Deposits held by scheduled banks in Pakistan increased by 15.95% year-on-year to Rs40.83 trillion in September 2026, compared with Rs35.21 trillion in the same month last year, according to data released by the State Bank of Pakistan. The latest figures show continued growth in the banking sector’s deposit base, with total deposits also recording an increase compared with August 2026.
On a monthly basis, scheduled banks’ deposits rose by 4.04% from Rs39.24 trillion in August to Rs40.83 trillion in September. The increase of Rs1.59 trillion over the month indicates a further expansion in funds held by banks. Deposit growth is an important measure for the banking sector because it reflects the volume of funds available to financial institutions for lending, investment and other banking activities.
Total advances extended by scheduled banks also registered an increase during September. Advances rose by 14.31% year-on-year to Rs15.38 trillion, compared with Rs13.46 trillion in September 2025. On a monthly basis, advances increased by 5.97% from Rs14.52 trillion in August 2026. The latest figures show that lending expanded both compared with the previous month and against the same period last year.
The increase in advances was accompanied by a change in the advances-to-deposit ratio (ADR), which measures the proportion of deposits represented by advances. The ADR stood at 37.68% in September 2026, declining by 54 basis points compared with September last year. However, the ratio increased by 69 basis points from August 2026, indicating that advances grew at a faster monthly rate than deposits during the period.
Despite the monthly increase in lending, the year-on-year decline in the ADR shows that advances remained lower relative to deposits than they were a year earlier. The ratio provides a useful indication of how banks allocate deposit funding towards advances, although it does not independently explain the reasons behind changes in lending or the broader funding strategies of individual institutions.
Scheduled banks’ total investments stood at Rs40.13 trillion in September 2026, compared with Rs35.82 trillion in September 2025. This represented a year-on-year increase of 12.06%. However, investments declined by 2.55% on a monthly basis from Rs41.18 trillion in August 2026. The data therefore show annual growth in banks’ investment holdings alongside a reduction compared with the previous month.
The investment-to-deposit ratio (IDR), which measures banks’ investments relative to their deposit base, also moved lower during September. The ratio declined by 342 basis points year-on-year to 98.3%. Compared with August 2026, it fell by 664 basis points. The monthly decrease coincided with the decline in total investments and the increase in deposits recorded during September.
The movement in deposits, advances and investments presents a varied picture of banking activity. Deposits increased at both monthly and annual levels, while advances recorded growth over the same periods. Investments, meanwhile, remained higher than a year earlier but declined from their August level. These changes indicate that the composition of banks’ balance sheets continued to shift during the month.
For Pakistan’s banking sector, the latest data provide an updated view of deposit mobilisation, lending activity and investment positions at the start of fiscal year 2027. The continued expansion in deposits and advances points to growth in both bank funding and credit exposure, while the decline in investment holdings on a monthly basis highlights a change in the sector’s asset allocation. Further monthly data will help determine whether these trends persist through the remainder of the fiscal year.
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