Karachi, November 23, 2024 – Bank deposits held by salaried persons reached an unprecedented Rs 4.47 trillion at the end of October 2024, reflecting a significant 25% year-on-year increase from Rs 3.58 trillion in October 2023, according to data from the State Bank of Pakistan (SBP).
Financial experts attribute this remarkable growth to high interest rates maintained by the SBP over the past year. The central bank kept its benchmark policy rate at a steep 22% for an extended period, encouraging savers to park their funds in banks for higher returns. Although the SBP recently slashed the policy rate to 15% through successive monetary policy adjustments, salaried individuals’ deposits continued to grow, climbing 3.71% month-on-month (MoM) from Rs 4.31 trillion in September 2024 to Rs 4.47 trillion in October 2024.
Banks remain a lucrative option for personal deposits despite the recent decline in interest rates, offering stable returns and security. The total personal bank deposits, encompassing various categories, also reflected an upward trend, standing at Rs 14.81 trillion by the end of October 2024, up from Rs 14.68 trillion in September 2024.
However, not all deposit categories experienced growth. Deposits by self-employed individuals under the personal deposits category saw a decline, falling to Rs 5.97 trillion in October 2024 compared to Rs 6.09 trillion in the preceding month. In contrast, other personal deposits showed steady growth, rising to Rs 4.36 trillion in October 2024 from Rs 4.28 trillion in September 2024.
The consistent increase in deposits by salaried individuals underscores a preference for secure savings avenues amid economic uncertainties and inflationary pressures. Analysts believe the trend also reflects improved salary structures in some sectors and greater financial discipline among workers.
As the SBP continues to balance monetary easing with inflation control, banks are expected to remain a favored savings vehicle for the salaried class, sustaining a healthy inflow of deposits into the financial system. This trend, combined with robust banking sector performance, is likely to support broader economic stability in the coming months.
