Banks deposits go up by 9.42% YoY/2.87% MoM in November 2019

December 6, 2019 (MLN): The total deposits of scheduled banks valued at Rs.14.3 trillion in November 2019, up by 9.42% YoY from Rs.13.07 trillion in November 2018.

According to the data released by the State bank of Pakistan, the total advances of schedules bank increased by 4.45% YoY in November 2019.

On a sequential basis, total deposits of banks grew by 2.87% MoM in November 2019, versus a marginal increase of 0.94% in bank advances for the same period.

As the policy rate increases, the deposits of schedules bank go up. The last highest hike of 150 bps of this CY19 was recorded in the monetary policy rate on May 20, 2019, which brought it to 12.25%, the highest deposit growth was recorded i.e. 7.4% MoM in the month of June of this CY19.

Later on, despite an increase of 100 bps in July’s policy rate which reached to 13.25%, it is observed that the monthly growth in bank deposits was not significant since July 2019.

Moreover, the Central Directorate of National Savings (CDNS) decreased profit rates on all national savings schemes on November 1, 2019, on the account of declining secondary market yields on long term PIBs and T-bills.

However, the advances of scheduled banks showed mixed growth since June 2019.

To recall, MPC decided to leave the monetary policy rate unchanged at 13.25% at its meeting on 22nd November 2019.  

Meanwhile, the total investment by these banks jumped by 44.45% YoY from Rs.5.45 trillion last November 2018 to Rs. 7.88 trillion. On a month-on-month basis, it came down by 0.4% in November when compared to Rs 7.91 trillion in October 2019.

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Posted on: 2019-12-06T14:46:00+05:00