The State Bank of Pakistan (SBP) Friday directed the commercial banks to pay minimum annual profit rate of 6.0 percent on all Pak Rupee saving deposits on average monthly balances. The order would take effect from April 1 (2013). This rate of profit would be applicable on all existing and new saving deposits including the term deposits, said a circular issued by the central bank Friday. This step of SBP, the circular said, was likely to promote savings and increase the financial market depth and intermediation. Any violation of the above instruction would render the bank liable for punitive action under the relevant provisions of the Banking Companies Ordinance 1962, warned the regulator. The market analyst, however, expected the central bank to give a retrospective effect to its order.
