January 12, 2023 (MLN): The total deposits held by scheduled banks have moved up by 7% YoY to Rs22.46 trillion in December 2022 compared to December 2021, data issued by State Bank showed today.
However, on monthly basis, local banks’ deposits remained relatively flat, depicting no significant improvement in foreign inflows.
According to the data provided by SBP, investments jumped to Rs17.9tr in December 2022, showing a growth of 27% 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 decreased by 3% compared to the previous month.
Consequently, banks' investment-to-deposit ratio (IDR) on monthly basis declined by 1.6% to 79.7% by end of December, whereas on a yearly basis, it increased by 12.3%.
Similarly, demand for advances posted positive growth of 17% YoY during the month under review to Rs11.91tr. On a monthly basis, it inched up by 7% MoM.
Meanwhile, the advances to deposits ratio (ADR) inclined by 4.6% YoY and 4.5% to 53% in December 2022.
