Banking deposits cross Rs35 trillion as sector shows strong growth

KARACHI (Dunya News) – Pakistan’s banking sector received a welcome boost in October 2025, as deposits surged past Rs35 trillion, according to fresh data released by the State Bank of Pakistan (SBP).

The SBP report shows that nationwide banking deposits jumped 13 percent year-on-year, reaching Rs35.2 trillion in October 2025. In the same month last year, deposits stood at Rs31.1 trillion, reflecting steady public confidence in the banking system.

However, SBP noted that bank lending took a hit. The volume of loans dropped 3.6 percent in one year, falling from Rs13.8 trillion to Rs13.3 trillion. Analysts say borrowers may be “holding back” due to high interest rates, causing loan demand to “cool off.”

On the other hand, banks continued to pour money into government securities.

The report states that bank investment grew 26.3 percent in a year, with total investment in government papers standing at Rs35.5 trillion. Industry experts say banks are “playing it safe” and choosing secure returns over private-sector lending.

Overall, the SBP report paints a mixed picture: deposits are rising fast, lending is slowing down, and government securities remain the preferred choice for banks looking to “park their money safely.”