” Banks in Pakistan record 1.26% increase in monthly deposits ”

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WEB DESK: In a noteworthy development, the total deposits held by scheduled banks in Pakistan have witnessed a robust year-over-year increase of 21.66 per cent, reaching a significant figure of Rs27.89 trillion in February 2024, as reported by the State Bank of Pakistan (SBP).

This growth is substantial compared to the deposits recorded at Rs22.92 trillion in the same month of the previous year.

The monthly analysis reveals a steady uptrend, with a 1.26 per cent increase in deposits compared to January 2024, where the total stood at Rs27.54 trillion.

This positive trajectory underscores the resilience and stability of the banking sector.

Furthermore, the data highlights a noteworthy surge in total advances, registering a 2.9 per cent YoY increase, reaching Rs12.06 trillion compared to Rs11.72 trillion a year ago.

However, on a month-to-month basis, advances experienced a marginal decrease of 0.27 per cent, down from Rs12.09 trillion in January 2024.

A crucial metric, the Advances to Deposit Ratio (ADR), exhibited a YoY decrease of 789 basis points, settling at 43.26 per cent.

Additionally, on a monthly basis, ADR decreased by 66 basis points, indicating a cautious approach to advancing funds relative to deposits.

Scheduled banks’ total investments stood at Rs25.45 trillion, marking a substantial YoY increase of 33.99 per cent from Rs18.99 trillion in February 2023.

However, on a month-to-month basis, there was a slight 0.6 per cent decrease from Rs25.6 trillion in January 2024.

The Investment to Deposit Ratio (IDR) moved up by 840 basis points to 91.26 per cent compared to February 2023, but decreased by 171 basis points from the previous month.

This comprehensive overview of the banking sector’s performance signals positive trends in deposits and investments, with a cautious stance on advancing funds in the given period.

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