November 26, 2007	Monday	Ziqa’ad 15, 1428

On November 21, the State Bank of Pakistan raised Rs11.458 billion from the money market, against bids worth Rs16.126 billion received. The SBP had set a pre-auction target of Rs50 billion. It picked up Rs95.6 million through 6-month T-bills at a cut off yield of 9.2084 per cent, and Rs11.363 billion from 12-month T-bills at a cut off yield of 9.3990 per cent.

The SBP was forced to increase T-bills rates to attract liquidity but the banks preferred to keep their participation low in the auction. On the following day, the central bank mopped up Rs30 billion from the money market.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended July 2November 10, 2007, both notes in circulation and those issued increased in the week. Notes in circulation stood at Rs992,376.112 million against earlier week’s figure of Rs974,361.578 million, a rise of Rs18,014.534 million. When compared to the corresponding week a year ago when it was Rs864,242.019 million, the current week’s figure is higher by Rs128,134.093 million.

Total notes issued also increased in the current week over preceding week’s level. At Rs992,487.541 million it was larger by Rs17,993.325 million over the figure of Rs974,494.216 million recorded a week earlier. In the corresponding week last year it amounted to Rs864,504.536 million, which shows current week’s figure to be higher by Rs127,983.005 million over last year’s corresponding figure.

Approved foreign exchange declined in the week to Rs744,577.920 million or by Rs16,419.648 million over preceding week’s figure of Rs760,997.568 million. When compared to the corresponding week a year ago, when the figure was Rs519,130.204 million, the current week’s figure is higher by Rs225,447.716 million.

Balances held outside Pakistan in approved foreign exchange increased in the week under review. It stood at Rs152,624.112 million over preceding week’s figure of Rs133,095.848 million, a rise of Rs19,528.264 million. Compared to last year’s corresponding figure of Rs130,411.071 million, the current week’s figure is larger by Rs22,213.041 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 Rs57,855.896 million, similar to preceding week’s figure. The current week’s figure is smaller by Rs4,826.889 million over last year’s corresponding figure of Rs62,682.785 million.

There was an inflow of Rs39,846.880 million to the industrial sector during the week under review, a rise of Rs81.686 million against preceding week’s figure of Rs39,765.194 million. When compared to last year’s corresponding figure of Rs16,278.940 million, the current week’s figure is higher by Rs23,567.94 million.

The export sector received Rs100,377.253 million against previous week’s figure of Rs100,385.210 million, a fall of Rs7.957 million. Current week’s figure was smaller by Rs21,085.467 million over last year’s corresponding figure of Rs121,462.720 million.

According to the weekly statement of position of all scheduled banks for the week ended November 10, 2007, deposits and other accounts of the scheduled banks stood at Rs3,484.574 billion, larger by Rs13.095 billion over preceding week’s figure of Rs3,471.479 billion. Commercial banks deposits showed an increase of Rs13.255 billion over the week to Rs3,472.680 billion, against preceding week’s Rs3,459.425 billion. Specialised banks deposits stood at Rs11.895 billion, against preceding week’s Rs12.054 billion, a fall of Rs0.159 billion.

Borrowings by all scheduled banks increased during the week over preceding week’s figure. It rose to Rs426.456 billion over preceding week’s figure of Rs406.520 billion, a rise of Rs19.936 billion. This was primarily due to a rise in the borrowings by commercial banks, which rose to Rs345.193 billion against previous week’s Rs325.431 billion, or by Rs19.762 billion. Borrowings by specialised banks stood at Rs81.263 billion, against preceding week’s figure of Rs81.088 billion, a rise of Rs0.175 billion.

Gross advances stood at Rs2,507.054 billion in the week under review, an increase of Rs21.95 billion over preceding week’s figure of Rs2,485.104 billion. Advances by commercial banks rose to Rs2,411.899 billion against earlier week’s figure of Rs2,389.966 billion, or by Rs21.933 billion. Advances of specialized banks stood at Rs95.154 billion, smaller by Rs0.015 billion over earlier week’s figure of Rs95.139 billion.

Investments of all scheduled banks declined in the week by Rs9.822 billion to Rs1,248.989 billion against preceding week’s figure of Rs1,258.811 billion. Commercial banks investment decreased to Rs1,234.494 billion, from earlier week’s Rs1,243.889 billion, or by Rs9.395 billion. Specialised banks investment stood at Rs14.495 billion, against preceding week’s Rs14.922 billion, smaller by Rs0.427 billion.

Cash and balances with treasury banks of all scheduled banks increased by Rs6.977 billion during the week to stand at Rs343.769 billion against earlier week’s Rs336.792 billion. The figure for commercial banks stood at Rs341.241 billion against preceding week’s figure of Rs334.333 billion, a rise of Rs6.908 billion, while of specialized banks it stood at 2.528 billion over previous week’s 2.459 billion.

Total assets of scheduled banks stood at Rs4,699.865 billion, larger by Rs25.918 billion, over preceding week’s figure of Rs4,673.947 billion. Meanwhile, commercial banks assets stood at Rs4,586.423 billion, larger by Rs25.663 billion over previous week’s figure of Rs4,560.760 billion. Specialised banks assets rose to Rs113.442 billion, or by Rs0.255 billion over previous week’s Rs113.187 billion.