Daily Times

The total deposits held by banks declined by Rs424 billion (2.1 percent) on a month-on-month basis to stand around Rs20.1 trillion in April 2022. According to the data released by the State Bank of Pakistan on Tuesday, investments jumped to Rs15.2 trillion in April, showing a growth of 22.5 percent on a yearly basis. The higher growth in investments can be attributed to higher borrowings by the sector. On a sequential basis, the total investments by commercial banks increased slightly by 1.3pc from Rs12.4t in the previous month. Consequently, banks’ investment to deposit ratio (IDR) on monthly basis jumped by 254 bps to 76pc by end of April’22, whereas on a yearly basis, it increased by 514 bps from 70.7pc. Similarly, demand for advances posted positive growth of 23pc YoY during the month under review to Rs10.6tr. On a monthly basis, it inched up by 3pc MoM from Rs10.3t.