Mining in the priority of paying bank facilities
Following the guidelines for lowering bank interest rates and forcing banks to do so, deposits are expected to be withdrawn from banks, but the CEO of the Bank of Industry and Mines said that this has not yet happened and that liquidity may have flowed into the bank but not out. Also, according to the bank manager, the first policy this year is to pay working capital facilities to production units, and value-added projects in the mining sector are the first priority in obtaining facilities.
According to the International Iranian Stone Exhibition, these days, when the capital market has enjoyed considerable growth and the economy is moving from a central bank to a capital-oriented one, the role of the banking system in the economy has changed. On the other hand, the economy of any country needs tools to achieve this goal for growth and development, one of which is the banking system, and with these tools, it is possible to boost production, which is the driving force of the economy, by paying credits such as working capital. Finally, the employment problem was solved. But now the role of the bank has undergone changes with the unprecedented growth of the capital market and the movement of liquidity to it, which is supposed to transfer part of the financing burden of the production units that were on the banking system to the capital market.
You can read the result of the conversation with Hossein Mehri below:
- Explain about the obedience of banks to the interest rate on bank deposits of 15% and whether the people's deposits will be withdrawn from the banks as a result of this?
In this regard, the Bank of Industry and Mines acted in accordance with the instructions of the Central Bank and we did not allow ourselves to move outside this framework. It is not correct to think that the banks' obedience to the interest on deposits has led to the withdrawal of people's deposits from the banks, and the volume of deposits in this bank has increased. In April of this year, Sanat va Ma'dan Bank had a good growth in deposits; As compared to last year, our quadruple deposits have increased by fifty-five percent.
The capital market is deepening, which I think is unlikely to stagnate, and if the liquidity of this market moves towards the gold, coin and currency markets, it may affect the interest on bank deposits. Due to the reduction in interest on deposits, liquidity may have been transferred between banks, not withdrawn.
Money and liquidity must move to the capital market, because the best place to leap in production and employment is the stock market and the bank. I hope that this liquidity will not move towards the gold, coin, etc. markets, because these markets will not only have no effect on the economy, but will also be destructive.
- What steps have been taken to defer the installment of loans following the Corona outbreak?
We often pay facilities to law firms and pay much less to real people. In March, after the Monetary and Credit Council announced this, we postponed the loan installments for three months, and also returned the amount from those whose accounts were withdrawn from the account for a check. We have also postponed their installments for industries that have been affected by Corona.
The bank's facility interest rate is 18 percent, and last year we paid about 16 percent for areas with interest and 14 percent for non-offshore areas from the National Development Fund, which will be less profitable this year.
- What was the status of the transfer of the property of Sanat va Ma'dan Bank last year?
Last year, the Bank of Industry and Mines had a good transfer in terms of both assets and liabilities, as well as in the field of stocks and companies. Last year, by holding seven auctions, which are unprecedented in the history of banking, we handed over 1,400 billion rials in non-productive assets, and in the field of companies, we transferred our shares to three cement companies in Mazandaran, investment in industry and trade and technology finance fund. we did.
- What are your plans for the transfer of your assets this year?
We had seven companies, three of which we handed over, and the other four we have to try to hand over this year, one of which is a brokerage that is based on the role that the company can play in the capital and money markets. It is in the group of bank instrumental companies, and apart from this, there are other companies, in one of which we have a 20% share, which we will soon transfer.
The two main companies in which we have more than 50% share (Iran Chemical Industries Investment Company and Atieh Damavand Investment Company) have advertised several times so far, which unfortunately did not have a buyer, and we intend to consider easier conditions for transfer this year so that we can Let's hand it over.
- What is the situation of digital banking in Sanat va Ma'dan Bank?
In this regard, based on the indicators announced by the Ministry of Economy, we also gained the second rank. All in all, the Bank of Industry and Mines is trying to make a leap this year to help entrepreneurs, craftsmen and miners.
- Given this year's so-called production leap, what are your plans for production facilities?
Our first policy this year is to pay off working capital facilities of production units and our second priority is to complete semi-finished projects that have received facilities from this bank and our third priority is complementary projects and value chain and the latest policy is to pay facilities to knowledge-based companies and exports. Is the axis.
Our first priority for payment facilities is value-added projects in the mining sector.
- How was the performance of the Bank of Industry and Mines last year?
Last year, the current and non-current claims of this bank reached one hundred and four thousand billion tomans, and the amount of these claims in the entire banking system is two thousand billion tomans. About two and a half percent of the total claims of the banking system are made by the Bank of Industry and Mines. In the four deposits, we experienced good growth, about forty-three percent of the growth belonged to the sources of the bank's four deposits, which is a good growth compared to 1397, while the average growth of banks in this field has been less.
In the discussion of opening Rial documents, we had a growth of sixty-seven percent, and in Rial guarantees, contracts and payments, we had a growth of fifty-two, one hundred and forty-six and forty percent, respectively, which saw payments of sixty-eight percent in Rials. We were in growth and we were growing by forty-five percent.
- Explain the bank's relationship with universities.
We have signed a memorandum of understanding with Jihad Daneshgahi, Amir Kabir University and Sharif University of Technology, which will start operating next year and we will see the effects this year.
Also, the implementation of corporate governance was one of the issues that the bank seriously pursued and was fully implemented in the Bank of Industry and Mines, and gained the second rank in this field.
- Describe the performance of Bank Sanat va Ma'dan in open banking market operations.
Open banking is a new business that began last year and is now expanding. This year, Sanat va Ma'dan Bank is also planning to have an active presence in the market.