Banking system witnesses Rs222 billion withdrawal in October

Banking system witnesses Rs222 billion withdrawal in October

KARACHI: An amount of Rs222 billion has been withdrawn from the banking system during the month of October 2020, according to statistics released by State Bank of Pakistan (SBP).

The banking deposits fell to Rs16,664 billion by end of October 2020 as compared with record deposits of Rs16,886 billion by end of September 2020.

Banking experts attributed the withdrawal to enhanced economic activities in the post lockdown period.

They said that as the economic activities gained momentum after ease in lockdown the businesses and individuals required cash to meet financial requirements.

The banking deposits have reached a record high of Rs16,886 billion by November 2020.

The experts said that in the coming days the deposits of the banking system might deteriorate owing to transfer of funds of government entities to the Single Treasury Account (TSA).

However, they said that the deposits might increase on the back of financial year close of banks on December 31, 2020. Further, a huge amount is expected to be deposited in the banking system from builders and developers under the amnesty scheme related to Naya Pakistan Housing Scheme.

The experts said that the resurgence of coronavirus would threaten the prospects of businesses and individuals by limiting investment avenues, which would encourage depositors to keep money in the banking system.

The deposits of the banking system of Rs16,664 billion by the end of October 2020 is 19.8 percent higher when compared with Rs13,912 billion in the same month of the last year.