NBP sets a tar­get of Rs 15b for PMYBL scheme this year

The Pak Banker - - 6BUSINESS - Muham­mad Yasir

The man­age­ment of Na­tional Bank of Pak­istan (NBP) is set to pro­mote the gov­ern­ment en­vis­aged scheme as pi­o­neer and trend­set­ting busi­ness ven­tures for en­tire bank­ing in­dus­try, set­ting an am­bi­tious tar­get of Rs 15 bil­lion for fi­nan­cial year 2015-16 for Prime Min­is­ter Youth Busi­ness Loan (PMYBL) scheme which is three times high amount than it dis­bursed in its first year.

Ac­cord­ing to the of­fi­cial sources, the bank is all set to hold a bal­lot­ing process af­ter car­ry­ing out short-list­ing of many of the as­pir­ing ben­e­fi­cia­ries as per cri­te­ria hav­ing in­creas­ing num­bers af­ter aware­ness and pro­mo­tion of the scheme. The bank is ag­gres­sively work­ing with dif­fer­ent part­ners of var­i­ous sec­tors to stream­line chan­nels for ben­e­fi­cia­ries pro­vid­ing them deal­er­ship and fran­chises utiliz­ing fi­nanc­ing of PMYBL schemes.

We have been wait­ing for the gov­ern­ment's go-ahead sig­nal to se­lect bor­row­ers and dis­burse a colos­sal among ben­e­fi­cia­ries, of­fi­cials said. The in­ter­est rate for the scheme has re­vised which also im­pacted pos­i­tively on the youth wish­ing to start their busi­ness.

As per the an­nounce­ment in the 2015-16 Fed­eral Bud­get, the markup rate for the cus­tomers will be 6% p.a., how­ever for­mal com­mu­ni­ca­tion of the same is awaited. The over­all fi­nanc­ing rate re­mains at K+5%, whereby the dif­fer­en­tial be­tween the over­all rate and the cost to the cus­tomer will be borne by the Gov­ern­ment through sub­sidy.

Ir­tiza Kazmi, Ex­ec­u­tive Vice Pres­i­dent NBP said the bank dis­bursed over 6,108 bor­row­ers have been pro­vided loans, cu­mu­la­tively amount­ing to Rs5.117 Bil­lion un­der this scheme.

Till now nine MoUs have been signed by NBP with var­i­ous com­pa­nies but these agree­ments do not com­prise pro­vi­sion of prod­ucts only; rather a sub­stan­tial por­tion of these cor­po­ra­tions will be ex­tend­ing their ser­vices to fa­cil­i­tate PMYBL bor­row­ers.

The bank is wit­ness­ing ex­ceed­ingly in­creas­ing in­ter­est of en­trepreneurs and cor­po­ra­tion in this scheme which is ev­i­dent the over­whelm­ing num­ber of ap­pli- cations sub­mis­sion and pro­posal of var­i­ous com­pa­nies to do busi­ness with NBP.

He added that over 100 busi­ness mod­els have been de­signed along with var­i­ous cor­po­ra­tions in or­der to pro­vide loans to the ap­pli­cants along with busi­ness op­por­tu­ni­ties hence they could es­tab­lish them­selves at the ear­li­est to per­form their role in the econ­omy. The bank has not only es­tab­lished the scheme as suc­cess­ful but it also paved the way for pri­vate banks to par­tic­i­pate in the scheme with the pol­icy of mit­i­gat­ing risks and dis­burs­ing loans for earn­ing prof­its. The in­ter­est earn­ing of the banks is not as bad re­ceiv­ing 9 per­cent from the ben­e­fi­cia­ries and 6 per­cent from the gov­ern­ment in the sce­nario when the av­enues of mak­ing money are lim­ited.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.