Deposit growth lifts on funds from Asset Declaration Scheme

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Input tax inadmissibility against sales made without CNIC should be as a percentage of such sales applied in stages increasing progressively

Karachi, July 8, 2019: Total Deposits in Jun-2019 clocked in 11 percent / 7 percent YoY/MoM higher at Rs14.46 trillion, boosted by (1) seasonal year-end targets, (2) funds from Asset Declaration Scheme and (3) prize bond registration. M2 growth clocked in at 12 percent YoY, where NDA registered 20 percent YoY growth.

Advances recorded a 10 percent YoY growth as at FY19 end, with ADR remaining at 56 percent. The growth pace has (average 20 percent YoY growth during FY17-19), while growth trend of loans to the manufacturing sector remains steady in high teens.

We maintain our year-end Deposits growth assumption at 5 percent YoY, where Deposits mobilization is expected to be tilted towards longer tenor government securities that may build up gradually as PIB yields stabilize.

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