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Ctc Witnesses Good Demand

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Last Updated : Sep 13 1999 | 12:00 AM IST

Loans and advances to the Central government increased by Rs 5,216 crore to Rs 8,728 crore compared with a decrease of Rs 313 crore in the previous week and Rs 2,297 crore for the week ending November 5, according to the data released by the Reserve Bank of India (RBI) in its weekly statistical supplement on Saturday.

Loans and advances to state governments also increased by Rs 910 crore to Rs 3,829 crore compared with a fall of Rs 402 crore in the previous week and a Rs 439-crore fall in the week ending October 22.

Foreign exchange reserves rose by $42 million over the week to a total of $33,785 million.

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The main component of this increase was that of foreign currency assets which rose by $47 million over the week. This was partly offset by a fall of $5 million in the value of special drawing rights.

Since the end of October, foreign currency reserves have risen by $716 million. The main component of this increase has been a substantial rise in the value of gold reserves by $499 million. Foreign currency assets have increased by $222 million since the beginning of November.

Aggregate deposits in the banking system fell by Rs 1,022 crore over the fortnight ending November 5 to Rs 7,69,274 crore. The main reason for this fall was demand deposits which slid by Rs 999 crore.

Bank credit increased by Rs 2,351 crore over the fortnight to Rs 3,93,987 crore. Of its components, food credit increased by Rs 1,775 crore to Rs 23,179 crore while non-food credit increased by Rs 576 crore to Rs 3,70,808 crore.

Reserve money grew by 13.8 per cent in year-on-year terms to Rs 2,73,624 crore. It grew by Rs 5,634 crore over the week as compared with an increase of Rs 2,297 crore the previous week and a fall of Rs 3,172 crore the week before (October 22). The increase was mainly due to an a rise in currency in circulation of Rs 8,253 crore which was offset by reductions in bankers' deposits with the RBI by Rs 2,420 crore and other deposits with the RBI of Rs 199 crore.

Net RBI credit to the government increased by Rs 5,719 crore over the week of which credit to the centre was the main component - accounting for Rs 4,810 crore of the increase.

Meanwhile, broad money (M3) rose by 15.9 per cent on a year-on-year basis for the week ending October 22. Total money stock stands at Rs 10,54,505 crore. Net bank credit to the government rose by Rs 5,340 crore over the week to Rs 4,32,202 crore.

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First Published: Sep 13 1999 | 12:00 AM IST

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