The Deposit Protection Corporation (DPC), a subsidiary of the State Bank of Pakistan (SBP), has released its fourth Annual Report for the fiscal year ending June 2024. The report provides a comprehensive overview of the Corporation’s financial performance, operational achievements, and strategic initiatives aimed at strengthening the country’s banking sector. DPC, established under the Deposit Protection Corporation Act, 2016, carries the critical mandate of safeguarding depositors’ funds in the unlikely event of bank failures, as notified by the SBP.
The Annual Report 2023-24 highlights DPC’s pivotal role in enhancing depositor confidence and promoting financial stability in Pakistan. As of June 30, 2024, the report reveals that there are 79.2 million depositors across scheduled banks in the country. Out of this, over 78 million depositors qualify as ‘eligible depositors,’ whose deposits are protected up to the specified coverage amount determined by the Corporation. This extensive coverage ensures protection for a vast majority of depositors, underscoring DPC’s commitment to its mandate.
A key highlight of the report is the robust growth of DPC’s deposit protection fund, which has reached PKR 148 billion as of June 2024. This significant fund size reflects the Corporation’s proactive efforts in building a strong financial cushion to compensate eligible depositors in the rare event of a member bank’s failure. The fund’s resilience serves as a critical tool in maintaining trust in the banking system, further solidifying DPC’s contribution to financial security in the country.
The report also includes detailed graphical illustrations that provide insights into the total and eligible deposits, as well as the coverage ratio for banks’ depositors. These visual representations offer stakeholders a clearer understanding of DPC’s operational impact and the extent of depositor protection provided across the sector.
DPC’s Annual Report 2023-24 sheds light on the Corporation’s efforts to raise awareness about deposit protection schemes. Targeted campaigns and informative sessions were conducted in various regions of Pakistan to educate depositors on the benefits and features of the protection scheme. These initiatives aim to improve financial literacy and ensure that depositors are well-informed about their rights and the safeguards available to them.
Additionally, the report features a comprehensive financial review, including comparative analyses spanning the past five fiscal years. This section provides stakeholders with a transparent view of the Corporation’s financial health and growth trajectory. The inclusion of the auditor’s report and audited financial statements for FY2023-24 further reinforces DPC’s commitment to transparency and accountability.
The Deposit Protection Corporation’s Annual Report serves as a valuable resource for policymakers, financial institutions, and depositors alike. By providing complete disclosure of its activities and achievements, the report highlights DPC’s integral role in fostering a stable and resilient banking environment in Pakistan.
For those interested in exploring the full report, it is available for public access on the DPC’s official website at: https://www.dpc.org.pk/Publications/AnnualReports/AR-2023-24.pdf.
The release of the Annual Report 2023-24 reaffirms DPC’s dedication to safeguarding depositors’ interests and promoting confidence in the banking sector. As Pakistan continues to navigate economic challenges, the Corporation’s efforts remain instrumental in ensuring the financial security of millions of depositors and strengthening the foundations of the country’s financial system.