After declining for four consecutive months, the loan-to-deposit ratio (LDR) posted monthly increase in the last calendar month to August 22.
LDR stood at 81.1% in the month, up on 80.9% a month before. On annualized basis, it fell subtly by 0.1 percentage point.
Compared to the beginning of the fiscal year in March, the LDR dropped 2.1 percentage points, according to data released by the Central Bank of Iran.
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 for Tehran Province was 90.1% and Kohgilouyeh-Boyerahmad Province 111.2%.
In the month, Iranians had 61,512.9 trillion rials ($212.11 billion) in deposits, up 35.5% on the same period last year.
Deposits rose 11.2% from the end of last fiscal year, when it was 55,314.33 trillion rials ($190.74b).
As usual more than half the deposits (53.47%) were in banks in Tehran Province with 32,890.6 trillion rials ($113.41 b).
Isfahan Province was next with more than 3,210.64 trillion rials ($11.07 billion) in deposits. Kohgilouyeh-Boyerahmad Province was at the bottom end with 171.6 trillion rials ($591.72 million).
Outstanding loans (performing and non-performing) rose to 11,606.5 trillion rials ($40.02 billion) reaching 44,850.1 trillion rials ($154.65b), up 34.9% y/y.
Total unpaid loans were 8.3% higher on the end of the last fiscal year.
With 26,953.9 trillion rials ($92.94 billion), Tehran Province topped the list ith the most outstanding loans.
At the bottom end again was the underprivileged Kohgilouyeh-Boyerahmad Province with total outstanding loans at 169.2 trillion rials ($583.44 million).
