KARACHI: (July 15, 2025): Deposits held by scheduled banks rose to Rs35.5 trillion in June, showing an 8.5 per cent increase from Rs32.72 trillion recorded in May, according to data released by the State Bank of Pakistan.
On a year-on-year basis, deposits grew by 14.1 per cent compared to Rs31.12 trillion in June 2024.
Meanwhile, total bank advances, loans extended by banks, saw only modest growth. They increased by 3.8 per cent to Rs13.52 trillion in June, up from Rs13.02 trillion in May. Compared to the same month last year, advances rose by 8.7 per cent from Rs12.43 trillion.
Due to the strong growth in deposits and comparatively slower growth in advances, the Advances to Deposits Ratio (ADR) dropped to 38.1 per cent. This marks a monthly decline of 172 basis points and a yearly decline of 186 basis points.
The low ADR reflects subdued demand for private sector credit amid sluggish economic activity. At the same time, the government’s heavy reliance on banks to finance its budget deficit has continued.
Bank investments, however, posted strong growth. Total investments increased by 5.6 per cent from the previous month to reach Rs36.57 trillion. Year-on-year, investments surged by 21.2 per cent.
Despite this growth, the Investment to Deposit Ratio (IDR) fell by 282 basis points from last month to 103 per cent. Compared to June last year, the IDR rose by 608 basis points.
