February 17, 2023 (MLN): The cumulative outflows from the National Savings Schemes (NSS) in 1HFY23 were recorded at Rs240.21 billion as compared to Rs104.35bn recorded in 1HFY22, the data issued by the State Bank of Pakistan (SBP) showed on Thursday.
During 1HFY23, the outflows were observed from defense saving certificates, regular income certificates, special saving certificates, and other saving certificates with an amount of Rs22.78bn, Rs8.93bn, Rs64.24bn, and Rs151.23bn, respectively whereas, prize bonds attracted Rs6.96bn.
In the month of December 2022 alone, investors pulled out Rs21.73bn as compared to Rs17.42bn outflows recorded in December 2021.
During the period under review, most of the outflows were recorded in special saving certificates i.e., Rs8.26bn as compared to Rs180 million outflows in the same month last year.
The profit rate on defense saving certificates and the Bahbood Saving Certificate stood at 12.26% and 13.92%, respectively, as of October 5, 2022.
Furthermore, the profit rate of the Special Saving Certificate decreased by 60 basis points to 13.60% on November 07, 2022.
At the start of the calendar year 2023, the Central Directorate of National Savings (CDNS) increased the rate of short-term savings certificates and Regular Income Certificates to 15.96%, and 12.60% as of January 12, 2023.
To note, the central bank has increased the policy rate by 10% since September 21, 2021, to 17%.
In a recent treasury bill auction the SBP raised the cut-off yield on 3-month t bills, while 6-month and 12-month cut-off yields remained the same.
These developments indicate that investors are likely seeking higher returns on their investments due to rising interest rates.
