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People’s Bank and National Savings Bank (NSB) reported higher earnings for the first nine months despite the government slapping special levies on both institutions. NSB had forked out a billion rupees while undercapitalized People’s Bank had also paid Rs. 100 million.
NSB reported profits of Rs. 1.3 billion after paying a billion rupees to the Treasury as a special levy.
That’s after providing or paying over Rs. 1.2 billion in VAT and corporate tax.
The government owned savings bank could end up paying up to Rs.
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2.5 billion to the government in taxes and levies by the financial year-end.
NSB however is profitable despite the sharp fall in risk free rates over the last.
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The bank invests the low cost savings it raises through a network of branches and post offices in mostly government securities.
However the bank has been lending in the housing market and for the first time has made a Rs. 77 million provision for loan losses.
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Under capitalized People’s Bank has also been