Warning to banks

RECORDER REPORT

KARACHI: The State Bank of Pakistan has asked banks to fix a minimum 6 percent profit rate on all saving schemes. Any violation of this instruction by any bank will render it liable for a punitive action.

According to a SBP’s BPRD Circular No. 01 issued on Friday in the line with the SBP announcement to increase the profit rate on all saving scheme by one percent to 6 percent with effect from May 1, 2012.

SBP has referred banks to BPRD Circular No.07 dated May 30, 2008 wherein minimum rate of profit on all saving deposits was fixed 5.0 percent per annum.

“It has now been decided that the minimum profit rate would be 6.0 percent per annum on all Pak Rupee saving deposits with effect from May 01, 2012,” the circular said. SBP has also clarified that this rate of profit will be applicable on all existing and new saving deposits, including term deposits.

Other instructions on the subject shall remain the same. Any violation of the above instruction will render the bank liable for a punitive action under the relevant provisions of the Banking Companies Ordinance 1962, the circular concluded.