Iran: Bank Deposits Rise 25%
EghtesadOnline: The latest data on deposits with banks and credit institutions indicate that total deposits stood at 20,673 trillion rials ($159 billion) by the end of the previous fiscal year’s last month (March 20, 2019).
The figure indicates a 25.6% growth compared with the same period of a year earlier, the official website of the Central bank of Iran reported.
The deposits include both rial and foreign currencies.
Tehran Province topped the list with 11,318 trillion rials ($87 billion), accounting for more than half of the total deposits, while Kohgilouyeh-Boyerahmad Province was at the bottom of the list with 55.2 trillion rials ($0.5 billion), according to Financial Tribune.
The CBI data also covered outstanding loans granted by banks and credit institutions during the period. Accordingly, lenders paid 15,090 trillion rials ($116 billion) in loans during the same month, indicating a 19.9% hike compared with the corresponding month of the year before.
As usual, Tehran Province was the major borrower during the period. Loans to the tune of 9,752 trillion rials ($75 billion) were paid in the capital. This was followed by the provinces of Isfahan and Khorasan Razavi with 559.1 trillion rials ($4.3 billion) and 459.9 trillion rials ($3.5 billion) respectively.
Kohgilouyeh-Boyerahmad Province was at the bottom of the list with total outstanding loans amounting to 51.8 trillion rials ($400 million).
The head offices of most businesses in the country are in Tehran and this accounts for hectic banking activities, including the high demand for loans, credits and other financial facilities, in the sprawling metropolis.
Loan-to-deposit ratio (LDR) stood at 81.3% during the month, which shows a 4.1% decline year-on-year. The ratio in Tehran and Kohgilouyeh-Boyerahmad provinces stood at 94.9% and 105.6, respectively.
LDR is used to assess a bank's liquidity by comparing the bank's total loans to its total deposits for a specific period. It is expressed as a percentage. If the ratio is too high, the bank may not have enough liquidity to cover any unforeseen fund requirements.
Conversely, if the ratio is too low, the bank may not be earning as much as it should be.