March 17, 2022 (MLN): The total deposits held by scheduled banks have shown a growth of 15% YoY to around Rs20 trillion in the second month of the calendar year i.e., February 2022, against Rs17.25tr 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 0.2% from Rs19.94tn in January 2022.
According to the data provided by SBP, investments jumped to Rs14.54tr in Feb’22, showing a growth of 25% 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 0.8% from Rs14.42tr in the previous month.
Consequently, banks' investment to deposit ratio (IDR) has now surged to 73% by end of Feb’22 compared to 67% in the same month last year, whereas on a monthly basis, it increased from 72.3%.
Similarly, demand for advances posted positive growth of 17% YoY during the month under review to Rs9.96tn. Similarly, on a monthly basis, it inched up by 0.2% MoM.
Meanwhile, the advances to deposits ratio (ADR) stood at around 50% in Feb’22 compared to 49.4% in the same month last year. On a sequential basis, ADR increased by 17bps from its previous month’s level of 49.8%.
