May 15, 2006	Monday	Rabi-us-Sani 16, 1427

THE Treasury bills auction on May 10, failed to attract banks and the offered amount by banks remained far below the target set by the State Bank.

The central bank said it sold Rs96 million of six-month bills without any change in the cut-off yield. The SBP also did not change the cut-off yield on three-month and 12-month papers. It sold Rs98.17 million of three-month and Rs459.7 million of 12-month bills.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended April 29, 2006, both notes in circulation and those issued decreased during the week. Notes in circulation stood at Rs783,483.478 million against earlier week’s figure of Rs792,678.795 million, a fall of Rs9,195.317 million. When compared to the corresponding week a year ago when it was Rs706,713.731 million, the current week’s figure is higher by Rs76,769.747 million.

Total notes issued also decreased in the current week over preceding week’s level. At Rs783,656.834 million it was smaller by Rs9,197.297 million over the figure of Rs792,854.131 million recorded a week earlier. In the corresponding week last year it amounted to Rs706,923.228 million, which shows current week’s figure to be higher by Rs76,733.606 million over last year’s corresponding figure.

Approved foreign exchange increased in the week to Rs536,378.400 million or by Rs2,516.954 million over preceding week’s figure of Rs533,861.446 million. When compared to the corresponding week a year ago, when the figure was Rs506,135.236 million, the current week’s figure is larger by Rs30,243.164 million.

Balances held outside Pakistan in approved foreign exchange increased in the week under review. It stood at Rs132,237.907 million over preceding week’s figure of Rs127,862.806 million, showing a rise of Rs4,375.101 million. Compared to last year’s corresponding figure of Rs127,377.302 million, the current week’s figure is lower by Rs4,860.605 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 Rs61,650.923 million, similar to preceding week’s figure. The current week’s figure is larger by Rs2,074.486 million over last year’s corresponding figure of Rs59,576.437 million.

There was an inflow of Rs6,113.726 million to the industrial sector during the week under review, a rise of Rs243.453 million against preceding week’s figure of Rs5,870.273 million. When compared to last year’s corresponding figure of Rs1,317.064 million, the current week’s figure is higher by Rs4,796.662 million.

The export sector received Rs109,030.114 million against previous week’s figure of Rs108,391.878 million, a rise of Rs,638.236 million. Current week’s figure was smaller by Rs1,541.065 million over last year’s corresponding figure of Rs110,571.179 million.

According to the weekly statement of position of all scheduled banks for the week ended April 29, 2006, deposits and other accounts of the scheduled banks stood at Rs2,695.939 billion, rising by Rs23.384 billion over preceding week’s figure of Rs2,672.555 billon. Commercial banks deposits showed a rise of Rs23.441 billion over the week to Rs2,684.186 billion against preceding week’s Rs2,660.745 billion, while of specialized banks it fell by Rs0.057 billion to Rs11.753 billion, over previous week’s Rs11.810 billion.

Borrowings by all scheduled banks declined during the week over preceding week’s figure. It fell to Rs334.651 billion over preceding week’s figure of Rs344.372 billion, a fall of Rs9.721 billion. This was primarily due to a decline in the borrowings by commercial banks, which fell to Rs248.098 billion against previous week’s Rs257.873 billion, or by Rs9.775 billion, while borrowings by specialised banks stood at Rs86.554 billion.

Gross advances stood at Rs2,077.076 billion in the week under review, a rise of Rs7.075 billion over preceding week’s figure of Rs2,070.001 billion. Advances by commercial banks rose to Rs1,990.194 billion against earlier week’s figure of Rs1,977.404 billion, larger by Rs12.79 billion.

Investments of all scheduled banks declined in the week by Rs5.698 billion to Rs827.850 billion against preceding week’s figure of Rs833.548 billion. Commercial banks investment level fell to Rs805.804 billion, from earlier week’s Rs810.797 billion, lower by Rs4.993 billion, while of specialized banks it stood at Rs22.046 billion against previous week’s Rs22.751 billion, a decline of Rs0.705 billion.

Cash and balances with treasury banks of all scheduled banks increased by Rs5.288 billion during the week to stand at Rs249.124 billion against earlier week’s Rs243.835 billion. The figure for commercial banks rose to Rs247.369 billion against preceding week’s figure of Rs242.052 billion, a rise of Rs5.317 billion. For specialised banks there was however, a fall to the tune of Rs0.03 billion to Rs1.755 billion, against earlier week’s figure of Rs1.785 billion.