KARACHI – In sharp contrast to the hue and cry over the deterioration of the domestic economy in the country, the deposits of the banks have marked astounding growth of Rs 389 billion in eight months of FY11.
By February 2011, deposits of the scheduled banks have mounted to Rs 5.05 trillion, from Rs 4.661 trillion in June 2010. Thus, the deposits have surged by 8.34 percent from July-February period of FY11. In term of US dollars, the growth in deposits amounts to $4.54 billion, when calculated at 85.50 dollar-rupee exchange rate.
Total deposits, in terms of dollars, stand at $59.06 billion in February 2011. It is interesting to note that in July-February 2010 period, banks deposits showed relatively low growth of Rs 275 billion over June 2010. However, in eight months of the current fiscal year, deposits have exhibited strong growth, mainly because of increased inflow of remittances, a substantial growth in exports, banks campaigns to attract deposits on fixed return and investment in the national saving schemes.
Pakistan’s remittances have increased by $1.18 billion in eight months of the current financial year and stand at $6.96 billion. In rupees, the increase of $1.18 billion amounts to Rs 100 billion. Similarly, the exports of the country have also edged up by $3.03 billion from July-Feb FY11 period (at $15.33 billion) as compared to the corresponding period of last fiscal period.
This substantial growth in exports has also jacked up by the deposits significantly in the ongoing financial year. According to sources, the domestic banks have also mopped up billions of rupees through different fixed-term deposits schemes that offer lucrative rate of return. From July-January period of FY11, the national saving schemes also fetched Rs 118.76 billion that further strengthened deposits.
Sources said that the national saving schemes and the fixed term deposits schemes of the banks are currently the only two secure modes of investments where the people are investing huge money. In the prevailing situation people are apparently reluctant to inject investment in the stock market or the real estate schemes and key sources of investments are the national saving schemes and fixed term deposits, sources indicated.
They said the strong growth in deposits would enable banks to participate in the purchase of short to medium term investment bonds, market treasury bills and to provide credit to the corporate sector and individuals.
