Loan-to-deposit ratio (LDR) stood at 81.2% during the calendar month ending August 22, according to data released by the Central Bank of Iran.
It was 1 percentage point higher on the month ending April 20 but slightly lower than the 81.5% in the preceding month. On annual basis it was 3.5% percentage points higher.
LDR is used to assess a bank's liquidity by comparing the total loans to total deposits for a specific period and is expressed in percentage.
If the ratio is too high, the bank may not have enough liquidity to cover unforeseen fund requirements. Conversely, if the ratio is too low, the bank may not be earning as much as it should be.
The ratio in Tehran Province was 94.6% and Kohgilouyeh-Boyerahmad Province 107.1%.
In the period 45,399 trillion rials ($157 billion) in deposits were held by banks and credit institutions, the CBI said.
Total deposits increased by 14,454.2 trillion rials ($50b), indicating a 46.7% growth compared to the same time last year.
As always, Tehran Province topped the list with 24,989 trillion rials ($87b) or 55.04% of the total deposits. At the bottom end was Kohgilouyeh-Boyerahmad region with 112.3 trillion rials ($400 million).
The report said during the period under review outstanding loans, including NPLs exceeded 33,243.5 trillion rials ($114b), indicating a 52.5% y/y growth.
As often Tehran led the pack with the highest number of defaults crossing with 21,617.7 trillion rials ($77 billion). Isfahan Province was next with 1,196.8 trillion rials ($4.27 billion).
With 106.7 trillion rials ($381 million) in outstanding loans, Kohgilouyeh-Boyerahmad was at the bottom end of the list.
