Loans worth Rs256b written off in 38 years

Updated at: 1351 PST, Tuesday, February 02, 2010

ISLAMABAD: The State Bank of Pakistan told the Supreme Court that various government banks and financial institutions written off loans worth over Rs256 billion during last 38 years, Geo News reported Tuesday.Of them, there are borrowings upto a limit over Rs500,000 worth Rs213 billion and Rs43 billion upto a limit below Rs500,000.The central bank tabled a report to the apex court bench in this connection in a suo motu case being heard by a three-judge bench headed by Justice Sardar Muhammed Raza.According to the report, the loans amounting to Rs11.22 billion with a limit of Rs500,000 and above were written off to at least 1424 people during a span from 1971 to 1996.Another 22021 people got loans worth over Rs202 billion written off from 1997 to 2009. Similarly, in the period from 1971 to 2009, at least 640,000 people got their loans worth below Rs500,000 written off.According to the SBP report, there is no record of Indus Bank and Banker Equity among the defaulters.The SBP said in its report that these loans include the capital, markup and other various charges.The committee comprising the presidents of the five banks requested the court to become party to the case. On this, the court issued notices to the parties and adjourned the hearing sine die.