Bank deposits jump 22pc in 2020.

Byline: Shahid Iqbal

KARACHI -- Banking sector deposits during 2020 increased by 22 per cent or Rs3.204 trillion to hit an 18-year high at Rs17.876tr, latest data released by the State Bank of Pakistan (SBP) showed.

On the other hand, despite a significant increase in deposits, the banks failed to energise the economy as advances remained at just 10pc of the deposits added during 2020.

As per the SBP data, the banking sector advances during 2020 were Rs332bn.

Meanwhile, the banks used higher advances to invest in government papers. During 2020, the banks invested Rs3.186tr in T-bills and Pakistan Investment Bonds, taking the total investment in the government papers to Rs11.552tr.

During the year under review, the banking sector investments increased by 38pc.

'Both the net foreign assets of the banking system and the domestic assets have increased during 2020 which built the banks' deposits,' said Pak-Kuwait Investment Company Head of Research and DevelopAment Smaiullah Tariq. People are spending less and are...