KARACHI: HBL wins Pakistan’s Best Bank award 2022 at the Pakistan Banking Awards held in Karachi on 9 December 2022.The Best Bank award recognizes the bank that has demonstrated the most.
Credit to private sector slows down
Banks continue to focus on investment in govt debt securities
KARACHI:
Bank credit to the private sector for setting up new industrial units has continued to slow down as financial institutions have partially deviated from their principal objective of supporting industrialisation and shifted their focus to more investment in risk-free government debt securities like T-bills and Pakistan Investment Bonds (PIBs).
Banks’ strategy to remain in profit through maximum investment in government debt securities rather than taking calculated risks to finance new business ideas has hurt industrialisation, which is a good source of providing job opportunities in the country. Advances to the private sector grew 4% to Rs8.59 trillion by the end of March 2021 compared to Rs8.26 trillion in the same month of previous year, according to the central bank and Topline Research.