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Why banks prefer investment over advances?

  Recently released data by State Bank of Pakistan (SBP) about deposits, investments and advances of commercial banks for the month of April’14 can be termed a little disappointing when compared with March’14. Deposits remained pegged at Rs7.6 trillion, advances were recorded at Rs4.1 trillion at month investments slid by 1%MoM to Rs4.5 trillion, mainly because of commencement of trading of government securities at Karachi Stock Exchange and failure of …

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