Cut-off yield on Treasury bills up by six basis points
At the auction held on March 31, the State Bank of Pakistan sold six-month Treasury bills worth Rs20.85 billion against the market offer of Rs28.35 billion at a cut-off yield of 1.8418 per cent.
Though the amount accepted was lower than the market offer, it was 39 per cent higher than the targeted amount of Rs15 billion.
The cut-off yield for the accepted bids on the bills increased by six basis points for the fifth consecutive time. At the last auction held on March 3, the six-month Treasury bills' cut-off yield was 1.7808 per cent. The yield had touched an all-time low of 1.2715 per cent on August 21, 2003. Since then the yields are on constant rise and have so far gained 57 basis point.
According to the Statement of Affairs of the State Bank of Pakistan, for the week ended March 27, 2004, both notes in circulation and those issued decreased in the week under review. Notes in circulation stood at Rs609.612.143 million against earlier week's figure of Rs614,851.339 million, showing a fall of Rs5,239.196 million. When compared to the corresponding week a year ago when it was Rs516,645.505 million, the current week's figure is higher by Rs92,966.638 million.
Total notes issued also recorded a fall in the current week over preceding week's level. At Rs609,736.754 million it was smaller by Rs5,320.23 million over the figure of Rs615,056.984 million recorded a week earlier. In the corresponding week last year it amounted to Rs516,866.821 million, which shows current week's figure to be higher by Rs92,869.933 million over last year's corresponding figure.
Approved foreign exchange decreased in the week, falling to Rs522,037.545 million or by Rs27.326 million over preceding week's figure of Rs522,064.871 million. When compared to the corresponding week a year ago, when the figure was Rs4888,730.657 million, the current week's figure was higher by Rs33,306.888 million.
Balances held outside Pakistan in approved foreign exchange rose in the week under review. It stood at Rs129,599.974 million over preceding week's figure of Rs121,501.228 million, showing a rise of Rs8,098.746 million. Compared to last year's corresponding figure of Rs96,541.615 million, the current week's figure is substantially higher by Rs33,058.359 million.
Loans and advances of scheduled banks to the three sectors - agricultural, industrial and export - showed a mixed trend in the week under review. The agricultural sector received Rs55,675.539 million, similar to preceding week's figure. The current week's figure is larger by Rs1,647.465 million over last year's corresponding figure of Rs54,028.074 million.
There was an inflow of Rs2,393.844 million to the industrial sector during the week under review, against preceding week's figure of Rs2,441.053 million showing a fall of Rs47.209 million. When compared to last year's corresponding figure of Rs2,966.943 million, the current week's figure is lower by Rs573.099 million.
The export sector received Rs79,444.693 million against previous week's figure of Rs76,786.370 million, showing a rise of Rs2,658.323 million. Current week's figure was larger by Rs36,092.031 million over last year's corresponding figure of Rs43,352.662 million.
According to the weekly statement of position of scheduled banks for the week ended March 20, 2004, the sum of demand and time liabilities increased in the week under review. The sum total stood at Rs1,935,178 million against preceding week's Rs1,928,906 million, showing a rise of Rs6,812 million.
As compared to the total deposits of Rs1,661,935 million in the corresponding period last year, current week's deposits were higher by Rs273,783 million.
During the week under review, demand deposits stood at Rs964,792 million, a rise of Rs2,428 million over previous week's Rs962,364 million. It was also higher against last year's corresponding figure of Rs757,106 million by Rs207,428 million.
In the current week, time deposits increased over preceding week's figure. At Rs970,926 million it was larger by Rs4,384 million over previous week's Rs966,542 million and by Rs66,097 million, over last year's corresponding figure of Rs904,829 million.
Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities fall in the current week. At Rs148,964 million it was smaller by Rs1,273 million over preceding week's Rs150,237 million. Compared to last year's corresponding figure of Rs127,994 million, the current week's figure is higher by Rs20,970 million.
Scheduled banks borrowings from banks abroad stood at Rs3,614 million in the current week, as against Rs3,028 million a week ago, showing a rise of Rs586 million. It was smaller by Rs10,587 million over last year's corresponding figure of Rs14,192 million.
