HBL board grants approval to establish 'HBL Zarai Services
Limited' to promote agriculture
The board of Habib Bank Limited (HBL), one of the largest banks
in Pakistan, has granted approval for the incorporation of 'HBL Zarai Services
Limited' as a wholly-owned subsidiary with the aim to promote the country's
agriculture sector.
The announcement was made by HBL in a notice to the Pakistan
Stock Exchange (PSX) on Thursday.
The notice stated, "To promote the agriculture sector of
Pakistan, the Board of Directors of the bank has approved the incorporation of
'HBL Zarai Services Limited' as a wholly owned subsidiary of the bank, subject
to receipt of all regulatory approvals."
Previously, HBL had expressed its intention
to establish a subsidiary dedicated to advancing Pakistan's agriculture sector,
and a detailed feasibility report for the same had been finalized.
Currently, HBL is in the process of obtaining all necessary
regulatory approvals required for the incorporation of the proposed subsidiary.
In financial news, HBL declared a consolidated profit before tax
(PBT) of Rs. 51.5 billion for the first half of 2023 (January-June), marking an
impressive increase of nearly 50% compared to the same period in the previous
year. Moreover, the PBT of Rs. 30 billion for the second quarter of 2023
(April-June) was the highest ever recorded in HBL's history based on the performance
of its core business lines. The bank also announced an interim dividend of Rs.
2.00 per share (20%) for the first half of 2023, bringing the total payout for
H1'23 to Rs. 3.50 per share.
On a related note, the agriculture sector, considered the backbone
of Pakistan's economy, experienced a notable 27.5% growth in agricultural
loans. During the first nine months (July-March) of the fiscal year, the
agricultural lending financial institutions disbursed Rs. 1.222 trillion in
agricultural financing.
Source: Business Recorder