Banks push their total MF exposure to Rs 1055b
Monday, 26 April 2010
MUMBAI, Apr 25 (Economic Times): Banks have once again started pumping money into mutual funds with loans dipping in the first week of April.
According to latest RBI data, banks have invested an additional Rs 500 billion during the fortnight ended April 9, taking their total MF exposure to Rs 1055 billion. This is despite the central bank asking lenders to cut down exposure to mutual funds.
According to the latest RBI figures, the first week of April has seen a dip in outstanding loans. Total bank loans as on April 9 stood at Rs 32412.55 billion, up Rs 12 billion over the previous fortnight's levels.
However, outstanding loans were marginally lower than the Rs 32431.75-billion loans outstanding on end March 2010. The second half of March saw bank loans growing by over Rs 1000 billion - a feat which banking sources say was achieved only by banks window dressing their books.
Foreign exchange reserves were flat at $280 billion during the week-ended April 16, largely on account of revaluation of non-dollar assets. RBI data shows that foreign currency assets rose $28 million during the week.
While SDR (special drawing rights - the reserve currency with the International Monetary Fund) and the reserve capital with IMF rose by only $26 million and $7 million, respectively, during the week.
Though reserves were flat in dollar terms, in rupee terms, there has been a sharp rise of Rs 39.40 billion during the week. This indicates that variation in reserves during the week has been because of the valuation impact.
In other developments, the central government has reduced its outstanding in its ways and means advances (WMA) account with RBI to Rs 3.79 billion as on April 16 from Rs 107.89 billion in the previous week. WMA is a facility under which the government (state as well as the centre) can borrow from the central bank to meets its daily revenue mismatches.
While borrowings within the limit is at the prevailing repo rate, borrowings above the agreed limit (between the government and RBI) is at 2 per cent higher than the repo rate. The state governments too reduced it WMA outstanding to Rs 1.59 billion from Rs 28.18 billion in the previous week.
According to latest RBI data, banks have invested an additional Rs 500 billion during the fortnight ended April 9, taking their total MF exposure to Rs 1055 billion. This is despite the central bank asking lenders to cut down exposure to mutual funds.
According to the latest RBI figures, the first week of April has seen a dip in outstanding loans. Total bank loans as on April 9 stood at Rs 32412.55 billion, up Rs 12 billion over the previous fortnight's levels.
However, outstanding loans were marginally lower than the Rs 32431.75-billion loans outstanding on end March 2010. The second half of March saw bank loans growing by over Rs 1000 billion - a feat which banking sources say was achieved only by banks window dressing their books.
Foreign exchange reserves were flat at $280 billion during the week-ended April 16, largely on account of revaluation of non-dollar assets. RBI data shows that foreign currency assets rose $28 million during the week.
While SDR (special drawing rights - the reserve currency with the International Monetary Fund) and the reserve capital with IMF rose by only $26 million and $7 million, respectively, during the week.
Though reserves were flat in dollar terms, in rupee terms, there has been a sharp rise of Rs 39.40 billion during the week. This indicates that variation in reserves during the week has been because of the valuation impact.
In other developments, the central government has reduced its outstanding in its ways and means advances (WMA) account with RBI to Rs 3.79 billion as on April 16 from Rs 107.89 billion in the previous week. WMA is a facility under which the government (state as well as the centre) can borrow from the central bank to meets its daily revenue mismatches.
While borrowings within the limit is at the prevailing repo rate, borrowings above the agreed limit (between the government and RBI) is at 2 per cent higher than the repo rate. The state governments too reduced it WMA outstanding to Rs 1.59 billion from Rs 28.18 billion in the previous week.