In the recent treasury bills auction held this week, the central bank accepted treasury bills worth Rs5.485 billion against the offers of Rs23.49 billion and targeted Rs20 billion.

At the same time, the bank lowered the cut off yield on 12-month T-bills from 9.40 per cent to 9.39 per cent.

In the last treasury bills auction the State Bank of Pakistan had raised cut off yield on all the three bills; 9.09 per cent on 3-month T-bills, 9.14 per cent on 6-month treasury bills and 9.40 per cent on 12-month T-bills. Earlier on July 31, the bank had raised discount rate by 0.5 per cent to 10 per cent as an effort to control inflation.

According to the weekly statement of position of all scheduled banks for the week ended August 18, 2007, deposits and other accounts of the scheduled banks stood at Rs3,414.830bn, higher by Rs0.484bn over preceding week’s figure of Rs3,414.346bn. Commercial banks deposits showed a rise of Rs0.979bn over the week to Rs3,402.878bn, against preceding week’s Rs3,401.899bn. Specialized banks deposits stood at Rs11.952bn, against preceding week’s Rs12.447bn, a fall of Rs0.495bn.

Borrowings by all scheduled banks decreased during the week over preceding week’s figure. It fell to Rs398.659bn over preceding week’s figure of Rs403.637bn, a fall of Rs4.978bn. This was primarily due to a decline in the borrowings by commercial banks, which fell to Rs317.496bn against previous week’s Rs322.294bn, or by Rs4.798bn. Borrowings by specialised banks stood at Rs81.163bn, against preceding week’s figure of Rs81.343bn, a decrease of Rs0.18bn.

Gross advances (net of provision) stood at Rs2,433.306bn in the week under review, a rise of Rs3.785bn over preceding week’s figure of Rs2,429.521bn. Advances by commercial banks rose to Rs2,337.700bn against earlier week’s figure of Rs2,334.034bn, or by Rs3.666bn. Advances of specialized banks stood at Rs95.607bn, larger by Rs0.12bn over earlier week’s figure of Rs95.487bn.

Investments of all scheduled banks increased in the week by Rs28.028bn to Rs1,186.522bn against preceding week’s figure of Rs1,158.494bn. Commercial banks investment rose to Rs1,173.939bn, from earlier week’s Rs1,146.174bn, larger by Rs27.765bn. Specialised banks investment stood at Rs12.582bn, against preceding week’s Rs12.320bn, an increase of Rs0.262bn.

Cash and balances with treasury banks of all scheduled banks increased by Rs9.896bn during the week to stand at Rs353.906bn against earlier week’s Rs344.010bn. The figure for commercial banks stood at Rs351.506bn against preceding week’s figure of Rs341.287bn, a rise of Rs10.219bn, while of specialised banks it stood at Rs2.400bn over previous week’s Rs2.723bn.

Total assets of scheduled banks stood at Rs4,553.903bn, smaller by Rs1.255bn, over preceding week’s figure of Rs4,555.158bn. Meanwhile, commercial banks assets stood at Rs4,438.969bn, smaller by Rs0.724bn over previous week’s figure of Rs4,439.693bn. Specialised banks assets decreased to Rs114.934bn, or by Rs0.531bn over previous week’s Rs115.465bn.