February 16, 2023 (MLN): The total deposits held by scheduled banks have moved up by 14% YoY to Rs22.8 trillion in January 2023 compared to January 2022, data issued by State Bank showed today.
However, on monthly basis, local banks’ deposits have edged lower by 1.3% MoM, compared to Rs22.46bn in December 2022.
According to the data provided by SBP, investments jumped to Rs19.3tr in January 2023, showing a growth of 34% YoY and 7.8% MoM. The higher growth in investments can be attributed to higher borrowings by the sector.
Consequently, banks' investment-to-deposit ratio (IDR) on monthly basis increased to 84.8% by end of January 2023, up by 12.5% YoY while on monthly basis, inched up by 511bps.
Similarly, demand for advances posted positive growth of 17.2% YoY during the month under review to Rs11.65tr. On a monthly basis, it edged lower by 2.1% MoM.
Meanwhile, the advances to deposits ratio (ADR) inclined by 139bps YoY to 51.2% in January 2023 whereas, the same was decreased by 178bps on monthly basis.
