KARACHI, Jan 30: The State Bank on Wednesday pumped in Rs8.9 billion into the inter-bank market through treasury bills repo at its open market operation.

SBP said it siphoned off Rs5.1 billion through four-week repo at 4.25 per cent and Rs3.8 billion through eight-week repo at 5 per cent.

The SBP had received Rs17.5 billion worth of bids for four- week and eight-week repo of which it accepted bids worth Rs8.9 billion and scrapped the rest. Bankers said the SBP rejected those bids that were priced higher than the level acceptable for the State Bank. The central bank rejected altogether Rs5.55 billion worth of bids received for one-week and two-week repos.

Senior bankers said despite outflow of Rs8.9 billion through the OMO the inter-bank market was surplus by Rs6-8 billion with overnight call rate at 1 per cent.