Karachi, May 15, 2024 – Bank deposits of salaried individuals have experienced a remarkable surge, soaring by 25 percent year on year in April 2024, as revealed by the State Bank of Pakistan (SBP) on Wednesday.
The data disclosed by the SBP indicates that the bank deposits of salaried persons, nestled snugly under personal bank accounts, ascended to Rs 3.88 trillion by April 2024, a significant leap from Rs 3.11 trillion registered a year earlier.
Experts within the financial realm attribute this substantial increase to several factors. Notably, banks have been offering attractive profit rates across different financial instruments amidst a climate of elevated interest rates. This strategy appears to have resonated particularly well with salaried individuals seeking avenues for their earnings.
“The allure of competitive profit rates, coupled with the prevailing high inflation rates and the associated risks tied to alternative investment channels, have effectively steered a considerable portion of disposable income towards the banking sector,” remarked financial analysts.
Indeed, amidst the backdrop of inflationary pressures and diminishing returns from conventional saving accounts, the appeal of the banking sector as a secure repository for funds has evidently heightened among the salaried workforce.
Beyond the cohort of salaried individuals, the surge in deposits extends to self-employed individuals as well. Deposits under personal bank accounts for this demographic surged by 20 percent, soaring to Rs 5.56 trillion by April 2024 compared to Rs 4.63 trillion recorded a year prior.
Consequently, the cumulative deposits under the umbrella of personal bank accounts recorded an impressive uptick of 25 percent, scaling to Rs 13.33 trillion in April 2024, marking a substantial increase from Rs 10.84 trillion witnessed during the corresponding period in the preceding year.
This surge in bank deposits not only reflects the evolving preferences of individuals regarding their financial assets but also underscores the resilience and attractiveness of the banking sector amidst dynamic economic conditions.
As Pakistan’s financial landscape continues to evolve, the burgeoning trend of escalating bank deposits among salaried individuals not only augurs well for financial stability but also underscores the pivotal role of the banking sector in channeling and safeguarding the nation’s wealth.
With economic dynamics constantly evolving, the trajectory of bank deposits remains an important barometer of consumer sentiment and financial health, signaling a robust foundation for Pakistan’s economic future.
As the country navigates through various economic challenges, the sustained growth in bank deposits offers a ray of optimism, symbolizing a prudent allocation of resources amidst an ever-changing financial landscape.