SBP pumps over Rs 379 billion into banking system

The central bank on Friday injected over Rs 379 billion into the banking system which is facing an acute liquidity crunch, thanks to the rampant budgetary borrowings of the cash-strapped the government. The State Bank, through conducting 7-days reverse repo open market operation, pumped Rs 379.950 billion into the money market. Of the total 27 bids of Rs 430.900 billion received the bank accepted 20 bids to pump the said amount at 9.17 percent annual rate of return. “Total amount offered at 9.17 percent was Rs 114.100 billion out of which SBP accepted Rs 86.250 billion on pro rate basis,” the central bank said. According to SBP spokesperson, the regulator conducts reverse repo OMOs when there is a liquidity crunch in the money market.