ON April 5, the State Bank of Pakistan injected Rs16.15 billion in the money market but the prevailing shortage of liquid cash persisted with high overnight rates. Banks have been facing some the shortage of liquidity which has kept the rates high. The persistent shortage forced the banks to borrow Rs34.5 billion from the discount window.
According to the weekly statement of position of all scheduled banks for the week ended March 25, 2006, deposits and other accounts of the scheduled banks stood at Rs2,650.429 billion, having risen by Rs15.394 billion over preceding week’s figure of Rs2,635.035 billon. Commercial banks deposits showed a rise of Rs15.605 billion over the week to Rs2,638.449 billion against preceding week’s Rs2,622.844 billion, while of specialized banks it fell by Rs0.211 billion to Rs11.980 billion, over previous week’s Rs12.191 billion.
Borrowings by all scheduled banks declined during the week over preceding week’s figure. It fell to Rs316.459 billion over preceding week’s figure of Rs323.427 billion, a fall of Rs6.968 billion. This was primarily due to a decline in the borrowings by commercial banks, which fell to Rs233.030 billion against previous week’s Rs239.828 billion, or by Rs6.798 billion, while borrowings by specialised banks stood at Rs83.429 billion against preceding week’s Rs83.599 billion.
Gross advances stood at Rs2,063.548 billion in the week under review, a rise of Rs4.975 billion over preceding week’s figure of Rs2,058.573 billion. Advances by commercial banks rose to Rs1,958.173 billion against earlier week’s figure of Rs1,953.257 billion, higher by Rs4.916 billion.
Investments of all scheduled banks rose in the week by Rs17.979 billion to Rs793.157 billion against preceding week’s figure of Rs775.178 billion. Commercial banks investment level rose to Rs776.080 billion, from earlier week’s Rs757.778 billion, higher by Rs18.302 billion, while of specialized banks it stood at Rs17.077 billion against previous week’s Rs17.400 billion, a fall of Rs0.323 billion.
Cash and balances with treasury banks of all scheduled banks increased by Rs23.164 billion during the week to stand at Rs260.239 billion against earlier week’s Rs237.075 billion. The figure for commercial banks rose to Rs258.406 billion against preceding week’s figure of Rs235.146 billion, a rise of Rs23.26 billion. For specialized banks the fall was to the tune of Rs0.096 billion to Rs1.833 billion, against earlier week’s figure of Rs1.929 billion.
Total assets of scheduled banks stood at Rs3,488.427 billion, an increase of Rs23.26 billion, over preceding week’s figure of Rs3,455.167 billion. Meanwhile, commercial banks assets stood at Rs3,368.886 billion, higher by Rs33.763 billion over previous week’s figure of Rs3,335.123 billion. Specialized banks assets fell by Rs0.503 billion to Rs119.541 billion against previous week’s Rs120.044 billion.
ON April 5, the State Bank of Pakistan injected Rs16.15 billion in the money market but the prevailing shortage of liquid cash persisted with high overnight rates. Banks have been facing some the shortage of liquidity which has kept the rates high. The persistent shortage forced the banks to borrow Rs34.5 billion from the discount window.
