Pakistan banks’ profits grow due to deposits, lending rise

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ISLAMABAD, Apr 16 (APP): Commercial bank profits are rising
in Pakistan on bigger volumes, enlarging transactions and growing
businesses.
Overall deposits of all commercial banks stood at
Rs10,726.66 billion on March 3 according to the latest report by
the State Bank of Pakistan (SBP), the central bank while deposits
and other accounts of specialised banks stood at Rs71.07 billion.
Total assets of banks were at Rs14,941.67 billion, according to a
report by Khaleej Times.
Lending by banks rose, too, the SBP said. The gross advances
of all scheduled banks stood at Rs5,502.81 billion in the first
quarter of fiscal year 2017. Lending by banks in the same period
was Rs4,835.19 billion, which was 13.8 per cent higher than the
same period of fiscal year 2016.
Borrowing by all scheduled banks rose 2.8 per cent to
Rs2,025.84 billion in fiscal year 2017, compared to Rs1,990.44
billion in fiscal year 2016.
The central bank reports a much-awaited rise to Rs7,525.10
billion in investments by banks in fiscal year 2017, up from
Rs7,039.33 billion in the past year. It shows a rise of 6.9 per
cent.
The approved foreign exchange reserves with banks were
Rs996.45 billion in March, compared to Rs923.4 billion, a year
ago, which is higher by 7.9 per cent.
All these statistics of the banking sector confirm a
definite growth in all these sectors.
The report said that the economy is moving up at a good
pace as stated by Finance Minister Ishaq Dar.
During three-and-a-half years of the government of pro-
business Prime Minister Nawaz Sharif the index has moved from
around 35,000 to the current level – nearly a whopping one-third
up.
The improving health of the Pakistani economy is also
testified by international rating agencies and global stock
market operators who have described the Pakistan Stock
Exchange as “one of the top 10 emerging markets worldwide”.
Besides other big foreign businessmen and financiers
flocking to buy PSX shares, there is a growing interest of the
investors from the UAE and China – part of which is related to the
ongoing implementation of the $56 billion China-Pakistan Economic
Corridor (CPEC).