Banking sector owes a pivotal importance in the economy of any country through itsvibrant functions. A bank is a financial institution that offers the widestrange of financial services. These financial institutions play a vitalrole throughout the world’s economic system. The banking structure of Pakistan consists of State Bank of Pakistan, Commercial Banks, Exchange Banks, Cooperative Banks,Saving Banks and Specialized Credit Institution. “Banking meansthe accepting of money from public, in shape of deposits for thepurpose of lending or investment, repayable on demand orotherwise, and withdrawal by cheques, drafts, and pay order” The Pakistani banking sector mounted an overall recoverydrive, increasing its asset base by approximately 8% duringthe year . However, credit and business conditions are likely toremain fragile, driven by the government's weak fiscal position andthe subdued investment climate. Furthermore, downside risks mayfurther weigh on the banks' operating environment over the period.However, despite the material risks, no further major deteriorationin asset quality is expected over the coming period. NPLs are alsoexpected to have peaked at around 16% of total lending by year-end 2011, from 15.3% at end-June 2011. Short-term economicgrowth, lower interest rates and de-risking of the banks' loan bookwill drive stabilization in asset-quality metrics.Recognizing the system's structural challenges the Bank as a policyopted for and benefited from sound funding profiles and low-costcurrent and savings account deposits, which increased to 67% of total deposits or 56% of total liabilities at end-June 2011. TheBank’s reliance on market and foreign funding also remainedminimal. The year 2011 remained fraught with challenges for Pakistan,the core issues which affected Pakistan ’ s economy and werealso identified in the Economic Survey issued by the Governmentincluded persistent and high inflation, low growth, lesser inrevenue collection compared to budget figure leading to ahigh fiscal deficit which continues to add to the overall debtalong with a fall in the investments. All these factors, combinedwith the global economic slowdown and rise in global fuel priceshave further complicated the issues and economic scenario. The economic development of Pakistan remained under pressuredue to the deterioration of major macroeconomic factors.Industrial production and creation of new capacity wasnegatively impacted by the almost continuous energy crisisthroughout the year and the insistent circular debt issueremained an area of concern. The decline in foreign directinvestments because of unsafe security situation, along with highinflation and a mounting fiscal deficit remain threats to themacroeconomic stability of the country. T o provide relief to the people and businesses, the SBP reduced the discountrate to around 12% per annum in line with reduction of inflation rate duringthe year . During the period agriculture sector posted real growth of 1.2% andafter suffering consecutive quarterly deficits, industrial production surged to growat a robust pace in the last quarter of the year. Remittance inflows to Pakistan alsorose by an estimated 25 % in 2011 over and above 2010 inflows and touched almostUS $ 12 billion constituting almost 4.8% of Pakistan’s GDP. HISTORY
Summit Bank Ltd is one of the fastest growing commercial banks of Pakistan,which, in a very short span of time, has expanded its network across the country and built an infrastructure based on state of the art “Risk Management Framework” aswell as “IT platform.” Also targeting to be a universal bank in terms of providing products and services in all key segments of banking i.e. Corporate and InvestmentBanking, Trade Finance, Commercial Mid Market / SMEs, and Consumer Banking,it commenced its operations in August 2006.The Pakistan operations of Rupali Bank Limited were acquired by Arif HabibSecurities Limited under the Scheme of Amalgamation approved by...
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