October 02, 2006	Monday	Ramazan 8, 1427

AT the Treasury bill auction on September 27, the State Bank of Pakistan raised Rs18.650 billion, against the target of Rs50 billion. It picked up Rs10.883 billion for three months, Rs3.687 billion for six months and Rs3.395 billion for 12 month Treasury-Bills.

Banks had asked for higher rate on six months and 12 months T-bills, which the SBP declined and let the liquidity in the market. The market would remain under pressure of high liquidity presence.

On September 28, the SBP sold Rs6.2 billion worth of the Treasury bills through one week repurchase agreements to mop up liquidity from the market. The bills were sold at 8.35 per cent.

The market received an inflow of around Rs53 billion from maturity of short and long term government securities.

According to the weekly statement of position of all scheduled banks for the week ended September 16, 2006, deposits and other accounts of the scheduled banks stood at Rs2,807.737 billion, lower by Rs14.202 billion over preceding week’s figure of Rs2,821.939 billon. Commercial banks deposits showed a decrease of Rs14.004 billion over the week to Rs2,795.007 billion, against preceding week’s Rs2,809.011 billion, while of specialized banks it fell by Rs0.197 billion to Rs12.9731 billion, over previous week’s Rs12.928 billion.

Borrowings by all scheduled banks increased during the week over preceding week’s figure. It rose to Rs367.069 billion over preceding week’s figure of Rs331.164 billion, a rise of Rs35.905 billion. This was primarily due to an increase in the borrowings by commercial banks, which rose to Rs279.314 billion against previous week’s Rs243.215 billion, or by Rs36.099 billion, while borrowings by specialised banks stood at Rs87.755 billion.

Gross advances stood at Rs2,195.474 billion in the week under review, an increase of Rs5.851 billion over preceding week’s figure of Rs2,189.623 billion. Advances by commercial banks rose to Rs2,097.006 billion against earlier week’s figure of Rs2,091.371 billion, larger by Rs5.635 billion, while of specialized banks it stood at Rs98.468 billion.

Investments of all scheduled banks increased in the week by Rs16.8 billion to Rs816.548 billion against preceding week’s figure of Rs799.748 billion. Commercial banks investment rose to Rs804.836 billion, from earlier week’s Rs787.802 billion, larger by Rs5.088 billion, while of specialized banks it stood at Rs11.712 billion against previous week’s Rs11.946 billion, larger by Rs0.234 billion.

Cash and balances with treasury banks of all scheduled banks decreased by Rs19.307 billion during the week to stand at Rs281.718 billion against earlier week’s Rs301.025 billion. The figure for commercial banks also fell to Rs279.606 billion against preceding week’s figure of Rs298.968 billion, a fall of Rs19.362 billion. For specialized banks there was an increase of Rs0.054 billion to Rs2.111 billion, against earlier week’s figure of Rs2.057 billion.

Total assets of scheduled banks stood at Rs3,736.985 billion, higher by Rs20.722 billion, over preceding week’s figure of Rs3,716.263 billion. Meanwhile, commercial banks assets stood at Rs3,621.090 billion, higher by Rs20.983 billion over previous week’s figure of Rs3,600.107 billion. Specialized banks assets fell by Rs0.259 billion to Rs115.896 billion against previous week’s Rs116.155 billion.