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Bank deposits touch record high of Rs15.48tr in May: SBP

Bank deposits touch record high of Rs15.48tr in May: SBP

KARACHI: The deposits of banking system high record at Rs15.48 trillion in May 2020 despite sharp cut in policy rate cut and Eid festival.

According to statistics released by State Bank of Pakistan (SBP) the deposits of banking system sharply grew by 15 percent to Rs15.48 trillion by end of May 2020 as compared with deposits of Rs13.459 trillion in the same month of the last year.

The deposits of banking system by May 2020 also grew by 7 percent when compared with Rs14.475 trillion in April 2020.

The banking system witnessed record high deposits despite cut in key policy rate by the SBP during the past two months.

The SBP in its latest monetary policy announcement on May 15, 2020 reduced the policy rate by 100 basis points to bring down to 8 percent.

The cumulative reduction in key policy rate was 525 basis points during the past two months.

Further, the deposits hit record high despite Eid festival when people opt to withdraw cash. However, on this Eid-ul-Fitr the SBP had not issued fresh currency notes due to coronavirus.

Banking experts said that due to partial halt in business activities and easing lockdown to allow opening of markets in the last days of the month of Ramazan helped the banking system to have massive deposits.