Marginal Rise In Aggregate Deposits
The total investment portfolio of the banking sector grew by 3.8 per cent to Rs 2,00,526 crore during the fortnight-ended April 25.
The growth was on account of banks investing an additional Rs 7,427 crore in government securities.On the advances front, there was a decline in non-food credit by Rs 1,792 crore during the fortnight-ended April 25.
Total outstanding bank credit stood at Rs 2,77,930 crore, declining by 0.5 per cent. The decrease in non-food credit was partially offset by an increase of Rs 351 crore in food credit.
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On April 25, the credit-deposit ratio stood at 54.49 per cent while the investment-deposit ratio was 39.31 per cent. On the deposit front, the aggregate deposits of the banking system went up marginally by 0.2 per cent.
Aggregate deposits went up by a paltry Rs 1,086 crore to touch Rs 5,10,077 crore.
While demand deposits went down by Rs 886 crore time deposits went up by Rs 1,972 crore to touch Rs 4,23,150 crore.
There was a 2.3 decline in the growth of the reserve money in the financial system. The outstanding stock of reserve money fell by Rs 4,794 crore during the week to stand at Rs 2.00.638 on April 25.
The decline in the reserve money was on account of a 8.2 per cent fall in the bankers deposits with RBI and a 4.3 per cent reduction in the net RBI credit to the government.
Net RBI credit to the government went up by Rs 666 crore in the current financial year. However in the week-ended April 25, net Reserve Bank credit to the central government went by Rs 5,571 crore to Rs 1,22,177 crore.
The central government's recourse to ways and means advances (WMA) which peaked at Rs 5,174 crore on April 18 then fell to zero as on April 25.
The government's recourse to the WMA could be vacated principally on account of the private placement of Rs 5,000 crore done by the central government with the RBI. The government had placed a 10-year paper with the RBI at a coupon of 13.05 per cent.
For the first time since the announcement of the Union budget there was a decline in the total forex reserves. Forex reserves fell by $106 million to $26,648 million. While foreign currency assets fell by $17 million, the decline in the stock of gold and Special Drawing Rights was to the extent of $88 million and $1 million respectively. On the interest rate front, the yield on the 91-day treasury bill at the auction held on Friday moved up marginally from 6.23 per cent to touch 6.75 per cent.
Corporates are placing commercial paper at 11 to 12.5 per cent. The quantum of commercial paper outstanding in the market as on April 15 was Rs 702 crore. Statistics pertaining to the issue of certificates of deposit (CD) by the banks is available only upto March 14. The quantum of CDs in the system stood at Rs 11,867 crore.