5pc minimum profit on bank saving deposits

KARACHI (APP) - State Bank of Pakistan has decided to introduce a minimum profit rate of 5 percent per annum on all categories of savings/ PLS saving deposits , including any other profit bearing deposit with no fixed maturity, to all existing and new depositors. The decision will be effective from 1st June 2008, says SBP statement here Friday. The profit payable on savings/ PLS savings deposits will be calculated on at least the minimum monthly balances , regardless of bank's own minimum balance requirements. However, banks are free to pay profit rate on daily product or on average balance basis. Nevertheless, the minimum floor profit rate on all savings/ PLS savings will be 5 percent per annum. The above instructions are issued in exercise of the powers vested upon SBP under the Banking Companies Ordinance- 1962. Any violation of the above instructions will render the bank liable for punitive action under the relevant provisions of the aforesaid law, the Central Bank warned.

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