Waheed Mahmood
KARACHI: State Bank of Pakistan has released the combined balance sheet of all scheduled banks in the country as of October 1, 2010 which was the first weekend of the current month. According to the data, total deposits in the first nine months of CY10 (January to September), increased by 6.8 per cent to Rs4.71 trillion as compared to Rs4.42 trillion at the beginning of current year.
However, in the third quarter of the calendar year (3QCY10) the deposits decreased by 1.2 per cent QoQ against a growth of 5.4 per cent in the previous quarter (April-June-10).
In sharp contrast to the deposit performance, gross advances marginally went down by 1 per cent to Rs3.28 trillion on October 1, 2010 against Rs3.321 trillion at beginning of the calendar year.
Similarly, provisioning grew by 18 per cent to Rs327 billion against Rs227.7 billion recorded at the beginning of the year 2010. That’s why net advances fell 2.7 per cent to Rs2.96 trillion from Rs3.04 trillion during the period.
Due to deteriorating quality of assets, where NPLs were at higher levels, banks preferred to grow their investment portfolio rather than lending to borrowers. This was evident from the fact that investment grew by a hefty 9.5 per cent to Rs1.81 trillion compared Rs1.65 trillion in CY09. IDR ratio surged to nearly 38.33 per cent from 37.4 per cent at CY09.
Furthermore, overall balance sheet size of the sector improved by 3.7 per cent as total assets reached Rs6.3 trillion in 9MCY10 from Rs6.07 trillion at CY09.
In sharp contrast to the deposit performance, gross advances marginally went down by 1 per cent to Rs3.28 trillion on October 1, 2010 against Rs3.321 trillion at beginning of the calendar year.
Similarly, provisioning grew by 18 per cent to Rs327 billion against Rs227.7 billion recorded at the beginning of the year 2010. That’s why net advances fell 2.7 per cent to Rs2.96 trillion from Rs3.04 trillion during the period.
Due to deteriorating quality of assets, where NPLs were at higher levels, banks preferred to grow their investment portfolio rather than lending to borrowers. This was evident from the fact that investment grew by a hefty 9.5 per cent to Rs1.81 trillion compared Rs1.65 trillion in CY09. IDR ratio surged to nearly 38.33 per cent from 37.4 per cent at CY09.
Furthermore, overall balance sheet size of the sector improved by 3.7 per cent as total assets reached Rs6.3 trillion in 9MCY10 from Rs6.07 trillion at CY09.
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