KARACHI: Investment-to-deposit ratio (IDR) of banks in Pakistan increased to 67pc by the end of March from 59 per cent last year, said a report of Topline Research issued on Monday.
By contrast, advance-to-deposit ratio (ADR) dropped to 52pc by the end of the month compared to 54pc a year earlier, said the report. Lower ADR means less money is being issued for loans.
However, the banking sector’s credit grew by 8pc year-on-year. Growth in advances was the highest in last five years (2010-14), signalling that economic activity is picking up, said the report.
Though advances growth remained flat in the first quarter (Jan-March) of this year in line with past trend, year-on-year numbers were up 8pc versus 6pc last year.
“With improving macros and launch of mega infrastructure and energy projects, we expect credit growth of 14pc on average during 2015-17,” said the report.
Published in Dawn, April 14th, 2015
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