Random Thoughts

Hurrah! Yet another milestone by State Bank of Pakistan (SBP) on advising Banks to give profit rate on average monthly balance to its customers maintaining Profit & Loss Sharing (PLS) or Savings account in Pak Rupee.  Since last decade SBP has been playing the very role of, or atleast trying to, Central Bank in the economy. It has brought many reforms pertaining to the Banking generally and depositors particularly. Before Dr. Shamshad Akhtar , the 14th Governor of State Bank of Pakistan, Banks used to give profit on saving account not more than 2-3 percent. Thanks to her, she gave order to the all Banks in the country to give profit no less then 6% p.a. If you're not shrewed, you're not supposed to be a Banker - A saying very common. Realizing the jump of 3-4 percent on deposit cost, Bankers found a way to curtail the cost. They decided to adhere with the State Bank policy - Which they're supposed to - and at the same time cut cost by saying, Okay we'l...

Karachi: State Bank of Pakistan (SBP) announced new policy for account opening for individuals- students, low-income people and Zakat entitled people specially. A new policy release by SBP depicts that any individual can open bank account with minimum of Rs. 100, which will be implemented from July 1, 2011. In addition to this, SBP directed all scheduled banks to lift the service charges on the minimum balance. Previously banks were entitled to receive some charges as account balance decrease from minimum level, which was Rs. 500. This has been welcomed largely in the masses and economist too. Experts view this policy as blood to the economy. According to the opinion, most of the population of the country belongs to the lower income group, which was deprived of banking services due to high service charges and minimum balance requirement. Now those people will access the banking services at cheaper price like never offered before. There is trickle down effect of the policy, those d...