The Deposit Protection Corporation (DPC), a subsidiary of the State Bank of Pakistan (SBP), has released its fourth Annual Report for the fiscal year 2023-24, providing a detailed overview of its financial performance, operational achievements, and contributions to financial stability. The report, made public on December 13, 2024, underscores DPC’s dedication to safeguarding bank depositors and its pivotal role in ensuring the resilience of Pakistan’s banking sector.
Established under the Deposit Protection Corporation Act, 2016, DPC operates with the mandate of compensating depositors of banks in the rare event of a bank failure as notified by the SBP. The fiscal year 2023-24 report offers comprehensive insights into the Corporation’s operations, including a graphical representation of total and eligible deposits, as well as the coverage ratio of bank depositors.
As of June 30, 2024, Pakistan’s banking sector recorded 79.2 million depositors in scheduled banks. Out of these, more than 78 million depositors are classified as eligible, with their deposits protected up to the limit specified by the Corporation. This extensive coverage ensures that a significant majority of depositors remain secure, fostering trust in the country’s financial system.
A key highlight of the report is the robust state of DPC’s Deposit Protection Fund, which stood at PKR 148 billion by the end of the fiscal year. This fund serves as a financial safety net, enabling DPC to fulfill its mandate of compensating eligible depositors should any member bank face insolvency. The fund’s growth reflects the Corporation’s commitment to maintaining financial stability and instilling confidence among depositors.
In addition to financial disclosures, the annual report outlines the Corporation’s efforts to raise awareness about the deposit protection scheme. Targeted campaigns and informational sessions were conducted across various regions, educating the public about the scheme’s features and benefits. This proactive approach has been instrumental in enhancing depositor confidence and promoting the adoption of formal banking channels.
The report also includes a comprehensive financial review, providing comparative analyses spanning the last five years. Key financial metrics, alongside the auditor’s report and audited financial statements for FY2023-24, have been disclosed to ensure transparency and accountability. These disclosures highlight DPC’s prudent financial management and its commitment to upholding high standards of governance.
The release of the FY2023-24 annual report reaffirms DPC’s critical role in Pakistan’s financial ecosystem. By protecting depositors and reinforcing the stability of the banking sector, the Corporation continues to contribute significantly to the country’s economic resilience.
As Pakistan’s financial landscape evolves, DPC’s efforts to safeguard depositors and promote financial literacy remain vital. The Corporation’s initiatives not only protect individual depositors but also enhance the overall trust in the banking system, paving the way for sustainable economic growth.