Drop in Govt. borrowing from RBI

By Our Corporate Reporter

CHENNAI, DEC. 3. Loans and advances to the Central Government from the Reserve Bank of India during the week ended November 24 have declined by Rs. 2,603 crores to Rs. 1,952 crores. The borrowings of the State governments were also lower by Rs. 786 crores at Rs. 3,456 crores. As per the latest Weekly Statistical Supplement of the RBI, bank credit has risen by Rs. 2,227 crores in the fortnight ended November 17 to Rs. 4,80,586 crores. Food credit was up by Rs. 277 crores at Rs. 35,434 crores and non-food credit by Rs. 1,950 crores at Rs. 4,45,152 crores. In the current financial year so far, growth in bank credit was Rs. 44,627 crores against Rs. 25,716 crores, in food credit Rs. 9,743 crores against Rs. 6,593 crores, and in non-food credit Rs. 34,885 crores against Rs. 19,123 crores in the same period in 1999-2000.

On a year-on-year basis, increase in bank credit was Rs. 86,033 crores against Rs. 58,088 crores, food credit Rs. 12,025 crores (Rs. 6,707 crores) and in non-food credit Rs. 74,008 crores (Rs. 51,381 crores).

Investments in government securities in a fortnight was Rs. 13,072 crores and in other approved securities Rs. 97 crores and stood at Rs. 3,15,522 crores and Rs. 31,026 crores respectively. On a year-on-year basis, growth in government securities was Rs. 51,025 crores as compared to Rs. 47,872 crores in 1999. Other approved securities were lower by Rs. 238 crores as compared to a drop of Rs.241 crores.

Reserve money has increased by Rs. 257 crores in a week at Rs. 2,85,854 crores. The variation in the current financial year so far was Rs. 5,540 crores (Rs. 4,302 crores). On a year-on-year basis, the rise under this was Rs. 22,207 crores (8.4 per cent). The net RBI credit to Government in a week was lower by Rs. 6,651 crores at Rs. 1,51,533 crores. The increase under this head in the current financial year so far was Rs. 3,269 crores (2.2 per cent) as compared to a drop of Rs. 432 crores (-0.3 per cent). The drop on a year-on-year basis was Rs. 574 crores.

The accommodation provided by scheduled commercial banks to commercial sector in the form of bank credit and investment in shares, debentures, bonds and commercial paper between October 20 and March 24 was up by Rs. 2,400 crores at Rs. 63,829 crores. Investments in bonds, debentures and preference shares were up by Rs. 2,958 crores at Rs. 56,460 crores, while investment in commercial paper were lower by Rs. 758 crores at Rs. 4,307 crores.

From the end of March, the increase in foreign currency assets was $431 million. Gold and SDR holdings have declined by $174 million and $2 million respectively. Growth in FCAs from end- December 1999 was $3.50 billion. Gold and SDR holdings were lower by $139 million and $2 million respectively. On a year-on-year basis, growth in total reserves was $4.03 billion. FCAs were up by $4.45 billion. Gold and SDR holdings were lower by $416 million and $2 million respectively.

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