The first three months of 2016 accounted to Rs 52.9 billion which is 1.5 percent more (Rs 816 million) in comparison.
The Net Interest Margin was released on Thursday by SBP which came down to 3.9 % in March that is 4.4 pc less than last year because of lesser growth profit.
The risk weighted capital adequacy ratio (CAR) came down to 16.3 pc from 17.4 pc in March last year though it is still well above according to SBPs minimum required threshold of 10.25 pc and 8.625 pc international rate.
SBP has indicated that this drop is due to the public sectors despite growth in the private sector. The asset base showed increase of 0.9 pc from Jan to March due to investments in government securities mostly of PIBs. However overall decline due to net retirements against SME financing and commodity financing was seen.
Even the 0.6 pc seasonal contraction in gross advances was less than the average 1.2 pc decline during the same time over the two years. This was shown due to the 1 percent growth in private sector loans mostly due to advances of fixed investment.
March’s quarterly basis showed a decline of 0.6 pc in deposits both current and fixed while savings deposits gained 3.6 pc. The funding necessary for asset expansion was mostly borrowed from financial institutions mostly SBP.