Banks invest record Rs7.6tr in risk-free govt papers

The banks made record investments of Rs7.6 trillion during the year, mostly in risk-free and lucrative government papers, while advances during the same period declined instead of increasing. The latest data issued by the State Bank of Pakistan (SBP) on Monday shows that the total investment of scheduled banks till April 2024 reached Rs27.281tr, compared to Rs19.694tr in April 2023. The jump of Rs7.6tr in investment was a record high and had never been witnessed before, marking a 38.5 per cent increase. It also shows that banks have been investing at an average of Rs632 billion per month.