Karachi: Pakistan's banking stocks fell, led by National Bank of Pakistan, amid concern non-performing loans may increase after the central bank refrained from lowering borrowing costs.
National Bank, the lender with the highest loan delinquency ratio in the nation, retreated 2.3 per cent to Rs66.46 (Dh2.86). MCB Bank Limited, the No 1 by market value, declined 1.4 per cent to Rs206.36. Pakistan's benchmark KSE100 Index lost 0.8 per cent to 10,056.46.
Pakistan's central bank on March 27 kept its benchmark interest rate at 12.5 per cent as inflation of above 13 per cent prevented it from reducing borrowing costs to spur the economy. Pakistan lenders' bad debt has more than doubled in the past five years.
The economy grew 2 per cent in the year ended June 30, the slowest pace in eight years.
