First National Bank Modaraba has submitted its quarterly progress report for the quarter ended June 30, 2026, detailing ongoing challenges and recovery efforts related to its business operations and compliance issues.
- FNBM incurred significant losses due to provisioning for Non-Performing Loans (NPLs), exceeding the regulatory threshold of 50% of its paid-up capital.
- A winding-up petition has been filed against FNBM by the SECP due to these accumulated losses.
- The company has achieved cash recoveries from NPLs through legal decrees and settlements, posting net operating profits from FY 2021 to FY 2024.
- A strategic revival plan is being finalized to address operational and financial challenges, with expectations of improved compliance within two years.
- The matter regarding the winding-up petition is currently pending adjudication in the Modaraba Tribunal, Lahore.