SBP records Rs151.43 billion in Islamic interbank lending in February

The State Bank of Pakistan (SBP) reported total Islamic interbank money market placements of Rs151.43 billion for February 26, 2026, reflecting active short-term liquidity management within the Shariah-compliant segment.

Data released by the Domestic Markets and Monetary Management Department showed that a major portion of the activity came from transactions between conventional banks and Islamic banks or their branches. This segment accounted for Rs69 billion, with overnight placements earning weighted average returns between 10.50% and 11.10%.

Transactions conducted strictly within the Islamic banking segment, including Islamic banks and Islamic branches of conventional banks, totalled Rs42 billion. These placements were largely for short tenures ranging from overnight to two weeks, with profit rates between 10.47% and 10.75%.

Placements involving non-bank entities such as development finance institutions, corporates, funds, insurance companies and microfinance banks amounted to over Rs40.43 billion. Alongside short-term Musharka and Mudaraba transactions, the market also recorded three-month unsecured Bai-Muajjal placements at a weighted average return of 10.35%.

Overall, Islamic interbank profit rates ranged between 10.00% and 11.10% on the reporting date, indicating steady liquidity conditions in the Shariah-compliant money market.