Please refer to the Para 7 of Prudential
Regulation R-8 for Corporate / Commercial Banking, and
Para 7 of Prudential Regulations R-11 for SME Financing.
2. It has been decided to replace last sentences of these
paragraphs with following:
“However, the provision made on the advice of State
Bank of Pakistan will not be reversed without prior approval
of State Bank of Pakistan except to the extent of cash
recovery made. The Banks/DFIs will report reversal of
provisions made against cash recovery to Off Site Supervision
& Enforcement Department, SBP on quarterly basis.”
3. All other instructions on the matter will, however,
remain unchanged.
Please acknowledge receipt.