KARACHI: Figures outed by State Bank of Pakistan (SBP) on Wednesday revealed bank deposits rose 11.63 percent to Rs11.880 trillion by end of February 2018.
M2 or money supply registered a 11 percent rise year-on-year in December 2017, reported an English daily.
A major spike in corporate deposits has contributed to an overall rise in bank deposits and private sector deposits touched Rs2.802 trillion in February compared to Rs2.586 trillion in same period last year.
A low interest regime in past three years has capped bank’s profits and large lending requirements compelled banks to mobilize more funds.
According to an analyst, savers could deposit more money into banks on anticipation of increasing rise in interest rates in 2017. He added banks were ready to attain improved profit rates on their deposits due to expected aggressive monetary polices expected later in the year.
Several experts expect a robust rise in deposits during 2017 due to expected rises in interest rates. Central bank had increased its key policy rate by 25 basis points to 6 percent in January this year.
