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Banks push their total MF exposure to Rs 1,05,519 cr |
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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 50,016 crore during the fortnight ended April 9,
taking their total MF exposure to Rs 1,05,519 crore. 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 32,41,255 crore, up Rs 1,167
crore over the previous fortnight’s levels. However, outstanding loans
were marginally lower than the Rs 32,43,175-crore loans outstanding on end March
2010. The second half of March saw bank loans growing by over Rs 1,00,000 crore
— 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 3,940 crore 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 379
crore as on April 16 from Rs 10,789 crore 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% higher than the repo
rate. The state governments too reduced it WMA outstanding to Rs 159 crore from
Rs 2,818 crore in the previous week.
Source : economictimes.indiatimes.com
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