Total investments by scheduled commercial banks (SCBs) in commercial papers, shares/ bonds/ debentures issued by the public sector undertakings (PSUs) and the private corporate sector, and bills rediscounted with financial institutions was lower at Rs 2,622 crore in the period between March 23, 2001 and January 25, 2002 as compared with Rs 9,701 crore in the corresponding period last year.
These banks made an investment of Rs 972 crore in commercial papers in the March 23, 2001 to January 25, 2002 period as against Rs 1,670 crore during the March 24, 2000 to January 26, 2001 period, as per the latest weekly statistical supplement of the Reserve Bank of India (RBI).
In the case of shares issued by PSUs and the private corporate sector, the SCBs have made an investment of Rs 92 crore in the reference period compared with a decline of Rs 98 crore in the year ago period.
While banks invested Rs 279 crore in shares issued by PSUs as against Rs 82 crore in the year ago period, investments by them in shares issued by the private sector declined by Rs 187 crore as compared with a decline of Rs 180 crore during the year ago period.
Investment by SCBs in bonds/ debentures issued by PSUs and the private corporate sector was lower at Rs 1,557 crore in the March 23, 2001 to January 25, 2002 period as compared with Rs 8,130 crore in the year ago period. Investments by the SCBs in the bonds/ debentures issued by the PSUs in the reference period was Rs 726 crore (Rs 5,975 crore in the March 24, 2000 to January 26, 2001 period) and their investments in the bonds/ debentures of the private sector was at Rs 832 crore (Rs 2,155 crore).
Bills rediscounted by the SCBs with the financial institutions (FIs) in the March 23, 2001 to November 30, 2001 was at Rs 650 crore as against Rs 201 crore in the March 24, 2000 to November 30, 2000 period.
This lower investment by the SCBs in corporate financial instruments, coupled with sluggish non-food credit offtake -- which in the financial year so far is lower at Rs 43,666 crore as against Rs 51,714 crore in the year ago period -- resulted in banks investing in government securities market in a big way.
Investments made by the banks in the government securities so far this year was higher by Rs 12,428 crore at Rs 62,076 crore as against Rs 49,648 crore in the corresponding period last year. Aggregate deposits of the SCBs in the financial year so far grew by Rs 1,16,353 crore as against Rs 1,29,383 crore in the year ago period. Aggregate deposits outstanding of these banks stood at Rs 10,78,971 crore as on February 8, 2002.
