Karachi, According to information available from the Pakistan Stock Exchange (PSX), SME Leasing Limited has presented its unaudited condensed interim financial statements for the period ending June 30, 2023. The company focused on recovering from Non-performing loans (NPLs), reporting new business worth Rs 2.17 million and total recoveries amounting to Rs 22.35 million. Despite these efforts, SME Leasing recorded a substantial loss after tax of Rs 27.10 million, a significant increase from the loss of Rs 1.746 million during the same period last year.

The company's financial challenges were compounded by an increase in financial charges by Rs 5.40 million due to higher financing rates and a decrease in administrative expenses by Rs 4.62 million, primarily through reductions in payroll costs. The net equity of the company stood negative at Rs 19.24 million as of June 30, 2023, falling short of the minimum required equity of Rs 50 million for non-deposit taking leasing companies.

Further complicating matters, the Cabinet Committee on Privatization approved the delisting of the holding company from the privatization list on December 28, 2022, and the Federal Cabinet approved a winding-down plan for the holding company on March 17, 2023. The SME Bank Limited, the parent company holding 73.14% of shares, has been advised to process the liquidation of SME Leasing Limited alongside the bank's liquidation.

The board vacancy issue persists as the parent company has yet to nominate candidates for two empty seats. The company is poised to resubmit nominations upon receipt from SME Bank Limited.