Islamabad, Dec 3: Banks aggressively increased lending in October 2024 to meet the Advance-to-Deposit Ratio (ADR) target set by the regulator, resulting in a Rs. 1.47 trillion jumps in advances. The sector’s ADR improved to 44.2%.
Key Financial Insights
- Total Advances: Reached Rs. 13.77 trillion in October, up from Rs. 12.30 trillion in September, showing an 11% month-over-month growth.
- Deposits: Declined slightly to Rs. 31.11 trillion in October from Rs. 31.34 trillion in September, attributed to discouraging banking attitudes and lower savings rates.
- Investment Reduction: The banking sector’s investment fell by Rs. 1.7 trillion (5.7%) to Rs. 28.9 trillion in October, reducing the Investment-to-Deposit Ratio to 93% from 97% in September.
This lending surge reflects the sector’s efforts to comply with regulatory benchmarks while balancing challenges in deposit growth and investment.
