AT the auction on September 14, the cut-off yield on six-month Treasury bills remained unchanged. It was 8.1388 per cent, while the weighted average annual yield on the paper rose to 8.1388 per cent from 8.1245 per cent at the prevision sale on August 31.

The State Bank of Pakistan sold Rs480 million worth of six-month bills, Rs5.0 billion of three-month bills and Rs3.585 billion of 12-month paper.

The SBP in its fight against inflation, raised the weighted average yields on all three tenures of the T-bills during April-June 2005 attracting more investment in the bills by the banking system, data released by the SBP show. Total Investment of banks and the DFIs in the T-bills rose to Rs421.7 billion at end June form Rs331.6 billion at end March this year, showing an expansion of Rs90.1 billion.

The SBP raised the weighted average yields on three-month and six-month T-bills by 254 basis points and 244 basis points to 7.48 and 7.94 per cent, respectively during April-June 2005. It also had to raise the average yield on one year bills by 268 basis points to Rs8.40 per cent.

According to the weekly statement of position of all scheduled banks for the week ended September 03, 2005, deposits and other accounts of the scheduled banks stood at Rs2,423.59 billion, declining by Rs2.16 billion over preceding week’s figure of Rs2,425.75 billon. Commercial banks deposits showed fall of Rs2.12 billion over the week to Rs2,410.41 billion against preceding week’s Rs2,412.53 billion, while of specialized banks it fell by Rs0.02 billion to Rs3.20 billion, over previous week’s Rs13.22 billion.

Borrowings by all scheduled banks also declined during the week. It fell to Rs282.30 billion over preceding week’s figure of Rs301.56 billion, a fall of Rs19.26 billion. This was primarily due to decrease in borrowings by commercial banks, which fell to Rs202.50 billion against previous week’s Rs221.78 billion, a decline of Rs19.28 billion, while borrowings by specialised banks decreased by Rs1.33 billion to Rs79.91 billion against Rs.81.24 billion a week earlier.

Gross advances stood at Rs1,785.83 billion in the week under review, a fall of Rs0.37 billion over preceding week’s figure of Rs1,786.20 billion. Advances by commercial banks had risen to Rs1,676.41 billion against earlier week’s figure of Rs1,676.94 billion or by Rs0.53 billion.

Investment of all scheduled banks rose in the week to Rs765.33 billion, or by Rs17.08 billion from preceding week’s figure of Rs748.25 billion. Commercial banks investment level rose to Rs754.81 billion from earlier week’s Rs737.86 billion or by Rs16.95 billion, while for specialized banks it stood at Rs10.53 billion against previous week’s Rs10.38 billion, a rise of Rs0.15 billion.

Cash and balances with treasury banks recorded a fall of Rs9.37 billion during the week to stand at Rs225.10 billion against earlier week’s Rs234.47 billion. The figure for commercial banks declined to Rs222.83 billion against preceding week’s figure of Rs232.67 billion, a fall of Rs9.84 billion. For specialized banks the rise was to the tune of Rs0.45 billion to Rs2.258 billion, against earlier week’s figure of Rs1.808 billion.

Total assets of scheduled banks stood at Rs3,196.32 billion, a decrease of Rs12.92 billion, over preceding week’s figure of Rs3,209.24 billion. Meanwhile, commercial banks assets stood at Rs3,086.97 billion, lower by Rs13.26 billion over previous week’s figure of Rs3,100.23 billion. Specialized banks assets rose by Rs0.338 billion to Rs109.35 billion against previous week’s Rs109.012 billion.