In order to ensure prudent liquidity management by banks, it has been decided that henceforth Advances to Deposits Ratio (ADR) of any bank shall not exceed 70% at any time. For this purpose, the terms “Advances” and “Deposits” are defined as follows:

Advances:

All Loans / Advances (on gross basis) less refinance availed from SBP under Export Refinance and Long Term Financing Facility (LTFF) Schemes and lending to other banks.


Deposits:

All types of deposits including Demand, Savings, and Time Deposits less deposits / placements from other banks.

2) Banks having their ADR above the prescribed ratio would submit their plans to this Department by 31st October, 2008 to regularize the position by March 31, 2009.

Please acknowledge receipt.