THE central bank managed to raise 156.505bn from the auction of Treasury bills of various tenors on January 22. The cut-off yields on the bills declined from the previous auction.

Of the total, 12-month T-bills fetched the highest amount of Rs128.816bn at a cut-off yield of 8.8619pc, followed by six-month T-bills with Rs39.166bn at 8.9892pc and three-month T-bills with only Rs412.726m at 8.9583pc.

The central bank had received total bids worth Rs506.410bn. Of this, 12-month T-bills had attracted the highest amount of Rs390.859bn, followed by six-month T-bills with Rs109.944bn and three-month T-bills with Rs5.608bn.

Meanwhile, keeping up with the trend, the central bank injected Rs459.15bn into the banking system in an open market operation conducted on January 23, at a rate of return of 9.3pc. The SBP had received 30 bids for the seven-day contract, ranging between 9.46-8.95pc.

Twelve-month T-bills fetched the highest amount of Rs128.816bn during the latest T-bill auction

According to the weekly statement of position of all scheduled banks for the week ending January 9, investments of all scheduled banks rose 1.77pc to Rs5,219.84bn, against the preceding week’s level of Rs5,129.012bn.

Investments of all commercial banks stood at Rs5,185.928bn in the week, against the preceding week’s figure of Rs5,094.279bn, up 1.8pc. Investments of all specialised banks stood at Rs33.912bn, against the preceding week’s Rs34.733bn.

Cash and balances with treasury banks of all scheduled banks decreased 9.45pc to Rs672.931bn in the week under review, against the earlier week’s Rs743.129bn.

Cash and balances with treasury banks of all commercial banks stood at Rs667.612bn in the week, against the preceding week’s figure of Rs739.166bn, down 9.68pc. Cash and balances with treasury banks of all specialised banks stood at Rs5.319bn, up from the preceding week’s level of 3.963bn.

Gross advances by scheduled banks stood at Rs4,465.831bn in the week ending January 9, down 1.12pc over the preceding week’s figure of Rs4,516.589bn. Advances by commercial banks fell 1.16pc to Rs4,326.141bn in the week, against the earlier week’s figure of Rs4,376.981bn. Advances by specialised banks stood at Rs139.69bn in the week.

Borrowings by all scheduled banks surged 14.34pc to Rs1,354.981bn in the week ending January 9, against the previous week’s level of Rs1,185.063bn. Borrowings by all commercial banks rose 15.4pc to Rs1,278.868bn, against the previous week’s Rs1,108.21bn. Borrowings by specialised banks stood at Rs76.113bn in the week.

Published in Dawn, Economic & Business, January 26th , 2015

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