The State Bank of Pakistan has decided that banks/DFIs shall achieve the minimum Capital Adequacy Ratio (CAR) of 9 per cent on standalone as well as on consolidated basis, latest by December 31, 2008 and a minimum CAR of 10 per cent and the requirement of variable CAR by December 31, 2009. The variable CAR requirement, based on the CAMELS ratings will be advised to each bank/DFI separately in due course of time.

On November 28, the State Bank conducted an OMO for four and nine days, where the total accepted amount was Rs33.4 bn. In four-day accepted amount was Rs18.5bn at the cut-off yield of 8.35 per cent and in nine-day accepted amount was Rs14.9bn at the cut-off yield of 8.5 per cent.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended November 15, 2008, both notes in circulation and those issued increased. Notes in circulation stood at Rs1,199.987bn against earlier week’s Rs1,193.149bn, a rise of Rs6.838bn. When compared to the corresponding week a year ago when it was Rs995.186bn, the current week’s figure is higher by Rs204.801bn.

Total notes issued also increased in the current week over preceding week’s level. At Rs1,200.128bn it was larger by Rs6.798bn over the figure of Rs1,193.330bn recorded a week earlier. In the corresponding week last year it amounted to Rs995.377bn, which shows current week’s figure to be higher by Rs204.751bn over last year’s corresponding figure.

Approved foreign exchange increased in the week to Rs175.207bn or by Rs14.4bn over preceding week’s figure of Rs160.807bn. When compared to the corresponding week a year ago, when the figure was Rs751.764bn, the current week’s figure is lower by Rs576.557bn.

Balances held outside Pakistan in approved foreign exchange declined in the week under review. It stood at Rs146.221bn over preceding week’s figure of Rs166.365bn, a fall of Rs20.144bn. Compared to last year’s corresponding figure of Rs132.027bn, the current week’s figure is larger by Rs14.194bn.

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 Rs57.777bn, similar to preceding week’s figure. The current week’s figure is smaller by Rs0.078bn over last year’s corresponding figure of Rs57.855bn.

There was an inflow of Rs36.306bn to the industrial sector during the week under review, a fall of Rs0.033bn against preceding week’s figure of Rs36.336bn. When compared to last year’s corresponding figure of Rs39.978bn, the current week’s figure is smaller by Rs3.672bn.

The export sector received Rs107.382bn against previous week’s figure of Rs105.852bn, larger by Rs1.53bn. Current week’s figure was smaller by Rs6.895bn over last year’s corresponding figure of Rs100.487bn.

According to the weekly statement of position of all scheduled banks for the week ended November 22, 2008, deposits and other accounts of the scheduled banks rose in the current week and stood at Rs3,709.456bn, higher by Rs27.206bn over preceding week’s figure of Rs3,682.250bn.

Compared with last year’s corresponding figure of Rs3,478.385bn, the current week’s figure is larger by Rs231.071bn. During the current week commercial banks deposits showed an increase of Rs27.065bn over the week to Rs3,698.214bn, against preceding week’s Rs3,671.149bn. Specialised banks deposits stood at Rs11.241bn, against preceding week’s Rs11.101bn, a rise of Rs0.14bn.

Borrowings by all scheduled banks increased in the week. It rose to Rs414.602bn over preceding week’s figure of Rs407.431bn, a rise of Rs7.171bn. Compared to last year’s corresponding figure of Rs432.859bn, current week’s figure is lower by Rs18.257bn. Commercial banks borrowings rose to Rs333.484bn against previous week’s Rs326.331bn, or by Rs7.153bn. Borrowings by specialised banks stood at Rs81.118bn, against preceding week’s figure of Rs81.099bn, larger by Rs0.019bn.

Gross advances stood at Rs3,134.751bn in the week under review, a rise of Rs22.911bn over preceding week’s figure of Rs3,111.840bn. Compared to last year’s corresponding figure of Rs2,535.759bn, current week’s figure is larger by Rs598.992bn. In the week under review, advances by commercial banks rose to Rs3,034.976bn against earlier week’s figure of Rs3,012.172bn, or by Rs22.804bn. Advances of specialised banks stood at Rs99.775bn, larger by Rs0.107bn over earlier week’s figure of Rs99.668bn.

Investments of all scheduled banks increased in the week by Rs62.466bn to Rs928.148bn against preceding week’s figure of Rs865.682bn. Compared to last year’s corresponding figure of Rs1,213.543bn, current week’s figure is smaller by Rs285.395bn. In the current week, commercial banks investment increased to Rs919.469bn, from earlier week’s Rs854.994bn, or by Rs64.475bn. Specialized banks investment stood at Rs8.680bn, against preceding week’s Rs10.688bn, higher by Rs2.008bn.