Banks’ deposits dip by Rs424bn in April: SBP

May 17, 2022 (MLN): The total deposits held by scheduled banks have declined slightly by 2.1% MoM or Rs424 billion to stand around Rs20.1 trillion in the fourth month of the calendar year 2022 i.e., April 2022, data issued by State Bank showed today

Similarly, on a yearly basis, local banks’ deposits jumped by 14% YoY from Rs20.5tr in March 2022 on account of strong overseas inflows.

According to the data provided by SBP, investments jumped to Rs15.2tr in April’22, showing a growth of 22.5% on a yearly basis. The higher growth in investments can be attributed to higher borrowings by the sector.

On a sequential basis, the total investments by commercial banks increased slightly by 1.3% from Rs12.4tr in the previous month.

Consequently, banks' investment to deposit ratio (IDR) on monthly basis jumped by 254 bps to 76% by end of April’22, whereas on a yearly basis, it increased by 514 bps from 70.7%.

Similarly, demand for advances posted positive growth of 23% YoY during the month under review to Rs10.6tr. On a monthly basis, it inched up by 3% MoM from Rs10.3tr.

Meanwhile, the advances to deposits ratio (ADR) inclined by 371 bps to 53% in April’22 compared to 49.3% in the same month last year.

While on a sequential basis, ADR increased by 361 bps from its previous month’s level of 50.4%.

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