Banks see record Rs2.33tr increase in deposits in 1HFY24

January 16, 2024 (MLN): Scheduled banks witnessed a substantial growth in their total deposits during the first half of fiscal year 2024, experiencing an increase of Rs2.33 trillion to reach Rs27.84tr by the end of December 2023.

This stands in contrast with a deposit reduction of Rs0.34tr in the corresponding period of the previous fiscal year.

According to data released by the SBP, on a sequential basis, banks' deposits edged higher by 3.89% MoM, compared to Rs26.8tr in November 2023.

Moreover, in the calendar year 2023, banks' deposits grew 3.6x YoY by Rs5.37tr in CY23 compared to Rs1.49tr inCY22.

Growth in total advances in 1HFY24 decreased by 85.38% to Rs0.15tr compared to a growth of Rs1.03tr from the same period a year ago. On a monthly basis, total advances increased by 3.25% to Rs12.35tr as of December 2023 from their value of Rs11.96tr in November 2023.

In the calendar year 2023, total advances grew by Rs0.44tr compared to Rs1.76tr from a year ago.

Advances to Deposit Ratio (ADR) stood at 44.37% showing a decrease of 8.66% when compared to December 2022, while showing a decrease of 28 bps on a monthly basis.

Total Investments of scheduled banks also saw significant growth during the review period, with an increase in investments worth Rs4.38tr in 1HFY24 as compared to just Rs0.48tr in the same period of last year, showing a YoY increase of more than nine times.

At the end of December 2023, total Investments stood at Rs25.28tr compared to Rs24.59tr from a month ago, showing a MoM increase of 2.82%.

In the calendar year 2023, total Investments of Scheduled Banks grew significantly by Rs7.38tr compared to a growth of Rs3.78tr in 2022.

Investment to Deposit Ratio (IDR) moved up by 11.12% to 90.8% compared to December 2022 while decreasing by 95 bps when compared to a month ago.

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