End of July: Total deposits of scheduled banks clock in at Rs7.98t

Deposits have grown at annualised rate of 14.04% for last five years.

KARACHI:


After increasing 12.88% on a year-on-year basis, total deposits of scheduled banks stood at Rs7.98 trillion at the end of July, according to the State Bank of Pakistan (SBP).


However, deposits have gone down since the start of the current fiscal year when they amounted to a little over Rs8 trillion. The decline in total deposits of scheduled banks in the first month of 2014-15 was 1.26% on a month -on-month basis.

Deposits have grown at an annualised rate of 14.04% for the last five years, as they stood at Rs4.13 trillion at the end of July 2009.

The outstanding position of deposits held by private-sector businesses at the end of July was Rs2.17 trillion, up 11.99% from a year ago.

The outstanding position of personal deposits – which include deposits of salaried individuals, self-employed people, students and housewives – was Rs3.89 trillion at the end of July, up 12.21% on a year-on-year basis.

Advances rise 12%

As for total advances of scheduled banks, their stock amounted to Rs4.24 trillion at the end of July. This translates into an increase of 11.93% over July 2013. However, the stock of advances was down Rs45.85 billion, or 1%, in July from the preceding month.


Advances of scheduled banks have risen 6.14% per year on average for the last five years. This shows the increase in advances over the last 12 months has been practically twice its five-year average.



Outstanding loans to private-sector businesses at the end of July were Rs2.72 trillion, up 11.77% on a year-on-year basis. Personal loans increased 8% over the same period to clock up at Rs337.2 billion.

Investments up 14.8%

The stock of investments by scheduled banks clocked up at Rs4.4 trillion at the end of July, which was up 14.84% from a year ago when it was Rs3.83 trillion. The stock of investments by scheduled banks has increased 26.22% per annum on average since 2009. This means the stock of investments by scheduled banks in the last 12 months was roughly half of the five-year average.

The stock of investments by scheduled banks in July increased 1% from June when it amounted to Rs4.36 trillion.

Banks invested Rs71.7 billion in the fourth auction of market treasury bills on August 20. The government plans to raise Rs700 billion through the sale of market treasury bills in the first quarter of the current fiscal year.

Similarly, banks invested Rs83.68 billion in Pakistan Investment Bonds (PIBs) on August 12, which was the second auction of long-term papers in the current fiscal year. The government plans to raise Rs300 billion through the sale of PIBs during the first quarter of 2014-15.

Published in The Express Tribune, August 24th, 2014.

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