This high increase in non performing financing might

Info iconThis preview shows pages 8–10. Sign up to view the full content.

View Full Document Right Arrow Icon
This high increase in non-performing financing might have tempted Islamic banks to contract financing and increase investments. Sector-wise financing mix for the quarter shows a decline in share of financing to the corporate sector from around 63.7 percent to around 60.6 percent (see Table 4 ). While, the consumer sector’s share in financing has increased to 22.8 percent (from 20.7 percent in previous quarter). The number of borrowers is the highest in consumer sector followed by SME. The corporate share in number of borrowers is just six percent. Greater financing to very few corporate clients reflects high level of financing concentration. The sectoral financing mix still shows concentration towards corporate sector while the share in financing to the priority sectors has further declined. Table 3: Financing Mix Rupees in billion Jun 09 Sep 09 % Change Murabaha 58.0 50.6 -12.8 Ijarah 26.2 29.8 13.5 Musharaka 3.7 3.6 -2.8 Mudaraba 0.9 0.5 -48.1 Diminishing Musharaka 45.3 38.0 -15.0 Salam 2.9 1.7 -41.7 Istisna 4.8 6.1 26.2 Others 2.3 7.9 242.4 Total 144.3 138.7 -3.9 Amount of Non performing Financing 7.3 8.9 23.3 Provision against Non Performing Financing 4 4.9 24.6 Net Non performing Fin. 3.3 4 21.7 Net Financing 140.3 133.7 -4.7 Murabaha 36% Ijarah 22% Musharaka 3% Mudaraba 0% Diminishing Musharaka 28% Salam 1% Istisna 4% Qarz/Qarz- e-Hasna 0% Others 6% Breakup of Financing--Sept 2009
Background image of page 8

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
July-September 2009 7 Table 4: Sector-wise breakup of financing Amount (Rupees in billions) Number of borrowers Jun 09 Sep 09 % Change % Share Jun 09 Sep 09 % Change % Share Corporate Sector 91.9 84.0 -8.7 60.6 2,162 2,014 -6.8 6.0 SMEs 12.5 11.8 -5.1 8.5 2,525 2,497 -1.1 7.4 Agriculture 0.1 0.1 22.1 0.1 132 128 -3 0.4 Consumer Finance 29.9 31.6 5.7 22.8 26,392 26,723 1.3 79.5 Commodity Financing 6.2 6.9 12.4 5.0 35 14 -60 0.0 Staff Loans 2.7 2.8 3.5 2.0 2,095 2,223 6.1 6.6 Others 1 1.4 44.3 1.0 17 19 11.8 0.1 Total 144.3 138.7 -3.90% 100.0 33,358 33,618 0.80% 100.0 Deposits and Liabilities Despite a decline in financing activities the growth in deposits continued—deposits have increased by 2.8 percent QoQ, though the growth has moderated from 15.5 percent QoQ of previous quarter. The deposit base of Islamic banks stood at Rs 244.8 billion at end-September 2009 compared to Rs 238.2 billion on the previous quarter-end (see Table 5 ). Total liabilities of Islamic have increased by 3.3 percent during the quarter while the net assets and equity increased by around 3 percent each. There is an increase of 6 percent QoQ in the reserves and the un-appropriated profits have increased by 40 percent QoQ (see Table 5 ). The distribution of deposits shows that fixed and saving deposits make the bulk of deposits (see Table 6 ). However,
Background image of page 9
Image of page 10
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page8 / 23

This high increase in non performing financing might have...

This preview shows document pages 8 - 10. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online