Backed by the significant announcement by Silkbank Limited of an Expression of Interest from M/s. Park View Enclave (Pvt.) Limited (part of Vision Group) to injectRS12b in the capital of the Bank and the subsequent approval of the Board of Directors to take the process forward, the Board of Directors, in their meeting held on June 8, 2022, announced the financial results of the Bank for the period ending December 31, 2020, declaring an after-tax loss ofRs6.57b. The Bank attributes its posted losses due to various provisions taken against specific borrowers engaged primarily in the real estate businesses which were secured against mortgages of land. In December 2020, the Bank entered into an arrangement for disposal of the mortgaged land held by the Bank with M/s Arif Habib Dolmen REIT Management Company. The transaction was duly approved by the SBP. This development will substantially address the Bank’s NPL issue and result in major provision reversals. Moreover, another REIT consisting of Bank owned property will not only reduce non-earning assets of the Bank by Rs6b but is expected to record a capital gain of Rs6.1b approximately. The Bank has already received approx. Rs2.6b as down payment against the said REIT structure. The Bank has further entered into arrangements with major borrowers to ensure expeditious recovery of loans classified in 2020. The Bank expects most of these provisions to reverse within the next 12 – 24 months through the settlement and sale of mortgaged properties. The bank’s flagship Retail and Consumer Portfolio continues to be amongst the top performing businesses in the industry. As a testament of the customer confidence reposed in the Bank, the growth was led by its Consumer Division, with Credit Cards and Personal Loan products registering a growth of 41pc profit before taxes from Rs1.57b in 2019 to Rs2.23b in 2020. The deposits of the Bank substantially increased by Rs11b as compared to December 2019, taking the total deposit base to Rs160b. Local currency Current Account grew by 26pc while CASA deposits improved from 58pc in December 2019 to 61pc in December 2020. The bank’s Net Revenue also increased by Rs2.96b registering 61pc growth while expenses declined by Rs638m, decline of 8pc. It is pertinent to mention that post capitalization, the Bank is expected to fully comply with regulatory capital requirements. With the continuous support of SBP, the Bank hereby ensures to protect the interest of all stakeholders.