Govt sells Rs 292.22b Treaury bills

The government raised Rs292.220 billion from the auction of treasury bills (T-bills) of various tenors on Jan 21 falling short of its target of Rs350.0 billion.

The State Bank of Pakistan received bids of Rs584.959 billion. Of the total, 12-month T-bills fetched the highest amount of Rs162.535 billion at a cut-off yield of 6.2306pc, followed by threemonth Rs73.688 billion at 6.1697pc and sixmonth Rs55.996 billion at 6.1812pc. In the auction, the yields were reduced.

Investors showed higher interest in the three-month government papers which received bids of Rs225.044 billion followed by 12-month Rs224.050 billion and six month 135.864 billion. According to the weekly statement of position for the week ended Jan 8, 2016, gross advances of all scheduled banks decreased 1.90pc to Rs4,811.228 billion over the preceding week's Rs4,904.522 billion.

Compared with last year's corresponding figure of Rs4,465.831 billion, the current week's figure is higher by 7.73pc. Advances by all commercial banks fell to Rs4,652.296 billion against previous week's Rs4,745.080 billion or by 1.96pc.Borrowings by all scheduled banks rose 15.61pc to Rs1,950.312 billion during the week under review from Rs1,686.939 billion the previous week. Compared to last year's corresponding figure of Rs1,354.981 billion, the current week's figure is higher by 43.94pc.

Borrowings by commercial banks also jumped 15.83pc to Rs1,916.085 billion from Rs1,654.252bn the preceding week. Investment of all scheduled banks up 0.53pc to Rs6,746.552 billion from Rs6,710.957 billion during the previous week. Compared to last year's corresponding figure of Rs5,219.840bn, the current week's figure is higher by 29.25pc.

Investments by all commercial banks stood at Rs6718.148 billion against preceding week's Rs6,683.849 billion, an increase of 0.51pc. Compared to last year's corresponding figure of Rs5,185.928 billion, the current week's figure is higher by 29.54pc. Deposits and other accounts of all scheduled banks decreased by 2.82pc to Rs9,402.610 billion during period from Rs9,675.588 billion during the preceding week. Compared with last year's corresponding figure of Rs8,319.074 billion, the current week's figure is higher by 13.02pc. Deposits and other accounts of all commercial banks showed a fall of 2.80pc to Rs9,361.230bn from the preceding week's Rs9,630.185 billion.

Assets of all scheduled banks stood at Rs13,379.326 billion, up 0.04pc over preceding week's Rs13373.935 billion. Current week's figure was higher by 16.50pc compared to last year's corresponding figure of Rs11,485.113 billion. All commercial banks' assets stood at Rs13,159.924 billion, registering a paltry rise of 0.05pc over the previous week's figure of Rs13,152.954 billion.

Cash and balances with treasury banks of all scheduled banks increased over the week and stood at Rs782.070 billion against previous week's Rs745.114 billion, showing a rise of 5pc. Current week's figure was higher by 16.22pc compared to last year's corresponding figure of Rs672.931 billion.

According to the weekly Statement of Affairs of the State Bank of Pakistan for the week ended Jan 8, notes in circulation increased to Rs3,123.155 billion over preceding week's figure of Rs3,034.995 billion, a rise of 2.90pc. Compared to last year's corresponding figure of Rs2,528.585 billion, the current week's figure is higher by 23.51pc.