Bank deposits increase to Rs31tr in Jan

February 24, 2025 (MLN): The total deposits held by scheduled banks have moved up by 2.4% to Rs31 trillion in January compared to Rs30.28tr by the end of last month.

When compared to the same month of last year, banks' deposits have risen by 12.6%, compared to Rs27.54tr held in January 2024, data released by the central bank showed.

Total advances decreased by 8.0% to Rs14.73tr compared to Rs16.01tr a month ago. Meanwhile, advances increased by 21.8% from their value of Rs12.09tr from a year ago.

As a result of strong inflow of deposits and weak momentum of advances, the Advances to Deposits Ratio (ADR) dropped to 47.5%, a decrease of 536 basis points on a monthly basis and an increase of 359 bps on a yearly basis.

This reflects persistently weak private sector demand for bank credit amid subdued economic conditions as well as the government’s high demand for bank financing to meet the budget deficit.

Total investments increased by 3.1% to Rs30.02tr from last month. While compared to last year, investments rose 17.3%.

Investment to Deposit Ratio (IDR) moved up by 65bps to 96.8% compared to last month and increased by 387 bps when compared to a year ago.

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