SBP sells Rs24.4bn treasury bills at auction

Published Apr 21, 2003 12:00am

Treasury bill yields have fallen in recent times because of excess liquidity in the market. At the start of this fiscal year, the weighted average yield on one year bills stood at 6.81 per cent that has now come down to 2.60 per cent. The yield on six month Treasury bills has fallen to 1.7 per cent from more than 6 per cent in July.

At the recent auction on April 16, the State Bank of Pakistan sold Rs24.4 billion worth of one year Treasury bills. According to the Statement of Affairs of the State Bank of Pakistan, for the week ended April 5, 2003, both notes in circulation and those issued increased in the week under review after having fallen in the preceding week. Notes in circulation stood at Rs526,074.168 million against earlier week’s figure of Rs516,645.505 million, showing a rise of Rs9,428.663 million. When compared to the corresponding week a year ago when it was Rs460,719.440 million, the current week’s figure is higher by Rs65,354.727 million.

Total notes issued also recorded a rise in the current week. At Rs526,259.940 million it was larger by Rs9,393.119 million over the figure of Rs516,866.821 million recorded a week earlier. In the corresponding week last year it amounted to Rs460,933.246 million, which shows current week’s figure to be higher by Rs65,326.694 million over last year’s figure.

Approved foreign exchange declined further in the week to Rs435,428.981 million, smaller by Rs13,301.676 million over preceding week’s figure of Rs448,730.657 million recorded a week earlier. When compared to the corresponding week a year ago, when the figure was Rs178,262.476 million, the current week’s figure was higher by Rs257,166.505 million.

Balances held outside Pakistan in approved foreign exchange stood at Rs108,380.922 million over preceding week’s figure of Rs96,541.615 million, showing a rise of Rs11,839.307 million. Compared to last year’s corresponding figure of Rs53,552.416 million, the current week’s figure is higher by Rs54,828.506 million.

The agricultural sector received Rs53,971.073 million against preceding week’s figure of Rs54,028.074 million, showing a decline of Rs57.001 million. The current week’s figure is lower by Rs48.368 million over last year’s corresponding figure of Rs54,019.441 million.

There was an inflow of Rs2,942.963 million to the industrial sector during the week under review, depicting a decline of Rs23.98 million over previous week’s Rs2,966.943 million. When compared to last year’s corresponding figure of Rs3,560.228 million, the current week’s figure is lower by Rs617.265 million.

The export sector received Rs43,632.398 million against previous week’s figure of Rs43,352.662 million, showing a rise of Rs279.736 million. Current week’s figure was smaller by Rs13,671.22 million over last year’s corresponding figure of Rs57,308.618 million.

According to the weekly statement of position of scheduled banks for the week ended April 5, 2003, the sum of demand and time liabilities declined in the week under review. The sum total stood at Rs1,647,130 million against preceding week’s Rs1,665,580 million, showing a fall of Rs18,450 million. As compared to the total deposits of Rs1,385,122 million in the corresponding period last year, current week’s deposits were higher by Rs262,008 million.

During the week under review, both demand and time deposits declined. Demand deposits fell to Rs745,510 million, showing a fall of Rs14,857 million over previous week’s Rs760,367 million. It was however, higher against last year’s corresponding figure of Rs612,736 million by Rs132,774 million.

In the current week, time deposits were lower over preceding week, but higher against the corresponding week last year. At Rs901,620 million, it was smaller by Rs3,593 million over previous week’s Rs905,213 million, but larger by Rs129,334 million, over last year’s corresponding figure of Rs772,286 million.

Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities further increased in the current week. At Rs128,710 million it was larger by Rs273 million over preceding week’s Rs128,437 million. Compared to last year’s corresponding figure of Rs128,560 million, the current week’s figure is higher by Rs150 million.

Scheduled banks borrowings from banks abroad stood at Rs14,715 million in the current week, as against Rs14,742 million a week ago, showing a fall of Rs27 million. It was smaller by Rs313 million over last year’s corresponding figure of Rs14,402 million.

Money at call and short notice in Pakistan stood at Rs20,099 million, a fall of Rs3,621 million over preceding week’s Rs23,720 million. When compared to last year’s corresponding figure of Rs41,605 million, the current figure is lower by Rs21,506 million.

Scheduled banks advances including bills purchased and discounted, declined in the week under review. At Rs993,895 million it was smaller by Rs3,061 million over preceding week’s Rs996,956 million. Compared to the corresponding figure a year ago, when advances were to the tune of Rs958,556 million, the current week’s advances are higher by Rs35,339 million.

Scheduled banks investment in central government securities, Treasury bills and other approved securities amounted to Rs689,479 million, a fall of Rs702 million over previous week’s Rs690,181 million. Compared to last year’s corresponding figure of Rs391,906 million, the current week’s investment is higher by Rs297,573 million.

Total assets of scheduled banks fell in the week under review. These declined to Rs2,525,877 million against previous week’s Rs2,551,114 million, a fall of Rs25,237 million. Compared to last year’s corresponding figure of Rs2,157,317 million it shows a rise of Rs368,560 million.


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