Bank deposits in Pakistan continued their upward trajectory from the end of June 2023, reaching a record high of Rs25.6 trillion, according to the annual report of the Deposit Protection Corporation (DPC) released on Friday.
Concurrently, eligible deposits for protection under the DPC scheme saw a net increase of Rs1.8 trillion, totaling Rs14 trillion, representing 55% of the overall bank deposits at the end of June.
The report noted, however, that the year-on-year trend indicated a slowdown in the pace of deposit mobilization during FY23 compared to FY22. The DPC, operating as a subsidiary of the State Bank of Pakistan (SBP), offers insurance to depositors.
As of June 30, nearly 99% of total depositors in conventional banking and 98.7% in Islamic banking qualify for deposit protection in the event of a bank failure. In terms of value, 52% of conventional banking deposits and 63% of Islamic banking deposits are eligible for deposit protection, as per the report.
