karachi - Silkbank Board in its meeting held on August 27, 2014, approved accounts for the 2nd Quarter/Half-year ending June 30, 2014. The Bank made a significant turnaround by declaring an operating profit of Rs.308 million for the Half-year 2014.

The results reflected an increase of 173.6pc over the corresponding period of last year. The Bank’s net interest income posted an impressive 77pc increase and Profit after Tax (PAT) was recorded at Rs.72.63 million for the Half-year ending June 30, 2014.

Earnings per share reflected a remarkable growth of 119pc compared to the same period last year. The Bank’s balance sheet footing improved by Rs.5.4 billion and the deposits showed a robust growth of Rs.9.5 billion (an increase of 13.75pc over Dec 2013). The Bank is actively working towards replacing high cost deposits with core CASA deposits, evident from the CASA deposit increase to 58.73pc of total deposits. Furthermore, Gross Advances also reflected a growth of Rs.1.3 billion and NPLs were reduced by Rs.1.17 billion. Silkbank Half-Year ending June 30, 2014 financial results reflected a positive trend on all indicators.

Furthermore, the Board of the Bank today approved the issuance of Rights totaling Rs.10 billion to enhance the capital base of the Bank. The process of this rights issue will be completed within 90 days.

The rights issue will result in an increase in the capital base of the bank to Rs.16 billion, versus a minimum capital requirement of Rs.10 billion. Post completion of this process, Silkbank will become fully compliant with the Minimum Capital Requirements (MCR) and Capital Adequacy Ratio (CAR) of the State Bank of Pakistan.