Banking Sector Deposits Surge 14.1% Year-on-Year in June 2025
Pakistan’s banking sector continues to show strong performance, with total deposits rising by 14.1% year-on-year (YoY) in June 2025, according to the latest data released by the State Bank of Pakistan (SBP).
💰 Deposits Hit Rs. 35.5 Trillion
Deposits reached an impressive Rs. 35.5 trillion, up from Rs. 31.1 trillion in June 2024, reflecting growing public confidence and savings in the banking system.
🏦 Advances and Investments Also on the Rise
The banking sector also recorded healthy growth in advances (loans) and investments:
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Advances rose by 8.7% YoY, totaling Rs. 13.5 trillion (June 2024: Rs. 12.4 trillion)
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Investments increased by 21.2% YoY, reaching Rs. 36.6 trillion (June 2024: Rs. 30.2 trillion)
This uptick in activity highlights increased economic engagement, particularly in the public and corporate sectors.
🔢 Key Banking Ratios in June 2025
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Advance to Deposit Ratio (ADR):
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38.1%, down 186 basis points YoY
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Also declined 172bps month-on-month (MoM)
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Investment to Deposit Ratio (IDR):
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103.0%, up 608bps YoY
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However, slightly down by 282bps MoM
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These ratios indicate a conservative lending environment with a greater preference for investment in government securities and risk-managed instruments.
📊 What This Means for the Economy
The rise in deposits and investments is a positive signal for Pakistan’s economy, suggesting:
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Increased liquidity in the banking system
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Higher consumer and institutional savings
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Strong public sector borrowing activity
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Continued trust in the formal financial ecosystem
