BAKU

Azerbaijan’s PASHA Bank, a leading corporate bank in the country, plans to increase its capital to more than 404 million manats ($238 million) in 2021-2023, Taleh Kazimov, the bank’s board chairman, said.

In 2020, the bank increased its capital to 354.5 million manats from 333 million manats through an additional issue of 646 shares worth 21.5 million manats.

Kazimov told a news conference in Baku that PASHA Bank planned to maintain the growth rate of the loan portfolio at the average market level in 2021-2023, but did not elaborate further.

He said that $706 million or 46 percent of the bank’s total loan portfolio in 2020 was lending to trade and services sectors,  13 percent to industry, 10 percent to construction and 9 percent to individuals.

Corporate lending accounted for over $1.1 billion last year, Kazimov told reporters. He added that the indicator was expected to grow to $1.7 billion in 2021, while the loan portfolio for small and medium-sized businesses would double to 350 million manats.

Kazimov said that the ratio of profit to capital would be at the level of 30 percent, the ratio of expenses to capital – 34 percent.

PASHA Bank has a head office, six branches and currency exchange offices in the capital Baku as well as three regional offices in the cities of  Ganja, Zagatala and Guba.

PASHA Bank was established in June 2007 and is one of the top three commercial banks in Azerbaijan by assets. The bank’s shareholders are two legal entities – PASHA Holding (56.82 percent) and Ador LLC (28.18 percent), as well as one individual – Arif Pashayev (15 percent), who is an uncle of the country’s First Lady and First Vice President Mehriban Aliyeva.

There are 26 banks in Azerbaijan, including 12 with foreign capital.