Pakistan Banking Awards: UBL crowned country’s best bank

Organisers claim awards are merit-based, independent and free of pressure

KARACHI: In the maiden distribution ceremony of the Pakistan Banking Awards (2016) on Friday night, United Bank (UBL) was declared the country’s best bank for making a significant contribution to national development and demonstrating effective management of its resources.

In collaboration with global accountancy firm A F Ferguson, the Institute of Bankers Pakistan (IBP) has instituted the Pakistan Banking Awards, which are merit-based, independent and free of advertisers’ pressure, the organisers claim.

An independent jury evaluated the entries in eight different categories before announcing its decisions in the ceremony attended by State Bank of Pakistan (SBP) Governor Ashraf Mehmood Wathra as chief guest.

The jury for the inaugural Pakistan Banking Awards included former SBP governor Syed Salim Raza, Pakistan Institute of Corporate Governance CEO Fuad Hashimi, State Life Insurance Corporation Chairperson Nargis Ghallo, former banking ombudsman Azhar Hameed, and former regional head for Citibank Middle East and Pakistan Shehzad Naqvi.

Tameer Microfinance Bank (TMB) received the Bank the Unbanked Award. It received the award for paying special attention to financial inclusion by expanding its outreach through rural and low-income urban penetration and diversification among all segments of account holders, including female account holders.

TMB also clinched the Best Microfinance Bank Award for being the best all-around microfinance bank in terms of penetration, outreach, efficiency and access to low-income communities across Pakistan.

Habib Bank (HBL) received the Best Bank for Small Businesses and Agriculture Award for its strong performance, diversification and quality of small and medium enterprises (SME) and agricultural lending nationwide.

HBL also grabbed the award for the Best Environment and Social Governance Bank for contributing the most in terms of the long-term sustainability of the environment, employees, customers and communities.

The award for the Best Bank for Corporate Finance and Capital Market Development went to MCB Bank for excelling in promoting capital market development, deepening secondary markets and providing advisory services to optimise the efficient use of industrial and commercial assets.

The Best Customer Franchise award was given to Bank Alfalah for its efficient service delivery and attention to customer requirements.

Meezan Bank received the Best Islamic Bank Award for making the most progress in extending and expanding its Islamic banking franchise and raising public awareness.

Speaking on the occasion, former SBP governor Raza highlighted the increased levels of banks’ investments in government papers.

Banks’ earnings in Pakistan have less to do with core banking, as a major chunk of their bottom lines originates from their investments in risk-free government securities.

Banks have three riskless investment avenues, namely market treasury bills, PIBs and Ijara Sukuk. According to the State Bank of Pakistan (SBP), scheduled banks held 79.9% of the outstanding stock of the three instruments while non-banking entities held the rest of 20.1% stock at the end of February.

Analysts believe that banks have been choking credit for businesses and entrepreneurs by diverting funds disproportionately to riskless government securities. Banks increased their total investments 29.6% to Rs6.8 trillion in 2015. While the absolute net increase in banks’ advances over 2015 was just Rs369 billion, the corresponding surge in their investments equalled more than Rs1.5 trillion.

Published in The Express Tribune, May 15^th, 2016.

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