Bank deposits hit all-time high of Rs27.8tr in Pakistan

KARACHI: Bank deposits continued to grow and jumped to an all-time high of Rs27.8 trillion by the end of February 2024, the annual report of the Deposit Protection Corporation (DPC) showed on Saturday.

Correspondingly, the volume of eligible deposits for protection under the DPC scheme recorded a net increase of Rs4665 billion in last year (February 23 to February 24).

In February 2024, bank deposits clocked in at Rs27.8 trillion as compared to Rs22.9 trillion in February 23.

According to economic experts, the investors are increasing their deposits in the banks due to high interest rate.

The investors are getting high gains for their deposits and the practice is likely to continue amid current economic situation, the experts said.

Read more: SBP denies reports of issuing plastic currency series

Earlier, the State Bank of Pakistan (SBP) refuted “baseless” news reports suggesting that the central bank was mulling issuing polymer (plastic) banknotes series.

“SBP strongly refutes the reports [regarding issuance of polymer (plastic) banknotes] as baseless and without substance,” the central bank said in a statement, adding that there is no such plan or suggestion currently under consideration regarding the change in the substrate of banknotes from paper to polymer.

The statement comes days after a bank in Karachi received “misprinted” banknotes with two Rs1,000 notes having “blank” back sides.