In a notable development, Habib Bank Limited (HBL) and The Bank of Punjab (BoP) have announced new monthly charges on high-value accounts, effective December 20, 2024. The revisions are part of the updated Schedule of Charges for July-December 2024.
HBL’s New Fee Structure
HBL has introduced a 6 percent monthly fee on checking accounts with balances of Rs. 5 billion and above (or equivalent in foreign currency) as of the last day of the month. Additionally, foreign currency accounts will incur a flat 3 percent monthly fee on the closing balance.
BoP’s Updated Charges
Meanwhile, The Bank of Punjab has imposed a 5 percent monthly fee on conventional savings accounts with balances of Rs. 3 billion and above (or equivalent in foreign currency) as of the month-end.
Industry Context
These changes come amid efforts by banks to navigate the federal government’s 16 percent tax on financial institutions with an Advance-to-Deposit Ratio (ADR) of less than 50 percent. The tax, introduced to promote lending, has pushed banks to explore measures to mitigate the impact of the levy.
Earlier Moves in the Sector
Bank Alfalah Limited recently took similar action, implementing a 5 percent monthly fee on all checking accounts.
These policy adjustments mark a significant shift as banks aim to protect their bottom lines, potentially sparking further changes across the banking sector. Customers with high-value accounts are advised to review the revised terms and plan accordingly.
