INDIA BUSINESS WORLD - MAY 2006
THE MONTH THAT WAS...

FOREIGN EXCHANGE RESERVES HIT $162 B

   THE country's foreign exchange reserves rose $1.7 billion on account of massive mop up by the central bank during the week ended May 5 to touch a new high of $162.4 billion. According to the figures released by the Reserve Bank of India (RBI) in its weekly statistical supplement (WSS), total foreign exchange reserves including gold and SDRs went up $1.7 billion during the week ended May 5 to touch $162.4 billion.

While foreign currency assets rose $1,731 million, the reserve tranche position in the IMF went up $3 million during the week. The value of SDRs and gold in reserves remained unchanged during the week. In the banking sector, aggregate deposits mobilised by scheduled commercial banks amounted to Rs 21,36,945 crore as on April 28, up Rs 23,845 crore over the previous fortnight's levels. While demand deposits went up Rs 11,250 crore, time deposits went up Rs 12,595 crore during the fortnight.

Investments by banks in government and other approved securities amounted to Rs 7,51,029 crore, down Rs 3,403 crore during the fortnight. While investments in g-secs dipped Rs 3,357 crore, that in other approved securities dipped Rs 46 crore.

Loans given by banks amounted to Rs 14,87,171 crore as on April 28, down Rs 5,150 crore over the previous fortnight's levels. While food credit rose Rs 4,275 crore, non-food credit dipped Rs 21,36,945 crore during the fortnight. As per the updated money supply figures, the total stock of money in the system amounted to Rs 27,75,005 crore as on April 28, up Rs 27,085 crore over the previous fortnight's levels.