Pakistan’s banking sector deposits increased 13.9 percent year on year to Rs. 39.05 trillion in July 2026, although they declined 4.5 percent from the previous month, when deposits stood at Rs. 40.89 trillion, according to data from the State Bank of Pakistan and Topline Research.

Bank advances also recorded annual growth, rising 9.7 percent to Rs. 13.56 trillion in July from Rs. 12.36 trillion in the same month last year. However, advances dropped 5.7 percent month on month from Rs. 14.38 trillion in June.

Bank investments stood at Rs. 40.83 trillion in July, showing a 12.8 percent increase from Rs. 36.19 trillion a year earlier. On a monthly basis, investments declined 4.1 percent from Rs. 42.58 trillion in June.

Bank borrowings reached Rs. 16.54 trillion in July, up 6.2 percent compared with Rs. 15.58 trillion in July 2025. Borrowings, however, fell 6.1 percent from Rs. 17.61 trillion recorded in June.

The banking sector saw monthly declines across deposits, advances, investments and borrowings, despite all major indicators remaining higher than their levels a year earlier.

The Advance Deposit Ratio (ADR), which shows how much of banks’ deposits are being used for lending, fell to 34.7 percent in July from 35.2 percent in June. It was also below the 36.1 percent recorded in July 2025.

Meanwhile, the Investment Deposit Ratio (IDR) increased slightly to 104.6 percent in July from 104.2 percent in June. However, it remained below the 105.6 percent recorded a year earlier.

Deposits remained a major component of the banking sector’s balance sheet at Rs. 39.05 trillion in July. This compared with Rs. 13.56 trillion in advances and Rs. 40.83 trillion in investments.