State Bank injects Rs340 bn into banking system

KARACHI: The State Bank of Pakistan (SBP) injected Rs340 billion on Friday in the banking system to ensure sufficient liquidity.

The central bank purchased Market Treasury Bills and Pakistan Investment Bonds worth Rs340 billion against bids of Rs363.6 billion in a reverse repo open market operation for seven days. The rate of return was set at 11.56 percent.

Market sources said that banks are in need of liquidity because of their heavy investment in government papers.

The government borrowing from scheduled banks has grown to Rs620 billion from July 1 to November 11, 2011 from Rs75.51 billion in the corresponding period last year.

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