ON September 9, the State Bank of Pakistan mopped up Rs10.6 billion from the inter-bank market through a six-day repo sale of the Treasury bills at 7.9 per cent. Earlier the SBP had siphoned off Rs6 billion and Rs9.9 billion through eight-day and one week repo sale also at 7.9 per cent. Lately, the central bank has been using the OMOs as an effective tool of containing liquidity in the inter-bank market in its fight against inflation. The three consecutive OMOs helped stabilize the overnight inter-bank market rates around 7.0-7.5 per cent.

According to the weekly statement of position of all scheduled banks for the week ended August 27, 2005, deposits and other accounts of the scheduled banks stood at Rs2, 425.75 billion, an increase of Rs46.26 billion over preceding week. Commercial banks deposits showed an increase of Rs46.38 billion over the week to Rs2, 412.53 billion against preceding week’s Rs2, 366.15 billion, while of specialized banks it fell by Rs0.114 billion to Rs13.22 billion, over previous week’s Rs13.33 billion.

Borrowings by all scheduled banks increased to Rs301.56 billion over preceding week’s figure of Rs293.25 billion, a rise of Rs8.315 billion. This was primarily due to an increase in borrowings by commercial banks, which roe to Rs221.78 billion against previous week’s Rs212.01 billion, a rise of Rs9.77 billion, while borrowings by specialised banks rose by Rs1.45 billion to Rs81.24 billion.

Gross advances stood at Rs1, 786.20 billion in the week under review, an increase of Rs3.42 billion over preceding week’s figure of Rs1, 782.78 billion. Advances by commercial banks had risen to Rs1, 676.94 billion against earlier week’s figure of Rs1, 673.68 billion or by Rs3.26 billion.

Investment of all scheduled banks rose in the week to Rs748.25 billion, or by Rs3.17 billion from preceding week’s figure of Rs745.08 billion. Commercial banks investment level rose to Rs737.86 billion from earlier week’s Rs734.41 billion or by Rs3.45 billion, while for specialized banks it stood at Rs10.38 billion against previous week’s Rs10.67 billion, a fall of Rs0.29 billion.

Cash and balances with treasury banks recorded a rise of Rs13.71 billion during the week to stand at Rs234.47 billion against earlier week’s Rs220.76 billion. The figure for commercial banks jumped to Rs232.67 billion against preceding week’s figure of Rs219.17 billion, a rise of Rs13.5 billion. For specialized banks the rise was to the tune of Rs0.22 billion to Rs1.808 billion, against earlier week’s figure of Rs1.588 billion.

Total assets of scheduled banks stood at Rs3, 209.24 billion, an increase of Rs23.66 billion, over preceding week’s figure of Rs3, 185.58 billion. Meanwhile, commercial banks assets stood at Rs3, 100.23 billion, higher by Rs24.86 billion over previous week’s figure of Rs3, 075.37 billion. Specialized banks assets fell by Rs1.203 billion to Rs109.012 billion against previous week’s Rs110.215 billion.