Banks’ deposits jump by 17% YoY in Nov to Rs19.7tr

December 15, 2021 (MLN): The total deposits held by commercial banks have shown a growth of 17% YoY to Rs19.7 trillion in Nov’21, compared to Rs16.84tr in the same month of last year on account of strong overseas inflows, data issued by State Bank showed today.

Similarly, on a monthly basis, local banks’ deposits showed a slight increase of 2% from Rs19.3tr in the previous month.

According to the data provided by SBP, investments jumped to Rs13.5tr in Nov’20, showing a growth of 22.5% on a YoY 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 declined marginally by 2% from Rs13.79tr in the previous month.

Consequently, banks' investment to deposit ratio (IDR) has now increased to 68.9% by end of Nov’21 compared to 66% in the same month last year, whereas on a monthly basis, it declined from 71.3%.

Similarly, demand for advances posted positive growth of 18% YoY during the month under review to Rs9.64tr, likewise, on a sequential basis, it inched up by 3% MoM.

Meanwhile, despite SBP’s efforts to incentivize the advances to deposits ratio (ADR) above 50%, it stood at 49% in Nov’21 compared to 48.5% in the same month last year, whereas, on monthly basis, ADR increased by 40bps from its previous month’s level of 48.6%.

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