State Bank sucks in Rs 33.5b

The government raised just Rs126.4bn from the auction of Pakistan Investment Bonds of various tenors on March 22 despite receiving bids of Rs241.401bn.

It generated Rs70.354bn from five-year bonds at a cut-off yield of 7pc, Rs37.229bn from three-year bonds at 6.3204pc and Rs18.777bn from 10-year PIBs at 8.2296pc. The central bank mopped up Rs33.5bn from the banking system on Thursday, in an open market operation. The OMO was for a one-day tenor at 5.95pc .Two days earlier the central bank had injected Rs114.200bn into the banking system. The injection was made in a three-day contract where the rate of return was 6.03pc.

According to the weekly statement of position of all scheduled banks for the week ended March 11, 2016, deposits and other accounts of all scheduled banks increased 0.36pc to Rs9,446.922bn from Rs9,412.624bn a week ago. It was higher by 11.48pc when compared with Rs8473.452bn in the same week last year.

Deposits and other accounts of all commercial banks rose to Rs9,408.870bn against preceding week's Rs9374.860bn.

Total assets of all scheduled banks fell to Rs13,491.827bn from Rs13,495.424bn in a week ago. It was higher by 15.44pc compared with same week last year's Rs11,687.326bn. All commercial banks' total assets eased to Rs13,281.557bn from previous week's Rs13,284.270bn.

Scheduled banks' gross advances dipped to Rs4,826.901bn from Rs4,835.198bn in the preceding week. Advances by all commercial banks rose 0.19pc to Rs4,665.460bn against previous week's Rs4,674.356bn.

Borrowings by all scheduled banks decreased 1.64pc to Rs1,957.814bn over previous week's Rs1,990.447bn. Compared to last year's corresponding figure of Rs1321.904bn, it was higher by 48.10pc. Commercial banks' bor- rowings also declined 1.63pc to Rs1,926.898bn from previous week's Rs1,958.843bn.

Investments of all scheduled banks down 0.07pc at Rs7,034.074bn against preceding week's Rs7,039.337bn. Compared to last year's corresponding figure of Rs5,639.485bn, it was higher by 24.73pc. Commercial banks' combined investments fell to Rs7,004.535bn from preceding week's Rs7008.715bn. According to the weekly Statement of Affairs of the State Bank of Pakistan for the week ended March11, notes in circulation increased to Rs3,225.841bn over preceding week's Rs3192.467bn, a rise of 1.04pc.