Bank Deposits Rise 12.3% to Rs. 35.2 Trillion in September 2025

Pakistan’s banking sector continued to show steady expansion, with total deposits rising 12.3 percent year-on-year to Rs. 35.2 trillion in September 2025, according to data compiled by Arif Habib Ltd. Advances also climbed 9.4 percent to Rs. 13.5 trillion, reflecting continued credit demand despite high financing costs. Meanwhile, investments grew sharply by 16.7 percent, reaching Rs. 35.8 trillion compared to Rs. 30.7 trillion in the same month last year. Analysts attributed the jump in investments to banks’ growing preference for risk-free government securities. The Advances-to-Deposits Ratio (ADR) stood at 38.2 percent in September, slightly lower than 39.3 percent a year ago. In contrast, the Investments-to-Deposits Ratio (IDR) rose to 101.7 percent, up by 377 basis points year-on-year, highlighting banks’ shift toward government papers over private sector lending. On a monthly basis, deposits increased by 2.2 percent, while advances grew 2.0 percent. Investments dipped marginally by 1.3 percent from August 2025, likely due to seasonal adjustments in treasury placements.