Scheduled banks’ deposits jump 22 per cent in one year

WEB DESK: The total deposits held by scheduled banks in Pakistan have surged by 22.0 per cent year-on-year (YoY), reaching Rs31.12 trillion in June 2024, compared to Rs25.51 trillion in June 2023.

This significant increase highlights the robust growth in the banking sector over the past year.

According to data released by the State Bank of Pakistan (SBP), deposits also saw a monthly increase of 6.0 per cent, rising from Rs29.35 trillion in May 2024. This steady growth is indicative of the continued confidence of depositors in the banking system.

In addition to the rise in deposits, total advances by scheduled banks increased by 1.9 per cent YoY, amounting to Rs12.43 trillion in June 2024, up from Rs12.2 trillion in June 2023.

On a monthly basis, advances saw a 2.2 per cent increase from Rs12.17 trillion in May 2024. This growth in advances suggests a steady demand for credit in the economy.

Total investments of scheduled banks also saw substantial growth, reaching Rs30.17 trillion in June 2024, compared to Rs20.9 trillion a year ago, marking a YoY increase of 44.4 per cent. On a monthly basis, investments rose by 4.3 per cent from Rs28.92 trillion in May 2024.

The Investment to Deposit Ratio (IDR) climbed by 1,503 bps YoY to 96.95 per cent but decreased by 160 bps from the previous month, indicating a strategic adjustment in investment allocations by banks.

Read next: Weekly inflation increases in Pakistan