Banks see 21% increase in overall deposits, surpassing Rs27 trillion

WEB DESK: In a notable economic development, the total deposits held by scheduled banks in Pakistan witnessed a substantial year-on-year surge of 21.03 per cent, reaching Rs27.54 trillion in January 2024, compared to Rs22.75 trillion in the corresponding month of the previous year.

This information, derived from data released by the State Bank of Pakistan (SBP), underscores the sector’s resilience and ability to attract substantial deposits.

However, a closer look at the month-on-month figures reveals a marginal decline of 1.08 per cent, with deposits standing at Rs27.54 trillion in January 2024, down from Rs27.84 trillion in December 2023.

While this dip may raise eyebrows, it’s essential to recognise the broader positive trend in overall deposits.

Turning our attention to the lending side, total advances showed a year-on-year increase of 3.74 per cent, reaching Rs12.09 trillion in January 2024 compared to Rs11.66 trillion a year ago.

On a monthly basis, advances experienced a slight contraction of 2.08 per cent, declining from Rs12.35 trillion in December 2023.

The Advances to Deposit Ratio (ADR) stood at 43.92 per cent, signalling a decrease of 732 basis points compared to the previous year and a 45 basis point decrease on a monthly basis.

Meanwhile, the total investments of scheduled banks surged to Rs25.6 trillion, marking a remarkable year-on-year increase of 32.71 per cent from Rs19.29 trillion in January 2023.

On a monthly basis, this figure increased by 1.28 per cent from Rs25.28 trillion in December 2023.

The Investment to Deposit Ratio (IDR) demonstrated a robust uptrend, climbing by 818 basis points to 92.97 per cent compared to January 2023 and witnessing a 216 basis point increase from the previous month.

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