ISLAMABAD – Pakistan’s banking industry’s deposits reached an all-time highat Rs. 14.63 trillion by the end of 2019.
High-interest rates helped commercial banks offer attractive saving ratesto the customers on saving accounts or saving certificates. Some of thecommercial banks promoted the Term Deposit Certificate of various periods,which provides profits on a monthly basis. Resultingly, a large number ofcustomers turned to banks for secure profits on their savings.
So far, commercial banks have offered up to a 13 percent profit on savingon a monthly or quarterly basis which is slightly less than the profit rateoffered by Mutual Funds and National Saving Certificates.
The banking industry’s deposit reserves surged to Rs. 14.4 trillion earlierin June 2019 however it failed to maintain its value due to the outflow ofdeposits by customers due to various reasons. One of the biggest reasonswas the Federal Board of Revenue (FBR), which is now monitoring customers’bank accounts.
A majority of customers with savings less than the value of Rs. 0.5 millionregained their confidence in the banking system with no fear of taxauthority on their money as far as they are fulfilling their requirements.
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In the last month of 2019, banks with their aggressive drive mobilized awhopping Rs. 320 billion in order to meet their yearly deposit targets setby their management.
In 2019, the overall deposits of banking industry grew by 9.5 percentcompared with the deposits of Rs. 13.3 trillion by the end of 2018, showingan increase of Rs. 1.27 trillion in a year.
