Forex Reserves Surge On Fii Inflows, Nri Remittances

Foreign exchange reserves have burgeoned by $728 million to $47.837 billion in the week ended December 14, 2001, over the previous week. With the latest accrual, the country's forex kitty has surged by $5.556 billion in the financial year so far.

Analysts attribute the continued accrual to forex coffers to the investments by foreign institutional investors (FIIs), inward remittances by non-resident Indians and exporters bringing back their receivables.

The accretion to the reserves is solely on account of the foreign currency assets jumping by $728 million to $44.970 billion in the reporting week over the previous week. Gold reserves and special drawing rights have remained unchanged at $2.862 billion and $5 million, respectively.

In the calendar year so far, the accretion to the forex reserves has been $7.76 billion, while on a year-on-year basis the increase is $8.2 billion, according to the Reserve Bank of India's latest weekly statistical supplement.

Aggregate deposits of scheduled commercial banks (SCBs) increased by Rs 5,084 crore to Rs 10,61,981 crore in the latest reporting fortnight ended November 30 over the preceding fortnight. In the financial year so far, aggregate deposits of SCBs have grown by Rs 99,363 compared with Rs 1,04,952 crore in the corresponding period in the previous year.

Demand and time deposits, which are the two main components of aggregate deposits, have grown by Rs 1,109 crore and Rs 3,975 crore, respectively, in the latest reporting fortnight over the immediate preceding period. Demand deposits of SCBs now stand at Rs 1,43,300 crore, while time deposits have touched Rs 9,18,681 crore.

Investments by SCBs are up by Rs 3,244 crore in the reporting fortnight to Rs 4,22,221 crore over the preceding fortnight.

In the financial year so far, investments by these banks have touched Rs 52,062 crore against Rs 42,317 crore in the corresponding previous financial year.

Non-food credit has declined by Rs 85 crore to Rs 4,97,310 crore in the reporting fortnight over the previous fortnight. In the financial year so far, non-food credit has grown by Rs 25,868 crore compared with Rs 34,219 crore in the corresponding period in the previous financial year.