HBL is aggressive to tap futuristic opportunities
China and Pakistan Economic Corridor is a bright opportunity not for the government but public sector as well specially for banking industry which is looking forward to finance mega projects to earn margins at times when income of interest rates is challenging due to soft monetary policy, and Habib Bank Limited is one of them. According to an analyst, Habib Bank Limited is likely to enjoy higher credit growth with initiation of China and Pakistan Economic Corridor projects, and it is estimated that HBL advances will grow by 14% on average from 2016 to 2018 as it grew on average 9 percent in last 3-year. Further, the improving business activities and climate of investment may further help bank to provide advanced to private sector, which though is in resilient mode, but it is likely to pick up growth in upcoming years in big cities on the back of law and order stability and controlled inflation. The bank is aggressive in expansion of Islamic Banking and its business to offer various solutions to its domestic and corporate clients. It is also active in branchless banking and remittances services despite competition. The bank also draws comfort from impressive CAR ratio of 16% (minimum required: 10%, industry average: 16%), which is expected to get further boost once unsecured TFC is issued.