Islamic Interbank Placements Reach Rs151 Billion

The State Bank of Pakistan (SBP) has reported that total Islamic interbank money market placements reached Rs151.43 billion on February 26, 2026, reflecting continued short-term liquidity management activity within the Shariah-compliant banking segment.

According to data issued by the Domestic Markets and Monetary Management Department, a substantial portion of the transactions originated from placements between conventional banks and Islamic banks or their Islamic banking branches. This category accounted for Rs69 billion, with overnight placements generating weighted average profit rates ranging from 10.50 percent to 11.10 percent.

Interbank activity conducted exclusively within the Islamic banking segment — comprising full-fledged Islamic banks and Islamic branches of conventional institutions — amounted to Rs42 billion. These placements were primarily short-tenor transactions, spanning overnight to two-week maturities, with profit rates recorded between 10.47 percent and 10.75 percent.

In addition, transactions involving non-bank participants — including development finance institutions, corporate entities, mutual funds, insurance companies, and microfinance banks — totalled approximately Rs40.43 billion. Alongside short-term Musharaka and Mudaraba arrangements, the market also recorded three-month unsecured Bai-Muajjal placements at a weighted average return of 10.35 percent.

On the reporting date, overall Islamic interbank profit rates ranged from 10.00 percent to 11.10 percent, indicating relatively stable liquidity conditions within the Shariah-compliant money market and sustained institutional participation across segments.