Investment-to-Deposite Ratio Crosses 100% Milestone, Advance-to-Deposit Hits All-Time Low

For the first time, the Investment-to-Deposit Ratio (IDR) has crossed 100 percent while the Advance-to-Deposit (ADR) ratio dropped to 38.4 percent, according to the latest data by the State Bank of Pakistan (SBP). IDR has reached 100.8 percent, driven by banks’ increased focus on government securities, Arif Habib Limited (AHL) said in a brief review on Monday. Meanwhile, ADR has hit a record low of 38.4 percent, as banks remain cautious in lending and demand remains subdued in a high interest rate environment.