Account holders of Habib Bank Limited (PSX: HBL), United Bank Limited (PSX: UBL), Meezan Bank Limited (PSX: MEBL), Bank AL Habib (PSX: BAHL), and MCB Bank Limited (PSX: MCB) are likely to see their banks emerge as the biggest beneficiaries after the State Bank of Pakistan (SBP) abolished the Minimum Deposit Rate (MDR) requirement for trusts, private limited companies, and individual deposits exceeding Rs. 10 million.

According to Topline Securities, the banking industry could reduce deposit costs by around 50 basis points, translating into an estimated Rs. 20-45 billion in additional annual gross income.

Banks with a larger share of affluent customers and high savings deposits are expected to benefit the most from the policy change.

HBL is among the biggest gainers, with nearly 133,000 Prestige Banking customers holding deposits of approximately Rs. 386 billion.

Meezan Bank, UBL, Bank Alfalah, and Askari Bank also have sizeable premium banking portfolios, while Meezan Bank, Bank AL Habib, Allied Bank, and MCB Bank maintain relatively high proportions of retail and savings deposits, positioning them to benefit from lower funding costs.

Despite the expected gains, analysts believe the overall impact on profitability will remain measured. Affluent customers are generally well-informed about financial products and are more likely to shift their deposits to banks offering the most attractive returns, limiting the extent of long-term savings from the policy change.