ISLAMABAD, Jun 8 (APP):Net Domestic Assets (NDA) of the banking sector increased by Rs 4,098.6 billion during the period 1st July-12th May FY2023 as compared to Rs 2,889.1 billion during same period last year.
According to the Economic Survey 2022-23 launched by Finance Minister Ishaq Dar here on Thursday, broad money increased to Rs 2,026.3 billion (growth of 7.3 percent) during the period 1st July12th May FY2023 as compared to Rs 1512.0 billion (growth of 6.2%) during same period last year.
At the start of FY2023, the economy was confronting both domestic and external challenges. Policy rate increased by 725 bps cumulative during Jul-Apr FY2023 to 21%, on account of persistent inflationary pressures.
The survey added that currency in circulation observed an increase of Rs 1334.9 billion during the period 1st July-12th May, FY2023 against expansion of Rs 1006.7 billion during same period last year. Bank deposits increased by Rs 683.0
billion during the period 1st July-12th May, FY2023, as compared to an increase of Rs 482.4 billion during
same period last year.
Reserve Money (RM) grew by 20.2% (Rs 1880.2 billion) during 1st July12th May, FY2023 as compared to
growth of 13.4% (Rs 1165.4 billion) during same period last year.
Government borrowing for budgetary support stood at Rs 3,043.3 billion during the period 1st July-12th May, FY2023 as compared to Rs 1570.0 billion during the same period last year.
During 1st July-12th May FY2023, private sector credit stood at Rs 75.4 billion as compared to Rs 1,345.2 billion during same period of last year.
Similarly fixed investment loans reached to Rs 185.4 billion against Rs 366.7 billion in comparable period last year.
Loans for commodity finance observed a net borrowing of Rs 339.5 billion during the period 1st Jul-12th May, FY2023 as compared to net borrowing of Rs 278.9 billion during comparable period last year.
The banking sector performed reasonably well during CY22 as asset base of the banking sector expanded by 19.1% (19.6% growth in CY21).
Asset Quality indicators of the lending portfolio improved as gross NPLs to gross loans fell to 7.3% by end Dec-22 from 7.9% at end Dec-21.
Solvency indicators such as Capital Adequacy Ratio (CAR) of banking sector improved to 17.0% by end Dec- 2022 (16.7% at end Dec-21).
Assets of Islamic Banking Industry (IBI) posted YoY growth of 29.5% in CY22, slightly lower than growth of 30.6% in CY21.
Likewise deposits of IBI witnessed growth of 22.6% in CY22 as compared to the growth of 24.3% in CY21.
Microfinance industry witnessed 25% growth in its aggregate microcredit portfolio, which increased by Rs 98.6
billion to Rs 491.2 billion as at end December 2022 from Rs 392.6 billion at the end of December 2021.
Number of borrowers of microfinance industry increased by 12% to register 9.1 million as of end December 2022 from 8.0 million as of December 2021.
Number of Branchless Banking (BB) Accounts reached 97 million in CY22 after witnessing growth of 23% as compared 78.8 million in CY21.
Over the next FY, it is expected that inflationary pressures will gradually recede and further decrease to a single digit in FY2025, the survey added.
