Bank aggregate deposits continued its upward movement for the fortnight-ended March 28, 1997. The last fortnight of the financial year 1997 saw deposits increase by Rs 14,342 crore - a jump of around 2.9 per cent in a single fortnight.
It expanded by 16.1 per cent or Rs 69,776 crore so far in the financial year 1996-97. The deposits increased to Rs 5,03,596 crore during the fortnight ending March 28, 1997 against Rs 4,89,254 crore on March 14.
Further, in both the demand as well as time deposits scene, increase was seen to be even. Demand deposits increased by Rs 7,166 crore, and time deposits expanded by Rs 7,176 crore during the period under review. Astronomical growth in deposits during the last fortnight is not an unusual financial year-end phenomena. Banks scurry for deposits to window dress their balance sheets rather than for garnering resources.
This is evident from the fact that the subsequent fortnight falling in the next financial year usually sees a dip the bank deposits aggregates, a senior nationalized bank official said.
Keeping in tandem with the bank deposits bank commercial credit or non-food credit also showed a rise. Bank commercial credit also increased by Rs 7,542 crore during the fortnight ending March 28. However, the total bank credit registered an increase of Rs 7,203 crore or 2.9 per cent, this is because the food credit decreased by Rs 339 crore during the period under review.
This is the highest jump in bank credit during the financial year 1996-97, said a treasury head of south-based private bank. Easy money market conditions coupled with directives from the finance ministry as well as from the RBI saw the huge credit expansion during the fortnight ending March 28, said the official.
According to the Reserve Bank of Indias weekly statistical supplement, bank credit increased to Rs 2,76,530 crore on March 28 from Rs 2,69,328 crore on March 14.
Meanwhile, bank investments have trotted by Rs 193 crore. It increased to Rs 1,91,091 crore on March 28 from Rs 1,90,898 crore on March 14.
Foreign currency assets went up to $ 22.31 billion during the week ending April 4 from $ 21.69 billion on March 28. The RBIs gold stock also expanded to $ 4.05 billion from $ 3.97 billion during the same period.
Thus foreign exchange assets went up by nearly $ 690 million to $26.36 billion for the week-ending April 4. The RBIs net bank credit to the central government came down by Rs 4,278 crore to
Rs 1,19 671 crore during the fortnight ending March 28.
Correspondingly, the ad hoc treasury bills decreased to Rs 1,670 crore on March 28 (over March 31, 1996 levels) from Rs 3,965 crore a week back.
However, the apex banks credit to banks and commercial sector went by Rs 309 crore to Rs 12,663 crore during the same period. That apart, net non-monetary liabilities of the RBI decreased to Rs 34,225 crore on March 28 from Rs 34,370 crore on March 21.
