Banking sector spread increase by 10 bps in June

News Image

MG News | July 22, 2020 at 01:55 PM GMT+05:00

0:00

July 22, 2020 (MLN): The Banking sector spread for June 2020 slightly increased by 10 basis points (bps) over the month which brings its latest value to 5.75% as compared to prior month's spread of 5.65%. On the contrary, the spread has reduced by 3 bps as compared to the same period last year.

In line with the State Bank of Pakistan's monthly data released on Weighted Average Lending & Deposit Rates, the lending rate for all banks (inclusive of zero markup) compressed by 67 bps as it stood at 10.08%. Meanwhile, the deposit rate contracted by 78 bps over month, thus bringing the latest rate to 4.33%.

According to the report by Sherman Securities, generally, the impact of policy rate cut is directly reflected in deposits rates, while impact on lending rates is reflected with a lag and to note, policy rate has been reduced by 625bps during Mar-June 2020 by SBP, owing to both lower inflation and countering negative impact of Covid-19.

However, banking spread during this period increased by 57 bps, where deposits rates declined by 258 bps, while lending rates declined by 201 bps, it added.

Moreover, going forward,  the impact of policy rate cut during 2HCY20 is expected to be fully reflected in banking sector spread , the report highlighted.

 

Copyright Mettis Link News

Related News

Name Price/Vol %Chg/NChg
KSE100 134,299.77
290.06M
0.39%
517.42
ALLSHR 84,018.16
764.12M
0.48%
402.35
KSE30 40,814.29
132.59M
0.33%
132.52
KMI30 192,589.16
116.24M
0.49%
948.28
KMIALLSHR 56,072.25
387.69M
0.32%
180.74
BKTi 36,971.75
19.46M
-0.05%
-16.94
OGTi 28,240.28
6.19M
0.21%
58.78
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 118,140.00 119,450.00
115,635.00
4270.00
3.75%
BRENT CRUDE 70.63 70.71
68.55
1.99
2.90%
RICHARDS BAY COAL MONTHLY 97.50 0.00
0.00
1.10
1.14%
ROTTERDAM COAL MONTHLY 108.75 108.75
108.75
0.40
0.37%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 68.75 68.77
66.50
2.18
3.27%
SUGAR #11 WORLD 16.56 16.60
16.20
0.30
1.85%

Chart of the Day


Latest News
July 13, 2025 at 10:26 AM GMT+05:00

K-Electric dispels rumours of peak hour changes


July 11, 2025 at 10:56 PM GMT+05:00

Gold price in Pakistan rises Rs2,300 per tola


July 11, 2025 at 05:49 PM GMT+05:00

PKR gains 10 paisa per USD


July 11, 2025 at 05:41 PM GMT+05:00

PSX Closing Bell: Bulls Serenade The Bourse


July 11, 2025 at 05:06 PM GMT+05:00

UBL doubles profit to Rs65bn in 1HCY25



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg