The Financial Express (FE) has managed to collect operating profits of 14 more private commercial banks (PCBs), out of a total of 40.
Earlier on Saturday, the FE published the unaudited operating profits 11 PCBs in the just-concluded calendar year of 2018.
Most of the banks, excepting a few, maintained their operating profits growth in 2018, even if soured loans are on the rise and the interest rate spread is on the declining trend.
Operating profit, however, does not indicate the real financial health of a bank since the lenders have to make room for provisioning against bad loans and taxes that have to be paid to the government from the profits.
Operating profits of the banks and non-banking financial institutions are a major source of income tax of the National Board of Revenue (NBR).
As such, the aggregate operating profits of the PCBs have an impact on the revenue collection in the form of direct taxes collected by the revenue board.
© 2024 - All Rights with The Financial Express
