NBP to Shutdown Two More Foreign Subsidiaries

National Bank of Pakistan (NBP) is working to scale down its foreign operations in different countries, including its subsidiaries and banks’ branches, according to the annual financial report.

In its plan, the bank’s board of directors decided to shut down its seven loss-making branches earlier in different countries in the first phase. Whereas the seven branches will be considered for closure in the next phase.

The board of directors has revised its strategy for the closure of foreign operations this year.

The board decided for the closure of their operations in Central Asian countries, including two overseas subsidiaries – in Almaty (Kazakhstan) and Dushanbe (Tajikistan).

Three overseas branches in Baku (Azerbaijan), Bishkek (Kyrgyzstan), and Ashgabat (Turkmenistan) will also be closed.

The closure will recover their carrying amount principally through continuing use.

The bank applied to the ministry of finance and State Bank of Pakistan (SBP) for their endorsements and accordingly received their approval, with respect to the board’s decision.

According to the annual report, the overall asset worth of these subsidiaries and branches located in Central Asian countries stood at Rs. 5.3 billion by end of 2020 with a profit of Rs. 55 million.

The cost of investment/net of impairment stood at Rs. 1.5 billion.

Furthermore, the board has also approved the management’s recommendations towards consolidating the bank’s operations in Afghanistan and Bangladesh to be limited to branches in their capital cities, Kabul and Dhaka.

The bank will restrict their country operations in Afghanistan (Jalalabad) and Bangladesh (Sylhet, Chittagong, and Gulshan) to one branch in each country located in Kabul and Dhaka, respectively.