Banks earn Rs600b profit on govt borrowings
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The government-led standing committee also rejected the proposal to keep a window open for government borrowing in case of calamities. photo: file
ISLAMABAD:
The government's borrowing from the domestic banks soared to Rs35 trillion in 2024 leading to hefty Rs600 billion profits for the commercial banks mainly because of high interest rates, sources said on Wednesday.
Finance ministry sources said that commercial banks earned more than Rs600 billion in profits for the first time in 2024 due to the government borrowing from private banks at high interest rate.
They added that the loans from local commercial banks topped Rs35 trillion, compared with Rs25.2 trillion external debt.