Credit, Deposit, Forex Reserves Slip
The credit offtake of the banking industry took a dip by Rs 7 crore to Rs 4,79,471 crore during the week ended October 27, according to the weekly statistical supplement published by the Reserve Bank of India (RBI) on Saturday.
The deposit portfolio has also slumped by Rs 1,273 crore during the week.
This is for the first time that the central bank published weekly figures on the business done by scheduled commercial banks.
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The RBI earlier used to provide the fortnightly data of credit, deposit and investment growth.
The fall in credit is in contrast with the Rs 4,021-crore rise in credit during the fortnight ended October 20. In October, the credit grew by Rs 8,223 crore.
The dip in credit last week was on account of the fall in non-food credit by Rs 749 crore to Rs 4,44,884 crore, reflecting a fall in the industrial growth in the first half of the current fiscal.
The growth rate of the index of industrial production fell to 5.5 per cent in the first half of the current fiscal from 6.4 per cent in the corresponding period of last year.
The food-credit, however, grew by Rs 742 crore during the week to Rs 34,587 crore.
Along with the fall in credit, the deposit held by commercial banks also declined during the week ended October 27 by Rs 1,273 crore to Rs 8,90,180 crore.
The investment portfolio, in contrast to the credit and deposit portfolios, however, made a progress during the week by Rs 5,240 crore to Rs 3,39,579 crore as on October 20.
Foreign exchange reserves of the apex bank declined by $114 million during the week ended November 3 to $34.74 billion.
Foreign currency assets declined by $80 million, while gold reserves went down by $34 million. Special drawing rights (SDR) reserves remained constant at $8 million.
The money supply (M3) grew by 0.5 per cent during the fortnight ended October 20. The M3 growth is in sharp contrast with the 1.6 per cent growth during the fortnight before.
The fall in money growth was mainly because of lower growth in currency with the public as well as time deposits with banks. The currency with the public and the time deposits with banks grew by 0.7 per cent and 0.2 per cent, respectively, against 2.3 per cent and 1.3 per cent during the fortnight before.
The apex bank, however, has so far been able to keep the monetary growth under control. Money supply, on a year-on-year basis, grew by 14.6 per cent against 15.9 per over the corresponding period of the previous year.
Loans and advances by the central bank to the Centre and state governments went down by Rs 1,024 crore during the week ended October 27 to Rs 8,935 crore.
While loans and advances to the Central government went up by Rs 4,118 crore to Rs 7,940 crore, while advances to state governments took a dip of Rs 182 crore to Rs 3,829 crore.