Cut-off yield on T-bills likely to remain unchanged this fiscal
ON April 12, the State Bank of Pakistan sucked in Rs14.850 billion through the auction of Treasury Bills. Though the market is experiencing shortage of liquidity for the past two weeks they invested Rs14.65 billion in one year bill and Rs100 million each in three and six months’ papers. The cut-off yield remained unchanged and is expected to remain the same till the end of the current fiscal year in view of the tight monetary policy being pursued by the State Bank.
According to the Statement of Affairs of the State Bank of Pakistan, for the week ended April 1, 2006, both notes in circulation and those issued declined during the week. Notes in circulation stood at Rs783,538.235 million against earlier week’s figure of Rs794,592.677 million, a fall of Rs11,054.442 million. When compared to the corresponding week a year ago when it was Rs704,218.250 million, the current week’s figure is higher by Rs79,319.985 million.
Total notes issued also declined in the current week over preceding week’s level. At Rs783,689.097 million it was smaller by Rs11,005.805 million over the figure of Rs794,694.902 million recorded a week earlier. In the corresponding week last year it amounted to Rs704,420.815 million, which shows current week’s figure to be higher by Rs79,268.282 million over last year’s corresponding figure.
Approved foreign exchange increased in the week to Rs456,826.965 million or by Rs30,851.161 million over preceding week’s figure of Rs425,975.804 million. When compared to the corresponding week a year ago, when the figure was Rs490,047.489 million, the current week’s figure is smaller by Rs33,220.524 million.
Balances held outside Pakistan in approved foreign exchange increased in the week under review. It stood at Rs184,797.870 million over preceding week’s figure of Rs147,811.222 million, showing a rise of Rs36,986.648 million. Compared to last year’s corresponding figure of Rs129,160.120 million, the current week’s figure higher is by Rs55,637.75 million.
Loans and advances of scheduled banks to the three sectors – agricultural, industrial and export showed a mixed trend in the week under review. The agricultural sector received Rs61,650.923 million, against preceding week’s figure of Rs61,700.923 million, showing a fall of RS50.0 million. The current week’s figure is larger by Rs2,641.486 million over last year’s corresponding figure of Rs59,009.437 million.
There was an inflow of Rs5,432.079 million to the industrial sector during the week under review, a rise of Rs18.35 million against preceding week’s figure of Rs5,413.729 million. When compared to last year’s corresponding figure of Rs1,258.034 million, the current week’s figure is higher by Rs4,174.045 million.
The export sector received Rs106,787.830 million against previous week’s figure of Rs106,093.740 million, a rise of Rs694.09 million. Current week’s figure was smaller by Rs1,711.706 million over last year’s corresponding figure of Rs108,499.536 million.
According to the weekly statement of position of all scheduled banks for the week ended April 01, 2006, deposits and other accounts of the scheduled banks stood at Rs2,664.956 billion, having risen by Rs14.527 billion over preceding week’s figure of Rs2,650.429 billon. Commercial banks deposits showed a rise of Rs14.639 billion over the week to Rs2,653.088 billion against preceding week’s Rs2,638.449 billion, while of specialized banks it fell by Rs0.112 billion to Rs11.868 billion, over previous week’s Rs11.980 billion.
Borrowings by all scheduled banks increased during the week over preceding week’s figure. It rose to Rs344.477 billion over preceding week’s figure of Rs316.459 billion, a rise of Rs28.018.968 billion. This was primarily due to an increase in the borrowings by commercial banks, which rose to Rs260.998 billion against previous week’s Rs233.030 billion, or by Rs27.968 billion, while borrowings by specialised banks stood at Rs83.479 billion against preceding week’s Rs83.429 billion.
Gross advances stood at Rs2,078.452 billion in the week under review, a rise of Rs14.904 billion over preceding week’s figure of Rs2,063.548 billion. Advances by commercial banks rose to Rs1,973.041 billion against earlier week’s figure of Rs1,958.173 billion, higher by Rs14.868 billion.
Investments of all scheduled banks rose in the week by Rs20.393 billion to Rs813.550 billion against preceding week’s figure of Rs793.157 billion. Commercial banks investment level rose to Rs796.430 billion, from earlier week’s Rs776.080 billion, higher by Rs20.350 billion, while of specialized banks it stood at Rs17.120 billion against previous week’s Rs17.077 billion, a rise of Rs0.043 billion.
Cash and balances with treasury banks of all scheduled banks decreased by Rs16.963 billion during the week to stand at Rs243.276 billion against earlier week’s Rs260.239 billion. The figure for commercial banks fell to Rs241.540 billion against preceding week’s figure of Rs258.406 billion, a fall of Rs16.866 billion. For specialized banks the fall was to the tune of Rs0.096 billion to Rs1.737 billion, against earlier week’s figure of Rs1.833 billion.
Total assets of scheduled banks stood at Rs3,539.835 billion, an increase of Rs51.408 billion, over preceding week’s figure of Rs3,488.427 billion. Meanwhile, commercial banks assets stood at Rs3,415.925 billion, higher by Rs47.039 billion over previous week’s figure of Rs3,368.886 billion. Specialized banks assets rose by Rs4.369 billion to Rs123.910 billion against previous week’s Rs119.541 billion.
ON April 12, the State Bank of Pakistan sucked in Rs14.850 billion through the auction of Treasury Bills. Though the market is experiencing shortage of liquidity for the past two weeks they invested Rs14.65 billion in one year bill and Rs100 million each in three and six months’ papers. The cut-off yield remained unchanged and is expected to remain the same till the end of the current fiscal year in view of the tight monetary policy being pursued by the State Bank.
