Invesment Options

First Dawood Investment Bank Limited (FDIB) was incorporated on June 22, 1994 as Dawood Leasing Company Limited, with a paid up capital of Rs. 250 million. It is listed on the Karachi Stock Exchange in Pakistan. Against the public offering of Rs. 95 million, the company received a subscription of over Rs. 140 million despite bearish market conditions at the time of floatation. After thirteen years of business operations, a balance sheet size of over Rs. 12.22 billion was achieved. Not only that FDIB made consistent profits over these 13 years and paid handsome returns to investors and shareholders.

The liquidity crunch in the financial sector during last quarter of 2008, resulted into abrupt withdrawal of money market lines from commercial banks and DFI’s due to which FDIB was subjected to an uncalled for run by the creditors. FDIB attended the creditors concerns and within a span of one year settled more than 92% of its liabilities.

The balance sheet size has come down to Rs 3.0 billion and equity turned negative due to provision and losses sustained during the run on situation. However, due to support & co-operation of major lenders, the equity has recently entered the positive zone.

The Bank is now on the path of regaining its lost position. Various efforts to comply with equity requirement are underway. As of 31.03.2010, the equity has turned positive upto the tune of Rs.202 million.