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External Relations Department ERD/M&PRD/PR/01/2020‐62 June 19, 2020 Banks performance under SBP Rozgar Refinance Scheme supported by Government of Pakistan’s Risk Sharing Facility On April 10, 2020 State Bank of Pakistan introduced a refinance scheme to provide concessional credit at 3% interest rate and generous repayment terms to any business that commits to not lay off workers for 3 months. The goal of the scheme was to provide an incentive to businesses to protect jobs. On May 06, 2020 SBP complemented this scheme with a 40% percent risk sharing facility (RSF) on first loss basis from the Government of Pakistan for utilization of this scheme for SMEs and small corporates (defined as business with annual turnover not exceeding Rs. 2 billion). As of June 12, 2020 there has been significant take up in the scheme. Banks have approved loan applications worth Rs. 107.5 billion of which Rs. 23.5 billion is for SMEs and small corporates under the risk sharing facility. Amongst the banks there is considerable difference in the extent to which they have provided credit under the RSF. Some have been more active than others. This note provides to the public bank‐level information on two key areas: (a) total amount of loans provided by the bank under the scheme to SMEs and small corporates and (b) the loan amount approved by the bank in percent of the loan amount applied (acceptance ratio). The goal of this note is to promote the use of this scheme and to recognize banks that have been most active in providing credit to SMEs and small corporates under this scheme. The public may find such information useful. It should be noted that this note provides information only on the data related to credit to SMEs and small corporates. The rankings of the banks may be different when also using the data for lending to large corporates as some banks may be more focused on serving those segments of the market. It should also be noted that these figures focus only on lending under the Rozgar Refinancing scheme. Some banks may be more active in other forms of SME lending which would not be reflected in the figures below. Performance of Banks w.r.t Approved Financing Amount Review of data indicates that five banks (Top Performing Five Banks) together constitute more than 61 percent share of overall approved financing amount under the Risk Sharing Facility (RSF) with JS Bank Limited at the top, followed by HBL and Bank Al‐Habib. The chart of Least Performing Five Banks depicts the bottom pyramid of banks that have lagged other banks in extending financing under this risk sharing scheme. This list includes two big banks. Page 1 of 4 External Relations Department Performance of Banks w.r.t Approved Financing Amount (12‐Jun‐20) under Risk Sharing Facility (SMEs and Businesses with Annual Sale < Rs 2bn) Top Performing Five Banks Least Performing Five Banks 16 300 200 4,000 15 179 12 12 225 150 3,000 140 million million in 114 8 150 in applications 102 Rs 100 2,000 98 applications of Rs of 5 No. 4 4 75 No. 50 1,000 3 243 220 182 115 1,987 2,256 3,094 3,625 3,784 0 ‐ 0 ‐ Standard MCB Bank First Women National The Bank of Askari Bank Al Bank Al Habib JS Bank Chartered Limited Bank Bank of Khyber Bank falah Habib Bank Limited Bank (Pak) Limited Pakistan Limited Limited Limited Limited Limited Approved Amount (RHS) No. of Approved Applications (LHS) Approved Amount (RHS) No. of Approved Applications (LHS) Performance of Banks w.r.t Acceptance Ratio Review of performance of banks w.r.t acceptance ratio in terms of amount and number of applications approved shows that Top Performing Five Banks remain in the range between 65 % to 83 % and 70 % to 83 % respectively. The chart of Least Preforming Banks highlights the bottom five banks that remain in the low range between 18 % to 26 % and 9 % to 43 %, respectively for above mentioned two categories. Interestingly, Top Five Performing Banks Performance of Banks w.r.t Acceptance Ratio (SMEs and Businesses with Annual Sale < Rs. 2bn) Top Performing Five Banks* 100% Least Performing Five Banks** 80% 83% 77% 73% 70% 72% 60% 40% 43% 34% 30% 33% 20% 65% 67% 78% 83% 83% 9% 24% 24% 21% 0% 26% Bank Alfalah Askari Bank Bank Al Habib Bank JS Bank 18% Limited Limited Habib Limited Limited Allied Bank United Bank National Bank MCB Bank Standard Limited Limited Limited of Pakistan Limited Chartered Bank (Pakistan) Limited Amount Acceptance Ratio Application Acceptance Ratio Amount Acceptance Ratio Application Acceptance Ratio *Banks with >100 applicationshave been included. **Banks with <25 applicationshave been excluded. are the same which are also top performers with respect to approved financing amount. Four of the big banks have the lowest rates of approving applications across banks. Page 2 of 4 External Relations Department Growth Trajectory of Top Performing Five Banks over Period (May 15, 2020 ‐ June 12, 2020) Performance of Top Five Banks over the last five weeks (May 15, 2020 ‐June 12, Growth Trajectory of Top Five Banks under Risk Sharing Facility (15 May to 12 June, 2020) 2020) shows continuous increase in approved financing amount of each of Rs 4000 these banks. A comparison of these five banks over the said period indicates that million 3000 in JS Bank Limited maintained its top position throughout all these five weeks, however, Habib Bank Limited improved 2000 approved its position to second from third since May 29, 2020. Bank Alfalah Limited also 1000 improved its position from being the lowest since May 21, 2020. Ammount 0 15‐May 21‐May 29‐May 05‐June 12‐Jun JS Bank Limited Habib Bank Limited Bank Al Habib Limited Bank Alfalah Limited Askari Bank Limited Page 3 of 4 External Relations Department Bank Wise Performance Under Risk Sharing Facility of SBP Rozgar Refinance Scheme (with Annual Sale ≤ Rs. 2bn) Bank Wise Position as on June 12,2020 Rs. in ‘000s’ Rupee Amount of Total Rupee No. of Applications Total No. of employees Applications No. of Applications Amount of Approved / Bank name covered in the No. of Approved / Approved Applications Application Applications Approved Applications Approved Received (%) Received (%) JS Bank Limited 140 3,783,593 32,550 83% 83% Habib Bank Limited 102 3,624,596 29,840 77% 83% Bank Al Habib Limited 179 3,093,852 30,593 72% 78% Bank Alfalah Limited 114 2,255,738 22,012 70% 65% Askari Bank Limited 98 1,986,796 17,220 73% 67% Habib Metropolitan Bank 77 1,594,313 16,793 52% 53% Limited Meezan Bank Limited 29 1,189,800 10,857 38% 46% Dubai Islamic Bank Pakistan 33 1,172,906 8,279 70% 66% Limited Faysal Bank Limited 40 1,149,326 11,041 61% 67% The Bank of Punjab 26 943,966 8,853 62% 82% Soneri Bank Limited 19 395,545 3,474 61% 45% SAMBA Bank Limited 26 365,821 2,528 93% 96% MCB Islamic Bank 10 343,108 1,624 42% 40% Allied Bank Limited 12 328,823 2,729 30% 26% United Bank Limited 30 328,001 3,163 43% 24% BankIslami Pakistan Limited 6 258,609 2,043 60% 94% Al Baraka Bank (Pakistan) 11 254,727 2,384 42% 39% Limited Standard Chartered Bank 4 243,000 941 9% 18% (Pakistan) Limited MCB Bank Limited 15 220,147 1,886 34% 21% First Women Bank Limited 5 181,934 2,212 42% 44% National Bank of Pakistan 12 114,974 1,229 33% 24% The Bank of Khyber 3 8,398 76 30% 6% ***************** Page 4 of 4 .