July 13, 2021 (MLN): The total Deposits held by Commercial Banks have reached a record level of Rs19.79 trillion in June’21, showing a growth of 22% YoY from Rs16.2 trillion in the same of FY20.
While, on a sequential basis, commercial banks’ deposits inched up by 10% MoM from Rs17.75tn, data issued by the State Bank of Pakistan (SBP) showed.
According to the data provided by SBP, Investments continued to witness higher growth, clocking in at 29% YoY to Rs13.74tn. The higher growth in Investments can be attributed to higher Borrowings by the sector this month.
On a monthly basis, the investments expanded by 5% from Rs13.06tn last month.
Consequently, banks' investment to deposit ratio (IDR) has now increased to 69% by end of June’21 compared to 66% in the same month last year. However, compared to the previous month the IDR portrayed a decline from 73% which was the highest ratio after 5 years.
On the other hand, demand for Advances remained muted as it grew by just 10% YoY to Rs8.99tn during the month, as banks remained wary of overall economic conditions due to COVID-19. However, on a sequential basis, it inched up by 2% MoM, indicating a slightly better economic activity during the month.
The advances to deposits ratio (ADR) has dropped to 45% as of June-2021 from 51% in June-2020 and 49% in the previous month.
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