On August 20, the State Bank of Pakistan auctioned Rs36.7 billion worth of six-month Treasury bills, at a weighted average yield of 1.21 per cent. The auction generated bids worth Rs56.3 billion of which the SBP accepted Rs36.7 billion and rejected the rest.

The weighted average yield on six-month bills has fallen from 6.28 per cent in June 2002 to 1.65 per cent in June 2003 showing a big decline of 4.63 per cent in the last fiscal year.

In the first two months of the current fiscal year also the yield has come down from 1.65 per cent to 1.21 per cent showing a fall of 41 basis points.

According to the weekly statement of position of scheduled banks for the week ended August 9, 2003, the sum of demand and time liabilities continued to increase in the week under review. The sum total stood at Rs1,773,869 million against preceding week’s Rs1,767,793 million, showing a rise of Rs6,076 million. As compared to the total deposits of Rs1,506,679 million in the corresponding period last year, current week’s deposits were higher by Rs267,190 million.

During the week under review, both demand and time deposits rose. Demand deposits increased to Rs846,792 million, a rise of Rs2,201 million over previous week’s Rs844,591 million. It was also higher against last year’s corresponding figure of Rs668,174 million by Rs178,618 million.

In the current week, time deposits were higher over preceding week’s figure. At Rs927,077 million, it was larger by Rs3,875 million over previous week’s Rs923,202 million and by Rs88,572 million, over last year’s corresponding figure of Rs838,505 million.

Scheduled banks borrowings from the State Bank of Pakistan against the promissory notes and other approved securities decreased further in the current week. At Rs130,276 million it was smaller by Rs1,308 million over preceding week’s Rs131,584 million. Compared to last year’s corresponding figure of Rs129,742 million, the current week’s figure is higher by Rs534 million.

Scheduled banks’ borrowings from banks abroad stood at Rs20,403 million in the current week, as against Rs20,662 million a week ago, showing a fall of Rs259 million. It was larger by Rs5,930 million over last year’s corresponding figure of Rs14,473 million.

Money at call and short notice in Pakistan increased in the week under review. It stood at Rs23,421 million, a rise of Rs965 million over preceding week’s Rs22,456 million. When compared to last year’s corresponding figure of Rs38,351 million, the current figure is lower by Rs14,930 million.

Scheduled banks advances including bills purchased and discounted declined in the week under review. At Rs1,041,949 million it was smaller by Rs1,165 million over preceding week’s Rs1,043,114 million. Compared to the corresponding figure a year ago, when advances were to the tune of Rs941,456 million, the current week’s advances are higher by Rs100,493 million.

Scheduled banks investment in central government securities, Treasury bills and other approved securities increased in the current week when compared to preceding week’s level. Such investments amounted to Rs785,122 million, a rise of Rs3,353 million over previous week’s Rs781,769 million. Compared to last year’s corresponding figure of Rs544,302 million, the current week’s investment is higher by Rs240,820 million.

Total assets of scheduled banks increased in the week under review. These stood at Rs2,533,202 million against previous week’s Rs2,523,740 million, a rise of Rs9,462 million. Compared to last year’s corresponding figure of Rs2,361,832 million it shows a rise of Rs171,370 million.