Deposits held by Pakistan’s banking sector increased 13.9% year over year to Rs39.24 trillion in August 2026, reflecting continued growth in the funds held within the country’s banking system. According to data compiled by Topline Securities, bank advances also recorded annual growth during the month, rising 10.7% to Rs13.61 trillion from the level recorded a year earlier. The figures indicate that deposits continued to expand at a faster annual pace than bank lending, while investments maintained a significant position on the banking sector’s balance sheet.
On a month-over-month basis, deposits increased 0.5% from Rs39.05 trillion in July 2026 to Rs39.24 trillion in August. The monthly increase was equivalent to roughly Rs6 billion in additional deposits per day. Bank advances also recorded a modest monthly increase, rising 0.4% from Rs13.56 trillion in July to Rs13.61 trillion in August. While both deposits and advances increased during the month, the pace of deposit growth remained slightly higher than the growth recorded in advances.
Bank investments stood at Rs41.19 trillion in August 2026, representing a 13.4% increase from Rs36.30 trillion recorded in August 2025. Investments also increased on a monthly basis, rising 0.9% from Rs40.83 trillion in July. The investment figures show that banks continued to maintain a substantial allocation toward investments, with total investments remaining above the sector’s aggregate deposits during August. This was reflected in the investment-to-deposit ratio, which remained above 100%.
Bank borrowings also increased during August. The sector’s borrowings reached Rs17.05 trillion, compared with Rs15.42 trillion in August 2025, representing year-over-year growth of 10.6%. On a monthly basis, borrowings increased 3.1% from Rs16.54 trillion in July. The monthly rise in borrowings was therefore considerably higher than the 0.5% increase recorded in deposits and the 0.4% growth in advances. The data points to a month in which banks recorded increases across deposits, advances, investments and borrowings, although the pace of movement differed among these balance-sheet categories.
The banking sector’s advance-to-deposit ratio (ADR) remained unchanged at 34.7% in August, matching the level recorded in July. However, the ratio was lower than the 35.7% recorded in August 2025. The ADR provides an indication of the proportion of deposits being deployed as advances, and the year-over-year movement shows that advances have not increased at the same pace as deposits. The annual growth figures similarly show deposits rising 13.9% compared with 10.7% growth in advances during the same period.
Meanwhile, the investment-to-deposit ratio (IDR) stood at 104.9% in August, compared with 104.6% in July. The ratio indicates that banking sector investments remained above total deposits during the month. The increase from July also reflects the faster monthly growth in investments compared with deposits. On an annual basis, investments increased 13.4%, which was also higher than the 10.7% growth recorded in advances.
The August data shows different growth patterns across the major components of the banking sector’s balance sheet. On a year-over-year basis, deposits recorded the strongest growth among the three major categories highlighted in the data, increasing 13.9%, followed by investments at 13.4% and advances at 10.7%. This means deposits continued to grow faster than the funds extended through advances, while investments also expanded at a comparatively strong annual rate.
The monthly figures presented a somewhat different pattern. Investments increased 0.9% during August, compared with 0.5% growth in deposits and 0.4% growth in advances. Borrowings recorded the highest monthly increase among the reported categories at 3.1%. The combination of rising deposits, investments, advances and borrowings indicates continued movement across the banking sector’s financial position during August, with deposits approaching the Rs40 trillion mark and investments exceeding Rs41 trillion.
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