Assets in the Islamic banking sector increased to Rs. 6.8 trillion

Assets in the Islamic banking sector increased to Rs. 6.8 trillion

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With an all-time high quarterly rise of Rs. 836 billion during the second quarter of the year, Pakistan’s Islamic banking sector is surpassing the odds of the country’s economic slump and will surpass the six-trillion-rupee threshold to reach Rs. 6.781 trillion by the end of June 2022.

The State Bank of Pakistan (SBP) claims that net investments and finance, which saw quarterly increases of Rs. 470 billion and Rs. 269 billion, respectively, were the source of the increase in assets.

The deposits of the Islamic banking sector also had the biggest quarterly increase of Rs. 610 billion throughout the reviewed period, and by the end of June 2022, they had reached Rs. 4.856 trillion.

Mid-2022, according to the SBP, saw an increase in the assets and deposits of the Islamic banking sector of 41.4 percent (Rs. 1.984 trillion) and 27.1 percent (Rs. 1.034 trillion), respectively.

By the end of June 2022, the investments in the Islamic banking sector had increased significantly by Rs. 470 billion (21.4 percent) over the period under review. The primary cause of this growth was the use of money by the Islamic banking industry in the domestic Ijarah Sukuk issued by the government of Pakistan (GoP) (GIS).

By the middle of 2022, the financing and associated assets (net) of the Islamic banking sector had increased by a respectable Rs. 269 billion (10 percent).

Islamic banking accounts for 19.5 percent of total banking sector assets and 20.5 percent of total banking industry deposits. Additionally, by the end of June 2022, the market share of financing Islamic banking advances in total banking advances rose to 27.2%.

To read our blog on “4 more AAOIFI Shariah Standards are adopted by SBP for the Islamic banking sector,” click here

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