Drop in Centre's borrowing from RBI

By Our Corporate Reporter

CHENNAI, FEB. 25. Borrowings of the Central Government from the Reserve Bank have declined by Rs. 2,274 crores in the week ended February 16 to Rs. 733 crores from Rs. 3,007 crores while that of State governments were higher by Rs. 751 crores at Rs. 5,308 crores against Rs. 4,557 crores.

According to the weekly statistical supplement issued by the RBI, bank credit extended by the scheduled commercial banks in the fortnight ended February 9 was higher by Rs. 1,523 crores at Rs. 5,01,110 crores. Non-food credit has risen by Rs. 1,008 crores to Rs. 4,61,516 crores and food credit by Rs. 516 crores at Rs. 39,594 crores.

The variation in bank credit in the current financial year so far was Rs. 65,151 crores as compared to Rs. 50,886 crores in the corresponding period in 1999-2000. The increase in non-food credit was Rs. 51,249 crores (Rs. 41,741 crores) and food credit Rs. 13,902 crores (Rs. 9,145 crores).

On a year-on-year basis, the growth in bank credit was Rs. 81,386 crores against Rs. 69,862 crores in the same period in the previous year. Non-food credit has grown by Rs. 67,754 crores (Rs. 61,013 crores) and food credit by Rs. 13,633 crores (Rs. 8,848 crores).

Investment in government securities in a fortnight was higher by Rs. 2,905 crores and stood at Rs. 3,58,185 crores on February 9 and in other approved securities by Rs. 37 crores at Rs. 30,807 crores. The rise in investment in government securities in the current financial year so far was marginal at Rs. 48,922 crores against Rs. 48,207 crores.

Reserve money has increased in a week by Rs. 2,528 crores and stood at Rs. 2,97,613 crores on February 16. The rise under this head in the current financial year so far was Rs. 17,300 crores as compared to Rs. 14,374 crores in 1999-2000. The increase in net RBI credit to Government in the current financial year was Rs. 4,879 crores against a drop of Rs. 1,191 crores in 1999-2000.

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Section  : Business
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