The data released by the central bank on August 7 reveals that the deposits of the total scheduled banks declined by 5% MoM to reach at Rs 6.1tr in Jul-12, observed the analysts at InvestCap Research. However, they said, during 7MCY12 the deposits registered growth of 4.0% CYTD compared to 4.7% growth witnessed in the total deposits during the same period of last year. “The decline in deposits was due to June-end impact as well as increase in consumption factor due to Ramadan,” said Mazhar A. Sabir. This decline, the analyst said, in deposits was also revealed in the money supply figures, in which M2 declined by 2.40% during the month, while incorporating the total time and demand deposits decline was at 4% FYTD. On the same pattern, he said, the 6M KIBOR was also down by 6bps MoM and averaged out at 12.01% during the month of Jul-12. In line with the deposits trend, the credit off-take of the total banking sector remained stagnant during the month of Jul-12 and declined by a meager 1.0% MoM to reach Rs3.7tr, while during last 7MCY12 the credit-off-take surged by 6.0%. The Advance to Deposit Ratio (ADR) of the banking sector has reached 61%, up 216bps MoM during Jul-12 and 112bps during 7MCY12. On the other hand, the investments side of the total banking sector showing a significant surge of 5.6% MoM to reach at Rs3.3tr during Jul-12 and during 7MCY12 the investment of the banking sector increased by 13%. “This growth under the investments head was in line with the extraordinary growth of Govt. borrowing, in which Govt. borrowed Rs181bn from commercial banking channels in Jul-12, registering growth of 147% WoW and 101% YoY,” Sabir said.