KARACHI – Bank deposits from salaried individuals have seen a substantial increase of 17.26 percent, reaching an impressive sum of Rs1,569 billion by December 31, 2018, as compared to Rs1,338 billion during the same period the previous year.
This surge in deposits has been revealed in the recent data released by the State Bank of Pakistan (SBP), which highlights the growing trend in personal banking deposits.
The SBP data further reveals that the total personal deposits in the banking sector have escalated to a staggering Rs6.5 trillion, accounting for nearly half of the overall deposits within the banking system. This represents a substantial increase of 13.5 percent from the end of December 2017, when the personal deposits amounted to Rs5,726 billion.
This rise in personal deposits reflects the increased financial stability of the country and the growing interest in the banking sector among individuals. It also suggests a positive trend in income and savings among the salaried class.
The deposits from self-employed individuals have also seen a notable increase, rising from Rs2,694 billion to Rs2,871 billion. This indicates that not only salaried individuals but also self-employed professionals are actively contributing to the banking sector’s growth.
A particularly significant surge is seen in the category labeled “Other Personal.” This segment encompasses deposits from individuals such as housewives, students, and others. Deposits in this category have seen a remarkable growth of 21.63 percent, reaching Rs2,058 billion by the end of December 2018, compared to Rs1,692 billion during the same period the previous year.
The banking sector’s overall growth in deposits is evident in the total deposits of the system, which have reached a record high of Rs13.17 trillion by the end of December 2018, compared to Rs11.94 trillion by the end of December 2017. This substantial increase is indicative of the confidence that individuals and businesses have in the banking sector as a reliable and secure avenue for managing their funds.
The boost in deposits from salaried individuals not only signals an increase in disposable income but also reflects the growing culture of savings in Pakistan. The banking sector plays a crucial role in safeguarding these funds and facilitating financial transactions for customers.
Furthermore, this trend is positive for the overall economy, as it means that more funds are available for lending by banks, which can stimulate economic growth and development. As individuals and businesses deposit their savings in banks, these funds can be used for various investment opportunities and projects, contributing to the economic well-being of the nation.
While this growth in deposits is certainly encouraging, it is important to note that individuals should also be mindful of managing their finances wisely. Financial institutions offer a range of services, including savings accounts, fixed deposits, and investment options, allowing depositors to make the most of their funds. Additionally, the banking sector is regulated by the SBP to ensure the safety and security of customers’ deposits.
The substantial increase in bank deposits from salaried individuals, self-employed professionals, and “Other Personal” depositors reflects a positive trend in Pakistan’s financial landscape. The banking sector’s role in safeguarding these funds and facilitating economic growth is crucial for the nation’s development. As the sector continues to grow, it offers individuals and businesses an avenue for managing their finances wisely, securing their savings, and participating in the country’s economic progress.
