AT THE Open Market Operation (OMO) held on July 19, the State Bank of Pakistan injected Rs24 billion into the banking system through one week reverse repo of treasury bills. Total offered bids for the reverse repo were of Rs28.2 billion, of which the central bank accepted bids worth Rs24 billion at 7.35 per cent annual rate of return.
The banking system is facing liquidity shortage since the outflow of Rs69 billion through the T-bills auction in the previous week.
The bank has also raised Rs5.275 billion from the interbank market through the auction of Rs5.077 billion worth of 3 and 5 years Pakistan Investment Bond at premium. It had received bids worth Rs18.245 billion carrying annual coupon rates of 9 per cent and 10 per cent, respectively.
Break up revealed that the auction realised Rs1.601 billion through the sale of 3-year bonds and Rs3.674 billion through five-year bonds.
The 3-year bonds were sold at a cut-off price of Rs102.45 against Rs100 of face value of the scripless bonds, while the 5-year bonds were auctioned at a cut-off price of Rs104.11 per Rs100.
According to the weekly Statement of Position of scheduled banks for the week ended July 06, 2002, total demand and time liabilities showed a downward trend in the week under review, while demand liabilities contracted, time deposits maintained their upward trend. The sum total stood at Rs1,475,911 million, showing a fall of Rs6,646 million over preceding week’s figure of Rs1,482,557 million. As compared to the total deposits of Rs1,285,987 million in the corresponding period last year, the current week’s deposits were higher by Rs189,924 million.
During the week under review, demand deposits showed a decline of Rs12,016 million, falling to Rs654,608 million over previous week’s Rs666,624 million, but was higher against last year’s corresponding figure of Rs565,064 million by Rs89,544 million.
Meanwhile, time liabilities grew by Rs5,370 million to Rs821,303 million against preceding week’s Rs815,933 million. Compared to last year’s corresponding figure of Rs720,923 million, the current week’s figure is higher by Rs100,380 million.
Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities fell in the current week. At Rs133,184 million it was lower by Rs2,373 million over preceding week’s Rs135,557 million. Compared to last year’s corresponding figure of Rs138,592 million, the current week’s figure is lower by Rs5,408 million.
Scheduled banks borrowings from banks abroad stood at Rs15,046 million in the current week, as against Rs12,642 million a week ago, showing a rise of Rs2,404 million. It was also lower by Rs876 million over last year’s corresponding figure of Rs15,922 million.
Money at call and short notice in Pakistan rose in the week under review. It stood at Rs35,456 million, showing an increase of Rs2,625 million over preceding week’s Rs32,831 million. When compared to last year’s corresponding figure of Rs34,905 million, the current week’s figure is, higher by Rs551 million.
Scheduled banks advances including bills purchased and discounted, showed a fall in the week under review. At Rs961,651 million it was lower by Rs562 million over preceding week’s figure of Rs962,220 million. Compared to the corresponding figure a year ago, when advances were to the tune of Rs944,656 million, the current week’s advances are higher by Rs16,995 million.
Scheduled banks investment in central government securities, Treasury bills and other approved securities rose in the week under review. Such investments amounted to Rs490,154 million, showing a rise of Rs19,361 million over previous week’s Rs470,793 million. Compared to last year’s corresponding figure of Rs300,728 million, the current week’s investment is higher by Rs189,426 million.
Total assets of scheduled banks declined in the week under review.
These stood at Rs2,288,322 million against previous week’s Rs2,288,491 million, showing a fall of Rs169 million. Compared to last year’s corresponding figure of Rs1,971,309 million, it shows a rise of Rs316,563 million.
