Weighted average yield on T-bills risen by 54 basis points
The State Bank of Pakistan on November 10 raised the weighted average yield on six-month treasury bills by 54 basis points to 3.73 per cent. The SBP sold Rs2.45 billion six-month Treasury bills.
The auction had generated bids worth Rs4.1 billion.
The increase in T-bills rates reinforces the view that it would increase the T-bill rate much faster during this quarter than in the previous quarter. The Bank seems set to contain the inflation rate, which has risen to over 9 per cent in September.
According to the Statement of Affairs of the State Bank of Pakistan, for the week ended October 30, 2004, both notes in circulation and those issued further increased in the week.
Notes in circulation stood at Rs672,563.579 million against earlier week's figure of Rs672,257.895 million, a rise of Rs305.684 million. When compared to the corresponding week a year ago when it was Rs581,646.852 million, the current week's figure is higher by Rs90,916.727 million.
Total notes issued also recorded a rise in the current week over preceding week's level. At Rs672,791.758 million it was larger by Rs290.425 million over the figure of Rs672,501.333 million recorded a week earlier.
In the corresponding week last year it amounted to Rs581,734.256 million, which shows current week's figure to be higher by Rs91,057.502 million over last year's corresponding figure.
Approved foreign exchange increased in the week, rising to Rs509,931.696 million or by Rs6,898.929 million over preceding week's figure of Rs503,032.767 million. When compared to the corresponding week a year ago, when the figure was Rs498,689.541 million, the current week's figure was higher by Rs11,242.155 million.
Balances held outside Pakistan in approved foreign exchange fell in the week under review. It stood at Rs111,669.648 million over preceding week's figure of Rs115,844.233 million, a decline of Rs4,174.585 million. Compared to last year's corresponding figure of Rs90,817.599 million, the current week's figure is substantially higher by Rs20,852.049 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 Rs58,405.281 million, similar to preceding week's figure. The current week's figure is larger by Rs3,457.386 million over last year's corresponding figure of Rs54,947.895 million.
There was an inflow of Rs2,186.317 million to the industrial sector during the week under review, against preceding week's figure of Rs2,186.484 million, a decline of Rs0.167 million. When compared to last year's corresponding figure of Rs2,690.829 million, the current week's figure is lower by Rs504.512 million.
The export sector received Rs95,742.633 million against previous week's figure of Rs94,943.802 million, a rise of Rs798.831 million. Current week's figure was larger by Rs28,686.299 million over last year's corresponding figure of Rs67,056.334 million.
According to the weekly statement of position of scheduled banks for the week ended October 30, 2004, the sum of demand and time liabilities showed an increase in the week under review.
The sum total stood at Rs2,165,565 million against preceding week's Rs2,144,905 million, a rise of Rs20,660 million. As compared to the total deposits of Rs1,805,514 million in the corresponding period last year, current week's deposits were higher by Rs360,051 million.
During the week under review, demand deposits stood at Rs1,116,650 million, an increase of Rs8,751 million over previous week's Rs1,107,899 million. It was also higher against last year's corresponding figure of Rs904,464 million by Rs212,186 million.
Time deposits rose in the current week. At Rs1,048,915 million it was larger by Rs11,909 million over previous week's Rs1,037,006 million and by Rs147,865 million over last year's corresponding figure of Rs901,050 million.
Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities increased in the current week. At Rs169,058 million it was larger by Rs990 million over preceding week's Rs168,068 million. Compared to last year's corresponding figure of Rs143,749 million, the current week's figure is higher by Rs25,309 million.
Scheduled banks borrowings from banks abroad stood at Rs11,317 million in the current week, as against Rs6,073 million a week ago, a rise of Rs5,244 million. It was smaller by Rs7,458 million over last year's corresponding figure of Rs18,775 million.
Money at call and short notice in Pakistan declined in the week over previous week's figure. It stood at Rs35,846 million, a fall of Rs1,665 million over preceding week's Rs37,511 million. When compared to last year's corresponding figure of Rs22,783 million, the current week's figure is higher by Rs13,063 million.
