Government of the Punjab, Finance Department has issued Notification on 11-01-2019 in connection with Placement of Funds in Commercial Banks. Detail is as under:
In partial modification of this department letter bearing No.FD(W&M)1-1/70(VII) dated 15.05.2009 on the above noted subject, it is intimated that the competent authority has been pleased to approve the following in order to ensure adequate profit and security of investments by Government Departments, Board, Companies, Autonomous Bodies and Special Institutions etc:-
- Mark-up rates offered by Bank of Punjab may be compared with all Public / Private and Islamic Banks (excluding Specialized Banks, Development Finance Institutions, Microfinance Banks of Foreign Banks operating in Pakistan) having minimum Long Term “AA” rating at the time of placement of funds as evaluated by JCR-VIS or PACRA and published by the State Bank of Pakistan. Rates from Sindh Bank Ltd. And the Bank of Khyber will only be included on reciprocal basis.
- In case Bank of Punjab offers the highest profit rate. Funds may be placed with it.
- In case any of the above referred banks offers the highest profit rate, Bank of Punjab may be given an opportunity to match the profit rate within maximum of 10 days:
- If Bank of Punjab matches the highest profit rate, the funds may be placed with it.
- If Bank of Punjab does not match the highest profit rate or fails to reply within 10 days (after receiving the offer letter), the funds may be placed with the Bank offering the highest profit rate.
2. The compliance of the above instructions may kindly be ensured.
Special thanks to Mr. Zahid Khan for sending the copy of the Notification of Placement of Funds in Commercial Banks.