89 basis points rise in banks lending rates

The average banking sector spread declined to 7.31 percent in 11 months of 2007 up to November, down by 9 basis points (bps) from the average spread of 7.39 percent recorded in the corresponding period in 2006.
The lending rates of banks operating in Pakistan went up by 89 bps, to 11.30 percent, in the period under review from 10.41 percent in the same period a year ago, while deposit rates increased by 97 bps, to 3.99 percent, in the 11 months of 2007 from 3.02 percent in the same period of 2006.
Arif Malik, senior analyst at JS Global Capital, said that banking sector spread for November 2007, was recorded at 7.19 percent, down by 21 bps from 7.40 percent seen in November 2006.
For November 2007, lending rates of all banks operating in Pakistan went up by 31 bps, from 10.99 percent to 11.30 percent, while deposits rates offered by banks increased to 4.11 percent in November 07 from 3.59 percent in November 2006, an increase of 52 bps.