KARACHI: The asset base of Islamic banking industry expanded by 30 percent to Rs477 billion in 2010 from Rs366 billion in 2009, State Bank of Pakistan (SBP) said in a report on Tuesday.
Their non-performing finances (NPF) increased by 38.2 percent to Rs13.8 billion from Rs10 billion in 2009, the report added.
The central bank said that during the last quarter of 2010, Islamic banks’ assets grew by 12.5 percent to Rs477 billion from Rs424 billion in the quarter ended September 2010.
The NPF increased marginally during the quarter to Rs13.8 billion from Rs13.5 billion at the beginning of the quarter.
Recovery increased to Rs1.25 billion from last year’s figure of Rs0.8 billion.
Investment and financing rose 96 percent and 18 percent, respectively, on quarter-on-quarter (QoQ) basis. “The unprecedented surge in investments is attributable to issuance of long-awaited Ijarah Sukuk of Rs89 billion during the quarter,” the report said.
“The handy growth of 18 percent in financing could be attributed to seasonal uptake in credit.”
Cotton harvesting commences during the October-December quarter that gives significant rise to credit demand by textile sector. Share of financing by Islamic banks to the textile sector increased from 18 percent to 22 percent during the quarter, said the report.
Investments and financing increased to Rs158 billion and Rs180 billion, respectively, in 2010 from Rs72 billion and Rs153 billion in December 2009.
The central bank said that despite rapid growth in their assets and deposits, Islamic banks’ profitability remained considerably lower than the industry average.
The Return on Assets and Return on Equities at 0.6 percent and 5.2 percent, respectively, for the quarter ended December 31, 2010, was significantly lower than the industry average of one percent and 9.8 percent, respectively.
This is evident from the operating expense to gross income ratio for IBIs which is at 73 percent as compared to 53 percent for the industry.
The conversion of conventional branches into Islamic banking branches has picked up pace. In the last seven months, 15 conventional banking branches have been converted into Islamic banking branches, the SBP said.
LONDON: The Federal Investigation Agency (FIA) has decided to have former president Pervez Musharraf declared wanted following the Britain’s excuse to get him arrested, Geo News reported Saturday.
Judge of special anti terrorism court of Rawalpindi went to Adyala prison and held the trial of Benazir Bhutto’s murder case.
The counsel of FIA told the court that arrest of Pervez Musharraf could not be carried out on the warrant issued earlier. The British authorities have said that Musharraf had gone to Dubai, he added added.
The counsel requested the court that process for having Pervez Musharraf declared wanted be initiated and upon which the court ordered that the arrest warrant be withdrawn first.
Later, the court adjourned the hearing till May 7.
TRIPOLI: Government forces retreated in Misrata but seized a rebel town in Libya's remote Western Mountains, as no sign emerged of Muammar Gaddafi being dislodged from power despite more than a month of air strikes.
"Misrata is free, the rebels have won. Of Gaddafi's forces, some are killed and others are running away," a rebel spokesmen said in the rebel coastal city, where a punishing two-month siege that killed hundreds appeared to have been broken.
One government soldier, Khaled Dorman, among a group of 12 being brought to hospital for treatment in Misrata, told from the back of a pickup truck: "We have been told to withdraw. We were told to withdraw yesterday."
But the overall trend of fighting in Libya was far from clear. Heavy fighting continued on Saturday around a hospital in western Misrata being used as a base by Gaddafi's forces.
And government forces captured the town of Yafran in Libya's Western Mountains on Saturday, a rebel spokesman said.
The conflict in the remote mountains has received little international attention. Rebels there captured a border post two days ago and had begun been rushing supplies to towns under attack, saying they were cheered by reports from Misrata.
AIR STRIKES
At least three explosions were heard in Tripoli on Saturday evening after NATO aircraft flew over the capital, drawing Libyan anti-aircraft fire.
KARACHI: Legendary humourist Moin Akhter has been laid to rest in Model Colony graveyard, here on Saturday.
Earlier, funeral prayer of Moin, led by Junaid Jamshed was offered after Zohar prayers in Toheed mosque of Malir Cantt.
Various actors, politicians, social workers among thousands of people attended the funeral prayer of Moin Akhtar.
GROS ISLET: Misbah-ul-Haq, Asad Shafiq, and Mohammad Hafeez all coasted to half-centuries as Pakistan clinched a comfortable eight-wicket win over West Indies in the first one-day international on Saturday.
Misbah hit the top score of an unbeaten 73 from 90 deliveries, and Shafiq supported with 61 not out from 76 balls, after man-of-the-match Hafeez gave the Pakistanis a flying start with 54 from 45 balls in their successful chase of 222 for victory.
Shafiq ushered Pakistan over the finish line with 51 balls remaining when he edged a slog at a delivery from Kemar Roach to third man for a single.
The result gave Pakistanis a 1-0 lead in the five-match series, which continues on Monday at the same Beausejour ground.
Wayward bowling from the visitors in the closing overs had let West Indies finish with 221 for six from their 50 overs.
Wahab Riaz was the most successful bowler with two for 62 from 10 overs, but he and fellow left-arm fast-medium bowler Junaid Khan let their side down.
Pakistan's spin bowling triumvirate of Saeed Ajmal, Hafeez and captain Shahid Afridi tied the West Indies batsmen down in the middle overs in particular.
But the two Pakistani left-arm pacers did not have the same control over the home team's batsmen and Darren Bravo hit 67 from 109 balls to lead the way for West Indies.
"I was very happy when West Indies won the toss and chose to bat because I thought the pitch would help our spinners," said Pakistan captain Shahid Afridi.
"I think our spinners have been doing a great job for us in the last few months, and they again set things up for us.
"The way the openers Mohammad Hafeez and Ahmed Shehzad played was also good to see, and then the partnership between Misbah and Asad brought us home. It was good cricket all around for us."
Hafeez and Ahmed Shehzad then gave the visitors a blistering start in an opening stand of 68 before Devendra Bishoo snared both of them in the space of 25 balls to end with two for 48 from his 10 overs.
Shehzad moving down the pitch was stumped for 22 in the 13th over off the leg-spinner, and Hafeez, whose 50 came from 48 balls, was caught at short mid-wicket in the 17th over off the same bowler.
Misbah joined Shafiq and they marched Pakistan to victory with an unbroken, third-wicket stand of 134, a record for any wicket on the ground.
Misbah reached his 50 from 63 balls with a pull to deep square leg for a single off Sammy in the 35th over, and Shafiq arrived at his landmark from 66 balls with an upper-cut to third man for four off Dwayne Bravo in the 39th over.
"We put ourselves in a hole when we were batting, and the spinners were bowling, so we really have to come better in the next game," said West Indies captain Darren Sammy whose team also lost to Pakistan in last month's World Cup quarter-finals.
"I was surprised to see the pitch offer so much turn and bounce, but I will back our guys. We will put in the hard work at practice and come back.
