The 94-year-old singer was taken off the ventilator two days ago and was even relaxing on a chair and listening to music yesterday, sources at Narayana Hrudayalaya, said.
Dey has been undergoing treatment for the past one month at the hospital maninly for neuro-respiratory problems.
The singing legend also has kidney functioning problems for which he is undergoing dialysis.
"As he has undergone a tracheostomy, he is only on liquid diet. He is very much conscious and has been interacting with his daughter," sources said.
Dey, well-versed in Hindustani classical music, has sung over 3,500 songs in different languages including Hindi and Bengali, in a career spanning seven decades.
He settled down in Bangalore after living in Mumbai for five decades.