In a significant development, Bank Alfalah Limited (BAFL) has decided to unilaterally withdraw its 5 percent monthly fee on month-end balances exceeding Rs. 5 billion, effective immediately. The decision comes following customer feedback and recent reviews of its fee structure.
Previously, BAFL had amended its Schedule of Charges on November 12, 2024, to introduce this levy on high-value checking accounts. The fee applied to month-end balances in excess of Rs. 5 billion across all checking accounts. The announcement had stirred discussions within the banking industry and among high-net-worth individuals.
Notably, the move by BAFL had set a precedent, prompting other major banks, including Habib Bank Limited (HBL) and The Bank of Punjab (BoP), to impose similar monthly fees on high-value accounts. BAFL’s latest decision to roll back the fee may lead to further reconsideration by its competitors.
SBP Sets Profit Benchmark for Islamic Banks
In another key development in the banking sector, the State Bank of Pakistan (SBP) has mandated that Islamic Banking Institutions (IBIs) must pay a profit on PKR savings deposits equivalent to at least 75 percent of the weighted average gross yield of all pools of an IBI. This regulation, however, excludes deposits from financial institutions, public sector enterprises, and public limited companies.
The SBP’s directive aims to ensure equitable returns for depositors, particularly in the Islamic banking segment, fostering transparency and fair practices. This move is expected to strengthen depositors’ confidence and enhance the competitive landscape of Islamic banking in Pakistan.
