Banks’ deposits surge by 15% to Rs23tr in June: SBP

July 14, 2022 (MLN): The total deposits held by scheduled banks have shown a growth of around 15% YoY to around Rs22.8 trillion in June 2022, against Rs19.79tr in the same month of last year on account of strong overseas inflows, data issued by State Bank showed today.

Likewise, on a monthly basis, local banks’ deposits showed an increase of 8% from Rs21tr in May 2022.

According to the data provided by SBP, investments jumped to Rs17.4tr in June 2022, showing a growth of 27% 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 grew by 12% from Rs15.5tr in the previous month.

Consequently, banks' investment to deposit ratio (IDR) has now surged by 695bps to 76.5% by end of June 2022 compared to 69.4% in the same month last year, whereas on a monthly basis, it has moved up by 282bps from 73.5%.

Similarly, demand for advances posted positive growth of 21% YoY during the month under review to Rs10.9tr. While, on a monthly basis, it remained flat.

Meanwhile, the advances to deposits ratio (ADR) inclined by 228 bps to 47.7% in June’22 compared to 45.4% in the same month last year.

While on a sequential basis, ADR decreased by 344 bps from its previous month’s level of 51.2%.

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