Banking deposits grow 11.7% YoY to Rs31.6 trillion, investments surge 23.3% in March 2025

Pakistan’s banking sector has shown strong growth in deposits, advances, and investments during March 2025. According to data compiled by Arif Habib Limited (AHL), total deposits surged by 11.7% year-on-year (YoY) to Rs 31.6 trillion, up from Rs 28.3 trillion in March 2024. 

This reflects continued investor confidence in the banking sector despite ongoing economic challenges.

Advances also rose by 12.6% YoY to reach Rs 13.5 trillion in March 2025, compared to Rs12.0 trillion in the previous year. 

Meanwhile, investments in the sector saw the most notable growth, jumping by 23.3% YoY to Rs32.4 trillion from Rs26.3 trillion in March 2024.

The Advances-to-Deposits Ratio (ADR) stood at 42.6% in March 2025, marking a 35-basis-point increase compared to the previous year. However, the ADR saw a slight dip of 329 basis points month-on-month (MoM) from February 2025. 

On the other hand, the Investment-to-Deposits Ratio (IDR) clocked in at 102.4% for March 2025, showing an impressive rise of 964 basis points YoY, though it fell slightly by 9 basis points MoM.

The growth in these key figures highlights the continued strengthening of the banking sector’s fundamentals, despite fluctuations in key ratios. As the banking industry moves forward, stakeholders remain focused on maintaining this upward trend in deposits and investments, while adapting to market conditions.