On November 5, the State Bank of Pakistan raised the cut off yield on three month T-bills to 13.5313 per cent, against 12.5631 per cent in an auction on October 22. This indicates a tightening of monetary stance.

According to the weekly statement of position of all scheduled banks for the week ended November 1, 2008, deposits and other accounts of the scheduled banks rose in the current week and stood at Rs3,704.701 billion, higher by Rs23.591 billion over preceding week’s figure of Rs3,681.110 billion. Compared with last year’s corresponding figure of Rs3,471.479 billion, the current week’s figure is larger by Rs233.222 billion.

During the current week commercial banks deposits showed an increase of Rs23.647 billion over the week to Rs3,693.421 billion, against preceding week’s Rs3,669.774 billion. Specialised banks deposits stood at Rs11.280 billion, against preceding week’s Rs11.336 billion, a fall of Rs0.056 billion.

Borrowings by all scheduled banks increased in the week. It rose to Rs429.736 billion over preceding week’s figure of Rs424.428 billion, a rise of Rs5.308 billion. Compared to last year’s corresponding figure of Rs406.520 billion, current week’s figure is higher by Rs23.216 billion.

Current week’s increase was due to a rise in the borrowings by commercial banks, which rose to Rs348.683 billion against previous week’s Rs342.923 billion, or by Rs5.76 billion. Borrowings by specialised banks stood at Rs81.053 billion, against preceding week’s figure of Rs81.506 billion, higher by Rs0.453 billion.

Gross advances stood at Rs3,112.613 billion in the week under review, a rise of Rs20.162 billion over preceding week’s figure of Rs3,092.451 billion. Compared to last year’s corresponding figure of Rs2,485.104 billion, current week’s figure is larger by Rs627.509 billion.

In the week under review, advances by commercial banks increased to Rs3,012.381 billion against earlier week’s figure of Rs2,993.142 billion, or by Rs19.239 billion. Advances of specialized banks stood at Rs100.231 billion, larger by Rs0.922 billion over earlier week’s figure of Rs99.309 billion.

Investments of all scheduled banks increased in the week by Rs2.044 billion to Rs923.087 billion against preceding week’s figure of Rs921.043 billion. Compared to last year’s corresponding figure of Rs1,258.811 billion, current week’s figure is smaller by Rs335.724 billion.

In the current week, commercial banks investment increased to Rs911.907 billion, from earlier week’s Rs909.344 billion, or by Rs2.563 billion. Specialised banks investment stood at Rs11.179 billion, against preceding week’s Rs11.698 billion, smaller by Rs0.519 billion.

Cash and balances with treasury banks of all scheduled banks increased by Rs2.244 billion during the week to stand at Rs352.461 billion against earlier week’s Rs350.217 billion.

Current week’s figure was higher by Rs15.669 billion compared to last year’s corresponding figure of Rs336.792 billion. In the current week, the figure for commercial banks stood at Rs349.916 billion against preceding week’s figure of Rs347.180 billion, a rise of Rs2.736 billion, while of specialized banks it stood at Rs2.545 billion over previous week’s Rs3.037 billion.

Total assets of scheduled banks stood at Rs5,040.412 billion, higher by Rs21.916 billion, over preceding week’s figure of Rs5,018.496 billion. Current week’s figure was higher by Rs366.465 billion compared to last year’s corresponding figure of Rs4,673.947 billion.

Meanwhile, commercial banks assets, in the current week, stood at Rs4,918.674 billion, higher by Rs22.839 billion over previous week’s figure of Rs4,895.835 billion. Specialised banks assets declined to Rs121.739 billion, or by Rs0.922 billion over previous week’s Rs122.661 billion.