Development Banking Business )
Providing long term & medium term loans Guarantee loans
MERCHANT BANKING BUSINESS
Underwriting of public issue of shares Bridge Financing
Leasing
EQUITY INVESTMENT/TRADING
COMMERCIAL BANKING
Current Account
Saving Account
Business Account
Special kind of scheme for Business & Organizations Minimum Deposit Rs. 100,000/- for account opening Multiple Transactions are allowed.
Foreign Currency Account
U.S Dolor & GBP ( U.K Pound)
Deposit
Utility Bills Collection
Short term Advance (One Years)
Guarantees ( 100 % cash margin)
Letter of Credit (L.C )
DEPOSIT SCHEMES
IDBP Special Deposit Certificate
Minimum Deposit Required Rs. 50,000/- for 5 years. Profit Rate 9 % / annum & paid ½ yearly basis
IDBP Mahana Amdani Scheme
Minimum Deposit Required Rs. 50,000/- for 1 year .
Profit Rate 12 % / annum & paid monthly basis
Besh Baha Munafa Certificate Scheme (BBMC)
This is very Special Kind of unique Scheme for future planning like ,children Education &
wedding ceremony's etc.
Term Deposit Scheme
Under this scheme the investors may place funds for a fixed period ranging from a minimum of one year to a maximum of three years.
The Minimum Deposit Limit is Rs. 100,000/-.
(For Muzaffarabad, Mirpur and Gilgit Min. Limit is Rs. 50,000)
Employee’s Behbood Scheme
For Active & Retired Employee’s
Financial Overview
1961-70
Financing projects Rs. 117.2 Million annually average. 57 % cotton textile ( spinning & weaving )
47 % ( Engineering ,food, hotel, printing & other projects)
1970-80
Financing projects Rs. 275.3 Million annually average. 60 % cotton textile (spinning & weaving )
1980-89
Financing projects Rs. 1320.84 Million annually average.
65 % cotton textiles (spinning & weaving) 35 % SME Sector (Engineering ,food,
Financial Analysis
Due to the non-availability of the current years
financial statement. I will give you an overview of the previous published statement analysis.
For the Year 1989- Rs. in million
90 1990-91 1991-92 1992-93 1993-94
Total Financing 1600 2090 2740 1422 1118 Deposit Mobilized 633 2523 4235 4762 5553 Outstanding
Advances 7782 8633 9215 10186 11072 Investment 726 1048 1497 2734 2475 Recoveries 949 1212 1136 916 930 Total Assets 11799 13867 16179 19308 21804 Project Completed 104 176 77 92 72
Employment Generated (Numbers)
3973 6230 3092 5248 3171
FY 1998 FY 1997
(PKR millions) (PKR millions) Profit and Loss
Revenue /Loss (338,334) (581,131)
Operating expenses (5,815,608) (334,896 )
Loss Before Taxation ( 5,401,304) ( 377,239)
Tax 8,954 8,313
FY 1998 FY 1997 (PKR millions) (PKR millions)
Balance Sheet
Assets 18,845,359 21,412,149
Liabilities 23,040,604 20,215,044
RESTRUCTURING OF IDBP
SWOT
ANALYSIS
INTERNAL FACTORS
STRENGTHS
WEAKNESS
EXTERNAL FACTORS
OPPORTUNITIES
STRENGTH
IDBP is specialized in financing long term and short term loans to industries and it has highly qualified employees to analyze and advance financing for longer period of time.
Weaknesses
Majority of people are not well aware about the products of IDBP. Therefore it should advertise to attract customers.
On-line banking facilities not available.
Short network of branches
Opportunities
Threats
Change in government policies has affected the banking business. Still banks have to wait to get permission of state bank. The freezing of foreign currency accounts is a vital example of letting people not to trust on banks.
As Pakistan is undergoing serious terrorism related problems which has affected our economy and banks.
PEST ANALYSIS
Political Factors
Economic Factors
Social Factors
Political Factors
IDBP affected by the political decision, 1971 when the head office was shifted to Karachi from Dhaka after that the growth of IDBP increased.
On Jan 01, 1974 the Government had decided to nationalize the private sector and after that industrial sector destroyed, which affect the IDBP.
Economic Factors
The Industrial Development Bank of Pakistan (IDBP) of total loans of Rs.22 billion distributed by the bank from 1961 to October 2001, of which Rs.12 billion were later written off. Not only that, the bank lost the remaining amount in non-performing loans (NPLs) and not a penny was returned to the bank.
Social Factors
Social factors also affect the IDBP the attitude of the customer was negative and unethical the loans were not returned to the bank so that’s why IDBP suffered a huge loss.
Technological Factors
SUGGESTIONS
IDBP should take measures such as Government should take interest sincerely and revised some policies regarding in the growth of IDBP.
Branch network should be broadened.
Online facilities should be provided to the customers at corporate as well as individual levels.
RECOMMENDATIONS
Industrial Development Bank of Pakistan (IDBP) should be restructured/converted immediately. The government delays the IDBP issue and increase the loss day by day. The restructuring of IDBP as Industrial Development Bank Limited (IDBL) by issue the vesting order. The Ministry of Finance, Government of Pakistan & State Bank of Pakistan are responsible the current negative net-worth of the bank is Rs.28.170 billion. The total deposits are Rs.3.836 billion. The Ministry of Finance, Government of Pakistan directed to fix responsibility on the persons who have caused losses to IDBP because of their imprudent lending and writing-off of loans.
CONCLUSION
IDBP did a unique work in the growth of industrial sector & enhanced the economy of the country. Due to impropriate change in Government policy IDBP bear a huge financial losses.
