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Total Bank Deposits Surpass Rs. 19 Trillion

Pakistan’s banking industry witnessed a handsome growth in deposits, crossing a mark of Rs. 19 trillion by the end of June 2021.

According to the State Bank of Pakistan (SBP), the deposits of the commercial banks surged to Rs. 19.79 trillion in June, which is the all-time high record.


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The deposit inflows recorded a handsome inflow of Rs. 1.8 trillion in a single month compared to May, mainly due to record remittance inflows of $2.7 billion from various countries. On the other hand, the public spending of money is being observed at a controlled level, which resulted in fewer outflows of their deposits from bank accounts.

The rise in digital banking also reflected the use of cash in the economy and the subsequent circulation of money within the banking system.

According to SBP, the advance of the banking sector also witnessed a record growth, which stood at Rs. 8.99 trillion by the end of June 2021. Banks are offering loans and financing to various sectors to meet their credit targets, which is considered a good sign in the prevailing scenario. However, the potential of lending credit remained under potential.

The Gross advance-to-deposits ratio has settled at 45.45 percent as of June 30 against 50.54 percent in the last fiscal year and 49.07 percent in June, as banks mobilized liquidity towards investments.


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Furthermore, the investment of banks also showed a record growth which increased to Rs. 13.7 trillion as banks were dealing with excess liquidity in the system, and ultimately the investments showed a very high increase, mainly in the government securities.

The investment-to-deposit ratio stands at 69.42 percent in FY21 against 65.82 percent in FY20 and 72.78 percent last month.

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