Karachi: As per the latest data released by State Bank of Pakistan (SBP) for the 1QCY12 ended, Banking sector deposits have surged by a nominal 1%QoQ to PkR 5.92 trillion against PkR 5.874 trillion in 4QCY11 while on MoM basis, the banking deposits have picked up by 3.6%.
According to Alfalah Securities Limited, a nominal increase in banking deposits is likely to be a consequence of low rates, while the depositors also have several avenues like the National Saving Scheme, Mutual Funds etc. to keep their hard earned money and earn a better rate of return.
Overall the advances of the banking sector have witnessed a decent growth of 3.3% QoQ to PkR 3.607 trillion against PkR 3.493 trillion in 4QCY11, while it rose by a nominal 1.12% on MoM basis. Likewise, Banking investments have also witnessed a rising trend in the 1QCY12 where it has reached to PkR 3.089 trillion against PkR 2.970 trillion in the previous quarter, up by 4%QoQ. The total investments of banks also registered an increase of 1.12% on MoM basis, which depicts the rising interest of banks in investing in risk-free government securities.