Non-food
credit: On the rise
Non-food
credit increased by Rs.5,942 crore in the fortnight ended 6 September. The YoY
growth scaled to 26 per cent, from 25.5 per cent as of August-end and 21.7 per
cent as of 3 May. The net incremental credit between 3 May and 6 September
amounted to Rs.24,752 crore, which is over seven times the rise of Rs.3,347
crore in this period of the preceding fiscal.
The
data on money and SCB reflect the impact of merger of ICICI with ICICI Bank from
3 May 2002. The impact, which has been quantified at Rs.42,592 crore,
constituted around 2.7 per cent of M3 as of 3 May.
SLR
investments decline
The
investments by SCB in government and other approved securities declined by
Rs.3,049 crore during the fortnight. The YoY growth dropped to 22 per cent from
a recent high of 23.4 per cent in the preceding fortnight.
M3
growth eases
The
YoY growth in broad money (M3) eased to 16.8 per cent from 17 per cent in the
preceding fortnight. The growth rates have dropped to around 16.8-17 per cent
from 17.5 per cent during May-mid-June.
Net
forex assets increased sharply by 35 per cent over the past twelve months
period, over and above a 28 per cent rise recorded a year ago. This constituted
39 per cent of the incremental M3 during the period.
Net forex assets with RBI were 1.15 times the domestic currency in
circulation.
Reserve
money
Reserve
money declined by Rs.12,311 crore during the week ended 13 September. This
neutralized partly the Rs.22,504 crore rise in the preceding week. The YoY
growth dropped back to 9 per cent from 10 per cent. Domestic assets showed a
decline, but forex assets with RBI shot up by 39 per cent over the past twelve
months. Net RBI credit to government, a traditional measure of monetisation of
fiscal deficit, showed a 17 per cent decline on a YoY basis.
|
Money
& Banking Indicators
|
|
|
As
on
|
Outstanding
|
%
change till date over past…..
|
|
|
|
|
|
Rs.billion
|
Week/fort/
|
12
months
|
Since
March
|
|
|
|
|
month
|
Curr.
Year
|
Prev.
Year
|
Curr.
Year
|
Prev.
Year
|
|
Broad Money (M3)
|
6-Sep-02
|
16,368
|
0.4
|
16.8
|
17.7
|
9.1
|
6.7
|
|
Net Credit to
Government
|
6-Sep-02
|
6,384
|
0.5
|
13.7
|
17.8
|
8.9
|
9.6
|
|
RBI
|
6-Sep-02
|
1,406
|
4.8
|
-12.2
|
1.6
|
-7.6
|
4.1
|
|
Commercial Banks
|
6-Sep-02
|
4,978
|
-0.6
|
24.1
|
25.8
|
14.6
|
12.0
|
|
Bank Credit to
Commercial Sector
|
6-Sep-02
|
8,263
|
0.7
|
19.7
|
12.6
|
9.3
|
1.6
|
|
Net Forex Assets of
Banking Sector
|
6-Sep-02
|
3,519
|
1.4
|
34.8
|
28.0
|
11.8
|
4.5
|
|
Reserve Money *
|
13-Sep-02
|
3,338
|
-3.6
|
9.1
|
6.7
|
-1.2
|
0.8
|
|
SCB Deposits
|
6-Sep-02
|
12,246
|
0.5
|
18.2
|
19.7
|
11.0
|
7.7
|
|
SLR Securities
|
6-Sep-02
|
4,986
|
-0.6
|
21.9
|
23.2
|
13.8
|
10.5
|
|
Bank credit
|
6-Sep-02
|
6,582
|
0.9
|
24.7
|
13.9
|
11.6
|
3.2
|
|
of which, Non-food
Credit
|
6-Sep-02
|
6,021
|
1.0
|
26.0
|
10.8
|
12.4
|
1.3
|
|
*
Change over week
|
|
**
Change over month
|
|
|
|
Email:
mskapadia@projectstoday.com
