THE government managed to raise only Rs4.768bn from the latest Treasury bill auction conducted on September 17, far below its target of Rs100bn. Some analysts attributed this to the liquidity crunch faced by banks after their strong participation in the auction of higher-yielding PIBs just a week earlier.

The entire accepted amount came from T-bills of three-month tenor at a cut-off yield of 9.9564pc. Investors had also bid the same amount for three-month T-bills, and another Rs952.3m for six-month T-bills. The central bank rejected all bids for the six-month T-bill, while the 12-month T-bill failed to garner any bids.

According to the weekly statement of position of all scheduled banks for the week ending August 29, gross advances stood at Rs4,247.249bn, up 0.11pc over the preceding week’s figure of Rs4,242.586bn.

Advances by commercial banks rose to Rs4,113.633bn in the week, against the earlier week’s figure of Rs4,109.983bn, or by 0.09pc. Advances by specialised banks stood at Rs133.616bn in the week.

All the amount raised from the latest Treasury bill auction — Rs4.768bn

— came from three-month bills

Cash and balances with treasury banks of all scheduled banks went up by 6.45pc during the week under review to Rs717.856bn, against the earlier week’s Rs674.33bn. Cash and balances with treasury banks of all commercial banks stood at Rs714.828bn, against the earlier week’s figure of Rs670. 910bn, up 6.55pc. Cash and balances with treasury banks of all specialised banks stood at Rs3.028bn in the week, against the preceding week’s figure of Rs3.42bn.

Investments of all scheduled banks stood at Rs4,375.348bn in the week ending August 29, against the preceding week’s figure of Rs4,382.572bn, down 0.16pc. Investments of all commercial banks stood at Rs4,342.523bn in the week, against the previous week’s Rs4349.468bn, a fall of 0.16pc. Specialised banks’ investments stood at Rs32.825bn in the week, against the preceding week’s figure of Rs33.104bn.

Total assets of all scheduled banks stood at Rs10,283.557bn in the week under review, up 0.75pc over the preceding week’s figure of Rs10,206.731bn. Total assets of all commercial banks stood at Rs10,107.616bn in the week, higher by 0.77pc over the previous week’s figure of Rs10,030.117bn. Total assets of all specialised banks stood at Rs175.42bn in the week, over the previous week’s Rs176.613bn.

Borrowings by all scheduled banks decreased to Rs617.855bn in the week ending August 29, against the prior week’s Rs641.743bn. Borrowings by all commercial banks declined to Rs539.41bn, against the previous week’s Rs563.322bn. Borrowings by specialised banks stood at Rs78.445bn in the week.

Deposits and other accounts of all scheduled banks rose by 1.3pc to Rs8,132.458bn in the week under review, over the preceding week’s figure of Rs8,027.711bn. Deposits and other accounts of all commercial banks rose to Rs8,111.986bn in the week, against the preceding week’s Rs8,007.275bn, up 1.30pc. Deposits and other accounts of all specialised banks stood at Rs20.473bn.

Other liabilities of all scheduled banks stood at Rs366.333bn in the week ending August 29, against the preceding week’s Rs355. 916bn. Other liabilities of all commercial banks rose to Rs313.025bn.

Net assets of all scheduled banks stood at Rs985.301bn in the week under review, against the preceding week’s Rs997.718bn. Net assets of all commercial banks stood at Rs965.761bn, lower by 1.18pc over the preceding week’s Rs977.317bn. Specialised banks’ net assets stood at Rs19.541bn in the week.

Published in Dawn, Economic & Business, September 22nd, 2014