Deposits held by scheduled banks in Pakistan increased by 13.93% year on year to Rs39.05 trillion in July 2026, compared with Rs34.28 trillion recorded during the same month last year. The latest figures released by State Bank of Pakistan show continued growth in bank deposits on an annual basis, although the total declined on a monthly basis compared with the level recorded at the end of June.
According to the data, scheduled banks’ deposits decreased by 4.48% month on month from Rs40.89 trillion in June 2026 to Rs39.05 trillion in July. Despite this monthly decline, the year on year increase reflects a substantial expansion in the deposit base compared with July 2025.
Bank advances also recorded annual growth during the period. Total advances increased by 8.98% year on year to Rs14.46 trillion in July 2026, compared with Rs13.27 trillion in July 2025. However, advances declined by 5.3% on a monthly basis from Rs15.27 trillion recorded in June 2026.
The decline in advances during July resulted in a lower Advances to Deposit Ratio. The ratio stood at 37.04%, representing a decrease of 168 basis points compared with the same period a year earlier. On a monthly basis, the Advances to Deposit Ratio also declined by 32 basis points compared with June 2026.
The Advances to Deposit Ratio is an indicator of how much of the deposits mobilised by banks are being utilised for lending. The decline in the ratio during July indicates that advances did not increase at the same pace as deposits on an annual basis, while the monthly decline in advances further reduced the proportion of deposits allocated toward lending.
Scheduled banks’ investments also remained significantly higher than their level a year earlier. Total investments stood at Rs40.83 trillion in July 2026, compared with Rs36.19 trillion in July 2025. This represented a year on year increase of 12.82%.
However, investments also declined on a monthly basis. The total fell 4.12% from Rs42.58 trillion recorded in June 2026 to Rs40.83 trillion in July. The monthly movement in investments therefore followed the broader decline seen in both deposits and advances during the month.
The Investment to Deposit Ratio stood at 104.55% in July 2026. The ratio decreased by 102 basis points compared with July 2025, indicating a lower level relative to deposits on an annual basis. At the same time, the ratio increased by 40 basis points compared with June 2026.
The latest banking sector data show that deposits continued to record strong annual growth despite the month on month reduction recorded in July. The deposit base reached more than Rs39 trillion, while advances remained above Rs14 trillion and investments stood above Rs40 trillion.
The figures also show a difference in the movement of banking sector deposits, advances and investments. While all three categories remained higher than their corresponding levels in July 2025, each recorded a decline from the levels reported in June 2026, with deposits falling 4.48%, advances declining 5.3% and investments decreasing 4.12%.
The year on year growth in deposits indicates that scheduled banks continued to attract a larger volume of funds compared with the previous year. Meanwhile, the increase in advances reflects continued expansion in bank lending, although the monthly decline resulted in a lower Advances to Deposit Ratio.
Investments remained the largest of the three reported categories in absolute terms, reaching Rs40.83 trillion in July. Their year on year increase of 12.82% was accompanied by a monthly decrease of 4.12%. The Investment to Deposit Ratio of 104.55% also remained above 100%, despite being lower than its level a year earlier.
Overall, the July 2026 data highlight continued annual expansion across bank deposits, advances and investments, alongside monthly declines in all three categories. Deposits recorded the strongest annual growth at 13.93%, followed by investments at 12.82% and advances at 8.98%. The figures provide an updated view of the position of Pakistan’s scheduled banking sector at the beginning of the new fiscal year.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.