Last week banks borrowed from the State Bank discount window because of a shortage of funds in the interbank money market. Overnight call rates rose.

Banks borrowed Rs28.30 billion from the State Bank three-day repo facislity on September 18, while a day earlier it had borrowed Rs28.70 billion. More discounting is expected in the coming days.

According to the weekly statement of position of all scheduled banks for the week ended September 8, 2007, deposits and other accounts of the scheduled banks stood at Rs3,435.344 billion, smaller by Rs23.136 billion over preceding week’s figure of Rs3,458.480 billion.

Commercial banks deposits showed a decrease of Rs23.31 billion over the week to Rs3,423.199 billion, against preceding week’s Rs3,446.509 billion.

Specialised banks deposits stood at Rs12.145 billion, against preceding week’s Rs11.970 billion, a rise of Rs0.175 billion.

Borrowings by all scheduled banks increased during the week over preceding week’s figure. It rose to Rs375.396 billion over preceding week’s figure of Rs366.338 billion, a rise of Rs9.058 billion.

This was primarily due to a rise in the borrowings by commercial banks, which rose to Rs294.333 billion against previous week’s Rs285.375 billion, or by Rs8.958 billion.

Borrowings by specialised banks stood at Rs81.063 billion, against preceding week’s figure of Rs80.963 billion, a rise of Rs0.1 billion.

Gross advances stood at Rs2,423.765 billion in the week under review, a decline of Rs17.681 billion over preceding week’s figure of Rs2,441.446 billion.

Advances by commercial banks fell to Rs2,327.796 billion against earlier week’s figure of Rs2,345.636 billion, or by Rs17.84 billion.

Advances of specialised banks stood at Rs95.969 billion, higher by Rs0.159 billion over earlier week’s figure of Rs95.810 billion.

Investments of all scheduled banks declined in the week by Rs2.423 billion to Rs1,205.842 billion against preceding week’s figure of Rs1,208.265 billion.

Commercial banks investment fell to Rs1,192.258 billion, from earlier week’s Rs1,194.354 billion, smaller by Rs2.096 billion. Specialized banks investment stood at Rs13.584 billion, against preceding week’s Rs13.912 billion, a fall of Rs0.328 billion.

Cash and balances with treasury banks of all scheduled banks fell by Rs10.07 billion during the week to stand at Rs340.232 billion against earlier week’s Rs350.302 billion.

The figure for commercial banks stood at Rs337.898 billion against preceding week’s figure of Rs347.774 billion, a decline of Rs9.876 billion, while of specialised banks it stood at 2.334 billion over previous week’s 2.528 billion.

Total assets of scheduled banks stood at Rs4,583.786 billion, higher by Rs2.49 billion, over preceding week’s figure of Rs4,581.296 billion.

Meanwhile, commercial banks assets stood at Rs4,469.436 billion, larger by Rs2.043 billion over previous week’s figure of Rs4,467.393 billion.

Specialised banks assets declined to Rs114.350 billion, or by Rs0.447 billion over previous week’s Rs113.903 billion.