KARACHI: State bank of Pakistan (SBP) in a statement has reported that the overall assets and deposits of the Islamic banking industry have shown significant growth of 30 percent and 27.8 percent, for the year 2020.
According to SBP’s statement, “this is the highest increase in assets in a year and the highest deposits since 2015.”
The Islamic Banking Industry’s reserves and deposits have more than doubled in the last five years. This was revealed today in the State Bank of Pakistan’s (SBP) quarterly survey, Islamic Banking Bulletin for the quarter ending December 31, 2020.
This was attributed to the fact that in 2020, the sector will already be dealing with the Covid19 pandemic.
By the end of December 2020, the Islamic banking industry’s assets had grown to Rs4269 billion, while deposits had grown to Rs3389 billion, representing 17.0 percent of the total banking industry’s assets and 18.3 percent of its deposits.
The Islamic banking industry’s financing increased by 16 percent in CY20. Furthermore, the ratio of non-performing finances (NPFs) to funding (gross) has decreased from 4.3 percent in December 2019 to 3.2 percent in December 2020.