Bank deposits declined by 1.7% in July: SBP

The total deposit amount held by banks in Pakistan declined by 1.7 percent to Rs30.6 trillion in July, according to a report shared by the State Bank of Pakistan (SBP).

The report revealed that the amount declined by Rs518 billion compared to the previous month in June.

On a year-on-year basis, the total deposit increased by 19.1 percent compared to Rs25.7 trillion in July 2023. 

The total advances decreased by 0.22 percent to 11.87 trillion compared to Rs11.90 trillion from the previous year. 

On a month-on-month basis, the advances decreased by 4.53%, which was Rs12.43 trillion in June 2024. 

According to the report, the Advance Deposit Ratio (ADR) showed a decrease of 750 bps year-on-year basis and reached 38.79%. It also noted a fall of 116 bps on a month-on-month basis.

Despite the decline in deposits, the scheduled investment in Pakistan banks stood at Rs30.43 trillion compared to Rs30.17tr in the previous month and Rs21.47 trillion in the corresponding year.

However, the scheduled investment showed an increase of 41.75% YoY and 0.86% MoM basis.

As per the report, the investment-to-deposit ratio (IDR) increased by 1,591 bps or 99.44% as compared to 249 bps in the corresponding year.