Karafarin Bank’s NPLs Less Than 4.5 - Dr. Farzin Announced

Having outlined the Bank’s plans and measures, the Managing Director of Karafarin Bank explained: Thanks to its strong performance, Karafarin Bank’s non-performing loans fell to less than 4.5 in the previous year.
This achievement is even more remarkable than the efforts of many European banks." In the past year, the Bank’s indexes in various sectors grew by a three-digit figure and hence, the first phase of our Two-Year Plan which we had been drafted in 2019-20 were realised. Since growth rates in the fields of information technology and ebanking had not been significant, (as a result of which we had been losing our position amongst other banks), we entered an expansion phase." In reference with the Expansion Plan which has now been enforced he stated: "From the beginning, it was decided that this expansion plan to be implemented evenly throughout all sectors. As a result, we successfully managed to achieve three-digit records and to meet our objectives." In reference with the 100% growth rate of the Bank’s resources and loans, he stressed on NPLs, stating: "We managed to bring down our NPL ratio to 4.5, which is an outstanding achievement."  

Collecting Claims of 2001-2011 

Dr. Farzin believes that this achievement (reducing NLP ratio) is due to Karafarin Bank using an Integrated Credit Software. “During 2020-21, it was decided that in dealing with cases of bad debt, the Bank’s credit and legal departments to simultaneously negotiate with debtors and to exercise more flexibility in reference with cases of large doubtful claims. As a result of this new approach, the Bank was able to resolve numerous cases dating back to a decade starting from 2001-02. Although many believe that the Bank’s success in bringing its NPL ratio down to 4.5 is due increasing its current loans, yet in actual fact, this success is the result of legal and credit departments cooperating with one another." he added.  
Dr. Farzin also regarded having no debts to the Central Bank of the Islamic Republic of Iran (CBI) to be another major accomplishment of this bank in 2020-21. He stated: "During this year, our profits increased by 6 times and we attracted enough resources to safeguard the Bank against potential shocks."
Publish Date: Jun 22, 2021