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

FOREX RESERVES UP $675M AT $164B

FOREIGN exchange reserves rose $675 million during the week ended July 28, largely on account of revaluation of reserves. According to figures published by the Reserve Bank of India (RBI) in its weekly statistical supplement (WSS), total foreign exchange reserves including gold and SDR rose $675 million during the week ended July 28 to $164 billion.

While foreign currency assets rose $673 million, the reserve tranche position (RTP) with the IMF rose $2 million. The value of gold and SDR in reserves remained unchanged. The depreciating dollar against major global currencies since early this year has resulted in revaluation of reserves.

In banking sector, aggregate deposits by scheduled commercial banks amounted to Rs 21,97,689 crore as on July 21, up Rs 20,142 crore over the previous fortnight's. While demand deposits dipped Rs7,938 crore, term deposits went up Rs 28,080 crore.

Bank investment in government and other approved securities touched Rs 7,68,165 crore as on July 21, up Rs 1,014 crore over the previous fortnight's levels. While, investment in government securities dipped Rs 284 crore, that in other approved securities went up Rs 1,298 crore.

Loans given by commercial banks amounted to Rs 15,49,585 crore as on July 21, up Rs 7,596 crore over the previous fortnight's. While food credit dipped Rs 1,798 crore, non-food credit went up Rs 9,394 crore. As per the updated money supply figures, total stock of money in the system amounted to Rs 28,39,334 crore as on July 21, up Rs 18,685crore over the previous fortnight's. While currency with the public and demand deposits dipped Rs 1,859crore and Rs 7,617 crore respectively, term deposits rose 28,382 crore.