October 22, 2019 (MLN): With better economic conditions, the private sector seems to have increased its activities.
The latest SBP data on advances classified by borrowers, backs the aforesaid statement, as the data shows that in the month of September 2019, the bank advances to private sector surged by 7% YoY to an accumulated amount of Rs 6 trillion as compared to the corresponding period last year.
However, on a monthly basis, it remained stagnant.
Most of the demand for credit in the private businesses emanated from the Manufacturing sector, as credit to this sector surged by 7%YoY and 2% MoM to Rs 2.94 trillion. This was followed by Electricity & Gas sector, as loans to this sector stood at Rs564.8 billion, depicting a decline of 3% as compared to last month and upsurge of 30% as compared to Sept 2018.
Among Manufacturing sector, Textile manufacturing ranked first as financing to this sector reached to Rs 848.2 billion during the period under review, showing a marginal growth YoY.
In addition, loans to Trust funds and Non-profit organizations recorded at Rs18.7 billion whereas, credit for personal consumption surged by 9%YoY to Rs680.5 billion.
On the other hand, the overall credit to the government witnessed an increase of 22% YoY from Rs 10.3 trillion to Rs 12.5 trillion. While net SBP advances to public sector remained the same as September 2018 i.e. Rs 5 trillion, dropped by 18% MoM.
Moreover, commercial banks’net credit to government sector reached to Rs 7.48 trillion against Rs 5.1 trillion in the same month last year, reflecting a growth of 44%. Whereas, on monthly basis, it mounted by 21%.
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