KARACHI, June 5: Bank depositors are still not getting better returns despite the assurances from the central bank which has issued warnings to banks to improve the profit rates for the real owners of the money.

The latest data of the SBP issued on Tuesday showed that the banking spread had further inched up in April 2007. But bankers were not ready to accept the figures and argued that the return on deposits had improved. However, the official data did not reflect their claim.

The banking sector spread for April 2007 had increased by three basis points to 7.38pc, from 7.35pc the same month last year.

The lending rates of all banks operating in the country had witnessed an increase of 110bps from 10.20pc to 11.30pc while depositors were offered 3.92 per cent return by banks in April 2007 compared to 2.85pc the same month last year, an increase of 107bps.

Similarly, average spread for the first four months (January-April) of 2007 reached to 7.42pc, up by 13bps compared to 7.29pc in the same period last year.

The lending rates Jan-April 2007 went up by 123bps from 10.04pc to 11.27pc while deposit rates offered had risen by 110bps to 3.85pc from 2.74pc during corresponding period of 2006.

Bankers said that the fresh depositors were getting much better rates. Banks have been encouraging depositors to keep their money for longer periods but seem have failed to bring this situation in their favour.

Analysts said that the average depositors cannot afford to block their money for three to five years as the high inflation rate forced them to withdraw their money to meet their sudden or incidental requirements.

“There is no way to engage money for longer periods except high return which can help the depositors to survive in the rainy days,” said an analyst.