AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
The investment of the banking sector reached an all-time high in January to Rs. 14.4 trillion, mainly due to the improved profit rates on the government’s papers and various savings products.
According to the State Bank of Pakistan (SBP), the investments of the banks have surged by 2.13 percent to Rs. 14.4 trillion in January 2022 compared to Rs. 14.1 trillion reported a month earlier.
The recently enhanced profit offered on Treasury Bills, Pakistan Investment Bonds, and Government Ijarah Sukuk, attracted banks to park more investment in these avenues to make margins for their profitability.
On the other hand, the deposits and advances of the banks saw a decline in January 2022 compared with December 2021.
The deposits of the banking sector were reduced by 4.80 percent to Rs. 19.9 trillion in January 2022 as compared to Rs. 20.9 trillion reported in December 2021. The advances of the banks decreased to Rs. 9.9 trillion in January from Rs. 10.1 trillion in December.
The slump in deposits is seasonal, however, the drop of advances could be attributed to higher interest rates, which kept borrowers at bay from borrowing from the banks.
Source: Pro Pakistani