Non-Food Credit Dips Rs 6500 Crore

Non-food credit extended by the scheduled commercial banks (SCBs) has fallen by Rs 6,500 crore to Rs 4,67,393 crore in the week ended May 25, over the previous week as per the latest weekly statistical supplement of the Reserve Bank of India (RBI).

Economy watchers attribute the fall in non-food credit to a general lack of credit demand from the industry. Year-on-year (June 2000 to May 2001 period), the growth in non-food credit extended by the SCBs was lower at Rs 55,744 crore compared to Rs 67,537 crore in the corresponding period in the previous year.

The overall bank credit, which also includes food credit, extended by the SCBs was down by Rs 5,364 crore to Rs 5,14,965 crore in the week ended May 25 over the previous week.

 

The foreign exchange reserves of the country were up by $88 million to $42.912 billion in the week ended June 1, compared with the previous week. The accretion to forex reserves is mainly on account of the gold reserves, which were static at $2.695 billion for a long time, moving up by $121 million to $2.816 billion.

Foreign currency assets, however, fell by $33 million to $40.092 billion. Special drawing rights (SDRs) were unchanged at $4 million.

Demand deposits, which are a cheap source of funds for the banks, have declined by Rs 1032 crore to Rs 1,42,617 crore in the reporting week as compared to the last week, while time deposits witnessed an accretion of Rs 2,206 crore to Rs 8,56,856 crore during the same period.

The YOY (June 2000 to May 2001) growth in demand deposits is lower at Rs 13,977 crore as against Rs 20,510 crore in the same period in the previous year.

Time deposits, however, have spurted to a healthy Rs 1,43,669 crore in the June 2000 to May 2001 period as against Rs 98,958 crore in the same period last year. Aggregate deposits of the SCBs rose by Rs 1,174 crore to Rs 9,99,473 crore in the week ended May 25 over the week ended May 18. Year-on-year, the aggregate deposits showed a healthy growth to Rs 1,57,646 crore as against Rs 1,19,468 crore.

Deposits of the SCBs with the RBI have come down by Rs 15,573 crore to Rs 58,423 crore in the May 11 to June 1 period. The Central government, which had breached the ways and means advances (WMA) limit of Rs 10,000 crore by Rs 3,413 crore in the week ended May 25, has whittled it down to Rs 6,790 crore in the week ended June 1 through the auction of government securities. Reserve money fell 3.6 per cent (Rs 11,328 crore) to Rs 3,00,207 crore in the week ended June 1 over the previous week.