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FNBM Operations Update: FNBM reports ongoing regulatory non-compliance and outlines revival efforts | Investify

Oct 2, 2026, 3:07 PM

FNBM reports ongoing regulatory non-compliance and outlines revival efforts

Operations Update

First National Bank Modaraba reported that accumulated losses, mainly from provisioning against non-performing loans, exceeded the regulatory threshold of 50% of paid-up capital. SECP-triggered proceedings and a winding-up petition are pending before the Modaraba Tribunal. The company describes recovery and revival efforts, but remains subject to regulatory, financial and legal uncertainty.

Key Findings

Accumulated losses exceeded the regulatory limit of 50% of paid-up capital, mainly due to provisioning against non-performing loans.
SECP triggered proceedings under Section 23(I)(i)(b) and filed a winding-up petition in the Modaraba Tribunal, Lahore; the matter remains pending adjudication.
FNBM says it has recorded net operating profit for four consecutive years from FY2021 through FY2024, while heavy finance costs continued to weigh on its position.
The company has submitted a revival proposal to its sponsoring bank, NBP, and is finalizing a structured revival plan.
FNBM expects recoveries and restructuring of its outstanding finance facility could help it meet the regulatory threshold within two years, subject to continued recovery trends and NBP support.

Disclosure Details

Entities Involved

First National Bank Modaraba, Securities and Exchange Commission of Pakistan, National Bank of Pakistan, Modaraba Tribunal, Lahore

Approvals Required

NBP approval and implementation of the revival proposal

Impact

The company remains exposed to winding-up proceedings and regulatory non-compliance. Recovery of non-performing loans and restructuring of the finance facility may support a revival and return to compliance.

Risks

Accumulated losses exceed the regulatory threshold of 50% of paid-up capital., A winding-up petition is pending adjudication before the Modaraba Tribunal, Lahore., The revival plan depends on NBP approval, continued NPL recoveries and restructuring of outstanding finance facility.

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Highlights summarize the key points from the company's official PSX filing. View the original filing for the complete details before making financial decisions.

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FNBM reports ongoing regulatory non-compliance and outlines revival efforts

Key Findings

Disclosure Details