HBL and The Bank of Punjab Introduce Monthly Fees on High-Value Accounts

In a notable development,Habib Bank Limited (HBL)andThe Bank of Punjab (BoP)have announced new monthly charges on high-value accounts, effective December 20, 2024. The revisions are part of the updatedSchedule of Chargesfor July-December 2024. HBL has introduced a6 percent monthly feeon checking accounts with balances ofRs. 5 billion and above(or equivalent in foreign currency) as of the last day of the month. Additionally, foreign currency accounts will incur a flat3 percent monthly feeon the closing balance. Meanwhile, The Bank of Punjab has imposed a5 percent monthly feeon conventional savings accounts with balances ofRs. 3 billion and above(or equivalent in foreign currency) as of the month-end. These changes come amid efforts by banks to navigate the federal government’s16 percent taxon financial institutions with anAdvance-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. Bank Alfalah Limitedrecently took similar action, implementing a5 percent monthly feeon 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.