Banks' deposits struggle to keep up with the rising interest rates

News Image

MG News | April 18, 2019 at 12:38 PM GMT+05:00

0:00

April 18, 2019 (MLN): The monthly data released by State Bank of Pakistan  on banking system shows that despite the rising interest rate environment, the growth of schedule banks' deposits are sluggish, as it increased by only 7% from Rs 12.6 trillion in March 2018  to Rs 13.4 trillion in the month of March 2019. While on monthly basis it increased by 5%.

Low deposits growth could hit advances by the banks, as well as their capacity to finance government debt. Total advances by the banks remained stagnant in the month of March 2019 compared to previous month, however, when compared to same period last year, it increased by Rs1.1 trillion or 16%.

Meanwhile, total investment by the scheduled banks however decreased by 16% percent to Rs 5.7 trillion in March 2019 as compared to the investment of Rs 6.8 trillion recorded during March 2018. On monthly basis, it declined by 23%.

Going forward, the slowdown in economic activity this year and attractive rates on saving schemes may have a negative impact on deposits growth in 2019.

Copyright Mettis Link News

Related News

Name Price/Vol %Chg/NChg
KSE100 134,299.77
290.06M
0.39%
517.42
ALLSHR 84,018.16
764.12M
0.48%
402.35
KSE30 40,814.29
132.59M
0.33%
132.52
KMI30 192,589.16
116.24M
0.49%
948.28
KMIALLSHR 56,072.25
387.69M
0.32%
180.74
BKTi 36,971.75
19.46M
-0.05%
-16.94
OGTi 28,240.28
6.19M
0.21%
58.78
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 118,140.00 119,450.00
115,635.00
4270.00
3.75%
BRENT CRUDE 70.63 70.71
68.55
1.99
2.90%
RICHARDS BAY COAL MONTHLY 97.50 0.00
0.00
1.10
1.14%
ROTTERDAM COAL MONTHLY 108.75 108.75
108.75
0.40
0.37%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 68.75 68.77
66.50
2.18
3.27%
SUGAR #11 WORLD 16.56 16.60
16.20
0.30
1.85%

Chart of the Day


Latest News
July 11, 2025 at 10:56 PM GMT+05:00

Gold price in Pakistan rises Rs2,300 per tola


July 11, 2025 at 05:49 PM GMT+05:00

PKR gains 10 paisa per USD


July 11, 2025 at 05:41 PM GMT+05:00

PSX Closing Bell: Bulls Serenade The Bourse


July 11, 2025 at 05:06 PM GMT+05:00

UBL doubles profit to Rs65bn in 1HCY25


July 11, 2025 at 04:19 PM GMT+05:00

Ideal Spinning Mills to exit spinning business



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg