Deposits in private banks reached 18,174 trillion rials ($66 billion) by the end of the fiscal year ending in March, posting 44% growth compared to the year before.
Electronic Banking Magazine reviewed the financial performance reports of private banks, in particular their deposits and loans. Bank Mellat topped the list of non-government lenders in terms of total deposits with 2,529 trillion rials ($9.19 billion) followed by Bank Saderat Iran and Ayandeh Bank.
Mellat took in 1,034 trillion rials ($3.76) in deposits. ENbank (Eghtesad Novin Bank) managed to record the highest annual growth in deposits -- 100% year-on-year. Sarmayeh Bank was at the tail end with 10 trillion rials ($36.3 million).
Last year the Money and Credit Council allowed lenders to raise interest on term deposits, apparently to curb the scale and scope of money flooding into some financial markets and to avoid further depreciation of the national currency.
Iran’s top monetary decision-making body decided to raise interest on one-year maturity deposits by 1 percentage point to 16%. Likewise, interest on two-year deposits was set at 18%. For short-term deposits with 3-month maturity, the rate increased by 2 percentage points to 12%. MCC approved 14% interest for six-month deposits, up 3 percentage points.
Lending Performance
The journal also reviewed banks' lending. Private banks' total outstanding loans reached 15,783 trillion rials ($57.39 billion) by the end of the last fiscal year – up 53% or 5,824 trillion rials ($21.1b) compared to the year before.
Bank Saderat topped the list of non-government banks in terms of outstanding loans with 2,670 trillion rials ($9.7b). Bank Mellat and Bank Pasargad were next.
Iran Zamin Bank and Sarmayeh Bank registered the lowest amount of outstanding loans up until March. ENBank's outstanding loans grew by 133% year-on-year, over and above its peers, followed by Karafarin Bank and Middle East Bank with 118% and 104% growth, respectively.
Loans to deposit ratio of private banks in the year was 86.8%, whereas the ratio was 79% the year before. LDR is used to assess a bank's liquidity by comparing total loans to total deposits for a specific period and is expressed in percentage.
