Caspian Energy (CE): PASHA Bank is Azerbaijan’s largest private bank with the highest equity capital rate. In which big projects is the bank investing domestically and abroad? Which of them would you call successful? 

Taleh Kazimov, Member of the Executive Board, Chief Investment Officer, PASHA Bank: Ever since its establishment, in June 2007, PASHA Bank has set a goal to become a corporate customer oriented bank. Right from the first days of its operation the Bank has started financing and supporting a number of big projects implemented in the country. We managed to do it owing to a competent team and considerably high equity capital. We keep supporting the real sector of the economy since we see that it is in strong need of a reliable financial partner. PASHA Bank has formed an appropriate team, (relationship management) bearing responsibility for maintaining regular customer relations, in order to have this task fulfilled successfully. 

As far as the private sector is concerned, during  the 7-year activity we were engaged in implementation of many large projects such as construction of the milk plant in Aghjabedi, bread plant in Sumgayit; together with Azerbaijani brand we financed the enterprise producing vehicles in Turkey, etc. Apart from this, we realized a number of agricultural projects in the regions of the country, especially in Zagatala. 

Since 2013 the Bank has also been actively developing cooperation with small and medium enterprises (SME) not only for diversifying our credit risks but also for seeing this sector’s big potential. However, it does not mean that we focus our attention only on SME: We continue working with big corporate customers. An active work is currently carried out over a huge syndicated loan as it is necessary to cohere with other creditors for securing successful financing offered by the commercial sector. I assume that we will be able to create the first syndicate among commercial banks of the country by the beginning of the second half-year. 

PASHA Bank is positioning itself more as financial partner rather than a credit bank or credit organization. According to this principle, I would like to note with confidence that we attach more importance to success of the customer, his development and satisfaction from cooperation with us rather than to the size of the project. 

CE: What could you say about plans of the project for the present year? Which services does the bank intend to develop?

Taleh Kazimov: This year we intend to continue developing activity lines set within the framework of the strategic plan approved for the period of 2012-2014. We have the second strategic period ending this year. In addition to the active development of SME line, I may say that we keep working at previous tempo and servicing a big corporate sector as well. 

As far as the cooperation with small and medium enterprises is concerned, I may say that we have enlarged the network of service centers for SMEs. 4 business centers, providing business banking services, are already operating in Baku. We are preparing to open new centers in Ganja, Zagatala as well as offices in Guba, Lankaran and Sumgayit. 

Apart from this, we are actively developing internet-banking. I may say with confidence that nowadays PASHA Bank possesses one of the most flexible and convenient remote access systems to banking services. I am confident that the future belongs to information technologies and the broader they are applied in the country the bigger will be demand for such products as mobile and internet banking. Providing customers a remote access to services, we save their time. Constant availability of services for the customers is one of the concepts of business doing of our Bank: we should be available for customers, not they for us. That is why there are few business centers operating within the structure of our Bank. 

CE: Can big banks like PASHA Bank finance oil-gas risks, for instance exploration of oil-gas fields in the Caspian and beyond Azerbaijan?

 Taleh Kazimov: Right from the first day of operation, the Bank’s strategy was aimed at tight cooperation with the representatives of the non-oil sector of the economy possessing big potential, and thereby contributing to the diversification of the economy. We focused our attention on the oil-gas sector and state projects but we have never raised an issue for becoming actively involved in them. As I have mentioned above, nowadays the state sector has high potential and broad opportunities. 

CE: Which programs aimed at development of small and medium business can PASHA Bank offer in the market?

 Taleh Kazimov: With the highest rating among all private banks of the country with a 100% local capital, and the second best rating among all private banks of Azerbaijan, PASHA Bank can lend cheap funds in foreign countries. With this opportunity we may offer financing under very beneficial conditions, for instance support for purchase of equipment or certain lines of production, meet demands in capital investments, etc. Along with it  we offer long-term products for acquisition of commercial property, short-term products for maintenance of floating funds of the business. The SME sector is growing. Enterprises are developing and we see the need for development mainly of these directions. 

CE: Do you take any measures capable to attract customers that invest in deposits to the stock market?   

 Taleh Kazimov: Yes, PASHA Bank is actively developing such areas as wealth management and private banking, and we actively offer these securities market products to private persons. In Azerbaijan, the bond market is rapidly developing now, and I am proud to say that a considerable merit here belongs to PASHA Bank. 

As to the bond market, I would like to say it is more interesting for institutional investors, financial institutes and insurance companies to manage their liquidity and diversify assets, but represents no interest for private persons. The reason is that today interest rates on deposits are more attractive than deposits in debt securities of companies. The revenue on the latter ones is also imposed a 10% tax, making this tool even more unattractive for the general public.     

It should be pointed out that PASHA Bank is actively preparing for the first in the country IPO on the Baku Stock Exchange, and those individuals, who understand perfectly what stocks are, will be a target audience for this IPO. I think there is a potential in this segment and we plan to prepare customers for conduction of the IPO by the end of the year. In the future, if we see a strong demand, we will also attract corporate customers and institutional investors.              

CE: Which criteria play a key role in choosing a partner or a customer?

Taleh Kazimov: The three pillars, three assertions, three values, which underlie the business philosophy of the Bank and make its activity successful, are Transparency, Quality and Profitability. The philosophy runs that with transparency and quality any business activity yields profit: the profit both for the Bank and a customer that applied to us. We refer the concepts of transparency and quality to everything, be it financial operations, relations between us and our partners, business processes or something else.

I have already said above that PASHA Bank is not a transaction credit organisation. We position ourselves as a financial partner for the domestic corporate sector where we are involved in. So, our key objective is not to offer financial services that our customer wants but to provide services that a customer and business need for high-quality and sustainable development.