Pakistan Bank Deposits Hit Rs40.8 Trillion in September, Up 16pc
Pakistan bank deposits climbed 16 per cent year-on-year to Rs40.83 trillion in September 2026, up from Rs35.21 trillion a year earlier, according to State Bank of Pakistan data compiled by Arif Habib Limited.
The figures show deposits growing on both annual and monthly measures, while bank lending picked up pace and investment holdings slipped from August levels.
Pakistan bank deposits: the September numbers
On a month-on-month basis, deposits grew 4 per cent from Rs39.24 trillion in August, adding roughly Rs1.6 trillion in a single month. The deposit base has now crossed the Rs40 trillion mark that analysts were watching earlier this month.
Advances rose 14.3 per cent year-on-year to Rs15.38 trillion, compared with Rs13.46 trillion in September 2025. Lending also grew 6 per cent from Rs14.52 trillion in August, outpacing deposit growth during the month.
That pushed the advances-to-deposits ratio (ADR) to 37.7 per cent, up from 37 per cent in August. The ratio still sits 54 basis points below the 38.2 per cent recorded a year earlier, which means banks are lending a slightly smaller share of their deposits than they were last September.
Banks’ investments told a different story. Investments rose 12.1 per cent year-on-year to Rs40.14 trillion, but fell 2.5 per cent from Rs41.19 trillion in August. The investment-to-deposits ratio dropped to 98.3 per cent, down 342 basis points from a year ago and 664 basis points from August, as banks trimmed their holdings relative to deposits.
Deposits doubled in four years
The monthly data sits inside a much bigger trend. Business Recorder reported that deposits held by Pakistan’s scheduled banks have nearly doubled to Rs40.83 trillion in September 2026 from about Rs21 trillion four years ago, an increase of Rs19.83 trillion since September 2022.
Former caretaker minister and economic policy think-tank chairman Dr Gohar Ejaz flagged the expansion publicly, warning that the growing pool of funds raises a hard question: is the money reaching businesses and industry, or is it being absorbed by government borrowing?
Ejaz argued that the funds mobilised by banks must flow to productive sectors, saying sustainable growth depends on financing businesses rather than lending to the government. Heavy state borrowing from the banking system, he noted, competes directly with private borrowers for the same pool of funds.
The September numbers give both sides ammunition. Lending is clearly picking up: advances grew faster than deposits in the month, and the ADR improved. But the investment-to-deposits ratio remains far above the advances ratio, a sign that banks still park a huge share of deposits in government securities rather than private credit.
What it means for the economy
A Rs40.8 trillion deposit base is, in principle, a deep well of finance for an economy hungry for investment. If banks convert more of it into private-sector credit, it could fund factory expansion, new businesses and jobs.
The risk, as Ejaz and other economists have warned, is that the well keeps getting tapped by the state. With the government a heavy borrower and interest rates still high, lending to the sovereign remains the easy trade for banks. Breaking that habit is the real challenge behind the headline number.
For now, the direction is encouraging: deposits at a record, lending accelerating, and the monthly ADR moving the right way. Whether that becomes a durable credit cycle or another parked-money story will show in the next few quarters.
FAQ
How much are Pakistan’s bank deposits now?
Rs40.83 trillion in September 2026, up 16 per cent from Rs35.21 trillion in September 2025, per SBP data compiled by Arif Habib Limited.
How fast did bank lending grow?
Advances rose 14.3 per cent year-on-year to Rs15.38 trillion and 6 per cent month-on-month, pushing the advances-to-deposits ratio to 37.7 per cent.
What happened to bank investments?
Investments grew 12.1 per cent year-on-year to Rs40.14 trillion but fell 2.5 per cent from August. The investment-to-deposits ratio dropped to 98.3 per cent.
Why does the deposit growth matter?
Deposits have nearly doubled from Rs21 trillion in four years. Economists say the key question is whether banks lend the money to businesses or keep parking it in government borrowing.
