RISING demand for high-yielding Pakistan Investment Bonds led the government to borrow Rs152.592bn during the auction on September 11, above its target of Rs100bn.

Of the accepted amount, three-year PIBs fetched Rs88.009bn at a cut-off yield of 12.5934pc, followed by 10-year PIBs with Rs35.507bn at 13.4598pc, five-year PIBs with Rs23.743bn at 12.9909pc and 20-year PIBs with Rs5.333bn at 13.5905pc. Cut-off yields on the bonds had also risen in this auction.

The auction had attracted significant interest, with the central bank having received Rs193.222bn worth of bids. Of this, three-year PIBs had attracted Rs115.226bn, followed by 10-year bonds with Rs49.243bn, five-year bonds with Rs23.421bn and 20-year bonds with Rs5.333bn.

According to the weekly statement of position of all scheduled banks for the week ending August 22, deposits and other accounts of all scheduled banks rose by 0.70pc to Rs8027.711bn, against the prior week’s figure of Rs7971.755bn.

Deposits and other accounts of all commercial banks rose to Rs8,007.275bn in the week, against the preceding week’s Rs7,951.158bn. Deposits and other accounts of all specialised banks stood at Rs20.436bn in the week, against the previous week’s Rs20.596bn.

Three-year Pakistan Investment Bonds fetched the highest amount of Rs88.009bn during the latest PIB auction

Cash and balances with treasury banks of all scheduled banks increased by 2.68pc to Rs674.33bn during the week under review, against the earlier week’s Rs656.692bn.

Cash and balances with treasury banks of all commercial banks stood at Rs670. 91bn in the week, against the earlier week’s Rs653.250bn, up 2.70pc. Cash and balances with treasury banks of all specialised banks stood at Rs3.42bn in the week, against the preceding week’s figure of Rs3.442bn.

Investments of all scheduled banks stood at Rs4382.572bn in the week ending August 22, against the preceding week’s figure of Rs4,442.279bn, down 1.34pc. Investments of all commercial banks stood at Rs4,349.468bn in the week, against the previous week’s Rs4,409.461bn. Investments of all specialised banks stood at Rs33.104bn, against the preceding week’s Rs32.818bn.

Gross advances by scheduled banks stood at Rs4,242.586bn in the week under review, over the preceding week’s Rs4,233.611bn. Advances by commercial banks increased to Rs4,109.983bn in the week, against the earlier week’s Rs4,100.881bn, or by 0.22pc. Advances by specialised banks stood at Rs132.604bn in the week.

Total assets of all scheduled banks stood at Rs10,206.731bn in the week ending August 22, up 0.04pc over the preceding week’s figure of Rs10,202.342bn. Total assets of all commercial banks stood at Rs10,030.117bn in the week, against the previous week’s Rs10,025.084bn. Total assets of all specialised banks stood at Rs176.613bn in the week, over the previous week’s Rs177.259bn.

Borrowings by all scheduled banks fell by 9.60pc to Rs641.743bn in the week under review, over the preceding week’s Rs709.814bn. Borrowings by all commercial banks declined by 10.73pc to Rs563.322bn in the week, against the previous week’s Rs631.058bn. Borrowings by specialised banks stood at Rs78.421bn.

Other liabilities of all scheduled banks stood at Rs355. 916bn in the week ending August 22, against the preceding week’s Rs347.554bn. Other liabilities of all commercial banks increased to Rs302.65bn in the week, over the previous week’s Rs294.293bn.

Net assets of all scheduled banks stood at Rs997.718bn in the week under review, against the preceding week’s figure of Rs993.177bn.

Published in Dawn, Economic & Business, Sep 15th, 2014