September 12, 2022 (MLN): The total deposits held by scheduled banks have shown a growth of around 15% YoY to around Rs22.2 trillion in August 2022, against Rs19.8tr 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 inched up by 0.2% from Rs22.1tr in July 2022.
According to the data provided by SBP, investments jumped to Rs18.2tr in August 2022, showing a growth of 31% 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 slightly by 3.3% from Rs17.6tr in the previous month.
Consequently, banks' investment to deposit ratio (IDR) has now surged by 971bps to 82.1% by end of August 2022 compared to 72.4% in the same month last year, whereas on a monthly basis, it has moved up by 241bps from 79.7%.
Similarly, demand for advances posted positive growth of 15.3% 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 278 bps to 49.3% in August 2022 compared to 46.5% in the same month last year.
While on a sequential basis, ADR jumped by 18 bps from its previous month’s level of 49.1%.
