LAHORE: The State Bank of Pakistan (SBP) has reported decline in banking sector growth by 32bps MoM to 5.47 per cent during July 2015 as compared to 5.79 per cent in June 2015.
As per the SBP data, lending rates declined by 21bps to 9.42pc while deposit rates rose by 11bps to 3.95pc. That said, fresh spreads during Jul’15 declined by massive 74bps to 2.87pc mainly due to 37bps dip in lending rates and a contrary 38bps surge in deposit cost. Cumulatively, in 7MCY15, weighted average spreads have compressed by 36bps to 5.72pc compared to 6.08pc in SPLY. According to another data released by SBP, credit to private sector declined by PKR57bn to PK3.3trn. Major retirements were witnessed in food and textile sectors.
Cumulatively, during 7MCY15, loans to private sector declined by PKR52bn compared to fall of PKR8bn in SPLY and PKR86bn in similar period in last five years.
