Treasury bills remained the largest component of banks’ investment portfolios in April 2026, highlighting a growing preference for short-term government securities amid ongoing portfolio rebalancing in the banking sector.
According to the latest banking sector data, Treasury bills accounted for 64.7 percent of banks’ total investments in April 2026, up sharply from 50.3 percent a year earlier.
The increased allocation to short-term instruments came at the expense of long-term securities, whose share of investment portfolios declined from 49.4 percent in April 2025 to 34.8 percent in April 2026, indicating banks’ preference for assets with shorter maturities.
Equity investments continued to represent only a small portion of banks’ portfolios, although their share rose marginally from 0.3 percent to 0.5 percent during the period.
The shift in investment strategy also reshaped the overall composition of banks’ balance sheets.
Investments, comprising Treasury bills, government securities and equities, became the largest asset class, increasing their share of total assets from 34.7 percent in April 2025 to 41.8 percent in April 2026.
Net advances also recorded a modest increase, accounting for 20.1 percent of total assets compared with 19.3 percent a year earlier.
Conversely, the share of cash and bank balances declined from 36.6 percent to 30.3 percent, reflecting banks’ decision to deploy more funds into interest-earning investments.
Non-earning assets, including fixed and other assets, also fell as a proportion of total assets, declining from 9.4 percent to 7.7 percent over the review period.
The latest figures suggest banks continue to favour liquid, lower-risk government instruments while gradually expanding lending, as they adjust their portfolios in response to evolving market conditions and the interest rate environment.
Source: businesspostonline
