Branchless banking transactions grow by 32pc, accounts by 15 pc

November 13, 2017

Branchless Banking

ISLAMABAD: The transactions through branchless banking during the second quarter of 2nd Quarter of the Fiscal Year 2017 increased by 32.2 percent as compared to the 1st quarter of the same year.

The branchless transactions during the Q2 of FY2017 stood at Rs764.569 billion as against the transactions of Rs564.448 billion during the Q1 of the same year, official data revealed.

The number of branchless banking accounts witnessed an increase of 15.3 percent during the period by going up from 23,685,630 accounts during the Q1 of FY2017 to 27,312,964 during Q2 of FY 2017, the report revealed.

The number of agents involved in branchless banking also increased from 368738 in Q1 of FY2017 to 402,710 during Q2 FY2017, showing growth of 9.2 per cent.

The average size of transaction increased from Rs4015 during the Q1 to Rs4469 during Q2, showing a growth of 11.3 percent.

According to the data, the average number of Transaction during the Q2 stood at Rs1,857,476 compared to the transactions of Rs1,562,096, showing an increase of 18.9 percent, according to State Bank of Pakistan (SBP) report.

The data further revealed that as many as 167,173,000 transactions were made through branchless banking during Q1 compared to the transactions of 140,589,000 during Q1 of FY2017, showing growth of 18.9 percent.

Meanwhile, the Islamic Banking Industry (IBI) continued its growth momentum and witnessed 16.6 percent expansion in assets while its deposits increased by 17.7 percent during the Fiscal year 2017, according to latest official data.

During the fiscal year 2017, the IBI assets reached to Rs2,035 billion while the deposits of the industry touched Rs1,720 billion figure, according to State Bank of Pakistan (SBP) data.

“During FY17, the Islamic Banking Industry (IBI) continued its growth momentum, recording improvement in all key performance indicators,” the report said.

The IBI share in overall banking assets and deposits also increased from 11.4 percent and 13.2 percent during the fiscal year2016 to 11.6 percent and 13.7 percent respectively during FY2017.

The IBA also witnessed improvement in the financing to deposit ratio (FDR) as these stood at 56.8 percent markedly surpassing the FDR of conventional banking industry, which stood at 48.7 percent as at end June 2017. – APP