Banks’ deposits reach Rs20.5tr in March, up by 14% YoY

April 20, 2022 (MLN): The total deposits held by scheduled banks have shown a growth of 14% YoY to stand around Rs20.47 trillion in the third month of the calendar year 2022 i.e., March 2022, against Rs17.9tr 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 jumped by 3% from Rs19.9tn in February 2022.

According to the data provided by SBP, investments jumped to Rs15tr in March’22, showing a growth of 20% 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 3% from Rs14.54tr in the previous month.

Consequently, banks' investment to deposit ratio (IDR) on monthly basis remained stable at 73% by end of March’22, whereas on a yearly basis, it increased from 70%.

Similarly, demand for advances posted positive growth of 20% YoY during the month under review to Rs10.32tr. On a monthly basis, it inched up by 4% MoM.

Meanwhile, the advances to deposits ratio (ADR) remained static at 50% in March’22 compared to previous month. While on a sequential basis, ADR increased by 2ppts from its previous month’s level of 48%.

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