Banking sector deposits in Pakistan hit highest level of history

Banking sector deposits in Pakistan hit highest level of history

ISLAMABAD - The total deposits of the banking sector have reached a historic high of Rs 14.46 trillion at the end of the fiscal year June FY 19.

According to the data updated by State Bank of Pakistan (SBP), total deposits of all banks showed a healthy growth of 10.68 percent or Rs 1.395 trillion in FY19 to reach an all-time high level of Rs. 14.46 trillion as of June 30, 2019 compared with Rs 13.062 trillion on June 30, 2018.

The growth in deposits was mostly fuelled in June 2019, mainly due to the amnesty scheme and seasonal targets. On a month-on-month basis, during June 2019, deposits grew by Rs. 998 billion or 7 percent to Rs 14.458 trillion up from Rs 13.46 trillion in May 2019.

A portion of the deposits build up stemmed from the Asset Declaration Scheme and registration of Rs 40,000 Prize Bonds, said a report by JS research,

It is estimated that 20 percent of the declared assets (computing to Rs 200 billion of assets declared by 28th June) to have been routed through banking channels, a sizable portion of funds from the Asset Declaration Scheme are likely to fall in the beginning of July (scheme expired on July 3).

However, they said that the sustainability of the deposits stock remaining in the banking system would be in question as it is expected that the Asset Declaration Scheme funds will largely be withdrawn in the coming months.