Banks’ deposits soar to Rs19.34tr in Oct, up by 16% YoY

November 24, 2021 (MLN): The total deposits held by commercial banks have shown a growth of 16% YoY to Rs19.34 trillion in Oct’21, compared to Rs16.66tr 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 decline of 3% from Rs19.83tr in the previous month.

According to the data provided by SBP, investments jumped to Rs13.79tr in Oct’21, showing a growth of 26% 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 Rs14.09tr in the previous month.

Consequently, banks' investment to deposit ratio (IDR) has now increased to 71% by end of Oct’21 compared to 66% in the same month last year, whereas on a monthly basis, it remained stable.

Similarly, demand for advances posted positive growth of 16% YoY in Oct'21 to Rs9.39tr, 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 49% in Oct’21 compared to the same month last year, whereas, on monthly basis, ADR increased by 2ppts from its previous month’s level of 47%.

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Posted on: 2021-11-24T17:42:12+05:00