AT the fortnightly Treasury Bills auction held by the State Bank of Pakistan on August 17, the central bank accepted bids worth Rs14.65 billion out of the offered amount of Rs52.05 billion.

Of the total bids, 3-month Treasury bills accounted for Rs9.025 billion at a cut-off yield of 7.9197 per cent, 6-month bills of Rs2.775 billion at 8.1388 per cent and 12-month bills of Rs2.85 billion were accepted at 8.7907 per cent.

The cut-off yield on 3-month and 6-month bills represented a rise over the bills auctioned on August 3. The cut-off yield on 12-month bills, however, remained unchanged. The market had expected this increase by the State Bank of Pakistan as an effort to deal with the rising inflation.

According to the weekly statement of position of all scheduled banks for the week ended July 30, 2005, deposits and other accounts of all scheduled banks stood at Rs2,424.13 billion, an increase of Rs3.170 billion over the figures of Rs2,420.96 billion recorded a week earlier, where commercial banks deposits increased by Rs3.18 billion to Rs2,410.6 billion and specialized banks’ deposits fell by Rs7.0 million to Rs13.56 billion.

Borrowings amounted to Rs285.6 billion, a fall of Rs2.200 billion over the figures of Rs287.8 billion recorded a week earlier, where commercial banks borrowings were Rs206.3 billion and the balance was accounted for by specialized banks. Over the preceding week, commercial banks’ borrowing were lower by Rs7.8 billion and that of specialized banks rose by Rs5.6 billion.

Gross advances stood at Rs1,786.73 billion, which after provisions of Rs130.9 billion amounted to Rs1,655.85 billion. Advances, net of provision, of all commercial banks were to the tune of Rs1,589.97 billion, while for specialized banks it was Rs65.88 billion. During the week, these were lower by Rs15.7 billion, with commercial banks’ accounting for a decline of Rs17.7 billion. Specialized banks advances, however, recorded an increase of Rs1.99 billion.

Scheduled banks investments amounted to Rs772.19 billion, with investments by commercial banks making up for Rs761.45 billion and of specialized banks Rs10.74 billion. Investment by all banks was higher by Rs6.33 billion during the week in review, of which commercial banks account for a rise of Rs2.47 billion and specialized banks for Rs3.85 billion, respectively.

Cash and balances with treasury banks stood at Rs.221.53 billion for all scheduled banks, with commercial banks accounting for the bulk – Rs220.17 billion and specialized banks Rs1.36 billion. The cash and balances with treasury banks, in the week were lower by Rs6.36 billion, mainly on account of decline recorded by commercial banks.

Total assets stood at Rs3,191.29 billion, where commercial banks assets were Rs3,082.51 billion and specialized banks Rs108.78 billion. These were lower by Rs29.07 billion in the current week on account of a decline of Rs36.89 billion in commercial bank’s assets. Specialized bank’s assets, however, recorded a rise of Rs7.82 billion.