KARACHI:
The banking sector deposits grew 10% to Rs 9.1 trillion in the first half of 2015, compared to last five years’ average annual growth of 8 percent.
According to Topline Securities, increased deposits were mobilised by banks in the wake of shrinking margin outlooks.
In June, deposits grew by 13pc year-on-year as against 10pc last year.
“We anticipate this trend to reverse due to multi-decade low level of interest rate, China-Pakistan Economic Corridor (CPEC) projects and improving macro indicators will lead to the growth in credit off-take by 14pc in 2015-17,” said the report.
High yielding consumer lending (6pc of total credit) specifically car financing is anticipated to pick up due to multi-decade low interest rates.
As against a single-digit growth in overall advances, car financing increased by 11pc in first four months of 2015 which is the highest during the last eight years, according to data of State Bank of Pakistan (SBP).
Total investments on the other hand, rose by 14pc as investment to deposit ratio (IDR) surged to 64pc as against 54pc in June 2014.
[…] Karachi News Sources […]
will decrease by 20% in the second half due to 0.6% tax imposed on all kind of banking transaction.
Comments are closed.