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Commercial Sector Credit Up Rs 4502 Cr

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Last Updated : Apr 28 1998 | 12:00 AM IST

Bank credit to the commercial sector increased by Rs 4,502 crore during the fortnight ended April 10, while aggregate deposits increased by Rs 8,326 crore. During this period, investments by banks in government and other approved securities also increased by Rs 5,854 crore.

While non-food credit increased by Rs 4,773 crore there was a decline in non food credit to the tune of Rs 271 crore.

As on April 10, the cash deposit ratio was 10.11, the credit deposit ratio was 36.69 and the investment deposit ratio was 53.52.

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The year on year growth in deposits was 19.7 per cent, the growth in investments in government and other approved securities was 14.1 per cent and growth in pure credit was 17.4 per cent.

Figures pertaining to investments by bonds in debt instruments of corporates are not available. Figures pertaining to money supply growth in the fiscal are also not available. The growth in money supply in the fiscal 1998 was 17.1 per cent as against RBIs intended trajectory of 15 - 15.5 per cent.

During the week ended April 17, the forex reserves increased by $150 million to $29,470 million because of an increase in the foreign currency assets of Reserve Bank of India. As on April 17, the foreign currency assets stood at $26,411 million while the value of gold held by RBI and the stock of special drawing rights was $3,058 million and $1 million.

Forex reserves have increased by $103 million during this period, the foreign currency assets increasing by $436 million while the value of gold held by RBI declining by $333 million. During the current fiscal there has been a decline in the stock of treasury bills outstanding in the market.

By April 17, investment by banks in treasury bills had declined by Rs 926 crore, investment by state governments in treasury bills had declined by Rs 3,289 crore, investment by other entities in treasury bills had declined by Rs 975 crore. Only in case of RBI has the investment in treasury bills increased by Rs 139 crore.

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First Published: Apr 28 1998 | 12:00 AM IST

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