Banks’ deposits reach Rs19.2tn in Aug, up by 18% YoY

September 8, 2021 (MLN): The total Deposits held by Commercial Banks have shown a growth of 18% YoY to reach Rs19.2 trillion in Aug’21, compared to Rs16.32tn in the same month of last year on account of strong overseas inflows.

Similarly, on a monthly basis, local banks’ deposits showed a slight growth of 2% from Rs18.8tn in the previous month, data issued by the State Bank of Pakistan (SBP) showed.

According to the data provided by SBP, Investments jumped to Rs13.9tn in Aug’21, showing a growth of 28% 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 from an all-time high of Rs14.1tn in the previous month.

Consequently, banks' investment to deposit ratio (IDR) has now increased to 72% by end of Aug’21 compared to 67% in the same month last year, whereas in the previous month (July’21) it stood at 75%.

Similarly, demand for advances posted positive growth of 11% YoY in Aug'21 to Rs8.93tn, while during 8MCY21 the advances grew 5.2% on the back of elevated demand for credit from the consumer financing segment. Likewise, on a sequential basis, it inched up by 1% MoM.

Meanwhile, despite SBP’s efforts to incentivize the advances to deposits ratio (ADR) above 50%, it remained static at 47% in Aug’21 compared to previous month whereas, on yearly basis, ADR remained lower than its previous year’s levels (49% Aug’20).

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Posted on: 2021-09-08T11:25:00+05:00