August 27, 2007	Monday	Sha’aban 13, 1428

On August 21, the State Bank of Pakistan increased the cut-off yields on all tenures of Pakistan Investment Bonds. This was expected after the increase in discount rate by 0.5 per cent.

The yield on benchmark 10-year PIB was raised to 10.35 per cent from 10.12 per cent and on the 15-year PIB to 11.1494 per cent from 10.9857 per cent.

The cut-off yields on the five and three-year bonds were also increased to 9.8916 per cent and 9.6881 per cent from 9.5480 per cent and 9.3180 per cent respectively. The rate on 20 and 30-year PIBs was raised to 11.4016 per cent and 11.6802 per cent from 11.2016 per cent and 11.5937 per cent.

The Central Bank sold a total of Rs14.84 billion of PIBs while it received bids worth about Rs26.46 billion.

According to the weekly statement of position of all scheduled banks for the week ended August 11, 2007, deposits and other accounts of the scheduled banks stood at Rs3,414.346 billion, higher by Rs7.985 billion over preceding week’s figure of Rs3,406.361 billion. Commercial banks deposits showed a rise of Rs8.018 billion over the week to Rs3,401.899 billion, against preceding week’s Rs3,393.881 billion. Specialised banks deposits stood at Rs12.447 billion, against preceding week’s Rs12.480 billion, a fall of Rs0.033 billion.

Borrowings by all scheduled banks decreased during the week over preceding week’s figure. It fell to Rs403.637 billion over preceding week’s figure of Rs442.092 billion, a fall of Rs38.455 billion. This was primarily due to a decline in the borrowings by commercial banks, which fell to Rs322.294 billion against previous week’s Rs360.674 billion, or by Rs38.38 billion. Borrowings by specialized banks stood at Rs81.343 billion, against preceding week’s figure of Rs81.418 billion, a decrease of Rs0.075 billion.

Gross advances (net of provision) stood at Rs2,429.521 billion in the week under review, a decline of Rs134.482 billion over preceding week’s figure of Rs2,295.039 billion. Advances by commercial banks rose to Rs2,334.034 billion against earlier week’s figure of Rs2,222.952 billion, or by Rs111.082 billion. Advances of specialized banks stood at Rs95.487 billion, larger by Rs23.4 billion over earlier week’s figure of Rs72.087 billion.

Investments of all scheduled banks increased in the week by Rs0.693 billion to Rs1,158.494 billion against preceding week’s figure of Rs1,157.801 billion. Commercial banks investment fell to Rs1,146.174 billion, from earlier week’s Rs1,146.978 billion, smaller by Rs0.804 billion. Specialized banks investment stood at Rs12.320 billion, against preceding week’s Rs10.823 billion, an increase of Rs1.497 billion.

Cash and balances with treasury banks of all scheduled banks increased by Rs1.011 billion during the week to stand at Rs344.010 billion against earlier week’s Rs342.999 billion. The figure for commercial banks stood at Rs341.287 billion against preceding week’s figure of Rs340.590 billion, a rise of Rs0.697 billion, while of specialized banks it stood at Rs2.723 billion over previous week’s Rs2.409 billion.

Total assets of scheduled banks stood at Rs4,555.158 billion, smaller by Rs30.456 billion, over preceding week’s figure of Rs4,585.614 billion. Meanwhile, commercial banks assets stood at Rs4,439.693 billion, smaller by Rs30.829 billion over previous week’s figure of Rs4,470.522 billion. Specialized banks assets increased to Rs115.465 billion, or by Rs0.373 billion over previous week’s Rs115.092 billion.