NSS records Rs207.57bn outflows during 4MFY23

December 06, 2022 (MLN): The cumulative outflows from the National Savings Schemes (NSS) in 4MFY23 were recorded at Rs207.57 billion, as compared to Rs78.88bn recorded in 4MFY22, the data issued by the Central bank showed on Monday.

Outflows are mainly due to the spread of other investment instruments, and a reduction in purchasing power.

During 4MFY23, the outflows were observed from defense saving certificates, regular income certificates, special saving certificates, and other saving certificates with an amount of Rs18.70bn, Rs4.90bn, Rs50.64bn, and Rs137.90bn, respectively. Whereas, prize bonds attracted Rs4.56bn.

In the month of October 2022 alone, investors pulled out Rs34.13bn, the lowest outflow recorded in the four months of the fiscal year. On the other hand, in October 2021, only Rs6.84bn was recorded in terms of the net outflow of savings.

During the period under review, most of the outflows were recorded in other saving certificates i.e., Rs20.13bn as compared to Rs2.07bn outflows in the same month last year.

It is pertinent to mention that despite higher policy rates and the recent increase in cut-off yields of T-Bills, the Central Directorate of National Savings (CDNS) in October 2022, decreased profit rates on almost all national savings schemes.

Meanwhile, the profit rate has stood at 12.26% per annum on Defence Saving Certificates (DSCs), Regular Income Certificate (RIC) rate is 12.36%, and Special Saving Certificate (SSC) Rates is 13% as of October 5 2022.

Moreover, Bahbood saving certificates (BSC) profit rate decreased by 24bps to 13.92%, while the profit rate on Short-Term Saving Certificate (STSC) stands at 14.90%.

To recall, during FY22, the NSS witnessed a huge outflow of Rs358.68bn, compared to the outflows of Rs317.31bn recorded in FY21, which was the second-highest annual mobilization achieved in the 17-year period.

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