KARACHI: Data released by State Bank of Pakistan (SBP) on Monday revealed private sector’s credit off-take from commercial banks has boomed and almost quadrupled year-on-year during first five months of FY 2017-18.
Private sector loans from conventional banks increased to Rs74.2 billion during FY 2017-18 compared to net retirement of Rs21.1 billion a year back, reported Dawn.
The credit off-take of the private sector amounted to Rs101.1 billion from July 1st to November 24th compared against Rs26.9 billion last year.
Lending from commercial and Islamic bank to private sector has boomed in comparison to last year but Islamic banks have performed poorly during the first five months of FY 2017-18, SBP data revealed.
Islamic Banks registered a debt retirement figure of Rs1.7 billion compared to lending of Rs16.8 billion last year to the private sector.
Net lending from Islamic banking branches of conventional banks dipped to Rs28.6 billion during July-November period against Rs31.2b in same period of last year (SPLY).
SBP’s second quarterly review disclosed asset base of banking sector grew 8.3 per-cent during April-June, which is the highest growth the sector has witnessed in corresponding quarters since 2008. Private sector’s gross advances also shot up by 6.1 per-cent during the second quarter, registering a rise of 50pc from PC compared to SPLY.
Advances-to-deposits ratio also rose to 48.7 per-cent during second quarter compared to 47 per-cent in SPLY.