Bank deposits reach record high, surging 21% in one year

Banking deposits in Pakistan have hit a new record, reaching an all-time high of Rs 29,348 billion as of May 2024, according to the State Bank of Pakistan (SBP). This marks a significant 21% increase from the previous year.

In May 2023, banking deposits stood at Rs 24,387 billion. Over the past year, deposits have surged by Rs 4,961 billion. The previous high of Rs 28,415 billion in April 2024 has also been surpassed, with an increase of Rs 933 billion in just one month.

Experts attribute this substantial growth to higher interest rates, which have led to better returns for depositors.

"Investors' bank deposits are steadily increasing due to better returns," financial analysts noted, highlighting the positive impact of current monetary policies on savings and investments.

The consistent rise in bank deposits reflects growing investor confidence and the attractiveness of the banking sector's returns, bolstered by the SBP's interest rate policies aimed at controlling inflation and encouraging savings.