THE central bank pumped in a cumulative Rs1.6tr into the banking system through two open market operations last week.

In the first OMO on Thursday, it injected Rs263.35bn in a one-day contract at 6.04pc. The following day, it pumped in a much bigger Rs1.342tr at 6.02pc in a seven-day contract.

The OMO on Thursday was said to have been necessitated by an auction of Pakistan Investment Bonds (PIBs) on Wednesday, where the central bank had sucked in Rs97.95bn liquidity from banks and other institutions.

The OMO on Thursday was said to have been necessitated by an auction of PIBs on Wednesday, where the central bank had sucked in Rs97.95bn liquidity from banks

Of the total, five-year PIBs fetched Rs55.919bn at a cut-off yield of 8.1805pc, followed by three-year PIBs with Rs41.514bn at Rs7.1967pc and 10-year PIBs with Rs0.518bn at 9.2299pc.

According to the weekly statement of position of all scheduled banks for the week ending September 23, deposits and other accounts of all scheduled banks declined 0.2pc to Rs9,021.27bn, against the preceding week’s figure of Rs9,038.819bn. When compared with last year’s corresponding figure of Rs8,036.547bn, the current week’s figure is higher by 12.25pc.

Deposits and other accounts of all commercial banks stood at Rs8,992.6bn in the week against the preceding week’s figure of Rs9,010.14bn, down 0.19pc. Deposits and other accounts of specialised banks stood at Rs28.67bn in the week against the previous week’s figure of Rs28.68bn.

Investments of all scheduled banks stood at Rs6,447.55bn in the week under review, against the preceding week’s figure of Rs6,434.196bn, depicting an increase of 0.21pc. When compared with last year’s corresponding figure of Rs4,468.96bn, the current week’s figure is higher by 44.27pc.

Investments of all commercial banks stood at Rs6,424.99bn in the week, against the preceding week’s figure of Rs6,411.6bn, up 0.21pc.

When compared with last year’s corresponding figure of Rs4,436.82bn, the current week’s figure is higher by 44.8pc.

Published in Dawn, Business & Finance weekly, October 12th, 2015

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