NBP fails to recover Rs23.35bln loan from sugar mills: audit report

ISLAMABAD: The National Bank of Pakistan (NBP), one of the country’s largest commercial banks, failed to recover loan amounting to Rs23.35 billion from sugar mills, ARY News reported on Thursday, citing audit report.

As per details, the report complied by Auditor General of Pakistan revealed NBP failed to recover the loan amount of Rs23.35 billion in FY2023-24.

The report stated the bank, lent Rs15.28 bln to the sugar mills in 2022 which was due with interest of Rs8.6bln in FY2023-24, but the bank failed to recover the amount.

The NBP posted the non-recoverable amount of Rs23.35 bln into losses, which shows the ‘critical’ negligence of the financial institution, the report read.

“NBP failed to comply with the SBP policies”.

Meanwhile, the report also stated that bank administration is trying to recover the outstanding amount.

Separately, National Bank of Pakistan (NBP), registered a massive consolidated loss to the tune of Rs8.98 billion during the quarter ended June 30, 2024.

The bank had registered a profit after tax of Rs15.85 billion in the same period of the preceding year.

As per a notice sent to the Pakistan Stock Exchange (PSX) on Thursday, NBP’s loss per share (LPS) stood in at Rs4.28 in 2QCY24, as compared to earnings per share (EPS) of Rs7.42 in same period last year.