Banks in Pakistan witness 21.29 per cent surge in total deposits

WEB DESK: Scheduled banks in Pakistan have witnessed a significant surge in total deposits, marking a notable 21.29 per cent year-on-year increase, reaching Rs28.42 trillion in April 2024, compared to Rs23.43 trillion recorded in April 2023.

This uptick, revealed by data released by the State Bank of Pakistan (SBP), also indicates a slight monthly rise of 0.33 per cent from the previous month’s figure of Rs28.32 trillion in March 2024.

However, despite the positive momentum in deposits, total advances have experienced a slight decline of 0.68 per cent, amounting to Rs12.03 trillion compared to Rs12.11 trillion reported a year earlier. Conversely, on a monthly basis, advances have seen a marginal increase of 0.54 per cent from Rs11.96 trillion in March 2024.

The Advances to Deposit Ratio (ADR) reflects a year-on-year decrease of 936 basis points (bps), settling at 42.33 per cent, indicating a decline in lending activity compared to the same period last year. Nevertheless, there’s a monthly uptick of 9 bps.

Meanwhile, the total investments of Scheduled Banks have demonstrated robust growth, standing at Rs27.28 trillion, showcasing a substantial 38.52 per cent increase from Rs19.69 trillion recorded a year ago and a 3.85 per cent rise from the previous month’s figure of Rs26.27 trillion.

The Investment to Deposit Ratio (IDR) has climbed by 1,194 bps to 96.01 per cent compared to April 2023, and it has seen an increase of 325 bps compared to the previous month.

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