The 16.3 per cent year-on-year (YOY) M3 as on August 9 could be a tad higher than the Reserve Bank of India's projection of money supply growth.
But this reflects the impact of the merger of ICICI with ICICI Bank on the monetary aggregates. If one excludes the ICICI numbers from the monetary aggregates, the YOY M3 is actually 13.7 per cent.
The weekly statistical supplement (WSS) of the RBI, released on Saturday, for the first time indicated the impact of the mega merger on the system.
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For instance, the outstanding M3 as on August 9, was to the tune of Rs 16,24,154 crore. But excluding the merger impact, it would have been Rs 15,81,562 crore.
Similarly, variation of the last financial year which in absolute term is Rs 1,24,151 crore could have been Rs 81,559 crore had the merger been not there.
In percentage terms, 8.3 per cent would have been 5.4 per cent excluding the merger impact. Similarly, on YOY basis, the M3 variation could have been Rs 1,90,823 crore had there been no merger.
Following the merger, it is now pegged at Rs 2,33,415 crore. In percentage term, 13.7 per cent M3 rise has actually become 16.8 per cent, thanks to the merger.
The outstanding time deposits with the banking system is now to the tune of Rs 11,91,648 crore.
Minus ICICI Bank, it would have been Rs 11,49,056 crore. The YOY growth in time deposits would have been Rs 1,46,985 crore or 14.7 per cent excluding the ICICI Bank numbers. Including that, the growth is Rs 1,89,577 crore or 18.9 per cent.