KARACHI: The State Bank of Pakistan (SBP) on Friday introduced a soft loan scheme at four percent for persons appeared on Active Taxpayers List (ATL) for payment of salaries and wages to their employees during financial challenges of lockdown to contain coronavirus spread.
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Get the latest State Bank of Pakistan (SBP) news, monetary policy updates, exchange rates, banking regulations, and economic insights.
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Bank deposits hit record high at Rs15.13 trillion
KARACHI: Bank deposits hit record high at Rs15.13 trillion by end of March 2020, according to data released by State Bank of Pakistan (SBP).
The deposits of the banking sector grew by 12.4 percent YoY and 2.1 percent MoM in March 2020 to Rs15.13 trillion. The deposits are also up 3.4 percent in YTD 2020.
Analysts at Topline Securities said that banks’ focus for deposit mobilization remained more towards Investments compared to Advances during the period given the high yields on govt. papers.
As a result, Investments grew by 61.7 percent YoY and 6.6 percent MoM to Rs9.30 trillion in March 2020, with Investment to Deposit Ratio (IDR) increasing to 61.5 percent in March 2020 from 42.7 percent in March 2019 and 58.9 percent in Feb-2019. The Investments are also up 5.6 percent in YTD 2020.
On the other hand, Advances grew by just 4.7 percent YoY and 0.6 percent MoM in March 2020 hindered by high interest rates and slowdown in overall economic activity.
The Advances are up only 1.2 percent during YTD 2020. As a result, ADR dropped to 54.6 percent in March 2020 from 58.6 percent in March 2019 and 55.4 percent in Feb-2020.
As per the available 2M2020 numbers, Advances to the textile and consumer sectors increased by 9 percent YoY each.
The Currency in Circulation (CIC) in YTD 2020 has registered an increase of 6.5 percent to Rs5.6 trillion. Additionally, CIC as a percentage of M2 clocked in at 29 percent above the historic 5-year average of 27 percent.
Going forward, we see limited Deposit growth in the range of 6-7 percent during 2020 (vs. historical average 3-year growth of 11 percent), in line with the nominal GDP growth amidst slowdown in economic activity because of the outbreak of Covid-19. We expect Advances to grow by around 5 percent during the year (vs. historical average 3-year growth of 14 percent).
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SBP forex reserves fall by $463 million on debt repayment
KARACHI: The State Bank of Pakistan (SBP) reported a significant drop in the official foreign exchange reserves by $399 million for the week ending April 3, 2020.
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Bank timings during lockdown
KARACHI: State Bank of Pakistan (SBP) on Tuesday extended the office timings of the central bank and commercial banks during the lockdown period.
Many parts of the country are facing lockdown in order to contain the spread of coronavirus (COVID-19).
The SBP issued a notification dated March 26, 2020 and directed to observe office timings: Monday to Thursday 10:00AM to 4:00PM; and Friday (10:00AM to 1:00PM).
The SBP said that the above timings shall continue till April 14, 2020 (date included), unless modified or withdrawn earlier.
Accordingly, banks/development financial institutions/microfinance banks have also been directed to observe the mentioned timings in letter and spirit.
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SBP exempts service charges on payment made to PM Corona Relief Fund
KARACHI: State Bank of Pakistan (SBP) has exempted services charges on donations made to Prime Minister Corona Relief Fund through payment cards.
The SBP in a statement on Tuesday said that it previously issued a circular on August 06, 2018 on Service Charges on Donations/ Payments to Supreme Court of Pakistan’s Diamer Bhasha and Mohmand Dam Fund through Payment Cards.
In this regard, it has been decided that the scope of the Circular would also cover Payments/Donations made to the Prime Minister’s as well as provincial governments’ Covid19 Pandemic Relief Funds.
Accordingly, all issuing and acquiring banks in Pakistan shall not charge any service fee including Interchange Reimbursement Fee (IRF), Merchant Discount Rate (MDR), Merchant ID Fee, on boarding fee or any other fee that may be applicable on any transactions made to the said account.
The issuing and acquiring banks/microfinance banks/payment schemes are advised to meticulously comply with these instructions.
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SBP relaxes loan conditions for hospitals combating coronavirus
KARACHI: State Bank of Pakistan (SBP) on Monday further relaxed conditions for refinance facilities for hospitals that are engaged in combating the coronavirus (COVID-19).
The central bank in a statement said that since the outbreak of COVID‐19, the SBP has taken a number of measures to support the economy. One of the earliest measures taken by SBP was to support the hospitals, which have been at the fore front in combating the disease, by providing them a facility to meet their financial needs namely the SBP Refinance Facility to Combat COVID‐19 (RFCC) on March 17, 2020.
Since then SBP received several suggestions by stakeholders to further improve it. Keeping in view such suggestions, SBP has provided more flexibility under RFCC to facilitate the health sector further.
Hospitals and medical centres engaged in fight against COVID‐19 will now be allowed to avail financing against their existing equipment and purchase of refurbished equipment as well, provided the same are used in creation of special facility/isolation ward to deal with COVID‐19.
Moreover, maximum coverage of 60 percent of civil works for setting up separate /isolation facility, has also been enhanced to 100 percent. Banks have been directed to ensure that financing extended under this facility is utilized for the intended purpose.
It is believed that above changes would help hospitals/medical centres avail SBP’s refinance facility with much ease.
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SBP sets up direct helpline to facilitate banking consumers
KARACHI: State Bank of Pakistan (SBP) has facilitated consumers of banks by setting up direct helpline for quick disposal of complaints amid difficult situations due to coronavirus.
In a statement issued on Monday, the central bank said it had taken additional measures to facilitate bank customers that are faced with extraordinary challenges arising out of COVID-19 situation in the country.
They can now approach SBP through its helpline service in case their queries or complaints are not being responded by banks.
The SBP also encourages public to use digital payment services as much as possible to help banks providing their services with minimal staff to ensure their safety.
SBP has taken notice of phone calls to banks’ customers by fraudsters seeking personal information taking advantage of the current conditions. Following are the details of measures taken.
To facilitate banking consumers, SBP has advised all banks to ensure that their call centers/helplines are available 24/7 for instant customer support.
Banking consumers are encouraged to approach banks through helpline for queries or lodging complaints. In case complainants do not get an appropriate response from banks, they may approach SBP helpline at 021-111-727-273, which will remain available during office hours.
To cater to the needs of the public for facilitation and guidance, SBP has enhanced its helpline capacity by deploying more agents at its call center.
The general public is encouraged to take appropriate safety measures in the context of the coronavirus and use alternate delivery channels where possible.
SBP recognizes that the employees of banks and other financial institutions are providing services amid the difficult working conditions arising due to COVID-19.
For the protection of bank employees and customers, work place safety and to meet the operational challenges in serving the bank customers, banks have been advised to implement guidelines issued by World Health Organization, the Government of Pakistan and the Provincial Governments in letter and spirit.
Nevertheless, bank employees and customers still facing difficulties or having concerns over arrangements may bring this to the notice of SBP.
For this purpose, queries, concerns, complaints may be emailed to SBP at [email protected].
SBP has time and again advised the general public through various channels of communication not to disclose or share any personal information about their bank accounts or credit/debit cards including CNIC number, debit or credit card number, passwords, PINs and one-time password (OTP), etc. on incoming phone calls or messages.
It has been brought to the notice of SBP that fraudsters, imitating as officials of SBP, bank or any other government agency, have been attempting to seek personal information from the public on the pretext of verification of account due to emergency conditions under COVID-19 pandemic.
It is reiterated that SBP, banks or any other agency are not collecting information from banking customers regarding their bank accounts or cards.
The SBP never asks for any personal information directly from bank customers. The general public is, therefore, advised again not to disclose personal information on incoming calls.
Details of any such call or message received by the public may also be reported to SBP Helpline at 021-111-727-273 or emailed at [email protected]
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SBP allows relief package relaxations to refinance scheme borrowers
KARACHI: State Bank of Pakistan (SBP) on Friday allowed easy loans, as allowed under relief package, to borrowers of refinance schemes.
In a statement issued the central bank said that it had allowed similar relaxations, as provided under the relief package, on its concessional refinance schemes.
The SBP is continuously reviewing the challenges arising out of COVID-19 pandemic situation with particular reference to the financial sector and taking measures.
Expanding the scope of its recently announced relief package for households and businesses, SBP has taken another major step today.
Under various refinance schemes loans are provided with preferential terms and conditions to promote growth in priority sectors of the economy.
Now the relaxation allowed for deferment in repayment of principal amount for one year for corporate, consumer, agriculture, SMEs and microfinance sectors, will now be available on financing of banks/ DFIs under SBP’s refinance schemes as well.
With this deferment of principal, the complete repayment schedule/tenor of the loan will be extended by one year.
The borrowers will, however, continue servicing their mark up during the period of principal deferment. In case borrowers are not able to service mark-up payment, banks/DFIs may reschedule/restructure the loan in such a manner that tenor of the loan can go up to one year beyond the existing maximum tenor of the respective scheme.
Borrowers of SBP’s following refinance schemes and their Shariah alternatives would benefit from this relaxation:
Long Term Financing Facility (LTFF)
Financing Facility for Storage of Agricultural Produce (FFSAP)
Refinance Facility for Modernization of SMEs
Refinance and Credit Guarantee Scheme for Women Entrepreneurs
Refinance Scheme for Working Capital Financing of Small Enterprises and Low-End Medium Enterprises
Small Enterprise (SE) Financing and Credit Guarantee Scheme for Special Persons
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SBP’s official reserves fall by $804 million in a week
KARACHI: The official foreign exchange reserves of State Bank of Pakistan (SBP) have decreased by $804 million during one week due to external debt payment.
The SBP on Thursday said that during the week ended March 27, 2020 its reserves fell by $840 million to $11.185 billion from $11.989 billion a week ago.
“This decline is attributed primarily to government external debt payments that amounted to $441 million and other official payments,” the SBP said.
The total liquid foreign reserves of the country fell by $718 million to $17.387 billion on March 27, 2020 as compared with $18.105 billion a week ago.
The reserves held by the commercial banks however increased by $86 million to $6.202 billion by week ended March 27, 2020 as compared with $6.116 billion a week ago.
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SBP issues instructions to banks on PM corona relief fund
KARACHI: State Bank of Pakistan (SBP) has issued instructions to all commercial banks and microfinance banks regarding receiving payments under newly established PM COVID-19 Pandemic Relief Fund 2020.
In a circular issued on Thursday, the central bank said that the government had notified establishment of a relief fund, namely, Prime Minister’s COVID-19 Pandemic Relief Fund-2020, for providing relief and assistance to the people of Pakistan affected by the COVID-19 pandemic in the country. The Fund shall accept donations / contributions both from domestic and international sources.
The government has taken a number of steps with a view to enhance transparency in receipts into and payments out of the fund, including the following:
Cash balance of the Fund shall be kept separate from and independent of cash balance of the general government account;
Government shall commission separate audit reports on the receipts and payments of the Fund, including audit report by one of the local affiliates of big-four international accounting and auditing firms; and
The Fund will be administered by the Poverty Alleviation and Social Safety Division in consultation with the Finance Division.
The SBP said that a bank account of the Fund has been established for public donations as per the details given below:
Account Title: Prime Minister’s COVID-19 Pandemic Relief Fund-2020
Account No: 4162-786-786
IBAN: PK11NBPA0002004162786786
SWIFT code: NBPAPKKAMBR
Bank: National Bank of Pakistan (NBP)
Branch: Main Branch, I.I. Chundrigar Road, Karachi
The SBP said that the donors have been provided multiple options for making donation/ contribution to the Fund as described below:
A. Overseas Donors:
a. Wire Transfer:
Overseas donors including overseas Pakistanis may donate to the Fund through wire transfer to the Fund account detailed above. They would simply advise their respective banks to transmit the donation amount in the Fund account by debiting their accounts. The NBP shall transmit the donations received in the Fund account to SBP on daily-basis through ‘Real Time Gross Settlement’ (RTGS) system along with name of donor, country of residence and amount of contribution in both foreign currency and PKR.
b. E-Payment Gateway:
Donation / contribution can also be made to the Fund account through a link available at NBP website by using debit / credit cards.
c. Transfer through Money Service Bureaus, Money Transfer Operators and Exchange Houses:
Overseas donors may also donate / contribute through Money Service Bureaus (MSBs), Money Transfer Operators (MTOs) (e.g. MoneyGram, Western Union) and Exchange Houses (EHs) in line with the arrangements in place for receiving home remittances. Banks receiving such remittances shall transfer the same through RTGS to the above mentioned account of the NBP every thirty minutes during the banking hours, besides providing the details of their particulars [as specified under A(a) above] to them for the purpose of maintain the register.
B. Domestic Donors:
a. Cash Deposits at Banks’ Counters:
Donors and contributors may make their donations / contributions to the fund in cash at any branch of any bank operating in Pakistan, which shall transfer the amount of donations so received to NBP’s above mentioned account through RTGS after every 30 minutes during the banking hours. Similarly, donations/ contributions may also be made at any of the field offices of SBP Banking Services Corporation.
b. Deposit of Crossed Cheques in the Name of the Fund in Bank’s Drop Boxes:
The donors and contributors may make their donations / contributions to the Fund by dropping crossed cheques in the name of the Fund in their respective bank’s drop box. All banks shall make available drop box facility at their selected branches for donors where they may drop their crossed cheques in favor of the Fund. The banks shall, accordingly debit the customer’s account and transfer the proceeds through RTGS/IBFT to the Fund account at NBP.
c. Alternate Delivery Channels:
The donor may also use alternate delivery channels e.g. internet banking, mobile banking, automated teller machines (ATMs) and mobile wallets etc. to donate / contribute to the Fund account through Inter-Bank Fund Transfer Facility (IBFT). For this purpose, they will use the IBAN of the Fund given above.
Note: M/s 1-link will submit on daily basis the report of all donations routed through ADCs and IBFT to NBP by giving the particulars of donors including name, bank and branch of deposit, amount of donations etc.
d. E-Payment Gateway:
Donation / contribution can also be made to the Fund account through a link available at NBP website by using debit / credit cards.
NBP shall transfer all the receipts to SBP through RTGS for credit to the Fund account with SBP on daily basis.