Banks’ deposits exhibit slow growth of 9% YoY in November

December 11, 2018 (MLN): Pakistan’s Banks’ deposit reached Rs 13,079 billion in November 2018, demonstrating a growth of merely 9% YoY, which is considered the lowest in the last 10 years, a report by JS Global stated on Tuesday.

During the same period, M2 growth reportedly grew by 12% YoY, driven mainly from 19% YoY growth in Net Domestic Assets (NDA).

Net Government Budgetary Borrowings have increased by 13% YoY, where source of funding the borrowing has witnessed a substantial shift.

“As of Nov-2018, budgetary borrowings from State Bank of Pakistan’s fundings have reached 67%, which were 28% during the same period last year” the report added.

As the government has decreased its dependence for budgetary borrowings on the banking sector, the overall Investments of the sector have declined by 36% YoY to Rs 5,459 billion.

Moreover, Banks’ investments in Government securities also declined by 21% YoY in Sep-2018, with 31% YoY drop in PIB investments and 16% YoY dip in MTB investments.

Higher loan growth was primarily dominated by 20% YoY higher private sector credit during the same period, which was likely steered by Food, Textiles, Consumer and Construction segments.

Copyright Mettis Link News

Posted on: 2018-12-11T14:38:00+05:00

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