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HBL offers credit

facilities on easy terms

RECORDER REPORT

FAISALABAD: Habib Bank Limited (HBL) in a bid to revive the industrial activities has offerd credit facilities on easy terms to investors in agricultural and industrial sectors.

This was stated by Hamid Mukarram Baig, executive vice president and head of retail banking group of HBL during a meeting with the members of the All Pakistan Cloth Exporters Association (APCEA) on Friday.

He said the bank has changed its approach and working towards market and all policies of the bank are aimed at catering to the needs of changing modes of business and commerce.

He said that the bank has consolidated its financial base and had sufficient resources to advance credit .

Recalling the pivotal role played by the bank in the economy of the country at its inception, Baig said that salaries of government employees and other urgent official expenses for the first three months of country's history were met by the HBL. The bank was always in the forefront for extending financial and material assistance at times of national calamities and social up-heavals.

He further said that HBL has solidly contributed in building national economy as well. The bank has provided credit facilities to industry and agriculture and it has once again geared up to support the two sectors of the economy.

He made a blanket offer to the exporters to avail the credit facility from HBL for their export business. He said that the present mark-up rate of HBL was around 16.80 percent and depending upon the total yield product, this mark-up could be, further negotiated to suit the requirements of the exporters.

Further reduction in mark-up rate, he said, depended upon corresponding reduction in national saving rate. The quarters concerned were already seized with this matter and plan to reduce further mark-up rate of national saving from one and half percent to two percent was being mooted. If this effort materialised, the nationalised commercial banks would also cut down mark-up rate by two percent to facilitate the promotion of industrial and agricultural investment. He said that even if the mark-up rate was not immediately brought down, his bank would be willing to accommodate the exporters and businessmen depending once again on their product yield.

Responding to a question regarding accepting letters of credit (LCs) of foreign banks, with lower international rating, he said that HBL was prepared to accept the LCs of foreign banks up to the rating of 2000. However, the ultimate acceptance depended on the individual credibility and guarantee of the exporter who receiving the LCs.

He said that LC arrangement had an in-built arrangement of buy-back guarantee from the exporters and therefore, the bank's risk was on the lower side.

Enunciating the cross cheque system, adopted by HBL, to the executive vice president said that the bank has hired an independent agency whose personal visits the bank incognito and enquire about the credit advances, the customer services and other procedures and if they find any procedural bottleneck, it is immediately reported to the higher authorities as feed-back.

Enumerating the progress of the bank in Faisalabad, he said that HBL has expanded its foreign exchange dealing network and now four branches, located in different parts of the city, are catering to the needs of the exporters instead of previous two. The result of this new arrangement has been demonstrated by 100 percent increase in forex business within six months, he disclosed. He said that at present 45 HBL branches are operating in Faisalabad.

Earlier, Mian Naeem Omer, chairman APCEA welcoming the guest, said that HBL has been playing a leading and positive role in the economy of the country. He expressed the hope that investment and employment-oriented policies would be continued by the succeeding HBL management.