Pakistan

Commercial banks: State Bank sets profit rate at 6%

The move will promote savings and increase financial market depth and intermediation, says Central Bank.

March 16, 2013 Less than a minute read

ISLAMABAD: The State Bank of Pakistan (SBP) has directed commercial banks to pay minimum profit rate of 6% per annum on all Pakistani rupee saving deposits on average monthly balances with effect from April 01, 2013.

“This rate of profit will be applicable on all existing and new saving deposits including term deposits” a statement of the Central Bank issued on Friday said.

The statement said that the move would promote savings and increase financial market depth and intermediation.

In a circular issued by SBP to the presidents and chief executives of all commercial banks today, the SBP warned that any violation of these instructions will render the bank liable for punitive action under the relevant provisions of the Banking Companies Ordinance 1962.

Published in The Express Tribune, March 16^th, 2013.

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