September 25, 2020

Bank Deposits Reach Rs 690 Billion For FY 2019-20

The sustained policy rate of Pakistan has made deposits in bank an interesting opportunity for the public. The government has set the policy rate at 13.25% and this has made investment in rupee a favorable option as compared to investment in dollars. The exchange rate has also been stable for the past month now which has made the dollar less attractive to investors, who are now opting to invest in either government issued instruments or bank deposits. The bank deposits had reached Rs690 billion up to July, this year and the total deposits stand at Rs13.747 trillion, according to the SBP data.

Bankers say that long term deposits get a 10%-12% return and short term investments get around 8% return, but returns can vary among different banks. According to officials, there are no buyers for dollar currently in the market due to the sustained exchange rate.

Bankers also say that government issued instruments also offer a high return, offering almost 14% return on 12 months maturity instruments. The treasury bills offered by the government offered 14.24% with a maturity of 12 months, while the Pakistan investment Bonds Offer 14.22% on 3-year instruments.

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