KARACHI: The State Bank of Pakistan (SBP) said that 78.3 million depositors, accounting for 98.9% of all depositors, are eligible for protection in the event of a bank failure.
The SBP released the Deposit Protection Corporation’s (DPC) fourth annual report for the fiscal year ending June 30, 2024. The report revealed that its protection fund reached Rs148 billion, reflecting its growing capacity to compensate eligible depositors in case of a bank’s failure.
As of June 30, 2024, there were 79.2 million depositors across member banks, including 64.8 million in the conventional banking system and 14.4 million in the Islamic banking system. The report noted a robust 22% year-on-year (YoY) growth in total deposits, which exceeded Rs31 trillion in FY24. Conventional banking deposits stood at Rs23.8 trillion, while Islamic banking deposits totaled Rs7.4 trillion.
The volume of eligible deposits increased by 20% YoY, rising from Rs14 trillion in June 2023 to Rs16.9 trillion in June 2024. This growth reflects increased public trust in the banking sector, bolstered by a tight monetary policy aimed at combating inflation and maintaining higher interest rates during the fiscal year.
The DPC’s investment portfolio also saw significant growth, reaching Rs148 billion by the end of FY24—a 48% increase compared to the previous year. Total income rose by Rs48 billion, comprising Rs26 billion from a managed investment portfolio and Rs22 billion collected as premiums from member banks.
The report highlighted progress in payouts to depositors of SME Bank, which was declared failed by the SBP under Section 21 of the Deposit Protection Corporation Act, 2016. By the end of June 2024, more than 92% of protected deposits from SME Bank had been paid.
