Banks’ deposits jump by 17% YoY in Jan to Rs20tn

February 10, 2022 (MLN): The total deposits held by scheduled banks have shown a growth of 17% YoY to around Rs20 trillion in the first month of the calendar year i.e., January 2022, against Rs17.09tn in the same month of last year on account of strong overseas inflows, data issued by State Bank showed today.

However, on a monthly basis, local banks’ deposits showed a slight decrease of 5% from Rs20.97tn in December 2021.

According to the data provided by SBP, investments jumped to Rs14.42tn in Jan’22, showing a growth of 26% 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 increase marginally by 2% from Rs14.12tn in the previous month.

Consequently, banks' investment to deposit ratio (IDR) has now surged to 72% by end of Jan’22 compared to 67% in the same month last year, whereas on a monthly basis, it increased from 67% as well.

Similarly, demand for advances posted positive growth of 17% YoY during the month under review to Rs9.94tn, on the contrary, it inched down by 2% MoM.

Meanwhile, the advances to deposits ratio (ADR) stood at around 50% in Jan’22 compared to 49.6% in the same month last year. On a sequential basis, ADR increased by 116bps from its previous month’s level of 48.39%.

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