Non-food credit moves up Rs 4,896 cr

MUMBAI: After dipping for two consecutive fortnights, non-food credit showed a modest pick-up. According to figures released in the weekly statistical supplement (WSS), non-food credit (NFC) extended by commercial banks rose Rs 4,896 crore during the fortnight ended May 26. In the previous two weeks, NFC had dipped Rs 756 crore and Rs 9,425 crore, respectively.

Total outstanding bank credit extended by commercial banks amounted to Rs 14,93,115 crore, up Rs 5,484 crore. While food credit went up Rs 588 crore, non-food credit rose Rs 4,896 crore.

Aggregate deposits mobilised by scheduled commercial banks amounted to Rs 21,36,263 crore as on May 26, up Rs 12,505 crore over the previous fortnight’s. Demand deposits rose Rs 12,505 crore, while term deposits were up Rs 11,199 crore. Investments in government and other approved securities went up Rs 8,970 crore to Rs 7,46,808 crore.

Investment in gilts went up Rs 8,970 crore, and that in other approved securities rose Rs 40 crore. As per updated money supply figures, the total stock of money in the system amounted to Rs 27,81,098 crore, up Rs 9,396 crore over the previous fortnight’s levels. Currency with the public dipped Rs 1,749 crore, demand deposits and time deposits went up Rs 1,457 crore and Rs 9,790 crore, respectively.

Among other developments reported in the WSS, the Centre has aggressively borrowed from the central bank as the balance, under the ways and means advances (WMA) — a short-term loan to enable the Centre meet its revenue mismatches — touched Rs 8,966 crore during the week ended June 2, up Rs 7,763 crore over the previous week’s.

After several months, the government has resorted to such huge withdrawals under WMA. The Centre’s surplus with RBI has remained at Rs 101 crore during the week. Interestingly, state governments have refrained from resorting to WMA for the second consecutive week.