Bank deposits surge to Rs26.11 trillion in August, marking an
18% Increase
Pakistan's banking sector continues to exhibit strong growth,
with total deposits held by scheduled banks experiencing a substantial
year-on-year rise of 17.87%, reaching Rs26.11 trillion in August 2023, as per
data released by the State Bank of Pakistan (SBP).
In comparison to July 2023, the banking sector's deposits saw a
1.59% month-on-month increase, standing at Rs25.7 trillion in July.
Furthermore, total advances extended by these banks displayed
positive momentum, growing by 7.82% to reach Rs11.77 trillion, compared to
Rs10.92 trillion from the previous year. However, on a monthly basis, advances
saw a slight dip of 1.03% from their July 2023 level of Rs11.89 trillion.
Decline in Advances to Deposit Ratio (ADR) The Advances to
Deposit Ratio (ADR), a crucial indicator of the banking sector's health, stood
at 45.1%. However, it witnessed a decrease of 119 basis points on a monthly
basis and a more significant decline of 420 basis points compared to the
previous year.
Positive Trends in Investments Total investments made by
scheduled banks showed a notable increase, reaching Rs22.01 trillion, compared
to Rs21.46 trillion from the previous month and Rs18.18 trillion from a year
ago. This reflects a month-on-month increase of 2.56% and an impressive
year-on-year growth of 21.08%.
The Investment to Deposit Ratio (IDR) also saw an 80 basis point
increase, reaching 84.32% in August 2023 compared to July, and a substantial
224 basis point increase compared to the same period last year.
This data indicates that Pakistan's banking sector remains
resilient and is attracting higher deposits and investments, reflecting
confidence in the stability and growth potential of the country's financial
institutions.
Source: https://www.samaa.tv/