Tag: banking

  • SBP reports marginal dip in bank deposits

    SBP reports marginal dip in bank deposits

    In January 2024, the total deposits held by scheduled banks in Pakistan experienced a robust year-on-year growth of 21.03 per cent, reaching Rs27.54 trillion.

    This marks a substantial increase from Rs22.75 trillion recorded in January 2023, as revealed by data released by the State Bank of Pakistan (SBP).

    However, on a month-on-month basis, there was a slight dip of 1.08 per cent in bank deposits compared to December 2024, where the total stood at Rs27.84 trillion.

    The data further highlights a positive trend in total advances, which saw a year-on-year increase of 3.74 per cent, reaching Rs12.09 trillion compared to Rs11.66 trillion in the same period last year.

     Conversely, on a monthly basis, advances experienced a marginal decline of 2.08 per cent from their December 2024 value of Rs12.35 trillion.

    The Advances to Deposit Ratio (ADR) exhibited a decrease, standing at 43.92 per cent, indicating a 732 basis points decline on a yearly basis and a 45 basis points decrease on a monthly basis.

    In terms of investments, scheduled banks in Pakistan reported total investments of Rs25.6 trillion in January 2024, reflecting a substantial year-on-year increase of 32.71 per cent from Rs19.29 trillion in January 2023.

    Additionally, there was a month-on-month increase of 1.28 per cent from the Rs25.28 trillion recorded in December 2024.

    The Investment to Deposit Ratio (IDR) witnessed a notable rise of 818 basis points, reaching 92.97 per cent, compared to the figures from January 2023. On a monthly basis, IDR increased by 216 basis points.

    These statistics indicate a significant positive shift in the financial landscape of Pakistan’s banking sector, with notable expansions in both deposits and investments.

  • Pakistan Stock Exchange surges 2.33% to reach 66,223.63 points

    Pakistan Stock Exchange surges 2.33% to reach 66,223.63 points

    The Pakistan Stock Exchange (PSX) maintained its upward trajectory, with the benchmark KSE-100 index reaching a new pinnacle on Friday. 

    At the close, the index concluded at 66,223.63, marking a noteworthy increase of 1,505.56 points, or 2.33 per cent.

    While surpassing the 66,000 level earlier in the day, a temporary slowdown occurred in the second half due to profit-taking. 

    Nevertheless, bullish activity returned during the final hour, propelling the benchmark index to an intra-day peak of 66,273.73.

    The market displayed widespread buying across key sectors such as cement, chemicals, commercial banks, fertiliser, oil and gas exploration companies, OMCs, and power generation and distribution sectors. 

    Thursday’s trading session had already seen a positive trend, with the KSE-100 settling at 64,718.08, reflecting a gain of 800.35 points, or 1.25 per cent.

    This continued momentum is attributed to enhanced economic indicators following the recent agreement between Pakistan and the International Monetary Fund (IMF) authorities on the first review of the Stand-By Agreement (SBA) last month.

  • State Bank of Pakistan set to announce policy rate decision today

    State Bank of Pakistan set to announce policy rate decision today

    The State Bank of Pakistan (SBP) will soon unveil its latest monetary policy for the upcoming two months.

    In an official statement, the central bank declared that the Monetary Policy Committee (MPC) of SBP will convene on Monday, October 30, 2023, to determine the monetary policy. SBP will then issue the Monetary Policy Statement via a press release on the same day.

    Currently, the State Bank’s policy rate stands at 22 per cent. Since October 2021, the central bank has increased its policy rate by a cumulative 1,500 basis points in an effort to combat rising inflation and bolster the external balance. This rate has remained unchanged since July 2023.

    The forthcoming policy rate announcement is poised to exert a substantial influence on Pakistan’s industries and inflation rate.

    In the most recent meeting held in July, the State Bank of Pakistan (SBP) resolved to maintain the interest rate at 22 per cent.

    The Monetary Policy Committee of the central bank meticulously assessed economic data and the prevailing inflation situation before opting to retain the interest rate. It’s worth noting that substantial progress has been achieved in the current account, thanks to government initiatives.

    This decision comes against the backdrop of Pakistan contending with a high inflation rate, currently pegged at 29.65 per cent.

  • Karachi residents disappointed as ATMs run out of cash ahead of Eid-ul-Azha

    Karachi residents disappointed as ATMs run out of cash ahead of Eid-ul-Azha

    As the country prepares to celebrate Eid-ul-Azha on June 29, the residents of Karachi are encountering a pressing issue with the depletion of cash in automated teller machines (ATMs).

    Consumers have expressed their grievances regarding the frequent unavailability of ATM services during the lead-up to Eid festivities.

    “We have made multiple visits to ATMs since this morning, only to find them out of order and devoid of cash,” shared concerned individuals.

    It is not uncommon for consumers to encounter difficulties with ATMs nearing the arrival of Eid. This situation arises due to the heightened demand for cash withdrawals, particularly for the purchase of sacrificial animals.

    Pakistan is set to observe Eid on June 29 (Thursday). The government has declared a four-day holiday for the public, including the Day of Arafah, which falls on June 28.

  • President takes notice of increasing online bank frauds in Pakistan

    President takes notice of increasing online bank frauds in Pakistan

    President Dr Arif Alvi has taken serious notice of the rising trend of online banking frauds where fraudsters obtained contact details of banks’ clients by impersonating bank officials to get account and banking information and then used these details to swindle money out of clients’ accounts.

    In a press release released on Saturday, the President directed the Banking Mohtasib of Pakistan (BMP) to take serious notice of this worrisome trend and implement meaningful, effective measures, such as appropriate checks and balances and foolproof security systems that could distinguish between genuine and fraudulent transactions, to curb this threat urgently.

    A renowned novelist and playwright, Mirza Athar Baig, had his bank account robbed of Rs1.1 million by an online fraudster, according to news reports. The president’s secretariat has asked Baig to lodge a complaint and formally raise the issue with BMP to get relief from the bank.

    Under the president’s direction, the president’s secretariat has advised Mirza Athar Baig to file a complaint and formally raise the issue with the BMP in case the bank is unable to fix his problem and reimburse him within the allotted time limit.

    Even though he had resolved hundreds of such cases through the BMP and given comfort to those who had been affected by internet frauds, the president expressed disappointment that fraudulent activities and practises were growing in the banking sector.

    Additionally, he underlined the importance of bringing about structured and methodical improvements in online banking systems by swiftly detecting fraudsters and enforcing severe, exemplary sanctions against them.

  • New bank timings announced by SBP, Saturday will now be observed as a working day

    New bank timings announced by SBP, Saturday will now be observed as a working day

    Pursuant to the federal government’s directive issued on April 13, the State Bank of Pakistan (SBP) would observe a six-day work week with amended timings.

    During Ramzan, working hours for the central bank, development finance institutions (DFIs), microfinance banks (MFBs), and all commercial banks, are as follows:

    Monday to Thursday and Saturday from 8:00 am to 3:00 pm with a prayer break from 1:00 pm to 1:30 pm.

    Fridays: from 8:00 am to 1:00 pm without a break, according to a notification from SBP.

    Public dealing hours

    Banks and MFBs have been advised to adhere to the following public dealing business hours:

    Monday through Thursday and Saturday from 8:00 am to 1:00 pm (no break).

    Fridays from 8:00 am to 12:00 pm (no break).

    Banks and MFBs may observe longer business (banking) hours for public dealing from 8:00 am to 2:00 pm (without break) on weekdays excluding Fridays, depending on their business needs.

    The abovementioned schedule will take effect immediately and will not be changed or withdrawn unless it is amended or canceled.