Mashreq, the largest private sector bank in Dubai, has restructured its asset book significantly by moving an additional Dh13.7 billion to the Central Bank and increasing loans to government and public sector entities byDh4.25bn, an analysis of the balance sheet said.
Thus the total funds between Central Bank deposits and loans to government and public sector entities have surged by about 250 per cent during the nine months, from Dh12.236bn as of December 31, 2008, to Dh30.239bn as of September end.
"Mashreq may have taken a 'wait and watch' strategy in the wake of the ongoing recession when the bank on its part has large exposure to the troubled Saudi group," an analyst told Emirates Business. Though there were unconfirmed reports that the bank's exposure to the Saudi groups could be in the region of $400 million (Dh1.46bn), a clear picture on the same is yet to be known. However, the bank is reported to have moved court on the issue
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