BANKING SCENARIO IN PAKISTAN

S.M. ABBAS ZAIDI, S.KAMAL HAYDER KAZMI,
Research Analyst
, PAGE
Nov 10 - 16, 2008

INTEREST RATES
COUNTRIES

SHORT TERM INTEREST RATES %

LONG TERM INTEREST RATES %

Pakistan 13.75 14.95
India 9.00 9.08
Indonesia 10.24 6.98
Malaysia 3.70 4.20
Japan 0.75 1.51
UK 5.69 4.45
USA 2.09 3.64
Source: Economic Intelligence Unit London

BANKING SPREADS
COUNTRIES PERCENT
USA 1.3
Japan 1.7
India 3.1
Sri lanka 4.4
Nepal 5.5
Pakistan 7.05
Source: economic intelligence unit London

PROFIT AND EARNINGS OF THE BANKS
BANKS PAT (Rs m) EPS (Rs) CHANGE IN %
  HY' 08 HY' 07 HY' 08 HY' 07
Allied Bank 2,508 2,752 3.88 4.26 -8.8%
Arif Habib Bank 213 15 0.47 0.03 1311.4%
Askari Bank 409 1,491 1.01 3.67 -72.6%
Atlas Bank (197) 3 (0.39) 0.01 n/m
Bank Alfalah 1,819 1,230 2.28 1.54 47.8%
Bank Al-Habib 1,249 1,128 2.61 2.36 10.8%
Bank Islami (10) (37) (0.02) (0.09) 73.4%
Bank of Khyber 107 166 0.27 0.41 -35.6%
Bank of Punjab (2,629) 1,825 (4.97) 3.45 -244.0%
Cresent Bank (128) (370) (0.15) (0.42) -65.4%
Faysal Bank 746 1,296 1.41 2.45 -42.4%
Habib Bank 6,357 6,576 8.37 8.66 -3.3%
Habib Metro Bank 1,565 1,171 2.60 1.94 33.7%
JS Bank 160 35 0.31 0.07 362.1%
KASB Bank 78 205 0.19 0.51 -62.1%
MCB 7,677 7,663 12.22 12.20 0.2%
Meezan Bank 443 431 0.98 0.95 2.8%
My Bank 431 441 1.02 1.04 -2.1%
NBP 7,881 9,013 8.79 10.05 -12.6%
NIB Bank 659 103 0.23 0.04 541.2%
Royal Bank of Scotland 83 324 0.06 0.24 -74.3%
Saudi Pak (771) 103 (1.54) 0.21 n/m
Soneri Bank 465 498 1.13 1.21 -6.6%
Standard Chartered 1,341 2,569 0.35 0.66 -47.8%
United Bank 5,594 5,631 5.53 5.57 -0.7%
Various sources

ASKARI BANK
PROFIT / MARKUP RATES ON RETAIL PRODUCTS
RATES OF PROFIT PAID TO VALUE PLUS A/C HOLDERS & ON ABIC
PARTICULARS PROFIT RATES
Value Plus Saving Deposits  
Rs. 10,000/- to Rs. 24,999/- 2.50%
Rs. 25,000/- & above 3%
VALUE PLUS TIME DEPOSITS
Three months 5%
Six Months 5.50%
One Year 6%
INVESTMENT CERTIFICATES
First Month 4%
Second Month 4.50%
Third Month 5%
LENDING PRODUCT RATES
PARTICULARS MARKUP RATES
PERSONAL FINANCE
Upto 3 Years 18%
Upto 5 Years 22%
Smart Cash  
1 Year (Renewable) 22%
BUSINESS FINANCE
1 Year 1 Year Kibor + 3% to be reviewed on yearly basis
MORTGAGE FINANCE
20 years maximum 1 Year Kibor + 3% to be reviewed on yearly basis.
Auto Financing 13% to 15%
Source: Askari bank

ALLIED BANK
PLS SAVINGS DEPOSITS PROFIT PER ANNUM
Up to Rs. 100,000 0.10%
Rs. 100,000 & above 1.00%
PPA OPERATIONAL ACCOUNTS
Less than Rs. 100,000 0.10%
Rs. 100,000 to less than Rs. 1,000,000 2.00%
Rs. 1,000,000 to less than Rs. 10,000,000 3.00%
Rs. 10,000,000 to less than Rs. 50,000,000 5.00%
Rs. 50,000,000 to less than Rs. 100,000,000 6.00%
Rs. 100,000,000 to less than Rs. 250,000,000 7.50%
Rs. 250,000,000 to less than Rs. 500,000,000 8.00%
Rs. 500,000,000 & above 8.50%
PPA TERM DEPOSIT ACCOUNTS
Rs. 50,000,000 to less than Rs. 500 000,000 1.25%
Rs. 500,000,000 & above 1.50%
Rs. 50,000,000 to less than Rs. 500,000,000 2.00%
Rs. 500,000,000 & above 2.50%
ALLIED PROFIT PLUS DEPOSIT ACCOUNT
Rs. 500,000 to less than Rs. 1,000,000 5.00%
Rs. 1,000,000 to less than Rs. 5,000,000 6.00%
Rs. 5,000,000 to less than Rs. 10,000,000 6.50%
Rs. 10,000,000 to less than Rs. 25,000,000 7.50%
Rs. 25,000,000 and up to Rs. 50,000,000 8.00%
Source: Allied Bank

MEEZAN BANK
RUPEE SAVINGS ACCOUNT - PROFIT RATES PERIOD SEPTEMBER 01, TO SEPTEMBER 31, 2008
AVERAGE MONTHLY BALANCE (PKR)

PROFIT RATES (% PER ANNUM)

On Average Monthly Balance 5.13%
AVERAGE MONTHLY BALANCE (PKR)
PERIODS

ON AVERAGE MONTHLY BALANCE

June, 2008 5%
July, 2008 5.04%
August, 2008 5.03%
Source: Meezan Bank

ATLAS BANK
INDICATIVE RATES OF PROFIT ON FOREIGN CURRENCY DEPOSITS JULY 1 TO DEC 31, 2008
FOREIGN CURRENCY PARTICULARS EXPECTED RATE
(% P.A.)
US $ SAVINGS  
  $0 to $999 0.00%
  $1,000 to $9,999 2.00%
  $10,000 to $49,999 2.75%
  $50,000 & above 3.00%
  TERM (Min amount - $10,000) UP TO $100,000
  7 - Days 1.50%
  1 - Month 2.25%
  3 - Month 2.75%
  6 - Month 3.00%
  1 - Year 3.20%
GBP SAVINGS  
  0 to 999 0.00%
  1,000 to 9,999 4.00%
  10,000 to 49,999 4.75%
  50,000 & above 5.25%
  TERM (Min amount - 10,000) UNDER 1 00,000
  7 - Days 4.00%
  1 - Month 4.50%
  3 - Month 4.75%
  6 - Month 5.25%
  1 - Year 5.75%
EURO SAVINGS  
  0 to 999 0.00%
  1,000 to 9,999 3.75%
  10,000 to 49,999 4.25%
  50,000 & above 4.75%
  TERM (Min amount - 10,000) UNDER 100,000
  7 - Days 3.00%
  1 - Month 3.50%
  3 - Month 4.00%
  6 - Month 4.50%
  1 - Year 5.00%
Source: Atlas Bank

MCB BANK
PLS DECLARED RATES - JANUARY - JUNE 2008
S.NO CATEGORIES OF DEPOSIT DECLARED RATE OF PROFIT
P. A (%) FOR JAN-MAY 2008
DECLARED RATE OF PROFIT P. A
(%) FOR JUNE 01 TO 30 JUNE'08
1. PLS SAVINGS ACCOUNT
a) If balances remain between Re.* to Rs.20,000/- 0.10 5.00 (Irrespective of any slab)
b) For balances of Rs.20,001/- & above 1.00
2.

KHUSHALI BACHAT ACCOUNT
a) If balances remain between Re.* to Rs.20,00% 0.10 5.00 (Irrespective of any slab)
b) For balances of Rs.20,001/- & above 1.00
3.

PLS SAVINGS - 365
Less than Rs.300,000/- 0.10 5.00 (Irrespective of an slab)
Rs.300,00% & above 1.00
4. SAVINGS 365 GOLD
Less than Rs.500,00% 0.10 5.00
Rs.500,000 to less than 1M* 4.00 5.00
Rs.1M to less than 10M 5.00 5.00
Rs.10M to less than 25M 6.00 6.00
Rs.25M to less than 50M 6.50 6.50
Rs.50M to less than 1MM 7.00 7.00
Rs.100M to less than 250M 7.50 7.50
Rs.250M to less than Rs.500M 8.00 8.00
Rs.500M and above 8.25 8.25
Source: MCB Bank

NIB BANK
PLS SAVINGS NIB AZADI ACCOUNT
DEPOSITS

RATES (PER ANNUM) FOR INDIVIDUALS AND CORPORATE

Rs. 0/- to Rs.2,999,999/- 5.00*%
Rs.3,000,000/- and above Treasury or Business
NIB KHAZANA
DEPOSITS

RATES (PER ANNUM) FOR INDIVIDUALS AND CORPORATE

Rs. 0/- to Rs.2,999,999/- 5.00*%
Rs.3,000,000/- and above Treasury or Business
PLS NOTICE DEPOSIT
DEPOSITS

RATES (PER ANNUM) FOR INDIVIDUALS AND CORPORATE

7 Days - 29 Days 5.00*%
NIB TERM DEPOSIT CERTIFICATES (Khaas)
DEPOSITS

RATES (PER ANNUM) FOR INDIVIDUALS AND CORPORATE

1 year 7.00*%
2 year 8.00*%
3 year 9.00*%
4 year 10.00*%
5 year 10.50*%
NIB AMANAT DEPOSIT
DEPOSITS

RATES (PER ANNUM) FOR INDIVIDUALS AND CORPORATE

PLS Term Deposit (1 Month) 6.00*%
PLS Term Deposit (3 Months) 6.25*%
PLS Term Deposit (6 Months) 6.50*%
PLS Term Deposit (1 Year) 7.25*%
Source: NIB

NBP BANK

1. PLS DEPOSITS
TITLE OF ACCOUNTS

TENTATIVE RATES
(01-07-2008 To 31-12-2008)

1.SPECIAL NOTICE DEPOSIT'S
a). 7 to 29 days Notice 5.00% p.a.
b). Over 30 days Notice 5.00% p.a.
2. SAVING ACCOUNT'S
a). Up to Rs.20,000 5.00% p.a.
b). Above Rs.20,000 5.00% p.a.
3. TERM DEPOSIT'S
a). Three months 5.30% p.a.
b). Six months 5.60% p.a.
c). One year 5.80% p.a.
d). Two years 6.10% p.a.
e). Three years 6.40% p.a.
f). Four years 6.70% p.a.
g). Five years 7.10% p.a.
h). Above five years 7.80% p.a.
2. NBP PREMIUM AAMDANI CERTIFICATE
MONTHLY INCOME SCHEME PERIOD

TENTATIVE RATES
(01-07-2008 To 31-12-2008)

1st Year (from 1 to 12th months) 9.25% p.a.
2nd Year (from 13 to 24th months) 9.50% p.a.
3rd Year (from 25 to 36th months) 10.75% p.a.
4th Year (from 37 to 48th months) 11.00% p.a.
5th Year (from 49 to 60th months) 11.25% p.a.
Source: NBP

UNITED BANK LIMITED
PROJECTED RATES FOR UBL PROFIT COD PROFIT PAYMENT AT MATURITY OPTION Jul 1 - Oct 31, 2008
DEPOSIT TIERS & PRODUCTS JUL 1- 31, 2008  AUG 1- 31, 2008 SEP 1- 30, 2008  OCT 1- 31, 2008
3 Months 8.25% 8.5o% 9.00% 9.35%
6 months 8.5o% 8.75% 9.25% 9.50%
1 year 9.50% 9.75% 10.50% 10.65%
2 year 1150% 11.50% 11.50% 11.5o%
3 years 12.75% 12.75% 12.50% 12.50%
4years 13.25% 13.25% 14.00% 14.00%
5 years 13.75% 13.75% 14.50% 14.50%
6 years 14.25% 14.25% 15.00% 1;5.oo%
7 years 14.75% 14.75% 15.5o% 1;5.50%
8 years 15.25% 15.25% 16.00% 16.00%
9 years 15.75% 15.75% 16.50% 16.5o%
to years 16.25% 16.25% 17.00% 17.00%
PROJECTED RATES FOR UBL PROFIT COD MONTHLY PROFIT PAYMENT OPTION JUL 1 - OCT 31, 2008
DEPOSIT TIERS & PRODUCTS JUL 1- 31, 2008  AUG 1- 31, 2008 SEP 1- 30, 2008  OCT 1- 31, 2008
1 year 9.00% 9.30% 9.70% 10.00%
2 year 9.80% 9.90% 9.90% 10.00%
3 years 10.40% 10.50% 10.50% 10.50%
4 years 10.20% 10.20% 10.50% 10.50%
5 years 10.00% 10.00% 10.40% 10.40%
6 years 9.80% 9.90% 10.30% 10.30%
7years 9.70% 9.70% 10.10% 10.10%
8 years 9.60% 9.60% 10.00% 10.00%
9 years 9.50% 9.50% 9.90% 9.90%
10 years 9.40% 9.50% 9.60% 9.90%
Source: UBL

HABIB BANK LIMITED

1 PLS SAVING CHEQUING ACCOUNT INTEREST RATES
( w-e-f 01-01-2008 to 31-05-2008  
for balance from Rs 1/- to 20,000/- 0.1%
for balance from Rs.20,001/- & above 1%
(w-e-f 01-06-2008 to 30-06-2008)  
for balance from Re.1/- and above 5%
2 PLS SPECIAL SAVING BANK DEPOSITS
(w-e-f 01-01-2008 to 31-05-2008)  
only daily actual deposits of less than Rs 20,00/= 0.1%
only daily actual deposits of Rs 20,000/= but less than Rs 25 (M) 1.5%
only daily actual deposits of Rs. 100(M) but less than Rs 250(M) 2.5%
only daily actual deposits of Rs.500(M) but less than Rs.1000(M) 3%
only daily actual deposits of Rs.1000(m) but less than Rs. 2000(M) 3.25%
(w-e-f 01-06-2008 TO 31-06-2008)  
on daily actual deposits of less than Rs.2000(M) 5%
3 HBL VALUE ACCOUNT
(w-e-f 01-01-2008 to 31-05-2008) 7%
(w-e-f 01-06-2008 to 30-06-2008)  
4 ENHANCED SAVING ACCOUNT
(w-e-f 01-01-2008 to 31-05-2008)  
for balance from Rs 1/- to Rs.20,00/- 4%
for balance from Rs.20,0001/- & above 1%
5 BUSINESS VALUE ACCOUNT
On daily actual deposits of Rs. 1(M) but less than Rs.2.5(M) 4.25%
On daily actual deposits of Rs. 2.5 and above 5.25%
6 MUNAFA PLUS DEPOSIT
after maturity  
three months 6.15%
six months 6.75%
for one year 8.3%
for three years 10%
for five years 11%
for ten years 14%
Source: HBL