The total assets of the banking sector rose 20.9 percent to Rs 28.790 trillion till September 2021 against Rs 23.808 trillion in September 2020.
As per data, released by the State Bank of Pakistan, the performance of the banking sector has been excellent during the period from September 2020 to September 2021. The reports say that the quarterly stress results showed the banking sector was expected to be resilient despite big economic pressure over a protracted period of time.
The banking sector came ahead with the rise in assets by 2.17 percent during the period over the last quarter surpassing the 0.44 percent increase attained during this period, last year. The share of domestic private sector advances increased by 3.8 percent in Q3CY21 as compared to 0.5 percent during this period, last year.
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The advances increased to Rs 9.17 3 trillion on September 21 as compared to Rs.7.887 trillion in the same month, last year, showing a rise of 16.3 percent. The deposits went up by 0.36 percent during the quarter as compared to a 0.80 percent increase during the same period, last year. Year-on-year basis, the deposits went up by 16.9 percent to Rs 20.516 trillion in September as compared to Rs 17.543 trillion in this month in 2020.
The report says, “The healthy growth in credit to the private sector is quite encouraging as it will prop up the low credit incidence in Pakistan as measured by domestic private credit to GDP ratio. The SBP’s refinance schemes announced in the wake of Covid-19, particularly the Temporary Economic Refinance Facility (TERF) have been supporting the private sector credit growth in the last few quarters. However, the bank has increased the credit disbursement from their own sources during 3QCY21 and the trend continues.”
The Central bank of the country had assigned targets to the banks for housing finance in July 2020 and the government’s markup Subsidy programme for Housing Finance announced in October 2020 played a vital role in increasing the credit to the housing sector.