SBP directs banks on pay minimum profit rate of 6%

ISLAMABAD: The State Bank of Pakistan (SBP) has directed commercial banks to pay minimum profit rate of 6.0% per annum on all Pak 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.

This step of SBP, the statement said is likely to promote savings and increase the financial market depth and intermediation.

The SBP warned that any violation of the above instruction will render the bank liable for punitive action under the relevant provisions of the Banking Companies Ordinance 1962, according to a Circular issued by SBP to the presidents/chief executives of all commercial banks today.