PESHAWAR - The Bank of Khyber (BoK) has expanded its network of both Islamic and conventional branches from 34 to 77 in the last five years, while 21 more branches eight Islamic and 13 conventional will be established in 2013, Acting Managing Director, BoK Mir Javed Hashmat said here on Monday. In the last five years from 2008 to 2012, the BoK has done well record growth in deposit mobilisation from Rs21 billion to Rs60 billion, unprecedented growth in advances portfolio Rs10 billion to Rs26 billion, he said this during a presentation on “The BoK; a journey of transformation 2008 to 2012” at the head office of the bank.
Established in 1991 through an act of the provincial assembly with an initial paid-up capital of Rs153 million (100 percent government equity), and acquired status of a scheduled commercial bank in 1994. The BoK started Islamic banking operations in 2003, initially by converting few of its conventional branches to Islamic, however, seeing people interest, at present there are Islamic desks in all conventional branches of the bank, he informed.
Mir Javed Hashmat said that Bok had developed and launched a wide variety of Islamic products, while the requirement of MCR by the state bank of Pakistan has already been achieved which is Rs9 billion. Moreover, the BoK remained liquid during worst financial crisis in 2008. To further improve performance and services, the bank has introduced new core banking software in the banking sector.
In addition, robust risk management framework in line with state bank of Pakistan guidelines has been established. From 2008 to 2012, the BoK has ensured 99.5 percent recovery. While sharing the BoK future plans, the acting MD Mir Javed Hashmat said that the bank would try its level best to retain 1st position as major player among peer banks.
Apart from, we are planning to further improve service quality through better customer care. To establish more branches of the bank beyond the boundaries, we have planned to set up BoK branches in Middle East and Afghanistan, however, as per the requirement of the state bank of Pakistan, we will have to touch the figure of 100 branches inside Pakistan. At present, “we have 77 branches in the country, while 21 new branches will be established in 2013”.
He was of the view that in foreign remittances, KPK has a major share. Thus BoK branches in Middle East, Afghanistan and other countries would be established after fulfilling the requirements of the state bank of Pakistan. Currently, the BoK’s head office is working in four rented buildings in different areas, so to have one-owned head office building and training center facilities in Peshawar, we have planned to construct a state of the art building of the BoK soon.
Hashmat said that the investment was recorded at highest during last five years, as it increased at Rs.40,500 million from Rs.8,985 million, while total assets surged up at Rs.85,600 million against the Rs.31,339 million recorded at 2008, he added.  
Similarly, he said that capital and reserves also jumped at Rs.11.300 million from Rs.5, 678 million, the per tax profit also increased at Rs.1,569 million against the Rs.206 million during 2008-2012. The Non-performing loans had declined from 22 per cent to 15 percent.
He said that bonus share issued twice of Rs.1.80billion with appropriate profit. He said the bank has enabled to return 100 per cent tax-refunds. The loans recovery was recorded at 99 per cent, particularly bad loans. During the month of June 2013, he added that the bank is expected to reach profit at Rs.860 million with a growth of 15 per cent by end June-2013.