Private deposits grow 2 per cent

MUSCAT: Review of the activities of conventional banks indicates an annual growth in total outstanding credit of 3.5 per cent as at the end of July 2017, mainly due to credit to the private sector increasing by 4.9 to RO 18.1 billion.
Conventional banks’ overall investments in securities grew by 8.1 to RO 2.8 billion, with investment in Government Treasury Bills and foreign securities increasing by 10.4 per cent and 26.3 per cent respectively at the end of July 2017.
Investment in Government securities inclusive of GDBs, Government Sukuk, and others increased marginally by 0.7 over the year to RO 1.3 billion.
On the other hand, aggregate deposits held with conventional banks increased moderately by 2.3 to RO18.9 billion in July 2017 from RO 18.4 billion a year ago.
Government deposits with conventional banks went up by 8 to RO 5.1 billion while deposits of public enterprises decreased by 16.4 to RO1 billion during the same period.
Private sector deposits, which accounted for 65.8 of total deposits with conventional banks, increased by 2 to RO 12.4 billion in July 2017 from RO 12.2 billion a year ago.
The core capital and reserves of conventional banks as at the end of July 2017 stood at RO 4.1 billion.
Islamic banking entities provided financing to the extent of RO 2.8 billion as at the end of July 2017 as compared to RO 2.1 billion a year
ago.
Total deposits held with Islamic banks and windows also registered a significant increase to RO 2.7 billion in July 2017 from RO 1.9 billion as at the end of July 2016.
— ONA