IN the last two weeks of January, the State Bank of Pakistan pumped a cumulative Rs2.370trn into the banking system in two separate open market operations.

On January 22, the central bank injected Rs1.125trn at 6.05pc and was for a seven day contract. It had received bids worth Rs1.186trn.

On January 29, it pumped Rs1.245tr into the financial institutions. The injection was made for a 10-day contract at 6.06pc. The SBP had received bids worth Rs1.267tr.

The government raised Rs319. 936bn from the auction of Treasury Bills (T-bills) of various tenors on February 3, lower than its target of Rs350.0bn. The central bank received much higher bids of Rs569.608bn. Of the total raised amount, the three-month T-bills fetched the highest Rs169.366bn at a cut-off yield of 6.2591pc, followed by 12-month Rs93.839bn at 6.2758pc and six-month Rs56.731bn at 6.2665pc.

According to the weekly statement of position of all scheduled banks for the week ended January 22, 2016, gross advances of all scheduled banks stood at Rs4,823.350bn, a decrease of 0.15pc over the preceding week’s Rs4,830.497bn.

Advances by all commercial banks fell to Rs4,664.310bn against previous week’s Rs4671.621bn or by 0.16pc.

Borrowings by all scheduled banks declined further in the week under review. It fell to Rs1798.153bn over previous week’s Rs1,915.636bn or by 6.13pc. Borrowings by commercial banks also declined in the week to Rs1,764.453bn against previous week’s Rs1,881.135bn, lower by 6.20pc.

Investments of all scheduled banks stood at Rs6,711.136bn against preceding week’s Rs6,738.062bn, a fall of 0.40pc. Investments by all commercial banks stood at Rs6,680.527bn, against preceding week’s Rs6,709.833bn, a decline of 0.44pc.

Deposits and other accounts of all scheduled banks decreased and stood at Rs9,370bn, over preceding week’s Rs9,371.004bn, a fall of 0.01pc. Deposits and other accounts of all commercial banks stood at Rs9,329.486bn against preceding week’s deposits of Rs9,329.824bn, showing a decline of 0.004pc.

Total assets of all scheduled banks stood at Rs13,190.620bn from Rs13,313.702bn. All commercial banks’ assets stood at Rs12,972.835bn against Rs13,094.419bn.

Cash and balances with treasury banks of all scheduled banks decreased over the week and stood at Rs734.270bn against previous week’s Rs703.676bn, showing a rise of 4.34pc.

Cash and balances of all commercial banks stood at Rs732.405bn, lower by 4.60pc over previous week’s Rs700.249bn.

Published in Dawn, Business & Finance weekly, February 8th, 2016