Reserve Bank of india november bulletin 2009

EDITORIAL COMMITTEE

A. M. PedgaonkarBalwant SinghJanak RajK. U. B. RaoBrajamohan Misra

EDITOR

Gunjeet Kaur

The Reserve Bank of India Bulletin is issuedmonthly by the Department ofEconomic Analysis and Policy,Reserve Bank of India, under the direction ofthe Editorial Committee.The Central Board of the Bank is notresponsible for interpretations andopinions expressed. In the case of signedarticles, the responsibility is that of theauthor.

© Reserve Bank of India 2009

All rights reserved.Reproduction is permitted provided anacknowledgement of the source is made.

For the subscriptions of Bulletin, please referSection “Important Recent Publications of theReserve Bank of India”.

The Reserve Bank of India Bulletin can also beaccessed through Internet athttp://www.bulletin.rbi.org.in

RBIMonthly BulletinNovember 2009

Contents

Monetary Policy Statement 2009-10

Second Quarter Review of Monetary Policy 2009-10 2021

by Dr. Duvvuri Subbarao, Governor, Reserve Bank of India

Macroeconomic and Monetary Developments 2069

Second Quarter Review 2009-10

Speeches

Emerging Market Concerns: An Indian Perspective 2173

by Duvvuri Subbarao

Changing Dynamics of Legal Risks in Financial Sector 2179

by Shyamala Gopinath

Learning from Crises 2187

by Usha Thorat

Articles

India's Foreign Trade: 2009-10 (April-August) 2197

South-West Monsoon 2009 : A Review 2211

(June 1 to September 30, 2009)

Composition and Ownership Pattern of Deposits 2221

with Scheduled Commercial Banks: March 2008

International Banking Statistics of India – 2245

March 31, 2009

International Trade in Banking Services, 2007-08 2275

Other Items

Press Releases 2301

Regulatory and Other Measures 2307

Foreign Exchange Developments 2315

Current Statistics

Publications

RBI Websites

Supplement

Report on Trend and Progress of Banking in India 2008-09

Supplement II

Report of the Working Group on Benchmark Prime

Lending Rate (BPLR)


Second Quarter Review of Monetary Policy 2009-10

by Dr. Duvvuri Subbarao, Governor, Reserve Bank of India

Macroeconomic and Monetary Developments


Monetary Policy Statement 2009-10

RBIMonthly BulletinNovember 2009 2021

MONETARY POLICY

STATEMENT 2009-10

Second Quarter Review ofMonetary Policy 2009-10

Second Quarter Review ofMonetary Policy 2009-10*

The global economy has begun to

recover from the deep recession set off by

the financial crisis. This recovery is

underpinned by output expansion in

emerging market economies (EMEs),

particularly those in Asia. The pace and

shape of recovery, however, remain

uncertain.

2. In fact, the global economic outlook

presents a mixed picture. On the positive

side, world output, as per the International

Monetary Fund (IMF) estimates, has

expanded by 3 per cent in the second

quarter (quarter-on-quarter, annualised),

manufacturing activity has picked up, trade

is recovering, financial market conditions

are improving, and risk appetite is

returning. A sharp recovery in equity

markets has enabled banks to raise capital

to repair their balance sheets. In the US,

home prices appear to be stabilising. Capital

flows to EMEs have resumed. Most

importantly, the anxiety and nervousness

that pervaded the financial markets during

the height of the crisis are being replaced

by a sense of calm.

3. On the negative side, there are

concerns that the recovery is fragile. The

second quarter improvement is essentially

the outcome of policy-induced stimulus.

Going forward, the impact of the stimulus

will fade away and inventory rebuilding may

lose momentum. In advanced economies,

private consumption remains constrained

by continuing job losses, sluggish income

growth and dented confidence. Even as

output is recovering, unemployment is

expected to increase to over 10 per cent in

the US and the Euro area. Investment is also

expected to remain weak due to ruptured

balances sheets, excess capacity and* Announced by Dr. Duvvuri Subbarao, Governor, ReserveBank of India on October 27, 2009 in Mumbai.

MONETARY POLICY

STATEMENT 2009-10



financing constraints. Bank collapses are

continuing. World trade remains below its

year ago level, notwithstanding recent

quarter-on-quarter improvement.

4. Reflecting this mixed trend which

has a small bias towards the positive, the

IMF projected, in its October 2009 World

Economic Outlook (WEO), that the rate of

contraction of the world economy in 2009

will be 1.1 per cent, an upward revision

from its projection of a contraction of 1.4

per cent made in its July 2009 WEO.

However, the IMF expects the ensuing

global recovery to be slow. In its latest

Economic Outlook (September 2009), the

Organisation for Economic Co-operation

and Development (OECD) projects the pace

of activity to remain weak well into 2010

on account of numerous headwinds. On

balance, while global economic prospects

have improved since the First Quarter

Review in July 2009, uncertainties remain

about the pace and sustainability of

economic recovery.

5. The Indian economy, which slowed

down significantly during the second half

of 2008-09, largely due to the knock-on

effect of the global financial crisis, has

begun to stabilise. This is despite the

continuing contraction in exports and the

worst drought since 1972. Performance of

the industrial sector has improved markedly

in recent months. Both domestic and

external financing conditions are on the

upturn. Capital inflows have revived.

Activity in the primary capital market has

picked up and funding from non-bank

domestic sources has eased. Liquidity

conditions have remained easy and interest

rates have softened in the money and credit

markets.

6. At the same time, there are several

negative indications. Private consumption

demand is yet to pick up. Agricultural

production is expected to decline due to

lower Kharif foodgrain production. Services

sector growth remains below trend. Bank

credit growth continues to be sluggish.

There are also clear signs of rising inflation

stemming largely from the supply side,

particularly from food prices.

7. This Second Quarter Review of

Monetary Policy for 2009-10 is thus set

against the backdrop of incipient signs of

recovery in the global economy and

improving prospects for the domestic

economy. The Review is organised in two

parts. Part A covers Monetary Policy and is

divided into three sections: Section I

provides an assessment of the

Macroeconomic and Monetary

Developments; Section II defines the

Stance of Monetary Policy; and Section III

sets out Monetary Measures. Part B covers

the Developmental and Regulatory Policies

and is organised into seven sections:

Financial Stability (Section I), Interest Rate

Policy (Section II) , Financial Markets

(Section III), Credit Delivery Mechanism

and other Banking Services (Section IV),

Financial Inclusion (Section V), Regulatory

Measures for Commercial Banks (Section

VI) and Institutional Developments

(Section VII). Part A of this Statement

should be read and understood together

with the detailed review in Macroeconomic

and Monetary Developments released

yesterday.


MONETARY POLICY

STATEMENT 2009-10


Part A. Monetary Policy

I. Macroeconomic and MonetaryDevelopments

Global Outlook

Real GDP

8. Global economic performance

improved during the second quarter of 2009

prompting the IMF to reduce the projected

rate of economic contraction in 2009 from

1.4 per cent made in July 2009 to 1.1 per

cent in its latest World Economic Outlook

(WEO) released in early October 2009. The

IMF has also revised upwards the projection

of global growth for 2010 to 3.1 per cent

against the earlier projection of 2.5 per cent

in its July Update (Table 1).

9. In the US, the macroeconomic signals

are mixed. Real GDP in Q2 of 2009

contracted by 0.7 per cent, a significant

improvement over the contraction of 6.4 per

cent in Q1 of 2009, largely due to positive

contribution from government spending.

Home prices have shown signs of

stabilisation. On the negative side, the

unemployment rate rose to 9.8 per cent in

September 2009 and is expected to rise

further. Consumer sentiment dipped on

apprehensions about the economy, job and

income prospects.

10. Economic indicators in the euro area

continue to be weak. Real GDP contracted

by 4.9 per cent in Q1 and by 4.8 per cent in

Q2 of 2009. Unemployment rose to 9.6 per

cent in August 2009 and retail sales dipped

further. Although consumer and business

confidence improved in Q3 of 2009, these

are yet to move into positive territory. Real

GDP in the UK contracted by 5.5 per cent in

Q2 of 2009 and by 5.2 per cent in Q3 of 2009.

Unemployment in the UK rose to 7.9 per

cent in July-August 2009. Real GDP in Japan

expanded by 2.3 per cent in Q2 2009 after

negative growth for almost a year. Though

output is stabilising and consumer and

business confidence are improving,

industrial outlook remains uncertain with

big companies planning to cut capital

outlays. Overall, OECD’s Composite Leading

Indicators for August 2009 show signs of

recovery in most of the economies,

especially in France and Italy.

Inflation

11. Global commodity prices have

rebounded ahead of global recovery. The

Food and Agriculture Organisation (FAO)

Food Price Index rose in August-September

2009. Along with volatile food prices,

industrial metal and gold prices have firmed

up in Q3 of 2009. Gold prices have reached

record levels on account of significant

weakening of the US dollar during the

quarter. Crude oil prices have been steady

with a firm undertone during the quarter

reflecting the balance of expectations of an

Country/Region 2009 2010

1 2 3

US (-) 2.7 1.5

UK (-) 4.4 0.9

Euro Area (-) 4.2 0.3

Japan (-) 5.4 1.7

China 8.5 9.0

India 5.4 6.4

Emerging andDevelopingEconomies 1.7 5.1

World (-) 1.1 3.1

Source: World Economic Outlook, IMF, October 2009.

Table 1: Projected Global GDP Growth (%)

MONETARY POLICY

STATEMENT 2009-10



economic recovery and higher oil

consumption in the future against weak

current demand and high inventories.

Despite these trends, consumer price

inflation in most developed and emerging

market economies (other than India)

remains negative/low due mostly to large

output gaps. The WEO of October 2009

projects consumer price inflation in

advanced countries to remain low, rising

from 0.1 per cent in 2009 to 1.1 per cent in

2010. Consumer price inflation in emerging

and developing economies is projected to

decline from 5.5 per cent in 2009 to 4.9 per

cent in 2010. In sharp contrast, in India, CPI

inflation has not only remained elevated,

but has indeed hardened in recent months

reflecting higher food prices (Table 2).

Financial Markets

12. The wide array of supportive central

bank actions and pronouncements have

aided in the easing of money markets and

the narrowing of corporate bond spreads.

Share prices have rebounded in all major

markets. Most major banks in the US and

Europe have reported profits recently after

the large losses incurred during 2008. On

the negative side, credit offtake has fallen

in 2009 in a number of advanced economies

as corporates reduced debt levels in an

environment of tighter credit standards by

lenders. There are concerns, as highlighted

by the Global Financial Stability Report

(GFSR) of the IMF, that the transfer of

financial risks to fiscal authorities could

crowd out the private sector and undermine

the sustainability of public sector finances.

Monetary Policy Measures

13. Central banks in all the major

developed economies, barring Australia,

continued with easy monetary policy and

have held policy rates steady in recent

months. They have also continued with

measures to provide liquidity and other

support to alleviate stress in the financial

markets following the crisis. In the current

cycle, the Reserve Bank of Australia has been

the first G-20 central bank to raise its policy

rate (Cash Rate) by 25 basis points to 3.25

per cent on October 6 on the back of

diminished risk of serious economic

contraction. The Reserve Bank of New

Zealand has withdrawn some temporary

emergency liquidity facilities put in place

during the financial crisis of 2008.

Emerging Market Economies

14. In its October WEO, the IMF projects

the real GDP growth of emerging and

developing economies to decelerate to 1.7

per cent in 2009 (1.5 per cent projected in

the July Update) from 6.0 per cent in 2008,

Table 2: Cross-country CPI Inflation:Year-on-Year (%)

CountrySeptember March September

2008 2009 2009

1 2 3 4

US 4.9 (-) 0.4 (-) 1.3

UK 5.2 2.9 1.1

Euro Area 3.6 0.6 (-) 0.3

Australia 5.0 2.5 1.5 @

Japan 2.1 (-) 0.3 (-) 2.2 #

China 4.6 (-) 1.2 (-) 0.8 #

India* 9.8 8.0 11.7 #

Korea 5.1 3.9 2.2

Brazil 6.3 5.6 4.3

Russia 15.0 14.0 10.7

* : CPI for industrial workers. @ : June 2009. # : August 2009.

Source: Official websites of respective countries andBloomberg.


MONETARY POLICY

STATEMENT 2009-10


before rebounding to 5.1 per cent in 2010.

The IMF does not expect the rebound to be

evenly spread across the EMEs; there will

be a divergence between Asian and non-

Asian EMEs as the rebound would be driven

by China, India and other emerging Asian

economies. Emerging markets that had little

direct exposure to the financial meltdown

have displayed significant economic

momentum in Q3 of 2009, albeit slower

than the rapid pace of Q2. China’s export

volumes have been growing, including

recently to the US and Europe, leading to

improvement in China’s trade surplus.

Growth in industrial production and fixed

asset investment in China is estimated to

have improved and its longer-term

prospects have remained strong. In contrast,

Latin America, Eastern Europe and

Commonwealth of Independent States (CIS)

are all expected to face contraction in 2009

and sluggish growth in 2010, while the

Middle East is projected to grow moderately.

Domestic Outlook

15. The Indian economy posted a growth

of 6.1 per cent for Q1 of 2009-10. This is

higher than the expansion of 5.8 per cent in

Q4 of 2008-09, but lower than the expansion

of 7.8 per cent in the corresponding first

quarter of 2008-09. The year-on-year (y-o-y)

deceleration in growth was broad-based

covering all the three major sectors, viz.,

agriculture, industry and services (Table 3).

Agriculture

16. The south-west monsoon rainfall this

year (June 1- September 30) was 23 per cent

lower than the long-period average, the

weakest since 1972. Twenty three of the 36

meteorological sub-divisions recorded

deficient rainfall. The entire central and

northern India received deficient rainfall.

The Reserve Bank’s production-weighted

rainfall index for 2009 was 73, significantly

lower than the index number 104 for 2008.

According to the latest information of

progress of Kharif sowing, the acreage under

paddy declined by 15.7 per cent and that

under oilseeds by 5.2 per cent.

17. The share of agriculture in GDP has

been declining over time, and as of 2008-

09, it was 17.0 per cent. However,

experience shows that a deficient rainfall

can have a disproportionate impact on

overall economic prospects and on the sense

of well-being. Poor output will push up

prices and depress rural labour incomes.

Table 3: Real GDP Growth (%)

Financial Year Quarterly Growth Rates (y-o-y)

2007-08 2008-09 2008-09 2009-10

Q1 Q4 Q1

1 2 3 4 5 6

Agriculture 4.9 1.6 3.0 2.7 2.4

Industry 7.4 2.6 5.1 (-) 0.5 4.2

Services 10.8 9.4 10.0 8.4 7.7

Overall GDP 9.0 6.7 7.8 5.8 6.1

Source: Central Statistical Organisation (CSO).

Sector

MONETARY POLICY

STATEMENT 2009-10



Given the inter-sectoral supply-demand

linkages, the knock-on impact on the

industrial and services sectors can also be

significant. The large stock of foodgrains of

44.3 million tonnes with public agencies,

improved supply management, and the

social safety net programmes could mitigate

the adverse effects to an extent.

Industry

18. The industrial sector has shown clear

signs of revival in recent months. The index

of industrial production (IIP) increased at a

higher rate of 5.8 per cent during April-

August 2009 as compared with a growth of

4.8 per cent in the corresponding period of

the previous year and 0.6 per cent growth

in the second half of 2008-09. While the

basic, intermediate and consumer durable

goods sectors witnessed higher growth, the

performance of the capital goods and

consumer non-durable sectors was relatively

modest. The core infrastructure sector, with

a weight of 26.7 per cent in the IIP, posted a

growth of 4.8 per cent during April-August

2009, up from 3.3 per cent in the

corresponding period of the previous year.

The leading indicators of industrial

production, both quantitative and

qualitative, also point to revival of industrial

activity in the months ahead.

Services

19. The performance of the services

sector during April-July 2009 continued to

follow the pattern witnessed in Q4 of 2008-

09. Trade-related services such as cargo

handled at major sea and airports continued

to show deceleration/negative growth

reflecting contraction of trade. The number

of passengers handled at international

terminals increased, albeit marginally, while

the number of passengers handled at

domestic terminals declined. Other

domestic activity related services such as

communication and construction have

begun to show signs of upturn. The railway

revenue-earning freight traffic recorded

good growth.

Demand Components of GDP

20. Continuing the trend witnessed since

Q2 of 2008-09, the two major components of

demand, viz., private final consumption

expenditure and gross fixed capital

formation (with a combined weight of

around 88 per cent) decelerated further in

Q1 of 2009-10. Government consumption,

which had increased sharply in Q3 and Q4

of 2008-09 due to the fiscal stimulus

measures and the Sixth Pay Commission

payouts, also decelerated in Q1 of 2009-10.

While the direct impact of fiscal stimulus is

waning, its indirect impact on private

consumption and investment will persist for

some more time. External demand continues

to remain weak, whereas net exports turned

positive in Q1 of 2009-10 because of a sharper

decline in imports than in exports as

compared with Q1 of 2008-09 (Table 4).

Corporate Performance

21. Sales of the private non-financial

corporate sector declined marginally (0.9 per

cent) in Q1 of 2009-10 on a year-on-year

basis as also in comparison with Q4 of

2008-09 (1.7 per cent). In the wake of the

downturn, firms responded quickly to the

changed cyclical conditions by reducing

their inventories around Q2 of 2008-09.

Now, with the onset of recovery in Q1 of

2009-10, the upturn is characterised by an


MONETARY POLICY

STATEMENT 2009-10


increase in the stocks to sales ratio. Year-

on-year growth in net profits also witnessed

a turnaround in Q1 of 2009-10 after

registering negative growth in the preceding

three quarters (Table 5).

Business Confidence

22. The Reserve Bank has been

conducting a quarterly Industrial Outlook

Survey of manufacturing companies since

1998. The survey tracks business

expectations for the current quarter and

business outlook for the following quarter.

The latest round of the survey conducted

during July-August 2009 showed a

turnaround in the business sentiment. The

assessment for Q2 of 2009-10 showed

continuing upturn with a 7.8 per cent

increase in the Business Expectations Index

(BEI) over the previous quarter.

Table 4: Demand Components of GDP

Financial Year Q1 Q4 Q1

2007-08 2008-09 2008-09 2009-10

1 2 3 4 5 6

Year-on-Year Growth Rate (%)

Private Final Consumption Expenditure 8.5 2.9 4.5 2.7 1.6

Government Final Consumption Expenditure 7.4 20.2 (-) 0.2 21.5 10.2

Gross Fixed Capital Formation 12.9 8.2 9.2 6.4 4.2

Net Exports (-) 36.7 (-) 41.2 (-) 75.9 (-) 30.8 231.8

Share in GDP (%)

Private Final Consumption Expenditure 57.2 55.5 58.0 51.4 55.6

Government Final Consumption Expenditure 9.8 11.1 9.6 13.4 9.9

Gross Fixed Capital Formation 31.6 32.2 32.2 31.6 31.6

Net Exports (-) 4.3 (-) 5.8 (-) 1.3 (-) 2.9 1.6

Source: Central Statistical Organisation (CSO).

Item

Item

Table 5: Performance of the Private Corporate Sector

Full Year Q1 Q4 Q1

2007-08 2008-09 2008-09 2009-10

1 2 3 4 5 6

Growth Rate (%)

Sales 18.6 17.2 29.3 1.9 (-) 0.9

Expenditure 19.4 19.5 33.5 (-) 0.5 (-) 4.4

Consumption of Raw Materials 18.4 18.5 36.1 (-) 7.4 (-) 13.4

Staff Cost 22.4 19.5 23.2 11.0 8.2

Gross Profits 24.9 (-) 4.2 11.9 (-) 8.8 5.8

Net Profits 26.0 (-) 18.4 6.9 (-) 19.9 5.5

Ratio (%)

Interest to Sales 2.5 3.1 2.4 3.2 2.8

Gross Profit to Sales 14.9 13.3 14.5 13.7 15.7

Net Profit to Sales 9.8 8.1 9.7 8.1 10.2

MONETARY POLICY

STATEMENT 2009-10



Considerable improvement was noted in

key indicators such as production, order

books and capacity utilisation. The

financing conditions were also reported to

be better.

23. The outlook of manufacturing

companies for Q3 of 2009-10 maintains its

upward trend, with the BEI moving up to

116.4 from 109.9 in the previous quarter.

The respondents expect production and

capacity utilisation to improve further,

working capital finance requirement to

grow, the cost of raw materials to rise and

pricing power to return to them. On the

back of improved demand conditions, the

manufacturing companies also expect

further improvement in their employment

situation. The findings of the Reserve

Bank’s Industrial Outlook Survey are

broadly consistent with business confidence

surveys conducted by other agencies such

as FICCI, NCAER, HSBC-Markit and Dun and

Bradstreet.

Inflation

24. The headline inflation, as measured

by year-on-year variations in the wholesale

price index (WPI), which remained negative

during June-August 2009 due to the base

effect, returned to positive territory in

September 2009. WPI inflation was 1.21 per

cent on October 10, 2009 as compared with

11.30 per cent a year ago, and 0.84 per cent

at end-March 2009. During the current

financial year (up to October 10, 2009), WPI

has increased by 5.95 per cent reflecting

higher food price inflation aggravated by

deficient monsoon.

25. The upside risk of deficient monsoon

rainfall projected in the First Quarter Review

of July 2009 has since materialised and

prices of primary food items and

manufactured food products have risen due

to short supply. During the current financial

year (up to October 10, 2009), the increases

in prices of wheat (3.5 per cent) and rice

(5.9 per cent) were relatively low as supply

side pressures were mitigated by the

comfortable levels of foodgrain stocks with

public agencies which stood at 44.3 million

tonnes as on October 1, 2009 as against the

minimum stock norm of 16.2 million

tonnes. However, large increases were

recorded in prices of vegetables (59.3 per

cent), tea (30.7 per cent), sugar, khandsari

and gur (28.7 per cent), egg, meat and fish

(25.3 per cent), pulses (19.2 per cent), jowar

(14.9 per cent), condiments and spices (14.2

per cent), milk (7.0 per cent) and fruits (5.2

per cent).

26. The current inflationary pressures, as

WPI moves from negative to positive

territory, are quite different from the

inflationary pressures witnessed in April-

October 2008. Although both inflation

episodes are driven by supply side

pressures, the inflation in 2008 was

triggered largely by a sharp increase in the

prices of basic metals and mineral oils. In

contrast, during the current episode, price

pressures are emanating from domestic

sources reflecting increase in prices of food

articles and food products (Chart 1).

27. At a disaggregated level, WPI inflation

rates of food articles, essential commodities

and manufactured food products are

currently in double digits and are ruling

much above their trend levels (Table 6).

28. The recent contrarian movements in

the WPI and CPI inflation rates have raised


MONETARY POLICY

STATEMENT 2009-10


questions about the correlation between

them. In the short-term, inflation rates

based on WPI and CPIs could be different

due to differences in coverage and weights.

However, these differences even out over

time as wholesale price changes are

followed by changes in the retail prices. For

example, in the five year period 2003-08, the

average inflation based on consumer price

index for industrial workers (CPI-IW) of 4.83

per cent was not very different from the

average WPI inflation of 4.99 per cent.

Wholesale Price Index (WPI) October 11, 2008 October 10, 2009

1 2 3

WPI - All Commodities 11.30 1.21

WPI - Primary Articles 12.56 8.62

WPI - Food Articles 10.17 13.34

WPI - Fuel Group 14.49 (-) 6.80

WPI - Manufactured Products 9.53 1.26

WPI - Manufactured Food Products 8.82 16.06

WPI - Essential Commodities* 8.66 17.82

WPI - Excluding Fuel 10.43 3.48

WPI - Excluding Food Articles and Fuel 10.50 0.96

Consumer Price Indices (CPIs) September 2008 September 2009

CPI - Industrial Workers # 9.02 11.72

CPI - Urban Non-manual Employees # 8.54 12.88

CPI - Agricultural Labourers 10.98 13.19

CPI - Rural Labourers 10.98 12.97

* Essential commodities (weight in WPI: 17.8 per cent) include rice, wheat, jowar, bajra, pulses, potatoes, onions, milk,fish-inland, mutton, chillies (dry), tea, coking coal, kerosene, atta, sugar, gur, salt, hydrogenated vanaspati, rape &mustard oil, coconut oil, groundnut oil, long cloth/sheeting, dhoties, sarees & voiles, household laundry soap andsafety matches.

# Pertains to August.

Table 6: Annual Inflation Rate (Y-o-Y) (%)

MONETARY POLICY

STATEMENT 2009-10



29. The first occasion in the recent past

when CPI inflation diverged significantly

from WPI inflation was in mid-2004. The

divergence between the two inflation rates

persisted thereafter but remained within a

relatively narrow range. However, the

divergence has widened in the recent period

with WPI inflation turning negative even as

CPI inflation crossed double digits (Chart 2).

Several factors account for this

phenomenon. One, food prices, which have

higher weightage (in the range of 46-69 per

cent) in the CPI measures than in WPI (26

per cent), have risen sharply in the recent

period. Two, miscellaneous group

(representing services) in various CPIs

(weights in the range of 12-24 per cent) have

also exhibited significant price pressures;

these services are not included in WPI.

Three, prices of metals, which do not form

part of the CPI group, have declined sharply,

thereby accentuating the divergence

between CPI and WPI inflation rates. Four,

while a strong base effect pushed WPI

inflation into negative territory during June-

August 2009, there was no base effect in play

for CPI inflation.

30. Inflation based on the CPI for

industrial workers (IW) and urban non-

manual employees (UNME) has also

witnessed a one-time step-up reflecting

significant upward revision in imputed

prices of rent-free houses emanating from

the Sixth Pay Commission Award.

Notwithstanding the current wide

divergence between the two sets of price

indices, CPI inflation tracks the essential

commodities component of WPI inflation

quite closely indicating that current CPI

inflation is essentially driven by food prices

(Chart 3).

Asset Price Inflation

31. Asset prices have risen sharply in the

recent period. Stock prices have increased

by more than 70 per cent during the

current financial year to date. After

showing some correction in the latter part

of 2008 and early part of 2009, real estate

prices have risen significantly in major

cities. Commodity prices in India have also

hardened in recent months. Reflecting the

firm trend in the global market, gold prices

in India surged, especially after August


MONETARY POLICY

STATEMENT 2009-10


2009, and reached a level of Rs.16,035 per

10 grams on October 23, 2009, up from Rs.

15,105 at end-March 2009.

Fiscal Scenario

32. In the first five months of 2009-10

(April-August), the revenue deficit of the

Central Government was 54.9 per cent of

the budget estimate, while the fiscal deficit

was 45.5 per cent (Table 7).

33. As per budget estimates, the

combined net borrowing requirements of

the Central and State Governments for

2009-10 will be 34 per cent higher than the

already elevated level of actual borrowings

during 2008-09 (Table 8).

34. A major challenge for the Reserve

Bank, as indicated in the First Quarter

Review of July 2009, has been the

management of the large government

market borrowing programme in a non-

disruptive manner. For this purpose, the

Reserve Bank initiated several measures,

some of which were unconventional. First,

the Reserve Bank front-loaded the

borrowing programme for 2009-10 as credit

offtake by the private sector is usually low

in the first half. Second, MSS securities of

Item

% of GDP Actual during April-August

2008-09 2009-10 2008-09 2009-10 (RE) (BE) (% of RE) (% of BE)

1 2 3 4 5

1. Gross Tax Revenue 11.8 10.9 30.3 26.2

2. Total Expenditure 16.9 17.4 31.0 33.6

3. Fiscal Deficit 6.2* 6.8 35.8 45.5

4. Revenue Deficit 4.6* 4.8 40.6 54.9

5. Primary Deficit 2.6* 3.0 38.1 62.8

* As per provisional accounts released by the Controller General of Accounts.BE – Budget Estimate RE – Revised Estimate

Table 7: Fiscal Position of the Central Government

MONETARY POLICY

STATEMENT 2009-10



the order of Rs.28,000 crore were de-

sequestered. Third, the Reserve Bank

resorted to active liquidity management by

way of unwinding of MSS securities and

purchase of securities through pre-

announced calendar of open market

operations (OMO). The unwinding of MSS

securities through redemption was of the

order of Rs.42,000 crore during the first half

of the year. Besides, as against the OMO

announcement of an indicative amount of

Rs.80,000 crore through the auction route

for the first half of 2009-10, the actual

purchases were Rs.57,487 crore, the

shortfall from projection being on account

of easy liquidity conditions. Feedback from

the market participants indicates that the

OMO provided considerable comfort.

35. The Central Government has already

completed net market borrowing of Rs.

3,19,911 crore (as much as 80.4 per cent of

the budget estimate) through dated

securities during 2009-10 (up to October 26,

2009) (Table 9). In addition, the State

Governments also mobilised Rs.58,683 crore

(net) through the market borrowing

programme. Because of the front-loading of

the market borrowing programme, net

issuances under the Central Government

borrowing programme in the remaining

period of 2009-10 will be Rs.62,464 crore

(Table 9). Given the current level of liquidity,

it should be possible to complete this

borrowing programme smoothly.

36. Despite the large government

borrowing programme, the weighted average

yield of dated securities issued under the

Central Government borrowing programme

in 2009-10 (up to October 26, 2009) at 7.14

per cent was lower than the yield of 8.81 per

cent averaged for the corresponding period

of the previous year. However, the yield on

the 10-year government securities rose from

7.01 per cent at end-March to 7.47 per cent

in early-September 2009 with increased

volatility. Subsequently, it stabilised around

7.35 per cent by mid-October 2009. The

Reserve Bank also varied the maturity profile

of debt issuances tailored to market appetite.

The weighted average maturity of securities

issued during 2009-10 (up to October 26,

2009) was 11.0 years as compared with the

(Rs. crore)

Item2007-08 2008-09 2009-10

Actual Actual Budget Estimates

1 2 3 4

Central Government

Gross Market Borrowings $ 1,88,215 3,18,550 4,91,044

Net Market Borrowings 1,08,998 2,98,536 3,97,957

State Governments

Net Market Borrowings 56,224 1,03,766 1,40,000*

Total Net Market Borrowings 1,65,222 4,02,302 5,37,957

$ Pertain to dated securities and 364-day Treasury Bills.

* Estimated. The State Governments have been allowed to borrow an additional 0.5 per cent of gross state domesticproduct (GSDP) as part of the fiscal stimulus package in 2008-09 and another 0.5 per cent of GSDP in the UnionBudget 2009-10, raising their budgeted borrowings in 2009-10 to 4.0 per cent of GSDP.

Table 8: Borrowings of the Central and State Governments


MONETARY POLICY

STATEMENT 2009-10


average maturity of 15.5 years in the


Market participants indicate that had there

not been active liquidity and maturity profile

management by the Reserve Bank, the yield

perhaps would have been significantly

higher.

Monetary Conditions

37. Growth in monetary aggregates during

2009-10 (up to October 9, 2009) has evolved

broadly in line with the projections. The

year-on-year growth in reserve money (RM)

turned negative reflecting the 400 basis

points reduction in the cash reserve ratio

(CRR) of banks during October–January

2008-09, which reduced the banks’ balances

with the Reserve Bank. Adjusted for the first

round impact of changes in the CRR, reserve

money growth was positive, but lower than

in the previous year (Table 10).

38. The money supply (M3) growth on a

year-on-year basis at 18.9 per cent as on

October 9, 2009 remained above the

(Rs. crore)

Full Year First half Second Half

Item(Planned) (Actual)

Planned Actual Balance(up to Oct.

26, 2009)

1 2 3 4 5 6

Gross Market Borrowings** 4,18,000 2,95,000 1,23,000 30,000 93,000

Less: Repayment 53,136 33,089 19,500 0 19,500

Net Market Borrowings** 3,64,864 2,61,911 1,03,500 30,000 73,500

Less: OMO Purchases 57,487* 57,487 * 0 *

Add: MSS (Net) ** (-) 53,036 (-) 42,000 (-) 11,036 0 (-) 11,036

Net Supply of Fresh Securities 2,54,341 1,62,424 92,464 30,000 62,464

* Rs. 80,000 crore of OMO purchases were planned for the first half of 2009-10. The Reserve Bank would conductopen market operations during the second half of the current fiscal year as and when considered necessary.

** Excluding the amount raised through MSS de-sequestering.

Table 9: Central Government Borrowings during 2009-10: Dated Securities

Item2008-09 2009-10

(October 10, 2008) (October 9, 2009)

1 2 3

Reserve Money 28.8 (-) 4.0

Reserve Money (adjusted for CRR changes) 20.6 14.3

Currency in Circulation 21.4 15.4

Money Supply (M3) 20.9 18.9

M3 (Policy Projection) 16.5-17.0 * 18.0 **

Money Multiplier 4.44 5.5

Ratio of Net Foreign Exchange Assets of RBI to Currency 210.6 175.9

* Projection as indicated in the Annual Policy Statement 2008-09 (April 2008).

* * Projection as indicated in the First Quarter Review of Monetary Policy 2009-10 (July 2009).

Table 10: Annual Variations in Monetary Aggregates (%)

MONETARY POLICY

STATEMENT 2009-10



indicative projection of 18.0 per cent set out

in the First Quarter Review of July 2009. The

main source of M3 expansion was bank credit

to the government reflecting large market

borrowings of the Government. This is in

contrast to what happened in 2008-09, when

bank credit to the commercial sector and net

foreign exchange assets of the banking sector

drove the expansion of M3 (Table 11).

39. Monetary management during 2009-

10 has been informed by the continued need

to provide liquidity to mitigate the adverse

impact of the global financial crisis and to

complete the large market borrowing

programme of the Government in a non-

disruptive manner. The phenomenon of

substitution of foreign assets by domestic

assets, which began in the second half of

2008-09, continued during the first two

months of the current year. This trend,

however, reversed after May 2009, when

capital inflows revived on a net basis.

Liquidity conditions have remained

comfortable since mid-November 2008.

During 2009-10 (up to October 23, 2009), the

average daily amount absorbed by the

Reserve Bank under the LAF window was

of the order of Rs.1,20,000 crore, indicating

a large surplus with the banking system,

equivalent to 2.7 per cent of the net demand

and time liabilities (NDTL).

Financing Conditions

Bank Credit

40. Non-food credit by scheduled

commercial banks (SCBs) decelerated

significantly, with the growth rate (y-o-y)

falling to 11.2 per cent this year (as on

October 9, 2009) from 29.4 per cent a year

ago. On a financial year basis (up to October

9, 2009) too, the growth in scheduled

commercial banks’ non-food credit at 4.3 per

cent is significantly lower than the growth

of 10.5 per cent in the corresponding period

of last year.

41. Several factors have contributed to the

slowdown in non-food bank credit. One,

overall credit demand from the

manufacturing sector slowed down

reflecting a decline in commodity prices and

drawdown of inventories. Two, corporates

were able to access non-bank domestic

sources of funds and external financing –

which had almost dried up during the crisis

– at lower costs. Three, unlike in the

previous year, oil marketing companies

reduced their borrowings from the banking

sector as oil prices moderated. Four, a

significant amount of bank finance has gone

to the corporate sector through banks’

investment in units of mutual funds. Five,

banks have also reined in credit to the retail

Financial Year Year-on-Year

Item 2008-09 2009-10 2008-09 2009-10(October 10) (October 9) (October 10) (October 9)

1 2 3 4 5

Money Supply (M3) 7.7 8.0 20.9 18.9

Net Bank Credit to Government 10.1 12.4 16.8 44.9

Bank Credit to Commercial Sector 9.8 4.1 27.4 10.7

Net Foreign Exchange Assets of the Banking Sector 4.2 (-) 1.4 30.0 (-) 1.2

Table 11: Growth in Major Sources of Money Supply as of October (%)


MONETARY POLICY

STATEMENT 2009-10


sector due to the perceived increased risk

on account of the general slowdown. This

credit retrenchment was more pronounced

in the case of foreign banks and private

banks. This is evident from bank group-wise

analysis, which shows that credit from

private banks slowed down sharply, while

that from foreign banks actually contracted

(Table 12). Thus, despite ample liquidity in

the system, non-food bank credit expansion

slowed down.

42. Banks used the ample liquidity

available with them to make large

investments in government securities and

also fairly sizeable investments (of the order

of Rs.92,000 crore during the current

financial year so far) in units of mutual

funds. Consequently, commercial banks’

investments in SLR securities (including

securities acquired under the LAF) increased

to 30.4 per cent of their NDTL as on October

9, 2009, up from 25.7 per cent a year ago.

Net of LAF collateral securities, banks’ SLR

investments were at 27.6 per cent of NDTL

as on October 9, 2009.

43. As per data at a disaggregated level

drawn from 49 banks accounting for 95 per

cent of total bank credit, the year-on-year

growth in bank credit to industry as of

August 2009 was lower than that in the

previous year. While the credit flow to

agriculture, real estate and NBFCs remained

high, it was lower for housing (Table 13).

Total Flow of Financial Resources to the

Commercial Sector

44. During the peak of the crisis (Third

Quarter Review of January, 2009), it was

noted that the flow of resources to the

commercial sector from both bank and non-

bank sources had contracted. While bank

credit continues to decelerate as indicated

earlier, there has been a turnaround in

financing from non-bank sources. The

resource flow from non-bank sources

increased in Q2 of 2009-10 with increase in

foreign direct investment, pick-up in primary

issues, increased support from insurance

companies, and large investment by mutual

funds in non-gilt debt instruments. While the

Table 12: Bank Group-wise Deposits and Credit Growth (Y-o-Y) as of October (%)

Bank Group2008-09 2009-10

(October 10, 2008) (October 9, 2009)

1 2 3

Deposits

Public Sector Banks 23.6 24.4

Foreign Bank Group 23.2 11.5

Private Bank Group 14.1 6.1

Scheduled Commercial Banks* 21.5 20.0

Credit

Public Sector Banks 32.7 15.3

Foreign Bank Group 32.9 (-) 15.9

Private Bank Group 19.7 2.5

Scheduled Commercial Banks* 29.5 10.8

* Including RRBs.

MONETARY POLICY

STATEMENT 2009-10



resource flow from the non-bank sources was

marginally higher in 2009-10 (up to October 9),

the total flow of financial resources to the

commercial sector declined in comparison

with the corresponding period of 2008-09

due to slowdown in bank credit (Table 14).

Interest Rates

45. In response to the crisis, the Reserve

Bank has effected a substantial reduction in

policy rates beginning October 2008: the

repo rate by 425 basis points and the reverse

repo rate by 275 basis points. The CRR was

also reduced by 400 basis points of NDTL

of banks (Table 15).

46. Taking cues from the reduction in the

Reserve Bank’s policy rates and easy

liquidity conditions, all public sector banks

and most private sector banks have reduced

Sector

As on August 29, 2008 (y-o-y) As on August 28, 2009 (y-o-y)

Amount % share Variations Amount % share Variations

(Rs.crore) in total (%) (Rs.crore) in total (%)

1 2 3 4 5 6 7

Agriculture 41,185 8.5 18.6 67,228 21.8 25.6

Industry 2,30,229 47.5 32.9 1,66,121 53.8 17.9

of which:

Micro and Small 23,865 4.9 20.1 40,146 13.0 28.1

Real Estate 20,580 4.2 43.1 28,353 9.2 41.5

Housing 29,872 6.2 12.4 14,668 4.8 5.4

NBFCs 26,443 5.5 51.8 23,837 7.7 30.8

Overall Credit 4,84,805 100.0 26.5 3,08,718 100.0 13.3

Note: Data are provisional and relate to select banks which cover 95 per cent of total non-food credit extended by all

scheduled commercial banks.

Table 13: Annual Sectoral Flow of Credit

Table 14: Total Flow of Financial Resources to the Commercial Sector

(Rs.crore)

ItemFull Year Financial Year so far

(up to October 9)

2007-08 2008-09 2008-09 2009-10

1 2 3 4 5

From Banks 4,44,807 4,21,091 2,40,092 1,07,861

From Other Sources* 5,64,558 4,68,567 2,28,119 2,30,130

Total Resources 10,09,365 8,89,658 4,68,211 3,37,991

Memo Item:

Mutual Funds Investment in

Debt (non-Gilt) Instruments 88,457 (-) 32,168 19,896 1,01,956

* Includes borrowings from financial institutions (including LIC) and NBFCs as well as resources mobilised from the

capital market and by way of ECBs, FCCBs, ADRs/GDRs, FDI and short-term credit as per the latest available data,

adjusted for double counting.


MONETARY POLICY

STATEMENT 2009-10


their deposit and lending rates. The

reduction in the term deposit rates between

October 2008 and October 1, 2009 has been

in the range of 175-350 basis points by

public sector banks, 100-375 basis points by

private sector banks and 125-300 basis

points by five major foreign banks. The

reduction in the range of BPLRs was 125-

275 basis points by public sector banks,

followed by 100-125 basis points by private

banks and 125 basis points by five major

foreign banks (Table 16).

Financial Markets

Money and G-Sec Markets

47. As a result of the monetary easing and

policy rate reductions beginning September

2008, interest rates have declined across the

term structure in the domestic financial

markets. The call money rates have

(Per cent)

Interest Rates October March April 20, October 15,

2008 2009 2009 2009

(%) (%) (%) (%)

Over Over

October April 20,

2008 2009

1 2 3 4 5 6 7

Term Deposit Rates

Public Sector Banks

a) Up to 1 year 2.75-10.25 2.75-8.25 2.75-8.00 1.00-6.75 175-350 125-175

b) 1 year up to 3 years 9.50-10.75 8.00 -9.25 7.00-8.75 6.25-7.50 325 75-125

c) Over 3 years 8.50-9.75 7.50-9.00 7.25-8.50 6.50-8.00 175-200 50-75

Private Sector Banks

a) Up to 1 year 3.00-10.50 3.00-8.75 3.00-8.50 2.00-7.00 100-350 100-150

b) 1 year up to 3 years 9.00-11.00 7.50-10.25 7.50-9.50 5.25-8.00 300-375 150-225

c) Over 3 years 8.25-11.00 7.50-9.75 7.50-9.25 5.75-8.25 250-275 100-175

Five Major Foreign Banks

a) Up to 1 year 3.50-9.50 2.50-8.00 2.50-8.00 2.25-6.50 125-300 25-150

b) 1 year up to 3 years 3.60-10.00 2.50-8.00 2.50-8.00 2.25-7.50 135-250 25-50

c) Over 3 years 3.60-10.00 2.50-8.00 2.50-8.00 2.25-7.50 135-250 25-50

BPLR

Public Sector Banks 13.75-14.75 11.50-14.00 11.50-13.50 11.00-13.50 125-275 50

Private Sector Banks 13.75-17.75 12.75-16.75 12.50-16.75 12.50-16.75 100-125 0

Five Major Foreign Banks 14.25-16.75 14.25-15.75 14.25-15.75 14.25-15.50 125 25

Variation as onOctober 15, 2009

(basis points)

Table 16: Movements in Deposit and Lending Rates

As on (%)

Early OctoberOctober 2009

2008

1 2 3 4

Repo Rate 9.00 4.75 425

Reverse Repo Rate 6.00 3.25 275

Cash Reserve Ratio

(% of NDTL) 9.00 5.00 400

Reduction(basis

points)Item

Table 15: Monetary Easing bythe Reserve Bank since October 2008

MONETARY POLICY

STATEMENT 2009-10



remained near or below the lower bound of

the LAF corridor since November 2008.

Primary yields on Treasury Bills have also

moderated (Table 17).

48. The yield on government securities

moved up with increased volatility during

the early part of the year in the face of a

large borrowing programme of the Central

and State Governments. There was a sudden

surge in bond yields in late August due to

change in market sentiment with the yield

on 10-year Government security moving up

by 42 basis points during August 13 -

September 3, 2009. However, the yield

stabilised subsequently on assurances by

the Reserve Bank that it would manage

liquidity conditions and market borrowing

programme of the Government in a non-

disruptive manner (Chart 4).

49. Presently, banks are permitted to hold

statutory liquidity ratio (SLR) securities up

to 25 per cent of their demand and time

liabilities (DTL) in the ‘held to maturity’

(HTM) category of investments. Recently,

there has been some debate on the need to

raise this limit on the ground that such a

Instrument/SegmentOctober March July October

2008 2009 2009 2009 *

1 2 3 4 5

Call Money 9.90 4.17 3.21 3.18

CBLO 7.73 3.60 2.78 2.51

Market Repo 8.40 3.90 2.81 2.67

Certificates of Deposit (CDs) 10.00 7.53 4.96 3.60

Commercial Papers (CPs) 14.17 9.79 4.71 4.29

91-day Treasury Bills 8.13 4.77 3.22 3.23

10-year Govt. Security 7.80 6.57 7.00 7.33

Modal BPLR of PSBs 14.00 12.50 12.00 12.00

* Average up to October 23, 2009.

Table 17: Interest Rates - Monthly Average (%)


MONETARY POLICY

STATEMENT 2009-10


relaxation will mitigate the upward pressure

on G-Sec yields, and consequently on the

overall interest rate regime. The Reserve

Bank considered the advisability of raising

the HTM limit. It may be recalled that in

2004-05 banks were allowed to shift SLR

securities to the HTM category as a one-time

measure subject to the total SLR securities

held in the HTM category capped at 25 per

cent of their DTL. This limit was kept

unchanged even as the SLR was reduced

from 25 per cent to 24 per cent in November

2008. As the HTM ratio is already higher

than the prescribed SLR, it is not considered

desirable to further raise the HTM ratio.

Transmission Mechanism

50. The changes in the Reserve Bank’s

policy rates were quickly transmitted to the

money and debt markets. However,

transmission to the credit market was slow

due to several structural rigidities in the

system, especially fixed interest rate deposit

liabilities. As bank deposits, contracted in

the past at high rates, have started to mature

and banks have significantly reduced their

term deposit rates, the transmission of

lower policy rates to the credit market has

improved. In this context, it should be

recognised that the movement in the

benchmark prime lending rates (BPLRs)

does not fully and accurately reflect the

changes in effective lending rates as nearly

two-thirds of banks’ lending takes place at

sub-BPLR rates. As such, the true

movements in lending rates of banks are

better captured in the weighted average

lending rates of banks. Rough estimates

show that the effective average lending rate

for scheduled commercial banks declined

from 12.3 per cent in March 2008 to 11.1

per cent by March 2009 – the latest period

for which data are available (Chart 5).

Further, data from select banks, as a proxy

measure for effective lending rates, suggest

that weighted average yield on advances

declined from 10.6 per cent in March 2009

to 10.3 per cent in June 2009.

51. The analysis by the Working Group on

BPLR (Chairman: Shri Deepak Mohanty),

which submitted its Report on October 20,

2009, has demonstrated that though there

was considerable divergence in weighted

average lending rates in 2004 among the

MONETARY POLICY

STATEMENT 2009-10



various bank-groups, these have tended to

converge in the recent period. The Group

has recommended the introduction of a

Base Rate system.

Foreign Exchange Market

52. The foreign exchange market

remained orderly during 2009-10 (up to

October 23, 2009) with the rupee exhibiting

a two-way movement against major

currencies. During the current financial

year, the rupee appreciated by 9.7 per cent

against the US dollar and 2.6 per cent against

the Japanese yen, whereas it depreciated by

5.7 per cent against the pound sterling and

3.2 per cent against the euro (Chart 6). In

terms of the real exchange rate, the six-

currency trade-based real effective exchange

rate (REER) (1993-94=100) moved up from

96.3 at end-March 2009 to 104.2 by October

23, 2009.

Equity Market

53. During the current financial year (up

to October 23, 2009), the secondary

segment of the domestic capital market has

remained buoyant. The stock market

staged a smart recovery reflecting large net

FII inflows due to the optimistic outlook

for the Indian economy. FIIs made net

purchases of US$ 13.8 billion in 2009-10

(up to October 21, 2009) in the Indian

equity market as against net sales of US$

8.6 billion in the corresponding period of


MONETARY POLICY

STATEMENT 2009-10


2008-09. The BSE Sensex rose from 9,709

at end-March 2009 to 16,811 on October 23,

2009, showing an increase of 73.1 per cent

during 2009-10 to date.

External Sector

54. India’s external account has remained

comfortable during the current financial

year. Merchandise trade contracted due to

depressed external demand and slowdown

of the domestic economy, with imports

declining more than exports. The trade

deficit narrowed down to US$ 26.0 billion

in Q1 of 2009-10 from US$ 31.4 billion in

Q1 of 2008-09. However, trade deficit in Q1

of 2009-10 was higher than US$ 14.6 billion

in Q4 of 2008-09 partly due to a rise in crude

oil prices (Table 18). The current account

deficit at US$ 5.8 billion in Q1 of 2009-10

was also lower compared to the deficit of

US$ 9.0 billion in Q1 of 2008-09; a current

account surplus of US$ 4.7 billion was

recorded in Q4 of 2008-09. The capital

account showed a turnaround from a

negative balance in the last two quarters of

2008-09 to a positive balance of US$ 6.7

billion during Q1 of 2009-10.

55. In 2009-10 to date, foreign exchange

reserves have increased by US$ 32.9 billion,

including allocation of SDRs (US$ 5.2 billion)

by the IMF, and were at US$ 284.8 billion as

on October 16, 2009 (Table 19).

(US$ billion)

Item Full Year 2008-09 2009-10

2007-08 2008-09 Q1 Q4 Q1

1 2 3 4 5 6

Exports 166.2 175.2 49.1 39.8 38.8

Imports 257.8 294.6 80.5 54.4 64.8

Trade Balance (-) 91.6 (-) 119.4 (-) 31.4 (-) 14.6 (-) 26.0

Invisibles, net 74.6 89.6 22.4 19.3 20.2

Current Account Balance (-) 17.0 (-) 29.8 (-) 9.0 4.7 (-) 5.8

Net Capital Account 108.0 9.1 11.1 (-) 5.3 6.7

Overall Balance # 92.2 (-) 20.1 2.2 0.3 0.1

Memo:

As percentage of GDP

Trade Balance (-) 7.8 (-) 10.3

Current Account Balance (-) 1.5 (-) 2.6

Net Capital Inflows 9.2 0.8

# Overall balance includes current account balance, net capital account and errors and omissions.

Table 18: India’s Balance of Payments

Table 19: Variation in ForeignExchange Reserves

Period Variation (US$ billion)

1 2

Full Year

2004-05 28.6

2005-06 10.1

2006-07 47.6

2007-08 110.5

2008-09 (-) 57.7

Financial Year (up to October 16)

2008-09 (-) 35.8

2009-10 32.9

MONETARY POLICY

STATEMENT 2009-10



56. The management of foreign exchange

reserves is guided by the changing

composition of the balance of payments and

endeavours to reflect the ‘liquidity risks’

associated with different types of flows.

II. Stance of Monetary Policy

57. As a part of the accommodative

monetary policy followed since mid-

September 2008, the Reserve Bank has

provided ample rupee and dollar liquidity

and maintained a market environment

conducive for the continued flow of credit

to productive sectors at lower cost. The

important measures initiated include

reduction of the policy rates under the LAF

to their historically low levels, lowering of

reserve requirements, institution of sector-

specific liquidity facilities and a forex swap

facility, relaxation in the ECB guidelines,

countercyclical prudential measures of

adjustment in risk weights and

provisioning, and conditional special

regulatory treatment for restructured assets.

Liquidity Impact

58. Consistent with its accommodative

monetary stance, the Reserve Bank

expanded its domestic assets through open

market operations (OMO) and unwinding

of market stabilisation scheme (MSS)

securities to provide primary liquidity to

support the required monetary expansion.

Several measures taken by the Reserve Bank

since mid-September 2008 have augmented

actual/potential liquidity in the system on

the aggregate by Rs.5,85,000 crore.

59. As a result of the extraordinary

monetary easing by the Reserve Bank, the

banking system has been awash with

liquidity since November 2008. This is

reflected most prominently in the

absorption under the LAF window of a daily

average of almost Rs.1,20,000 crore. The

utilisation of the several refinance facilities

instituted by the Reserve Bank too has been

low, further evidencing the ample liquidity

situation. Interest rates in all the markets

have declined significantly over the last one

year as detailed before. The transmission of

lower policy rates to the credit market has

materialised with a lag. With most

commercial banks reducing their deposit

rates, the cost of funds has declined

enabling banks to reduce their BPLRs. The

effective lending rates have also come down

as nearly three-fourths of bank lending takes

place at rates below their BPLRs as alluded

to before.

Growth Projection

60. During the first quarter of 2009-10,

real GDP recorded a growth of 6.1 per cent,

lower than the growth of 7.8 per cent in the

corresponding quarter of 2008-09, but

marginally higher than the 5.8 per cent

growth in the second half of 2008-09. The

south-west monsoon rainfall this year has

been the weakest since 1972 affecting both

yield and acreage of agricultural crops. This

will impact Kharif production and the

performance of agricultural production

during the Rabi season will be critical for

supply management. On the whole,

agricultural production in 2009-10 is

expected to be lower than in last year.

61. While external demand has continued

to contract, large fiscal and monetary

stimulus measures have bolstered domestic


MONETARY POLICY

STATEMENT 2009-10


consumption and helped the recovery in the

industrial sector. The prospects of the

industrial sector have become more

promising than they were at the time of the

First Quarter Review. With the recovery in

the stock market, the primary segment of

the capital market has also witnessed

increased activity in the recent period. This,

combined with the easing of international

financing conditions, augurs well for a pick-

up in investment activity. The business

confidence surveys also point to further

improvement in outlook despite weak

perception of export demand.

62. Various services sector activities,

which have slowed down significantly in the

recent period, should also catch up, albeit

with a lag, in tandem with improved

industrial growth. Assuming a modest

decline in agricultural production and a

faster recovery in industrial production, the

baseline projection for GDP growth for 2009-

10 is placed at 6.0 per cent with an upside

bias (Chart 7). Thus, the GDP projection for

2009-10 for policy purposes remains

unaltered from that made in the First

Quarter Review of July 2009.

Inflation Projection

63. Headline WPI inflation turned

negative during June-August 2009 due to the

large statistical base effect. As anticipated

in the First Quarter Review, WPI inflation

has returned to positive territory, albeit a

few weeks sooner than expected, in the

wake of large increase in prices of food items

and increase in global crude oil prices.

64. The upside risks on account of

deficiency in monsoon rainfall indicated in

First Quarter Review of July 2009 have now

materialised as prices of food items have

risen sharply. Going forward, Rabi crop

prospects would be critical in shaping the

path of food inflation. The large stock of

foodgrains with public agencies should help

mitigate any significant adverse impact due

to supply constraints. The improved terms

of trade for agriculture in recent years

should provide an incentive to the sector.

65. Global commodity prices, which had

bottomed out in early-2009, rebounded

ahead of global recovery. The global oil

prices present a mixed picture. Crude oil

prices, which increased from their low

MONETARY POLICY

STATEMENT 2009-10



levels of January-March 2009, have

remained range-bound since June 2009.

Large global liquidity due to easy monetary

policy followed by major central banks has

led to sizeable financialisation of the

commodities market, especially for those

products that are prone to demand supply

gaps. These developments may induce

greater volatility in commodity prices in

the coming years.

66. Inflation assessment has become

increasingly complex in recent times with

the WPI inflation rate remaining negative

or low and the various CPI inflation

measures remaining close to or above the

double digits for an extended period. CPI

inflation has remained at an elevated level

since March 2008 and did not decline as

expected in line with fall in WPI inflation.

Indeed, it hardened due to sharp increase

in essential commodity prices. The

situation was aggravated by the deficient

monsoon rainfall and drought condition in

several parts of the country. The Reserve

Bank monitors an array of measures of

inflation, both overall and disaggregated

components, in conjunction with other

economic and financial indicators, to

assess the underlying inflationary

pressures and articulates its policy stance

in terms of WPI. The Government took a

decision on October 19, 2009 to reduce the

frequency of the current series of

Wholesale Price Index (base:1993-94) from

weekly to monthly. The available indices,

WPI and the four measures of CPI, fail to

adequately capture the underlying

inflationary conditions because of

inadequate coverage and also because the

respective base years do not capture the

changed production and consumption

patterns. This underscores the need to

expedite the revision of coverage and

updating of the base year for the WPI series

as also the proposed two consumer price

indices, i.e., CPI-Urban and CPI-Rural.

67. The First Quarter Review of July 2009

projected WPI inflation for end-March 2010

at around 5.0 per cent. The July Review

indicated that the risk to this projection was

on the upside. Though the year-on-year WPI

inflation was 1.21 per cent as on October

10, 2009, it has already increased by 5.95

per cent on a financial year basis though

some of the increase is seasonal and is likely

to soften. However, the base effect, which

resulted in negative WPI inflation during

June-August 2009, is now expected to work

in the reverse direction accentuated by high

food prices. The Reserve Bank’s quarterly

inflation expectations survey for

households indicates that while inflationary

expectations remain contained, a majority

of the respondents expect inflation rate to

increase over the next three months as also

over the next year.

68. Keeping in view the global trend in

commodity prices and the domestic

demand-supply balance, the baseline

projection for WPI inflation at end-March

2010 is placed at 6.5 per cent with an upside

bias (Chart 8). This is higher than the 5.0

per cent WPI inflation projected in the First

Quarter Review of July 2009 as the upside

risks have materialised.

69. As always, the Reserve Bank will

endeavour to ensure price stability and

anchor inflation expectations. The conduct

of monetary policy will continue to

condition and contain perception of

inflation in the range of 4.0-4.5 per cent.


MONETARY POLICY

STATEMENT 2009-10


This will be in line with the medium-term

objective of 3.0 per cent inflation consistent

with India’s broader integration with the

global economy.

Monetary Projection

70. The year-on-year growth in money

supply (M3) increased from 18.6 per cent

in end-March 2009 to 18.9 per cent by

October 9, 2009. A major source of M3

expansion this year has been the banking

system’s financing of the large market

borrowing of the Government, including

OMO purchases by the Reserve Bank. The

growth in bank credit to the commercial

sector has moderated significantly to 10.7

per cent from the high level of 27.4 per cent

a year ago.

71. The First Quarter Review of July 2009

raised the indicative trajectory of M3 growth

to 18.0 per cent from 17.0 per cent envisaged

in the Annual Policy Statement of April 2009

to ensure that the increased government

market borrowing programme did not crowd

out the credit flow to the private sector.

Over 80 per cent of the market borrowing

programme for 2009-10 is now completed.

In 2009-10 (up to October 9, 2009), credit

has expanded by Rs.1,14,800 crore. Thus, to

attain the projected growth of 20 per cent,

banks will need to expand credit by

Rs.4,40,000 crore in the remaining part of

the year, which will be difficult unless

demand for retail credit accelerates. Also,

access of corporates to non-bank sources of

financing, both domestic and international,

has eased, which could lead to substitution

of bank credit. While credit demand is

expected to pick up during the second-half

of 2009-10, attaining the projected growth

of 20 per cent is unlikely.

72. Keeping in view the borrowing

requirement of the government and of the

commercial sector in the remaining period

of 2009-10, the indicative projection of

money supply growth of 18.0 per cent set

out in July 2009 is revised downwards to

17.0 per cent. Consistent with this,

aggregate deposits of scheduled commercial

banks are projected to grow by 18.0 per cent.

The growth in adjusted non-food credit,

including investment in bonds/debentures/

MONETARY POLICY

STATEMENT 2009-10



shares of public sector undertakings and

private corporate sector and CPs, is also

revised downwards to 18.0 per cent from

20.0 per cent set out in the Annual Policy

Statement and the First Quarter Review.

Banks are urged once again to step up their

efforts towards credit expansion while

preserving credit quality which is critical for

revival of growth.

Overall Assessment

73. There has been a discernible

improvement in the global economic

outlook since the First Quarter Review in

July 2009. In India too, there are definitive

indications of the economy reverting to the

growth track. Accordingly, attention around

the world, as also in India, has shifted from

managing the crisis to managing the

recovery.

74. The policy dilemma for India is

different in some important respects from

that of advanced economies as also other

emerging market economies. First, most of

these countries do not face an immediate

risk of inflation. Indeed, in several advanced

economies, the concerns were about a

possible deflation, which are just about

waning. On the other hand, India is actively

confronted with an upturn in inflation – a

rising WPI inflation and stubbornly elevated

CPI inflation.

75. Second, advanced economies are

faced with households, firms and financial

institutions still struggling with their

impaired balance sheets. Fortunately, we

do not have this problem in India, but we

still have the challenge of reviving

domestic consumption and investment

demand, the traditional, dominant drivers

of our growth.

76. Third, somewhat related to the point

above, India has traditionally been a supply

constrained economy in contrast to

advanced economies which are demand

starved. We need, in particular, to expand

the supply of infrastructure – power, roads,

urban infrastructure and social

infrastructure. The supply constraints

which remained subdued during the crisis

period owing to weak demand, will re-

emerge and may indeed become binding.

77. Fourth and importantly, India is one

of the few large emerging economies with

twin deficits – fiscal and current account

deficits. While our current account deficit

is modest, and may even be benign given

the investment requirements of the

economy, there can be no two views about

the need to make a responsible, credible and

time-bound fiscal adjustment. The

arguments for fiscal consolidation and

rectitude are compelling and widely known,

and need not be repeated here. But an issue

of some immediate relevance is the critical

need to downsize the government

borrowing programme so as to help sustain

a moderate interest rate regime. This is

crucial for investment demand to pick up

on which hinge our long-term economic

prospects.

78. Around the world, there is an active,

and at times animated debate on the timing

and sequencing of exit from the

expansionary monetary stance. ‘Exit’ is a

central issue in our policy matrix too. As

the Reserve Bank has indicated in several

public statements, our current monetary

stance is not the steady state and we need


MONETARY POLICY

STATEMENT 2009-10


to reverse the expansionary stance. It is

important to recognise though that the exit

debate in India is qualitatively different

from that in other advanced and emerging

economies because of the unique features

of our macroeconomic context indicated

above.

79. The precise challenge for the Reserve

Bank is to support the recovery process

without compromising on price stability.

This calls for a careful management of trade-

offs. Growth drivers warrant a delayed exit,

while inflation concerns call for an early

exit. Premature exit will derail the fragile

growth, but a delayed exit can potentially

engender inflation expectations.

80. The Reserve Bank has consulted a

wide array of stakeholders in the run up

to this policy review. Based on these

consultations, the arguments for and

against reversal of the expansionary

monetary policy stance can be summarised

as follows.

Arguments for Beginning Reversal of

Monetary Easing

81. The most dominant argument for

reversing monetary policy easing stems

from the concern about inflation. WPI

inflation has turned positive, the base effect

which has kept WPI low so far is now gone

and CPI inflation has remained stubbornly

elevated. On a financial year basis, WPI has

already increased by 5.95 per cent.

Inasmuch as monetary policy acts with a lag,

there is need to act now.

82. It is further argued that even though

the current inflationary pressures are driven

by food prices, they can strengthen

expectations of higher inflation and lead to

generalised inflation. The Reserve Bank’s

inflation expectations survey shows that

households expect inflation to increase over

the next three months as also one year. The

lag with which monetary policy operates

suggests that there is a case for tightening

sooner rather than later.

83. Forceful arguments for early reversal

of monetary policy also arise from liquidity

concerns. The LAF window has been

absorbing over Rs.100,000 crore on a daily

basis since May 2009, save for a few days

on account of temporary increases in

government balances. This evidences the

large amount of liquidity in the system

which could potentially result in an

unsustainable asset price build-up. There is

already some evidence of excess liquidity

feeding through asset prices with potential

financial stability concerns. Further, capital

flows have resumed. Given the limitations

of the economy’s current absorptive

capacity, these flows will add to the overall

domestic liquidity, further fuelling the asset

price build-up. Large capital inflows and

asset price inflation have the potential to

feed on each other. From the liquidity

dimension, it is further argued that the

current large overhang of liquidity could

engender inflation expectation even if credit

demand remains subdued.

Arguments for Deferring Reversal ofMonetary Easing

84. The dominant argument for continuing

with the current monetary stance is that the

recovery is as yet fragile. Exports are still on

the decline and the recent improvement in

industrial production overstates the recovery

as part of it is due to the base effect and the

MONETARY POLICY

STATEMENT 2009-10



one time impact of restocking inventory.

Premature tightening will hurt the growth

impulses. On the other hand, it is imperative

to continue with the accommodative stance

to compensate for the decline in agricultural

output and till there is firm evidence of

sustained global recovery.

85. The second argument against an

immediate reversal of monetary easing is

that the current inflationary pressures are

driven by supply side constraints,

particularly food prices. Monetary policy

is typically not an efficient instrument for

reining in food price inflation. There could,

of course, be concerns that rising food

prices could spark inflationary

expectations. But the probability of that is

low as food prices are likely to ease in the

coming months following the seasonal

trend. The promising Rabi crop prospects

also will reduce food price pressures.

Under these circumstances, the downside

risks to any tightening now are high with

virtually no upside.

86. The third argument for maintaining

the accommodative monetary stance for

now is that any reversal at this stage will

harden yields on government bonds putting

upward pressure on interest rates and

dampening both consumption and

investment demand. This could seriously

unravel the incipient recovery.

87. Finally, capital flows have resumed on

the promise of India’s growth prospects. It

is argued that if we tighten ahead of other

economies, the wider interest rate

differential will become a perverse

incentive for even larger capital flows. In

managing capital flows in excess of the

current account deficit, the economy will

have to pay a cost which will be a

combination of exchange rate appreciation,

larger systemic liquidity and fiscal costs of

sterilisation.

88. The Reserve Bank has studied these

arguments. Some of the arguments are

persuasive and some less so. The balance

of judgment at the current juncture is that

it may be appropriate to sequence the ‘exit’

in a calibrated way so that while the

recovery process is not hampered, inflation

expectations remain anchored. The ‘exit’

process can begin with the closure of some

special liquidity support measures.

89. It will be recalled that in response to

the crisis, like most other central banks, the

Reserve Bank too instituted both

conventional measures and unconventional

measures. While reversing of conventional

measures is not considered appropriate for

now, many of the unconventional measures

can be reversed immediately. The following

measures constitute the first phase of ‘exit’.

90. The statutory liquidity ratio (SLR),

which was reduced from 25 per cent of

demand and time liabilities to 24 per cent, is

being restored to 25 per cent. The limit for

export credit refinance facility [(under

section 17(3A) of the RBI Act], which was

raised to 50 per cent of eligible outstanding

export credit, is being returned to the pre-

crisis level of 15 per cent. The two non-

standard refinance facilities: (i) special

refinance facility for scheduled commercial

banks under section 17(3B) of the RBI Act

(available up to March 31, 2010), and (ii)

special term repo facility for scheduled

commercial banks (for funding to MFs,

NBFCs, and HFCs) (available up to March 31,

2010) are being discontinued with immediate


MONETARY POLICY

STATEMENT 2009-10


effect. Details in this regard are indicated in

the subsequent sections of this Statement.

Policy Stance

91. On the basis of the above overall

assessment, the stance of monetary policy

for the remaining period of 2009-10 will be

as follows:

• Keep a vigil on the trends in inflation

and be prepared to respond swiftly and

effectively through policy adjustments

to stabilise inflation expectations.

• Monitor the liquidity situation closely

and manage it actively to ensure that

credit demands of productive sectors are

adequately met while also securing price

stability and financial stability.

• Maintain a monetary and interest rate

regime consistent with price stability

and financial stability, and supportive

of the growth process.

92. In conclusion, it bears emphasis that

the Reserve Bank is mindful of its

fundamental commitment to price stability.

It will continue to monitor the price situation

in its entirety and will take measures as

warranted by the evolving macroeconomic

conditions swiftly and effectively.

III. Monetary Measures

Bank Rate

93. The Bank Rate has been retained

unchanged at 6.0 per cent.

Repo Rate

94. The repo rate under the Liquidity

Adjustment Facility (LAF) has been retained

unchanged at 4.75 per cent.

Reverse Repo Rate

95. The reverse repo rate under the LAF

has been retained unchanged at 3.25

per cent.

96. The Reserve Bank has the flexibility

to conduct repo/reverse repo auctions at a

fixed rate or at variable rates as

circumstances warrant.

97. The Reserve Bank retains the option

to conduct overnight or longer term repo/

reverse repo under the LAF depending on

market conditions and other relevant

factors. The Reserve Bank will continue to

use this flexibly including the right to

accept or reject tender(s) under the LAF,

wholly or partially, so as to make efficient

use of the LAF in daily liquidity

management.

Cash Reserve Ratio

98. The cash reserve ratio (CRR) of

scheduled banks has been retained

unchanged at 5.0 per cent of their net

demand and time liabilities (NDTL).

99. The collateralised borrowing and

lending obligation (CBLO) liabilities of

scheduled banks were exempted from CRR

prescription in order to develop CBLO as a

money market instrument. Volumes in the

CBLO segment have increased over the

years, especially after the phasing out of the

non-banks from the inter-bank market. The

daily average volume in the CBLO segment,

which was only Rs.6 crore in January 2003,

is now over Rs.60,000 crore. Since the

objective of developing CBLO as a money

market instrument has been broadly

achieved, it is proposed that:

MONETARY POLICY

STATEMENT 2009-10



• liabilities of scheduled banks arising

from transactions in CBLO with Clearing

Corporation of India Ltd. (CCIL) will be

subject to maintenance of CRR with

effect from the fortnight beginning

November 21, 2009.

Statutory Liquidity Ratio

100. In view of difficult macroeconomic

situation and liquidity conditions in the

global and domestic financial markets after

the collapse of Lehman Brothers, the

statutory liquidity ratio (SLR) of scheduled

commercial banks (SCBs) was reduced from

25 per cent to 24 per cent of their NDTL

with effect from November 8, 2008. The

liquidity situation has remained

comfortable since mid-November 2008 as

reflected in the surplus funds being placed

by banks daily in the LAF window of the

Reserve Bank. Accordingly, it has been

decided to:

• restore the SLR for scheduled

commercial banks to 25 per cent of their

NDTL with effect from the fortnight

beginning November 7, 2009.

101. SCBs are currently maintaining SLR

investments at 27.6 per cent of their NDTL,

net of LAF collateral securities, and 30.4 per

cent of NDTL, inclusive of LAF collateral

securities. As such, the increase in the SLR

will not impact the liquidity position of the

banking system and credit to the private

sector.

Third Quarter Review

102. The Third Quarter Review of

Monetary Policy for 2009-10 will be

undertaken on January 29, 2010.

Part B. Developmental andRegulatory Policies

103. The global financial crisis raised

issues that we thought were settled and

reopened questions that we thought had

been answered. It also pointed to the

egregious policies and practices in financial

sector regulation and supervision.

Reflecting the lessons of the crisis, there is

now active debate and discussion at the

global level on reforming the regulatory

structures and supervisory processes. This

is expected to be a continuous process with

reform packages being agreed upon and

finalised in a modular fashion on a regular

basis over the next couple of years.

104. India has been less affected by the

crisis than most other countries because of

our relatively cautious policies, prudent

regulation and effective supervision.

Nonetheless, there are lessons from the

crisis for India too, which include:

(i) further strengthening regulation at the

systemic and institutional levels; (ii) making

our supervision more effective and value

adding; and (iii) improving our skills in risk

management. India has been an active

participant at the global discussions. The

task for us will be to reflect our point of

view in the global debate and adapt the

global policies and guidelines to the Indian

situation on a dynamic basis. A task that the

Reserve Bank has all along been performing

but is now explicitly defined is monitoring

and ensuring financial stability.

Furthermore, we need to actively pursue the

challenge of financial inclusion.

105. Reform is a continuous process. Over

the last several years, the Reserve Bank has

endeavoured to make reforms a consultative


MONETARY POLICY

STATEMENT 2009-10


and participative endeavour. It is now

standard practice for the Reserve Bank to

consult stakeholders before policy reviews,

seek comments from experts, place draft

policy proposals on its website for feedback

and to disseminate policies widely. We will

continue to improve these practices.

106. A synopsis of the action taken and

status of past policy announcements

together with a listing of fresh policies is

set out below.

I. Financial Stability

107. At the recently held G-20 Summit

during September 24-25, 2009 in Pittsburgh,

it was decided, among others, to make sure

that the global regulatory system for banks

and other financial firms reins in the excesses

that led to the crisis and as such committed

to:(i) raise capital standards; (ii) implement

strong international compensation standards

aimed at ending practices that led to excessive

risk-taking; (iii) improve the over-the-counter

(OTC) derivatives market; (iv) create more

powerful tools to hold large global firms to

account for the risks they take; and (v) ensure

that standards for large global financial firms

are commensurate with the cost of their

failure. It was also agreed to reform the global

architecture to meet the needs of the 21st

century.

108. Keeping in view both international and

domestic initiatives in the financial sector,

the Annual Policy Statement of April 2009

indicated setting up of a Financial Stability

Unit (FSU) in the Reserve Bank. Accordingly,

the FSU was constituted in July 2009 drawing

upon inter-disciplinary expertise from the

regulatory, supervisory, statistics, economics

and financial markets departments of the

Reserve Bank. The FSU will: (i) conduct

macro-prudential surveillance of the

financial system on an ongoing basis; (ii)

prepare financial stability reports; (iii)

develop database of key variables which

could impact financial stability and a time

series of a core set of financial indicators; (iv)

conduct systemic stress tests to assess

resilience; and (v) develop models for

assessing financial stability. The FSU also

provides the secretariat to the Reserve Bank’s

representative in the Financial Stability Board

(FSB). The FSU is expected to bring out the

first Financial Stability Report by end-

December 2009.

II. Interest Rate Policy

BPLR System: Review

109. The Annual Policy Statement of April

2009 proposed constituting a Working

Group to review the present benchmark

prime lending rate (BPLR) system and

suggest changes to make credit pricing more

transparent. Accordingly, a Working Group

(Chairman: Shri Deepak Mohanty) was

constituted in June 2009 and the Group

submitted its Report on October 20, 2009.

The Report of the Working Group was also

placed on the Reserve Bank’s website on the

same day for comments and suggestions.

The Reserve Bank will consider the

recommendations after taking into account

the feedback received on the Report.

III. Financial Markets

Financial Market Products

Interest Rate Futures


2009 had indicated launching of exchange

MONETARY POLICY

STATEMENT 2009-10



traded interest rate futures (IRFs) contracts

on the 10-year notional coupon bearing

Government of India bond. Accordingly, in

consultation with the Securities and

Exchange Board of India (SEBI), IRFs were

introduced and the directions covering the

framework for trading of IRFs on recognised

exchanges were placed on the Reserve

Bank’s website in August 2009. The National

Stock Exchange (NSE) commenced trading

in IRFs on August 31, 2009.

Introduction of Repo in Corporate Bonds

111. The Reserve Bank had placed on its

website, on September 17, 2009, the draft

guidelines on repo in corporate bonds for

comments/feedback. The draft guidelines

were also deliberated by the Technical

Advisory Committee (TAC) on Money,

Foreign Exchange and Government

Securities Markets at its meeting held on

September 23, 2009. With DvP-I (trade-by-

trade) based clearing and settlement system

for OTC trades in corporate bonds being

operationalised by the clearing houses of the

exchanges, repo in corporate bonds can now

be introduced. Accordingly:

• final guidelines on repo in corporate

bonds will be issued by end-November

2009.

Regulation of Non-ConvertibleDebentures (NCDs) of Maturity ofLess than One Year

112. At present, issuance of non-

convertible debentures (NCDs) with

maturity of less than one year is not

subjected to regulation by the SEBI or the

Government of India. It was decided in the

High Level Coordination Committee on

Financial Markets (HLCCFM) that such

instruments being ‘money market

instruments’ needed to be brought under

the regulation of the Reserve Bank. A

Working Group with representation from

the Reserve Bank and the SEBI was,

therefore, set up to examine the issue. The

Working Group, which has since submitted

its Report, has recommended that the

Reserve Bank may frame regulations on

issuance of NCDs with maturity of less than

one year, as they fall under the definition

of ‘money market instruments’ of Chapter

IIID of the Reserve Bank of India

(Amendment) Act, 2006. The

recommendations of the Working Group

were discussed in the meeting of the TAC

on Money, Foreign Exchange and

Government Securities Markets on

September 23, 2009 and it was agreed that

the Reserve Bank may frame regulations on

the lines of the guidelines for issuance of

commercial paper (CP). Accordingly:

• draft guidelines are being formulated

which will be placed on the Reserve

Bank’s website by end-November 2009

for comments/suggestions.

Introduction of Credit DefaultSwaps (CDS)

113. In 2007, the Reserve Bank had issued

draft guidelines for introduction of credit

default swaps (CDS) in India. However, the

issuance of final guidelines was kept in

abeyance keeping in view the role of credit

derivatives in the recent financial crisis. It

was considered appropriate to proceed with

caution reflecting the lessons from the

financial crisis in this regard. In order to

align with the international work already

conducted/underway in the area of credit

derivatives, and keeping in view the


MONETARY POLICY

STATEMENT 2009-10


specifics of the Indian markets, it is

proposed:

• to introduce plain vanilla OTC single-

name CDS for corporate bonds for

resident entities subject to appropriate

safeguards. To begin with, all CDS trades

will be required to be reported to a

centralised trade reporting platform and

in due course they will be brought on a

central clearing platform.

114. The Reserve Bank is setting up an

internal Group to finalise the operational

framework in consultation with market

participants.

Separate Trading for Registered Interest

and Principal of Securities (STRIPS)

115. As indicated in the Annual Policy

Statement of April 2009, the draft guidelines

on stripping/reconstitution of government

securities were placed on the Reserve Bank’s

website on May 1, 2009 inviting comments/

suggestions from market participants by May

29, 2009. Based on the feedback/suggestions

received from the market participants, the

guidelines have been finalised. Banks will be

permitted to strip/reconstitute eligible

securities held in their held to maturity

(HTM)/available for sale (AFS)/held for trade

(HFT) portfolios. Accordingly:

• STRIPS will be launched, as scheduled,

during the current financial year.

Floating Rate Bonds (FRBs)

116. As announced in the Annual Policy

Statement of April 2009, the issuance

structure of floating rate bonds (FRBs) has

been revised, addressing issues relating to

product design. The FRBs will henceforth

be issued by way of ‘price-based’ auction as

against the earlier ‘spread-based’ auction.

The revised issuance structure of FRBs

has been built into the negotiated dealing

system (NDS) auction platform, which

was operationalised on May 11, 2009.

Accordingly:

• floating rate bonds will be issued during

the current financial year depending

upon the market conditions and market

appetite.

Expansion of Currency Pairs of Currency

Futures Contracts

117. Currently, persons resident in India are

permitted to trade in US dollar-Indian rupee

(INR) currency futures contracts in three

recognised stock exchanges. The combined

average daily turnover of the contracts in all

the three exchanges increased from US$ 1.1

billion in March 2009 to US$ 2.5 billion in

September 2009. Market participants have

been representing that trading of currency

future contracts in other major currency pairs

may also be permitted to facilitate direct

hedging of their risk in such currencies.

Accordingly, it is proposed:

• to permit the recognised stock

exchanges to offer currency futures

contracts in currency pairs of Euro-INR,

Japanese Yen-INR and Pound Sterling-

INR, in addition to US dollar-rupee

contracts which are already permitted.

118. Necessary amendments to Currency

Futures (Reserve Bank) Directions, 2008 are

being made separately.

Guidelines on Forex, Commodity

and Freight Derivatives

119. In light of the developments in the

domestic and international financial

MONETARY POLICY

STATEMENT 2009-10



markets and based on the feedback received

from banks, market participants, industry

associations and others, the existing

guidelines on foreign exchange and

commodity and freight derivatives overseas

have been reviewed by an internal Group.

The draft proposals were discussed in the

meeting of the TAC on Money, Foreign

Exchange and Government Securities

Markets. Accordingly:

• the draft guidelines are being placed on

the Reserve Bank’s website by end-

November 2009 for wider dissemination

and comments/views.

Financial Market Infrastructure

Revision of Repo Accounting


2009 had indicated issuance of revised

guidelines on repo accounting taking into

account comments on the draft guidelines

earlier placed on the Reserve Bank’s website

for implementation from April 1, 2010.

Accordingly:

• the final guidelines are under

consideration and will be issued by end-

November 2009.

Clearing and Settlement of OTC Trades in

Corporate Bonds: Status


Statement of April 2009, the clearing houses

of the exchanges, viz., National Securities

Clearing Corporation Limited (NSCCL) and

Indian Clearing Corporation Limited (ICCL)

have been permitted to maintain transitory

pooling accounts with the Reserve Bank for

facilitating settlement of OTC transactions

in corporate bonds in the real time gross

settlement (RTGS) system on a DvP-I basis

(i.e., on a trade-by-trade basis). The Reserve

Bank and SEBI have issued necessary

instructions requiring specified regulated

entities to clear and settle all OTC trades in

corporate bonds through the NSCCL or ICCL

with effect from December 1, 2009.

Money Market

Refinance/Special Liquidity Facilities


Statement of April 2009, the following

liquidity facilities provided by the Reserve

Bank to banks and financial institutions are

available up to March 31, 2010: (i) the export

credit refinance (ECR) facility (limit up to

50 per cent of eligible outstanding rupee

export credit) under Section 17(3A) of the

Reserve Bank of India Act (RBI); (ii) the

special refinance facility for scheduled

commercial banks [limit up to one per cent

of net demand and time liabilities (NDTL)

as on October 24, 2008] under Section 17(3B)

of the RBI Act; (iii) special term repo facility

to scheduled commercial banks for funding

to mutual funds (MFs), non-banking

financial companies (NBFCs) and housing

finance companies (HFCs) [limit is in terms

of relaxation in the statutory liquidity ratio

(SLR) up to 1.5 per cent of NDTL]; (iv)

refinance facility to Small Industries

Development Bank of India (SIDBI),

National Housing Bank (NHB) and Export-

Import Bank of India (EXIM Bank) [under

Section 17(4H), Section 17(4DD) and Section

17(4J), respectively, of the RBI Act]; and (v)

the forex swap facility to banks for tenor

up to three months.

123. A review of these facilities, indicated

that the utilisation of these facilities has


MONETARY POLICY

STATEMENT 2009-10


been low. Keeping this in view and taking

into account the current liquidity conditions

in the markets, it is proposed to take the

following actions with immediate effect:

• to reduce the limit of export credit

refinance facility from 50 per cent to 15

per cent of eligible outstanding rupee

export credit extended under Section

17(3A) of the RBI Act;

• to discontinue the special refinance

facility for scheduled commercial banks

instituted under Section 17(3B) of the

RBI Act;

• to discontinue the special term repo

facility for scheduled commercial banks

for funding to mutual funds, non-

banking financial companies and

housing finance companies; and

• to discontinue the forex swap facility of

banks.

124. The refinance facility to SIDBI, NHB

and EXIM Bank [under Section 17(4H),

Section 17(4DD) and Section 17(4J),

respectively, of the RBI Act] will continue

to be in operation till the pre-announced

date of March 31, 2010. However, these

three financial institutions (FIs) will have

to ensure that all outstandings are repaid

by the close of business on March 31, 2010.

Government Securities Market

Auction Process of Government ofIndia Securities: Status


Statement of April 2009, the specific

notification for auction for sale of

government securities along with the

scheme for non-competitive bidding facility

has been amended by the Government of

India in consultation with the Reserve Bank.

Accordingly, the remaining recommendations

of the internal Working Group (Chairman:

H.R. Khan) pertaining to the Reserve Bank

such as: (i) withdrawal of the facility of

bidding in physical form and submission of

competitive bids only through the NDS; and

(ii) submission of a single consolidated bid

on behalf of all its constituents by the bank/

primary dealer (PD) in respect of non-

competitive bids, have been implemented

with effect from May 22, 2009. The

implementation of the recommendations of

the Working Group has improved the

efficiency of the auction process by reducing

the time taken for announcement of the

auction results, thereby enhancing the time

available for trading in the auctioned

securities.

Non-Competitive Bidding in the Auction

of State Development Loans (SDLs):

Status

126. In order to widen the investor base

and enhance the liquidity for State

Development Loans (SDLs), a scheme for

non-competitive bidding in the auction of

SDLs was notified by all State Governments

on July 20, 2007. In pursuance of the

announcement made in the Annual Policy

Statement of April 2009, the scheme for

non-competitive bidding in SDLs has been

operationalised with effect from August 25,

2009. Under the scheme, up to 10 per cent

of the notified amount of SDLs will be

allotted to eligible individuals and

institutions, subject to a maximum of one

per cent of the notified amount for single

bid per stock. An investor can submit only

a single bid in an auction of SDL through a

bank or PD.

MONETARY POLICY

STATEMENT 2009-10



IV. Credit Delivery Mechanismand Other Banking Services

Credit Flow to the MSE Sector


Statement of April 2009, the guidelines

based on the Working Group on

Rehabilitation of Sick SMEs (Chairman: Dr.

K.C. Chakrabarty) were issued to scheduled

commercial banks in May 2009. In

pursuance of the guidelines, banks were

advised to review/put in place policies for

the micro and small enterprises (MSEs),

duly approved by their respective Boards

with regard to: (i) loan policy governing

extension of credit facilities; (ii)

restructuring/rehabilitation policy for

revival of potentially viable sick units/

enterprises; and (iii) non-discretionary one-

time settlement scheme for recovery of non-

performing loans. Other recommendations

pertaining to the Government of India/State

Governments/State Level Bankers’

Committee (SLBC) convener banks were

forwarded to them for necessary action. The

regional offices of the Reserve Bank were

advised to monitor the actions initiated by

the State Governments/SLBC convener

banks and discuss the progress in this regard

in the SLBC meetings.


2009 also proposed that the Standing

Advisory Committee on MSEs would

review the credit guarantee scheme.

Accordingly, a Working Group (Chairman:

Shri V. K. Sharma) was constituted to

review the credit guarantee scheme of the

Credit Guarantee Fund Trust for Micro and

Small Enterprises (CGFTMSE) and also

examine the feasibility of a ‘whole

turnover guarantee’ for the MSE portfolio.

The Working Group is expected to submit

its report by end-December 2009.

Agricultural Debt Waiver and DebtRelief Scheme, 2008: Status

129. A scheme of agricultural debt waiver

and debt relief for farmers with the total

value of overdue loans being waived

estimated at Rs.50,000 crore and a one-time

settlement (OTS) relief on the overdue loans

estimated at Rs.10,000 crore was announced

in the Union Budget 2008-09. Out of this,

Rs.28,000 crore was passed on to the

National Bank for Agriculture and Rural

Development (NABARD) for reimbursing the

claims of regional rural banks (RRBs) and co-

operatives and the remaining amount was

earmarked for reimbursing the claims of

scheduled commercial banks (SCBs), local

area banks (LABs) and urban co-operative

banks (UCBs). Till date, SCBs and UCBs have

been reimbursed to the extent of 64.7 per

cent of their ‘debt waiver’ claims.

Rural Co-operative Banks

Licensing of Co-operatives: Status

130. The Committee on Financial Sector

Assessment (Chairman: Dr. Rakesh Mohan

and Co-Chairman: Shri Ashok Chawla) had

recommended that rural co-operative

banks which fail to obtain a license by 2012

should not be allowed to continue to

operate. Accordingly, it was proposed, in

the Annual Policy Statement of April 2009,

to work out a roadmap for achieving this

objective in a non-disruptive manner. The

criteria for licensing of these banks have

been drafted in consultation with the

NABARD and action with regard to issuance

of licenses has been initiated. At present,


MONETARY POLICY

STATEMENT 2009-10


17 out of 31 state co-operative banks, and

296 out of 371 central co-operative banks

are unlicensed.

Revival of Rural Co-operative CreditStructure: Status

131. Based on the recommendations of the

Task Force on Revival of Rural Co-operative

Credit Institutions (Chairman: Prof. A.

Vaidyanathan) and in consultation with the

State Governments, the Government of

India had approved a package for revival of

the short-term rural co-operative credit

structure. So far, as envisaged under the

package, 25 States have entered into

Memorandum of Understanding (MoU)

with the Government of India and the

NABARD. Twelve States have made

amendments to their respective Co-

operative Societies Acts. As on July 31, 2009,

an aggregate amount of Rs.6,639 crore has

been released by the NABARD as

Government of India’s share under the

package to primary agricultural credit

societies (PACS) in 10 States. The National

Implementing and Monitoring Committee

(NIMC) set up by the Government of India

is monitoring the implementation of the

revival package.

132. Furthermore, a study of the long-term

co-operative credit structure was entrusted

by the Government of India to the same

Task Force. The Task Force submitted its

report in August 2006. It was announced in

the Union Budget 2008-09 that the

Government of India and the State

Governments have reached an agreement

on the content of the package for the revival

of the long-term co-operative credit

structure. The cost of the package has been

estimated at Rs.3,074 crore, of which the

Central Government’s share will be Rs.2,642

crore. The Government of India has

constituted a Task Force (Chairman: Shri G.

C. Chaturvedi) in September 2009 with

representatives from the Reserve Bank and

the NABARD to look into the various aspects

of the long-term co-operative credit

structure with regard to viability, relevance

of a separate package and strategy for

implementation.

Regional Rural Banks

Capital to Risk-weighted Assets Ratio

(CRAR) for RRBs: Status

133. On the basis of the recommendations

of the Committee on Financial Sector

Assessment (Chairman: Dr. Rakesh Mohan

and Co-Chairman: Shri Ashok Chawla), the

Annual Policy Statement of April 2009

proposed to introduce CRAR for RRBs in a

phased manner, taking into account the

status of recapitalisation and amalgamation.

The Government of India has constituted a

Committee (Chairman: Dr. K.C.

Chakrabarty) with representatives from the

Government, sponsor banks, RRBs and the

NABARD to examine the financials of the

RRBs and suggest a roadmap to raise the

CRAR of RRBs to nine per cent by March

2012. The Committee is expected to submit

its report by end-January 2010.

Amalgamation of RRBs: Status

134. Of the total number of 196 RRBs, 159

RRBs have been amalgamated into 46 new

RRBs (sponsored by 27 banks and located

in 26 States including one Union Territory).

Since then one new RRB has also been

established in the Union Territory of

Puducherry. Accordingly, the total number

of RRBs now functioning is 84.

MONETARY POLICY

STATEMENT 2009-10



Recapitalisation of RRBs: Status

135 The Union Budget 2007-08 announced

that RRBs which have a negative net worth

will be recapitalised in a phased manner.

The process of recapitalisation has since

been completed with 27 RRBs having been

fully recapitalised with an amount of

Rs.1,796 crore as on July 31, 2009.

Technology Upgradation of RRBs: Status

136. With a view to enabling RRBs to adopt

information technology (IT)-based solutions

for financial inclusion, it was proposed in the

Annual Policy Statement of April 2009 to work

out, in consultation with the NABARD, the

manner of providing assistance to RRBs for

adopting information and communication

technology (ICT) solutions for financial

inclusion in districts identified as having high

level of exclusion by the Committee on

Financial Inclusion (Chairman: Dr. C.

Rangarajan). To facilitate ICT implementation,

there is a need to implement core banking

solutions (CBS). In this context, the Report of

the internal Working Group (Chairman: Shri

G. Srinivasan) constituted by the Reserve Bank

to prepare a roadmap for migration to CBS by

RRBs was forwarded to all sponsor banks in

October 2008 with an advice to implement the

recommendations in respect of RRBs

sponsored by them. The issue of sharing the

funding cost of CBS project among the owners

of RRBs, viz., the Government of India, the

State Governments and sponsor banks, is

under examination by the NABARD.

Urban Co-operative Banks

Review of Regulatory and SupervisoryFramework for UCBs: Status


2009 proposed a review of the existing

instructions on internal control, risk

management system, asset-liability

management (ALM) and disclosure norms

as appropriate to UCBs as also to apply

capital charge for market risk in respect of

large-sized and systemically important

UCBs. The review is underway.

Information Technology Support to

UCBs: Status

138. Based on the recommendations of the

Working Group (Chairman: Shri R. Gandhi),

which looked into ways of supporting IT

initiatives of the UCBs, a tentative action plan

has been worked out. Taking into account a

large number of small and unit UCBs and the

lack of uniformity in the level of

computerisation, the action plan envisages

the minimum level of IT infrastructure to

include computerised management

information system (MIS) reporting and

automated regulatory reporting (ARR). After

a series of discussions with service providers,

it has been decided to adopt the application

service provider (ASP) model for providing

IT support to UCBs. The modalities are being

worked out in consultation with the Institute

for Development and Research in Banking

Technology (IDRBT).

Creation of Umbrella Organisation and

Revival Fund for UCBs: Status


Statement of April 2008, a Working Group

(Chairman: Shri V. S. Das) was constituted

to suggest measures, including the

appropriate regulatory and supervisory

framework, to facilitate emergence of

umbrella organisation(s) for the UCB sector

in the respective States. The Group has since

submitted its Report.


MONETARY POLICY

STATEMENT 2009-10


DICGC-Supported Transfer of Assetsand Liabilities of UCBs to CommercialBanks in Legacy Cases

140. As a part of the measures to

strengthen the urban co-operative banking

system, a scheme of amalgamation of weak

UCBs with strong UCBs, with support from

the Deposit Insurance and Credit Guarantee

Corporation (DICGC), is considered by the

Reserve Bank in cases involving UCBs having

negative net worth as on March 31, 2007.

However, in those cases, where proposals

for amalgamation within the UCB sector are

not forthcoming, it is proposed:

• to provide DICGC support to the scheme

involving transfer of assets and liabilities

(including branches) of legacy cases of

urban co-operative banks to domestic

scheduled commercial banks, provided

the scheme ensures 100 per cent

protection to depositors and DICGC

support is restricted to the amount as

provided under Section 16 (2) of the

DICGC Act, 1961.

141. Detailed guidelines in this regard will

be issued separately.

V. Financial Inclusion

Business Correspondent (BC) Model

142. As proposed in the Annual Policy


(Chairman: Shri P. Vijaya Bhaskar) was

constituted to examine the experience

gained to date with the business

correspondent (BC) model and to suggest

measures to enlarge the category of persons

that can act as BCs, keeping in view the

regulatory and supervisory framework and

consumer protection issues. The Group’s

Report has been placed on the Reserve

Bank’s website. Based on the Group’s

recommendations, it is proposed:

• to allow banks to appoint the following

entities as BCs in addition to those

permitted already: (i) individual kirana/

medical/fair price shop owners; (ii)

individual public call office (PCO)

operators; (iii) agents of small savings

schemes of Government of India/

insurance companies; (iv) individuals

who own petrol pumps; (v) retired

teachers; and (vi) authorised

functionaries of well-run self-help

groups (SHGs) linked to banks; and

• to allow banks to collect reasonable

service charges from the customer in a

transparent manner under their Board-

approved policy for delivering the

services through BC. This should be

clearly explained to the customer.

143. Based on the experience gained, the

working of the scheme will be reviewed

after one year.

Pilot Project of SLBCs for 100 percent Financial Inclusion

144. Of the total of 623 districts in the

country, 431 districts have so far been

identified for 100 per cent financial inclusion.

Of these, 204 districts in 18 States and six

Union Territories have reported having

achieved the target. All districts of Haryana,

Himachal Pradesh, Karnataka, Kerala,

Uttarakhand, Goa, Chandigarh, Puducherry,

Daman & Diu, Dadra & Nagar Haveli and

Lakshdweep have reported having achieved

100 per cent financial inclusion. The Reserve

Bank had undertaken an evaluation study

through external agencies in 26 districts of

MONETARY POLICY

STATEMENT 2009-10



eight States claiming 100 per cent financial

inclusion, to draw lessons for further action.

The study reports had, inter alia, revealed that

although the SLBCs had declared several

districts as 100 per cent financially included,

the actual financial inclusion was short of that.

A large number of no-frills accounts are

dormant, the number of transactions is small

and ICT-based financial services are yet to

reach many villages. The findings of the study

were communicated to banks in January 2009

with an advice to take appropriate action.

Special Task Force in North-EasternRegion


2009 had indicated the formulation of a

scheme of providing financial support to

banks by the Reserve Bank for setting up

banking facilities at centres in the North-

Eastern region which were found to be

commercially viable by banks, provided the

State Governments made available necessary

premises and other infrastructural support.

As its contribution, the Reserve Bank would

bear one-time capital cost and recurring

expenses for a limited period of five years as

per the lowest bid offered by a bank. The

Government of Meghalaya has since agreed

to the proposal of providing premises and

security. Accordingly, eight centres have been

allotted to three public sector banks. Action

has also been initiated in respect of other

States in the region.

Quicker Adoption of ElectronicBenefit Transfer (EBT) forGovernment Schemes

146. To encourage banks to adopt ICT

solutions for enhancing their outreach, the

Reserve Bank formulated a scheme to

quicken the pace of adoption of the smart

card-based electronic benefit transfer (EBT)

mechanism by banks and rolled out the EBT

system in the States that are ready to adopt

the scheme. As per the scheme, the Reserve

Bank would reimburse the banks a part of

the cost of opening accounts with bio-metric

access/smart cards at the rate of Rs.50 per

account through which payment of social

security benefits, National Rural

Employment Guarantee Act (NREGA)

payments and payments under other

Government benefit programmes would be

routed to persons belonging to below poverty

line (BPL) families. The scheme is currently

being implemented in Andhra Pradesh. So

far, seven banks have been paid Rs.1.8 crore

for smart cards issued by banks in Andhra

Pradesh during July-December 2008. The

process is at different stages of

implementation in other States such as

Karnataka and Uttarakhand and the scheme

of partial reimbursement by the Reserve

Bank has been extended by one year up to

June 30, 2010. Banks are advised to work in

co-ordination with the respective

government departments at the Central and

State levels to ensure that all State benefits

are delivered to individuals only through

bank accounts within a specific timeframe.

High Level Committee onLead Bank Scheme

147. The High Level Committee on Lead

Bank Scheme (Chairperson: Smt. Usha Thorat)

submitted its draft report on May 21, 2009.

The Report was placed on the Reserve Bank’s

website inviting comments from public and

other stakeholders. Based on the feedback

received, the Committee submitted its final

report to the Reserve Bank on August 20, 2009


MONETARY POLICY

STATEMENT 2009-10


and the report was placed on the Reserve

Bank’s website on August 24, 2009. While the

recommendations of the Committee are

under consideration, it is proposed:

• to advise the lead banks to constitute

a Sub- Committee of the District

Consultative Committees (DCCs) to

draw up a roadmap by March 2010 to

provide banking services through a

banking outlet in every village having a

population of over 2,000, by March

2011. Such banking services may not

necessarily be extended through a brick

and mortar branch but can be provided

through any of the various forms of ICT-

based models, including through BCs.

Micro-finance: Status

148. The self-help group (SHG)-bank linkage

programme has emerged as the major micro-

finance programme in the country and is

being implemented by commercial banks,

RRBs and co-operative banks. As on March

31, 2009, 4.2 million SHGs were operating

with an outstanding bank credit of Rs.22,680

crore, up by 34 per cent over March 31, 2008.

During 2008-09, banks financed 1.6 million

SHGs, including repeat loans to existing

SHGs, to the tune of Rs.12,254 crore. There

were 6.1 million savings accounts of SHGs

with banks as on March 31, 2009 with total

deposits amounting to Rs.5,546 crore.

149. The role of micro-finance institutions

(MFIs) in providing financial services to the

poor is growing in importance. The banking

sector has been extending loans to MFIs for

on-lending to SHGs. During 2008-09, bank

loans amounting to Rs.3,732 crore were

disbursed to 581 MFIs, increasing the total

outstanding loans to Rs.5,009 crore to 1,915

MFIs as on March 31, 2009.

Priority Sector Lending Certificates(PSLCs): Working Group

150. The Committee on Financial Sector

Reforms (Chairman: Dr. Raghuram G. Rajan),

inter alia, recommended introduction of

priority sector lending certificates (PSLCs) for

purchase by banks for achieving the priority

sector lending target. According to the

Committee’s recommendation, PSLCs would

be issued by registered lenders such as MFIs,

NBFCs, co-operatives, and registered money

lenders for the amount of loans granted by

them to the priority sector, and also by banks

for the amounts in excess of their stipulated

priority sector lending requirements. These

certificates could be traded in the open

market, and banks having shortfall in

meeting the priority sector lending targets

could buy such certificates and thus meet the

priority sector lending norms. The

Committee further recommended that in the

trading of PSLCs, the actual loans would

continue to remain on the books of the

original lender unlike in outright purchase

of loan assets. However, the buyer bank

would show the amount in its priority sector

lending requirements. The seller of PSLC, if

it is a bank, will take it off its priority sector

lending requirements even though it will

continue to carry the loan on its books.

151. Preliminary discussions indicated that

there are both merits and demerits of the

proposal. Therefore, it is proposed:

• to constitute a Working Group to

examine the issues involved in the

introduction of priority sector lending

certificates and make suitable

recommendations.

MONETARY POLICY

STATEMENT 2009-10



VI. Regulatory Measures forCommercial Banks

Relaxations in Branch AuthorisationPolicy



(Chairman: Shri P. Vijaya Bhaskar) was

constituted to review the extant branch

authorisation policy with a view to

providing greater flexibility to banks for

opening branches to enhance banking

penetration and promote financial

inclusion. The Group has since submitted

its report. Taking into consideration the

Group’s recommendations, it is proposed to

liberalise the extant branch authorisation

policy for domestic scheduled commercial

banks (other than RRBs) as under:

• Domestic scheduled commercial banks

(other than RRBs) will now be free to

open branches in Tier 3 to Tier 6 centres

as identified in the Census 2001 (with

population up to 50,000) under general

permission.

• Opening of branches by domestic

scheduled commercial banks (other

than RRBs) in Tier 1 and Tier 2 centres

(with population over 50,000) will

continue to require prior authorisation.

• Banks may plan their branch expansion

in Tier 3 to Tier 6 centres in such a manner

that at least one-third of such branches

are in the underbanked districts of

underbanked States as will be notified

separately by the Reserve Bank. This

would be one of the criteria in the Reserve

Bank’s consideration of proposals by

domestic scheduled commercial banks

(other than RRBs) to open branches in Tier

1 and Tier 2 centres. In considering such

proposals, the Reserve Bank would, in

addition, take into account banks’

performance in financial inclusion,

priority sector lending and level of

customer service, among others.

Enhancements to the Basel IIFramework

153. In July 2009, the Basel Committee on

Banking Supervision (BCBS) had finalised

enhancements and revisions in certain areas

of the Basel II framework. The enhanced/

revised guidance of BCBS is contained in their

three documents, viz., Enhancements to the

Basel II Framework; Revisions to the Basel II

Market Risk Framework; and Guidelines for

Computing Capital Charge for Incremental

Risk in the Trading Book. These

enhancements and revisions are intended to

strengthen the framework and respond to

lessons learnt from the financial crisis.

154. The enhancements and revisions now

stipulated by BCBS are, however, mostly

applicable to advanced approaches of the

Basel II framework. Banks in India have

implemented standardised/basic

approaches contained in the framework.

However, wherever those enhancements

and revisions are applicable to standardised/

basic approaches, it is proposed:

• to issue detailed guidelines as appropriate

for implementation by banks operating in

India by end-November 2009.

Introduction of Duration GapAnalysis for Asset LiabilityManagement

155. The Reserve Bank had issued

guidelines on asset liability management in


MONETARY POLICY

STATEMENT 2009-10


February 1999, which, inter alia, covered

aspects relating to interest rate risk

measurement. These guidelines to banks

approached interest rate risk measurement

from the ‘earnings perspective’ using the

traditional gap analysis (TGA). To begin

with, the TGA was considered as a suitable

method to measure interest rate risk. The

Reserve Bank had, however, indicated its

intention to shift to modern techniques of

interest rate risk measurement such as

duration gap analysis (DGA), simulation and

value-at-risk over a period of time, when

banks acquire sufficient expertise and

sophistication in this regard. Since banks

have gained considerable experience in

implementation of the TGA and have

become familiar with the application of the

concept of duration/modified duration

while applying standardised duration

method for measurement of interest rate

risk in the trading book, this is an opportune

time for banks to adopt the DGA for

management of their interest rate risk. With

this move, banks would migrate to the

application of the ‘economic value

perspective’ to interest rate risk

management. Accordingly, it is proposed:

• to issue detailed guidelines on the use

of DGA for management of interest rate

risk by end-November 2009 .

Review of Capital Adequacy Normsfor Take-out Financing

156. At present, the credit conversion

factor (CCF) for off-balance sheet exposure

of the take-out financing institution, which

captures that institution’s unconditional

commitment during the period up to the

take-out event, is 100 per cent. The CCF for

conditional take-out has been fixed at a

lower level of 50 per cent reflecting the

uncertainty regarding the take-out event due

to the conditional nature of the agreement.

The existing capital adequacy treatment of

take-out financing is in conformity with the

capital adequacy treatment of forward asset

purchases under both Basel I and Basel II.

The issue has been reconsidered and it is

proposed:

• to allow banks to build up capital for

take-out exposures in a phased manner.

157. Detailed guidelines in this regard are

being issued separately.

Commercial Real Estate Exposures

158. In view of large increase in credit to

the commercial real estate sector over the

last one year and the extent of restructured

advances in this sector, it would be prudent

to build cushion against likely non-

performing assets (NPAs). Accordingly, it is

proposed:

• to increase the provisioning requirement

for advances to the commercial real

estate sector classified as ‘standard

assets’ from the present level of 0.40 per

cent to 1 per cent.

Review of Adequacy of Loan LossProvisions

159. At present, the provisioning

requirements for NPAs range between 10

per cent and 100 per cent of the outstanding

amount, depending on the age of the NPAs,

the security available and the internal policy

of the bank. Since the rates of provisioning

stipulated by the Reserve Bank for NPAs are

the minimum and banks can make

MONETARY POLICY

STATEMENT 2009-10



additional provisions subject to a consistent

policy based on riskiness of their credit

portfolios, it has been observed that there

is a wide heterogeneity and variance in the

level of provisioning coverage ratio across

different banks. With a view to improving

the provisioning cover and enhancing the

soundness of individual banks, it is

proposed:

• to advise banks to augment their

provisioning cushions consisting of

specific provisions against NPAs as well

as floating provisions, and ensure that

their total provisioning coverage ratio,

including floating provisions, is not less

than 70 per cent. Banks should achieve

this norm not later than end-September

2010.

Banks’ Exposure to NBFCs Engagedin Infrastructure Financing: Reviewof Risk Weights

160. At present, the risk weight for banks’

exposure to systemically important non-

deposit taking NBFCs (NBFCs-ND-SI) is 100

per cent. However, asset finance companies

(AFCs) within the NBFCs-ND-SI category

carry a risk weight based on credit ratings.

As indicated in para 178 in Section VII of

this part, NBFCs engaged in financing of

infrastructure would henceforth be

classified in a new category called

infrastructure NBFCs. Since financing by

such NBFCs would essentially result in the

creation of physical infrastructure, it is

proposed:

• to link the risk weights of banks’

exposure to such NBFCs to the credit

rating assigned to the NBFC by external

credit assessment institutions (ECAIs).

Lock-in Period and MinimumRetention for SecuritisationExposures

161. To ensure that the originators do not

compromise on due diligence of assets

generated for the purpose of securitisation,

it was proposed in the Annual Policy

Statement of April 2009 to stipulate a

minimum lock-in period for bank loans

before these were securitised. It was also

proposed to lay down minimum retention

criteria for the originators as another

measure to achieve the same objective.

Accordingly, it is proposed:

• that the minimum lock-in period for all

types of loans would be one year before

these can be securitised; and

• that the minimum retention by the

originators will be 10 per cent of the

pool of assets being securitised.

162. The international work, especially in

the European Union and the US regarding

the minimum retention criteria, is still

underway. The Reserve Bank will issue

detailed guidelines on the manner of

computation of the one year lock-in period

and other operational details keeping in

view the international norms being

developed.

Compensation Practices

163. Compensation practices, especially of

large financial institutions, were one of the

factors which contributed to the recent

global financial crisis. The FSB has brought

out certain principles for sound

compensation practices. The principles call

for effective governance of compensation,

and for compensation to be adjusted for all


MONETARY POLICY

STATEMENT 2009-10


types of risk, to be symmetric with risk

outcomes, and to be sensitive to the time

horizon of risks. These principles, which

have been endorsed by the G-20, should be

the guiding tenets for devising

compensation schemes for all employees in

a financial institution. The Reserve Bank is

working on the FSB principles for sound

compensation and it is proposed:

• to issue suitable guidelines to private

sector and foreign banks with regard to

sound compensation policies.

Liquidity Risk


2009 proposed to place the draft circular on

liquidity risk management, as also the

guidance note on “Liquidity Risk

Management” on the Reserve Bank’s

website by mid-June 2009. This was

deferred. Keeping in view active discussions

underway at the global level on liquidity risk

management as the BCBS is also in the

process of enhancing the modalities for

adopting the integrating risk management

system, it is now proposed:

• to issue a draft circular reflecting these

changes by end-December 2009.

Stress Testing


2009 proposed upgradation of the stress

testing guidelines once BCBS finalises the

paper on ‘Principles for Sound Stress Testing

Practices and Supervision’. In this context,

the guidelines issued to banks in June 2007

are required to be enhanced in the light of

the final paper issued by BCBS and taking

into account international work/initiatives

in the area of stress testing, particularly that

being done by the IMF and the FSB. It is

proposed:

• to issue guidelines to banks on stress

testing by end-January 2010.

Credit Rating Agencies: Status

166. It was indicated in the Annual Policy

Statement of April 2009 that the Reserve

Bank will liaise with the SEBI on the issue

of rating agencies’ adherence to Code of

Conduct Fundamentals of the International

Organisation of Securities Commissions

(IOSCO). Accordingly, in order to review

rating agencies’ continued accreditation

under Basel II, the Reserve Bank conducted

meetings with Credit Rating Information

Services of India Ltd. (CRISIL), ICRA Ltd.,

Credit Analysis and Research Ltd. (CARE)

and Fitch. The Reserve Bank has also

initiated discussions with the SEBI to assess

the rating agencies’ compliance with the

enhanced Code of Conduct Fundamentals

of the IOSCO.

VII. Institutional Developments

Payment and Settlement Systems

Guidelines for Pre-paid Payment

Instruments in India


Statement of April 2009, SCBs and non-bank

entities, which complied with the eligibility

criteria, were permitted to issue pre-paid

payment instruments. Furthermore, in

August 2009, other entities were also

permitted to issue mobile phone based

semi-closed system pre-paid instruments

for a maximum value of Rs.5,000.

MONETARY POLICY

STATEMENT 2009-10



Electronic Payment Systems

168. Between end-March 2009 and end-

September 2009, the branch network of

national electronic funds transfer (NEFT)

enabled banks increased from 54,200 to

60,839 and the RTGS enabled branches

increased from 55,000 to 60,144. The

average number of daily transactions

handled by the RTGS network increased

from 80,000 to 90,000.

National Electronic Clearing Service


Statement of April 2009, the volume of

transactions through national electronic

clearing service (NECS), introduced in

September 2008, is gradually increasing. As

at end-September 2009, 114 banks with

30,780 branches have been participating in

NECS.

Customer Service at ATMs

170. The Reserve Bank received a number

of complaints from bank customers

regarding debit of their accounts even

though ATMs had not disbursed cash for

various reasons. In order to improve

customer service, the Reserve Bank advised

all banks to reimburse to the customers the

amount wrongfully debited on account of

failed ATM transactions within a maximum

period of 12 days from the date of receipt

of customer complaint. In case a bank fails

to re-credit the customer’s account, it is

required to pay compensation of Rs.100 per

day to the aggrieved customer. The amount

of compensation is credited to the

customer’s account on the same day the

bank credits the amount of the failed ATM

transaction.

Facility to Use ATMs of other Banks:Rationalisation

171. The Reserve Bank had advised that

customers could use the ATMs of other

banks for cash withdrawal free of charge

with effect from April 1, 2009. This led to a

quantum increase in ATM transactions,

especially small value cash withdrawal

transactions, which tended to impair the

viability of operations. The Indian Banks’

Association (IBA), therefore, approached the

Reserve Bank with suggestions to rationalise

the facility in order to achieve a balance

between optimising customer convenience

and mitigating operational difficulties.

Taking into account all the relevant issues,

the Reserve Bank agreed to the IBA’s

suggestions of: (i) extending the access of

ATMs of other banks to only customers

having savings bank accounts; (ii) pegging

a cap of Rs.10,000 per withdrawal at ATMs

of other banks; and (iii) permitting only five

free transactions per month at ATMs of

other banks. These instructions came into

effect from October 15, 2009.

Mobile Payments

172. With the issuance of the operative

guidelines for mobile payments on October

8, 2008, the Reserve Bank has so far granted

approval to 32 banks to provide mobile

banking facilities to their customers.

Cheque Truncation System


2009 indicated that the Reserve Bank will

continue to take steps towards extending

the cheque truncation system (CTS) across

the country. In pursuance of this, effective

July 1, 2009, all cheque volumes at New

Delhi migrated to CTS and accordingly


MONETARY POLICY

STATEMENT 2009-10


magnetic ink character recognition (MICR)

clearing (both at SBI and the Reserve Bank)

was discontinued. Furthermore, action to

roll-out CTS at Chennai has been initiated

and it is proposed that New Delhi and

Chennai would act as backup for each other.

With effect from July 1, 2009, a fee of Rs.0.50

per instrument each from the presenting

bank and from the paying bank in the CTS

has been introduced. Presently, CTS is

handling around 6,00,000 instruments

every day.

Cash Withdrawal at Point-of-Sale (POS)

174. Cash is predominantly used for small

value payments and as such there is always

a need for availability of currency. The use

of debit cards at point-of-sale (POS)

terminals at different merchant

establishments has been steadily on the

rise. The number of POS terminals in the

country at the end of August 2009 was

4,87,024. As a further step towards

enhancing customer convenience in using

plastic cards, cash withdrawals up to

Rs.1,000 per day at POS terminals have been

allowed for all debit cards issued in India.

The Payment and Settlement SystemsAct, 2007


Statement of April 2009, all payment system

providers/operators, including credit card

issuing companies and entities engaged in

money transfer activity, require

authorisation as per the Payment and

Settlement Systems Act, 2007. Accordingly,

30 payment system service providers

providing service in India have been granted

certificate of authorisation by the Reserve

Bank by end-September 2009.

Currency Management

176. The High Level Group on Currency

Management (Chairperson: Smt Usha

Thorat) constituted by the Reserve Bank

submitted its Report in August 2009. The

Group has, inter alia, emphasised the

importance of using modern technology and

security systems for stocking, processing

and distribution of currency to ensure

adequate availability of genuine and clean

notes to the public. With a view to

encouraging banks for giving due priority

to the above objective, it is proposed:

• to mandate banks to install note sorting

machines in all their branches in a

phased manner in terms of a roadmap

to be approved by the Reserve Bank; and

• to have the responsibility of currency

management entrusted to a nodal official

in each bank, who shall be a senior

functionary at a level not less than that

of a General Manager and who will be

accountable for the obligations cast upon

currency chests by the Reserve Bank.

177. Detailed guidelines based on the

report of the Working Group are being

issued separately.

Non-Banking Financial Companies

Classification of NBFCs-ND-SI:Infrastructure Companies

178. NBFCs-ND-SI engaged predominantly

in the infrastructure financing have

represented to the Reserve Bank that there

should be a separate category of

infrastructure financing NBFCs in view of

the critical role played by them in providing

credit to the infrastructure sector. Currently,

MONETARY POLICY

STATEMENT 2009-10



the Reserve Bank classifies NBFCs under

three categories, viz., asset finance

companies, loan companies and investment

companies. It has now been decided to:

• introduce a fourth category of NBFCs as

‘infrastructure NBFCs’, defined as

entities which hold minimum of 75 per

cent of their total assets for financing

infrastructure projects.

179. Detailed instructions, including

eligibility criteria, are being issued

separately.

Repossession of Vehicles by NBFCs


2009 had emphasised that NBFCs should

have a built-in repossession clause (in respect

of repossession of vehicles) and also detailed

provisions with regard to terms and

conditions for ensuring transparency in the

contract/loan agreement with the borrower

which will be legally enforceable. Accordingly,

NBFCs were advised the broad framework in

respect of terms and conditions of the

contract/loan agreement, viz., (i) notice

period before taking possession; (ii)

circumstances under which the notice

period can be waived; (iii) the procedure for

taking possession of the security; (iv) a

provision regarding final chance to be given

to the borrower for repayment of loan before

the sale/auction of the property; (v) the

procedure for giving repossession to the

borrower; and (vi) the procedure for sale/

auction of the property. Furthermore, NBFCs

were urged to make available a copy of such

terms and conditions to the borrowers at the

time of sanction/disbursement of loans,

which may form a key component of such

contracts/loan agreements.

Special Liquidity Facility for EligibleNBFCs-ND-SI

181. The special liquidity facility for

eligible NBFCs-ND-SI for meeting the

temporary liquidity mismatches through

the Industrial Development Bank of India

Stressed Asset Stabilisation Fund (IDBI

SASF) Trust, which was notified as a special

purpose vehicle (SPV) for undertaking the

operation, was extended for eligible papers

issued by NBFCs up to September 30, 2009.

The SPV will cease to make fresh purchases

after December 31, 2009 and will recover

all dues by March 31, 2010. The facility was

availed of to the extent of Rs.750 crore and

was repaid fully by July 7, 2009.


MONETARY POLICY

STATEMENT 2009-10

Macroeconomic andMonetary Developments


Macroeconomic andMonetary DevelopmentsSecond Quarter Review2009-10

Overview

Global Economic Conditions

1. The global economy is showing

tentative signs of recovery signalling, albeit

hesitantly, the winding down of the global

recession. For several advanced economies

the pace of contraction in output has

declined in the second quarter of 2009. The

emerging outlook for recovery is still

dependent on sustained policy stimulus

that has spurred aggregate demand while

also reducing overall uncertainty. The

recovery is widely perceived to remain slow

and gradual, with receding but significant

downside risks.

2. The downside risks could arise from

premature withdrawal of policy stimulus,

the possibility of some permanent loss in

output in the advanced economies owing

to the crisis, need for improving domestic

savings in several advanced economies to

make growth less dependent on global

imbalances, unfinished financial and

corporate restructuring that would involve

further deleveraging and tight credit market

conditions, current level of high excess

capacity, large and rising unemployment

and the associated pressures on both

aggregate demand and protectionism,

anaemic private consumption and

investment demand, and the costs of

sustained large fiscal stimulus.

3. These possibilities point to the risks of

a job-less recovery, and a W-shaped double-

dip recession where another mild phase of

recession may intervene before a durable

recovery. The timing of the exit from the

policy stimulus will, thus, be critical to the

recovery path of the global economy; both

premature exit as well as delayed exit would

have concomitant costs. In September 2009

MONETARY POLICY

STATEMENT 2009-10

Macroeconomic andMonetary DevelopmentsSecond Quarter Review 2009-10


the G-20 highlighted the importance of

continuing the stimulus till the recovery is

secured, consistent though with the other

important objectives of price stability and

fiscal sustainability.

4. After a series of successive and

frequent downward revisions to the growth

outlook of the world economy for 2009 from

(+) 3.9 per cent in July 2008 to (-) 1.4 per

cent in July 2009, the IMF, for the first time,

revised the projected growth outlook

upwards in October 2009, recognising the

emerging signs of recovery. The latest

forecast is for a contraction in the world

output by (-) 1.1 per cent. The recovery is

expected to be led by emerging market

economies (EMEs), particularly from Asia.

According to the WTO, world merchandise

exports increased by about 8.0 per cent in

the second quarter of 2009 over the

preceding quarter, even though year-on-year

growth continued to decline by 33.0 per

cent. The outlook of the Institute of

International Finance (IIF) for October 2009

suggests that net private capital flows to the

EMEs which had recovered in the second

quarter of 2009 gained pace in the third

quarter; 30 EMEs are projected to receive

US$ 349 billion in 2009, which will still be

only about one fourth of the peak level of

net flows received in 2007.

Outlook - Indian Economy

Output

5. In India, economic growth in the first

quarter of 2009-10 at 6.1 per cent represents

a mild recovery over the 5.8 per cent growth

recorded during the preceding two quarters

in the second half of 2008-09. In comparison

to the high average growth of 8.8 per cent

recorded during the five-year period 2003-

08, however, the first quarter growth in

2009-10 still points to persistence of the

slowdown. Information available on various

lead indicators of economic activity in the

second quarter of 2009-10 suggests that

because of the deficient monsoon, kharif

output may be adversely affected. The

industrial sector has started exhibiting

recovery, with 10.4 per cent growth in

August 2009 and 5.8 per cent growth during

April-August 2009, as against 1.7 per cent

and 4.8 per cent during the corresponding

periods of the previous year, respectively.

Growth in core infrastructure witnessed

notable acceleration in August 2009, and the

growth over April-August 2009 was higher

at 4.8 per cent as against 3.3 per cent during

the corresponding period of the previous

year. Lead indicators for services suggest

pick up in activities relating to construction

and telecommunications, even though

external demand dependent services, such

as tourism and cargo handled at ports,

continue to be depressed.

Aggregate Demand

6. The deceleration in aggregate demand

that was witnessed in the second half of

2008-09 continued during 2009-10. Growth

in private consumption demand fell to as

low as 1.6 per cent in the first quarter of

2009-10. Investment demand also

decelerated further, and the high growth in

government consumption demand that was

witnessed in the last two quarters of 2008-

09 also moderated. Corporate performance

data indicate that growth in sales, which had

decelerated significantly in the second half

of 2008-09, exhibited negative growth in the


MONETARY POLICY

STATEMENT 2009-10



first quarter of 2009-10, notwithstanding

improvement in profitability. The deficient

monsoon and the associated drought like

conditions in several parts of the country,

and the more recent floods could also

dampen rural demand. Given the

predominant role of domestic demand in

conditioning the growth outlook in India,

weak private consumption and investment

demand, thus, continue to be a key drag on

faster recovery.

External Economy

7. Weak external demand conditions

persisted, as reflected in the sustained

decline in India’s exports. In the first

quarter of 2009-10, exports continued to

decline while imports increased, primarily

reflecting higher oil prices, resulting in a

higher trade deficit in the balance of

payments in relation to the preceding

quarter. The surplus in net invisibles, led

by buoyant remittance inflows, contributed

to finance close to 78 per cent of the trade

deficit. The current account, thus, remained

in deficit of about US$ 5.8 billion. Reflecting

India’s resilience to the crisis in 2008-09 and

the growth prospects of the economy,

capital flows, which had turned negative in

the last two quarters of 2008-09, reversed

in the first quarter to ensure financing of

the current account deficit without any

depletion of foreign exchange reserves. The

rebound in capital inflows has persisted

through the second quarter of 2009-10.

Including valuation gains on foreign

exchange reserves and the SDRs allocated

by the IMF to India, India’s foreign exchange

reserves increased by USD 32.8 billion

during 2009-10 (up to October 16, 2009) to

a level of USD 284.8 billion.

Monetary Conditions

8. The accommodative monetary policy

stance adopted by the Reserve Bank in

response to the global financial crisis,

particularly post-September 2008, continued

in 2009-10. The aim of this policy stance was

to maintain ample rupee liquidity,

comfortable dollar liquidity and ensure flow

of credit to productive areas of the economy.

Reflecting the accommodative policy stance,

the liquidity conditions remained in surplus

on a sustained basis, which was absorbed by

the Reserve Bank through reverse repo

operations under the LAF. Growth in broad

money (M3) also remained high at 18.9 per

cent (as on October 09, 2009), supported by

high growth in deposits (by 19.4 per cent).

On the sources side, monetary expansion

was driven by the large borrowing

programme of the Government, while bank

credit to the commercial sector continued to

decelerate (with a growth of 10.7 per cent).

Financial Markets

9. The financial markets in India which

functioned normally even at the height of

the crisis, posted further decline in risk

spreads and higher volume of activities. The

overnight call rate hovered around the floor

of the LAF corridor reflecting the abundant

liquidity in the system. In the collateralised

segments, namely market repo and

collateralised borrowing and lending

obligation (CBLO), the interest rates remained

below the inter-bank call rates while there was

increase in activities. Volumes in the CP and

CD markets also increased.

10. In the government securities market,

80.4 per cent of the net borrowing

requirement has been completed so far; weak

MONETARY POLICY

STATEMENT 2009-10



demand for credit in the private sector and

comfortable liquidity conditions helped in

containing the pressures on yield. Corporate

bond yields hardened somewhat but the risk

spread fell to the pre-Lehman levels.

11. In the credit market, the gradual

moderation in lending and deposit rates

continued through the second quarter of

2009-10, demonstrating the transmission of

lower policy rates, though with lags.

Despite some reduction in interest rates,

the flow of credit to the private sector

remained sluggish due to subdued overall

private consumption and investment

demand. Credit card and consumer durables

related credit exhibited negative growth,

corroborating the impact of significant

deceleration in private consumption

demand. The flow of resources from the

non-banking sources, however, increased

marginally in the first half of 2009-10.

12. In the foreign exchange market, the

rupee appreciated by about 10.0 per cent

against the US dollar over the end-March

level. The equity market sustained the

recovery seen since April 2009, and

outperformed most of the EMEs in terms

of the extent of recovery in stock prices. The

primary market activities also picked up

significantly, with higher funds mobilised

through public issues and private

placements, large oversubscription of

certain new issues indicating the return of

risk appetite in the market, and manifold

increase in mobilisation of resources by

mutual funds.

Inflation Situation

13. The sharp decline in headline WPI

inflation from the peak level of 12.9 per cent

in August 2008 yielded space for adoption of

growth-supportive accommodative monetary

policy to mitigate the impact of the crisis.

After remaining negative for 13 consecutive

weeks, WPI inflation turned modestly

positive in September 2009. Despite the low

headline (year on year) WPI inflation at 1.2

per cent (as on October 10, 2009), inflationary

pressures have started to emerge, with WPI

showing 5.9 per cent increase over March

2009 level and CPI inflation remaining

stubbornly elevated at double digit levels.

The changing inflation environment,

however, is being driven by strong escalation

in the prices of food articles, which have

increased by 14.4 per cent (year-on-year) so

far. Excluding food items, the WPI inflation

remains depressed at (-) 3.4 per cent. This

suggests both short supply as well as

inefficient distribution channels. From the

stand point of monetary policy, anchoring

inflation expectations in the face of

sustained high inflation in essential

commodities will be a key challenge.

Growth and Inflation Outlook

14. The growth and inflation mix could

change over time, creating conflicting

demands on the stance of monetary policy.

While premature reversal of the monetary

policy stance entails the risk of stifling

recovery, persistence of accommodative

stance could adversely impact inflation

expectations.

15. The current growth outlook for 2009-10

has both upside prospects as well as down

side risks. Upside prospects to growth

include the impact of the growth- supportive

policy stimulus, recovery in industrial

production and core infrastructure sector,

significant upturn in overall business


MONETARY POLICY

STATEMENT 2009-10



confidence as per different surveys, strong

recovery in the stock market with higher

mobilisation of resources, return of capital

inflows and the improving outlook for the

global economy which could boost the

sluggish consumer and investor confidence.

The downside risks include the unexpectedly

large deceleration in private consumption

demand and some decline in corporate sales

in the first quarter of 2009-10, impact of the

deficient monsoon and recent flood in certain

parts of the country on agricultural output and

rural demand, sustained deceleration in credit

growth and decline in exports. The Reserve

Bank’s professional forecasters survey points

to downward revision to the growth outlook

from 6.5 per cent to 6.0 per cent in 2009-10,

reflecting the drought situation in the

agriculture sector.

16. The inflation outlook is currently driven

by the emerging signs of inflationary

pressures, even though certain developments

could neutralise these pressures. These

include sluggish aggregate demand and

negative output-gap, stabilisation of oil prices

in last few months – notwithstanding the

recent increase in October 2009, adequate

buffer stocks of foodgrains and the prospects

of a better rabi crop that could partly offset

the adverse impact of deficient kharif,

selective import of certain commodities and

the normal trend reversal seen in prices of

food articles over different crop seasons. On

the other hand, the visible inflationary

pressures may also persist and escalate

further on account of the fading away of the

base effect, cost push pressures through

wage-price revisions in the face of elevated

CPI inflation, challenges in improving the

supply situation in the short-run of essential

commodities, gradual pressure on global

commodity prices along with global recovery,

and rising inflation expectations on account

of elevated CPI inflation.

17. Financial conditions have improved

significantly in India, ahead of a stronger

recovery in growth. This is evident from the

return of capital flows, significant recovery

in the stock markets, and better transmission

from low policy rates to declining lending

rates. There also need be no concerns about

private credit getting crowded out since over

80.4 per cent of the government borrowing

programme has been completed so far as

there is adequate liquidity in the system. The

deceleration in private consumption and

investment demand needs to be reversed

from the low levels seen in the first quarter

of 2009-10 for ensuring a sustainable

recovery. Lead information in terms of

growth in non-oil imports and demand for

credit in the second quarter of 2009-10,

however, does not point to any major

recovery in demand from the private sector.

The overall economic outlook is, therefore,

a mixture of upside prospects of recovery and

downside risks. Managing this trade-off

between supporting growth and reining in

inflation expectations poses a complex policy

challenge.

MONETARY POLICY

STATEMENT 2009-10



I.1 After a phase of distinct deceleration in

growth during the second half of 2008-09,

the Indian economy exhibited signs of

recovery with higher growth in GDP during

the first quarter of 2009-10 and acceleration

in the pace of recovery in industrial output

and core infrastructure activities. According

to the estimates released by the Central

Statistical Organisation (CSO) in August

2009, real GDP growth during the first

quarter of 2009-10 was placed at 6.1 per cent,

which is higher than 5.8 per cent recorded

during the preceding two quarters of 2008-

09. The growth during the first quarter of

2009-10 was supported by rebound in

industrial activity, particularly the

turnaround in manufacturing sector (from

the negative growth in the previous quarter)

I. Output India's GDP growth during the firstquarter of 2009-10 at 6.1 per centrepresents a modest recovery from the 5.8per cent growth registered during thepreceding two quarters, though still lowerthan 7.8 per cent growth that was achievedin the first quarter of 2008-09 and the8.8 per cent average growth experiencedduring 2003-08. The sequential recoveryover the previous quarter was driven bynotable turnaround in industrial output.During April to August 2009-10, bothindustry and core infrastructure sectorshave shown accelerated growth and few leadindicators of services sector activities alsosuggest some pick up in growth momentum.The deficient monsoon coupled with recentfloods in some States and their expectedadverse impact on the kharif agriculturalproduction, however, entail downside riskfor the overall growth prospects.


MONETARY POLICY

STATEMENT 2009-10



and relative resilience of growth in services,

notwithstanding the recent deceleration. The

real GDP growth during the first quarter of

2009-10, however, was lower than 7.8 per

cent recorded in the first quarter of 2008-09,

which reflects the persistence of the impact

of the synchronised global recession,

notwithstanding the emerging signs of

recovery. (Table 1.1).

Agricultural Situation

I.2 Deficient monsoon has emerged as the

key factor in dampening the pace of

recovery in India’s growth in the near-term.

The South-West Monsoon had arrived in

Kerala on May 23, 2009, i.e., one week ahead

of the normal schedule. The progress of

monsoon, however, got delayed

significantly and with every delay, the

rainfall deficiency and the prospects of

drought like conditions also increased. The

cumulative rainfall during the season (up

to September 30, 2009) over the entire

country has been 23 per cent below normal

as against 1 per cent below normal during


year. The shortfall in rainfall as per the

foodgrains production weighted index of

the Reserve Bank has been higher (27 per cent

below normal) as compared to the

corresponding period of the previous year

Table 1.1: Growth Rates of Real GDP@

(Per cent)

Sector 2007-08* 2008-09# 2008-09 2009-10

Q1 Q2 Q3 Q4 Q1

1 2 3 4 5 6 7 8

1. Agriculture and Allied Activities 4.9 1.6 3.0 2.7 -0.8 2.7 2.4(17.8) (17.0)

2. Industry 7.4 2.6 5.1 4.8 1.6 -0.5 4.2 (19.2) (18.5)

2.1 Mining and Quarrying 3.3 3.6 4.6 3.7 4.9 1.6 7.9

2.2 Manufacturing 8.2 2.4 5.5 5.1 0.9 -1.4 3.4

2.3 Electricity, Gas and Water Supply 5.3 3.4 2.7 3.8 3.5 3.6 6.2

3. Services 10.8 9.4 10.0 9.8 9.5 8.4 7.7 (63.0) (64.5)

3.1 Trade, Hotels, Restaurants,Transport, Storage andCommunication 12.4 9.0 13.0 12.1 5.9 6.3 8.1

3.2 Financing, Insurance, Real Estateand Business Services 11.7 7.8 6.9 6.4 8.3 9.5 8.1

3.3 Community, Social andPersonal Services 6.8 13.1 8.2 9.0 22.5 12.5 6.8

3.4 Construction 10.1 7.2 8.4 9.6 4.2 6.8 7.1

Real GDP at Factor Cost 9.0 6.7 7.8 7.7 5.8 5.8 6.1(100) (100)

Memo: (Amount in Rupees crore)

Real GDP at Factor Cost (1999-2000) 31,29,717 33,39,375GDP at current market prices 47,23,400 53,21,753

@: At 1999-2000 Prices *: Quick Estimates. #: Revised Estimates.Note : Figures in parenthesis indicate shares in real GDP.Source : Central Statistical Organisation.

MONETARY POLICY

STATEMENT 2009-10



(4 per cent above normal). The deficiency

in rainfall during the South-West monsoon

season has exceeded the revised forecast of

the India Meteorological Department (IMD)

issued in August, according to which rainfall

during the season (June to September, 2009)

was likely to be below normal at 93 per cent

of the Long Period Average (with a model

error of ± 4.0 per cent). The temporal

distribution of the rainfall activity shows

that the initial concerns about shortfall in

June rainfall receded somewhat in July,

which helped to improve the sowing

position. The rainfall turned deficient again

during the first half of August 2009, before

picking up subsequently since the middle

of the month (Chart I.1).

I.3 The spatial distribution of rainfall

reveals that of the 36 meteorological sub-

divisions, cumulative rainfall has been

excess/normal in 13 sub-divisions (32 sub-

divisions last year) (Chart I.2). The pick up

in rainfall activity since mid-August 2009

has resulted in substantial improvement in

the country’s water reservoir level, though

it continues to remain below last year’s

level. As on October 22, 2009, the total live


MONETARY POLICY

STATEMENT 2009-10



water storage in the 81 major reservoirs of

the country was 64.0 per cent of the Full

Reservoir Level (FRL) (72.0 per cent during

the corresponding period last year).

I.4 As on September 30, 2009, around 300

districts have been declared drought hit,

partially or wholly, in 12 States. During the

season, flood incidents were also reported

in some States, viz., Karnataka, Assam,

Meghalaya, Arunachal Pradesh, West Bengal,

Orissa, Bihar, Jharkhand, Uttar Pradesh,

Uttarakhand, Haryana, Punjab, Himachal

Pradesh, Gujarat, Maharashtra, Madhya

Pradesh, Kerala and Andhra Pradesh.

I.5 The deficient South-West monsoon has

impacted the kharif sowing, which is about

5.4 per cent below that of the last year.

Latest sowing position indicates that sowing

of all crops during the current kharif season

as on October 16, 2009 was 92 per cent of

the normal level (Table 1.2). Sowing of most

pulses and cotton are higher than last year

levels, while the sowing of coarse cereals

and jute remained the same as last year,

though paddy sowing has been substantially

affected (16 per cent below last year’s level).

Other crops whose sowing has been affected

somewhat include oilseeds and sugarcane.

Considering that Kharif paddy is an

important crop accounting for about 86 per

cent of total rice production and 36 per cent

of total foodgrains production in India, the

shortfall in its sowing could be expected to

depress the overall foodgrains production

during 2009-10.

I.6 The impact of the overall deficiency in

rainfall during South-West monsoon season

has to be assessed in the context of the pick

up in monsoon in the later part of August

and in September that could help standing

crops in improving their yield. Besides,

rainfall has been more deficient in the

irrigated belt of the country like Punjab and

(Million hectares)

Table 1.2: Progress of Area Sown under Kharif Crops: 2009-10

Crop Normal Area Area Coverage (as on October 16, 2009)

2008 2009 Absolute Percentagevariation change

1 2 3 4 5 6

Rice 39.2 38.8 32.7 -6.1 -15.7Coarse Cereals 23.0 20.6 20.7 0.1 0.3

of which: Bajra 9.7 8.5 8.5 0.0 0.2 Jowar 3.9 2.9 3.1 0.2 6.6 Maize 6.8 7.1 7.1 0.1 0.9Total Pulses 11.2 9.6 10.1 0.5 5.6Total Oilseeds 16.9 18.4 17.5 -1.0 -5.2

of which: Groundnut 5.4 5.3 4.4 0.9 -16.6 Soyabean 7.8 9.6 9.6 0.0 -0.2Sugarcane 4.4 4.4 4.3 -0.1 -2.9Cotton 8.7 8.5 9.6 1.1 13.4Jute 0.8 0.7 0.7 0.0 -2.0

All Crops 104.2 101.1 95.7 -5.4 -5.4

Source : Ministry of Agriculture, Government of India.

MONETARY POLICY

STATEMENT 2009-10



Haryana where availability of irrigation,

particularly in the snow fed Northern river

basin could offset some of the potential loss

in output. Shortfall in rice sowing during this

kharif is being partly compensated in some

parts of the country by sowing of short

duration Boro rice (post kharif) and shortfall

in groundnut sowing is being partly offset

by sowing of Toria that could be sown even

in the late kharif season. Moreover, delayed

withdrawal of South-West monsoon augurs

well for rabi crops, particularly winter wheat

and oilseeds on account of high moisture

retention in the soil. In addition, Indian

agriculture is substantially diversified now.

Kharif ‘cereals, pulses and oilseeds’

contribute only around 20 per cent to total

agricultural output. Rabi contributes another

20 per cent to the overall agricultural GDP.

The balance 60 per cent comes from allied

sector comprising of horticulture, livestock

and fisheries, which has been growing at

above 5 per cent during last few years.

I.7 Moreover, in recent years, the share of

rabi output in total foodgrains production has

been increasing and during 2008-09, the rabi

accounted for almost half of the overall

foodgrains production. During 2008-09,

despite shortfall in kharif sowing (-2.3 per

cent), the foodgrains production touched an

all-time peak, mainly because of higher rabi

sowing (2.9 per cent), which compensated for

the loss in kharif output (Chart I.3). In view

of the drought like situation prevailing in

some of the States, the Government of India

has initiated several timely measures to

overcome the shortfall in kharif production,

which include provision of incentives for

supplemental irrigation facilities via the

diesel subsidy in States having more than 50

per cent deficiency in rainfall; planned

efforts to increase rabi production through

ensuring availability of seeds, fertilisers and

other inputs to farmers and issuing several

policies/advisories with regard to water

conservation techniques and providing

flexibility to States in the use of funds under

various central schemes. In view of the

above, there is a possibility of rabi production

compensating somewhat for the loss in

kharif output as in the previous year,

provided that North-East monsoon and

climatic conditions remain favourable during

the rabi season of 2009-10.


MONETARY POLICY

STATEMENT 2009-10



I.8 According to IMD, during the Post

Monsoon Season (October-December)

cumulative rainfall for the period October

1 to 21, 2009 was 12 per cent above normal

as compared with 40 per cent below normal

during the corresponding period of the

previous year. The spatial distribution of

rainfall reveals that of the 36 meteorological

sub-divisions, cumulative rainfall was

excess/normal in 26 sub-divisions (5 sub-

divisions last year).

I.9 According to the Fourth Advance

Estimates, the total foodgrains production

during 2008-09 reached to a record level of

233.9 million tonnes, about 3 million tonnes

higher than the previous year (Table 1.3).

The increase in foodgrains production could

be mainly attributed to increase in the

output of rice and wheat.

Food Management

I.10 The procurement of rice and wheat

during 2009-10 (up to October 20, 2009) was

higher than that in the corresponding period

of the previous year (Table 1.4). As a result,

the total stock of foodgrains with the Food

Corporation of India (FCI) and other

Government agencies reached a peak of 54.8

million tonnes as on June 1, 2009. Since

then, the stocks have declined on account

of off-take being higher than the

procurement and were at 44.3 million

tonnes as on October 1, 2009. The stocks of

both rice and wheat are, however, much

higher than their norms.

Industrial Performance

I.11 During the current financial year,

industrial production has exhibited

recovery from the loss of growth

momentum witnessed during the second

half of 2008-09. After a short phase of

deceleration, the industrial growth turned

negative in December 2008 and thereafter

turned positive, but remained depressed till

the end of 2008-09. Since April 2009, the

recovery has been more visible and

industrial output clocked double digit

growth in August 2009, which is the highest

recorded since November 2007. The growth

in industrial production at 5.8 per cent

during the current financial year 2009-10

(April-August) exceeded the growth

recorded during the corresponding period

of previous year (4.8 per cent) on account of

higher growth in June-August 2009 (Chart I.4

and Table 1.5). The recovery in industrial

Table 1.3: Agricultural Production

(Million tonnes)

Crop 2007-08 2008-09@

1 2 3

Rice 96.7 99.2

Kharif 82.7 84.6

Rabi 14.0 14.6

Wheat 78.6 80.6

Coarse Cereals 40.8 39.5

Kharif 31.9 28.3

Rabi 8.9 11.1

Pulses 14.8 14.7

Kharif 6.4 4.8

Rabi 8.4 9.9

Total Foodgrains 230.8 233.9

Kharif 121.0 117.7

Rabi 109.8 116.2

Total Oilseeds 29.8 28.2

Kharif 20.7 17.9

Rabi 9.0 10.3

Sugarcane 348.2 271.3

Cotton # 25.9 23.2

Jute and Mesta ## 11.2 10.4

@ : Fourth Advance Estimates.

# : Million bales of 170 kgs. each.

##: Million bales of 180 kgs. each.


MONETARY POLICY

STATEMENT 2009-10



growth has been broad based with

acceleration in growth of all the three

sectors, viz., mining, electricity and

manufacturing. The acceleration in the

manufacturing sector in April-August 2009

was on account of increase in the production

(Million tonnes)

Month Opening Stock of Procurement of Foodgrains Off-take Clos- Norms

Foodgrains Foodgrains ing

Rice Wheat Total Rice Wheat Total PDS OWS OMS- Expo- Total Stock

Dome- rts

stic

1 2 3 4 5 6 7 8 9 10 11 12 13 14

2008-09 13.8 5.8 19.8 32.8 22.7 55.5 34.9 3.4 1.2 0.0 39.5 35.6

2009-10@ 21.6 13.4 35.6 11.1 25.4 36.5 14.3 0.9 0.0 0.0 15.2 N.A.(13.8) (5.8) (19.8) (11.3) (22.7) (33.9) (11.2) (0.9) (0.0) (0.0) (12.1) N.A.

2008

January 11.5 7.7 19.2 4.5 0.0 4.5 2.9 0.3 0.0 0.0 3.2 21.4 20.0April 13.8 5.8 19.8 1.1 14.2 15.3 2.7 0.0 0.0 0.0 2.8 30.7 16.2

2009

January 17.6 18.2 36.2 4.8 0.0 4.8 3.0 0.2 0.3 0.0 3.4 37.4 20.0

February 20.2 16.8 37.4 3.7 0.0 3.7 3.0 0.3 0.2 0.0 3.6 37.1

March 21.3 15.3 37.1 2.3 0.0 2.3 2.9 0.4 0.0 0.0 3.9 35.6

April 21.6 13.4 35.6 1.4 19.4 20.8 3.3 0.2 0.0 0.0 3.5 51.8 16.2

May 21.4 29.8 51.8 1.9 4.4 6.4 3.6 0.2 0.0 0.0 3.9 54.8

June 20.4 33.1 54.8 1.3 1.1 2.4 3.3 0.4 0.0 0.0 3.7 53.2

July 19.6 32.9 53.2 1.4 0.4 1.8 N.A. N.A. N.A. N.A. N.A. 51.0 26.9

August 18.8 31.6 51.0 0.8 0.0 0.8 N.A. N.A. N.A. N.A. N.A. 47.8

September 17.2 30.1 47.8 0.4 0.1 0.5 N.A. N.A. N.A. N.A. N.A. 44.3

October* 15.4 28.5 44.3 4.0 0.0 4.0 N.A. N.A. N.A. N.A. N.A. N.A. 16.2

PDS: Public Distribution System. OWS: Other Welfare Schemes. OMS : Open Market Sales. N.A.: Not Available.

@ : Procurement up to October 20, Off-take up to July 31. * : Procurement up to October 20.

Note : 1. Closing stock figures may differ from those arrived at by adding the opening stocks and procurement anddeducting off-take, as stocks include coarse grains also.

2. Figures in parenthesis indicate procurement/offtake of foodgrains during corresponding period of 2008-09.

Source : Ministry of Consumer Affairs, Food and Public Distribution, Government of India.

Table 1.4: Management of Food Stocks


MONETARY POLICY

STATEMENT 2009-10



of ‘rubber, plastic, petroleum products’,

‘textile products’, ‘wool, silk and man-made

fibre textiles’, ‘wood and wood products’,

‘machinery and equipment other than

transport equipment’, ‘non-metallic mineral

products’, ‘basic metal and alloy industries’,

‘leather and leather fur products’ and ‘other

manufacturing industries’ (Table 1.6).

Negative Deceleration Acceleration

1 2 3 4

1. Food Products Transport equipment and parts Wood and wood products;furnitures and fixtures

2. Jute and other vegetable fibre Chemicals and chemical products Non-metallic mineral productstextiles (except cotton)

3. Metal products and parts Paper and paper products Textile products

4. Beverages, tobacco and related Cotton textiles Rubber, plastic, petroleum andproducts coal products

5. Other manufacturing industries

6. Wool, silk and man-made fibretextiles;

7. Basic metal and alloy industries8 Machinery and equipment

9. Leather and fur products

Combined 14.9 23.5 41.0Weight inthe IIP

Table 1.6: Performance of Manufacturing Industry Groups (April-August 2009-10)

Table 1.5: Index of Industrial Production: Sectoral and Use-BasedClassification of Industries

(Per cent)

Industry Group Weight in Growth Rate Weighted Contribution #

the IIP April-March April-August April-March April-August

2008-09 2008-09 2009-10 P 2008-09 2008-09 2009-10 P

1 2 3 4 5 6 7 8

Sectoral

Mining 10.5 2.6 3.5 8.4 6.3 4.8 9.3

Manufacturing 79.4 2.7 5.1 5.5 85.3 91.1 81.2

Electricity 10.2 2.8 2.3 6.6 8.3 4.0 9.5

Use-Based

Basic Goods 35.6 2.6 3.7 6.7 28.4 23.0 34.5

Capital Goods 9.3 7.3 8.3 3.2 34.1 20.6 6.8

Intermediate Goods 26.5 -1.9 1.0 9.2 -18.4 5.5 41.5

Consumer Goods (a+b) 28.7 4.7 7.6 3.1 54.2 49.2 17.4

a) Consumer Durables 5.4 4.5 5.7 18.1 12.4 8.9 23.8

b) Consumer Non-durables 23.3 4.8 8.3 -1.5 41.7 40.3 -6.4

General 100.0 2.7 4.8 5.8 100.0 100.0 100.0

P : Provisional. # : Figures may not add up to 100 due to rounding off.Source: Central Statistical Organisation.

MONETARY POLICY

STATEMENT 2009-10



I.12 In terms of use-based classification,

while there was noticeable acceleration in

basic and intermediate goods segments, the

performance of capital and consumer goods

still remained sluggish during April-August

2009-10 over the corresponding period of

last year. The continuous rise in

intermediate goods production indicates

pick up in upstream industries and strength

in inventory investments. The growth in

the capital goods sector, which recovered

with robust growth in June 2009 from

negative territory during March-May 2009,

fell sharply in July 2009, before recouping

subsequently with buoyant growth in

August 2009. Despite robust growth in the

durables goods segment, the growth in the

consumer goods remained weak during

April-August 2009-10, reflecting mainly the

contraction in non-durables output. Non-

durables segment has, however, displayed

recovery with positive growth in June-

August 2009.

I.13 Out of 17 two-digit manufacturing

industry groups, eight industry groups

accounting for 38.4 per cent weight in the

IIP recorded decelerated/negative growth

during April-August 2009-10 (Table 1.7).

I.14 The basic goods sector has manifested

steady acceleration during April-August

2009-10, mainly on account of improved

performance in electricity, non-metallic

mineral products like cement and basic

metals. After decline in growth for seven

consecutive months (August 2008 to

February 2009), intermediate goods sector

has recovered strongly since March 2009

and showed a double digit growth in August

2009. Demand seems to have picked up in

2009-10 for intermediate products such as

‘wool, silk and man-made fibre textiles’,

‘wood and wood products’, ‘non metallic

mineral products’, ‘metal products and parts

except machinery equipment’ and

‘machinery and equipment other than

transport equipment. On the contrary, the

sharp deceleration in the growth witnessed

in the capital goods sector in April-August

2009 as compared to the same period last

year has been on account of lower growth

in production of ‘machinery and equipment

other than transport equipment’ and

‘transport equipment and parts’. The trend

in production of capital goods has been

volatile, reflecting some uncertainty in

investment outlook and the competition

from imports.

I.15 The positive growth in consumer non-

durables during July and August 2009 was

on account of ‘cotton textiles’, ‘wool and

man-made fibre textiles’, ‘paper and paper

products’, ‘leather and fur products’,

‘rubber, plastic, petroleum and coal

products’ and ‘machinery and equipment

other than transport equipment’. The

trends in consumer durables show steady

rise in production since January 2009

driven by the production of giant tubes,

tractor tyres, window type air

conditioners, refrigerators, washing/

laundry machines, electric fans, telephone

instruments, TV receivers, passenger cars,

motor cycles, etc.

Infrastructure

I.16 During the current financial year 2009-

10 (April-August), the core infrastructure

sector recorded higher growth at 4.8 per

cent compared to 3.3 per cent during the



MONETARY POLICY

STATEMENT 2009-10



Table 1.7: Growth of Manufacturing Industry Groups

(Per cent)

Industry Group Weight in Growth Rate Weighted Contribution #

the IIP

April-March April-August April-March April-August2008-09

2008-09 2009-10 P2008-09

2008-09 2009-10 P

1 2 3 4 5 6 7 8

1. Food products 9.08 -9.7 -2.5 -12.6 -28.1 -3.1 -13.7

2. Beverages, tobacco and

related products 2.38 16.2 22.2 -3.3 30.7 22.7 -3.6

3. Cotton textiles 5.52 -1.9 1.2 0.7 -2.8 1.0 0.5

4. Wool, silk and man-made

fibre textiles 2.26 0.0 -1.2 11.9 0.0 -0.7 5.8

5. Jute and other vegetable

fibre textiles (except cotton) 0.59 -10.1 -6.5 -16.4 -1.1 -0.4 -0.9

6. Textile products

(including wearing apparel) 2.54 5.7 4.7 9.5 6.9 3.1 5.9

7. Wood and wood products,

furniture and fixtures 2.70 -9.6 -6.7 11.8 -5.3 -2.1 3.0

8. Paper and paper products

and printing, publishing and

allied Industries 2.65 1.9 3.1 2.7 2.0 1.9 1.5

9. Leather and leather and

fur products 1.14 -6.9 0.8 1.3 -2.1 0.1 0.2

10. Chemicals and chemical

products (except products of

petroleum and coal) 14.00 4.1 8.1 5.0 29.0 31.8 18.9

11. Rubber, plastic, petroleum and

coal products 5.73 -1.5 -4.2 13.2 -3.5 -5.3 14.1

12. Non-metallic mineral products 4.40 1.2 0.7 7.6 2.7 0.9 8.5

13. Basic metal and alloy industries 7.45 4.0 6.6 7.1 14.8 13.2 13.3

14. Metal products and parts

(except machinery and

equipment) 2.81 -4.0 -0.8 -0.2 -3.1 -0.3 -0.1

15. Machinery and equipment other

than transport equipment 9.57 8.8 8.3 9.5 53.2 26.1 28.7

16. Transport equipment and parts 3.98 2.5 11.2 9.1 6.1 14.1 11.3

17. Other manufacturing industries 2.56 0.4 -4.0 10.8 0.6 -2.9 6.6

Manufacturing – Total 79.36 2.7 5.1 5.5 100.0 100.0 100.0

P: Provisional. # : Figures may not add up to 100 due to rounding off.

Source: Central Statistical Organisation.

led by acceleration in coal, cement, and

electricity (Chart I.5). The production of

crude oil and petroleum refinary products,

however, recorded a decline. The

production of finished steel witnessed

decelerated growth during the period

(Chart I.6).

Services Sector

I.17 The services sector recorded a lower

growth of 7.7 per cent during the first

quarter of 2009-10 compared with the

double digit growth of 10.0 per cent during

the corresponding period of last year. The

MONETARY POLICY

STATEMENT 2009-10



growth in sub-sectors such as ‘trade, hotels,

transport and communication’ and

‘construction’, exceeded the growth in the

preceding two quarters but remained lower

than the first quarter of 2008-09. However,

‘financing, insurance, real estate and

business services’ recorded acceleration in

growth compared to the first quarter of

2008-09, reflecting the improved conditions

in the financial markets (see Table 1.1).

I.18 The slowdown in the services sector is

reflected in its contribution to real GDP

growth, which receded to 4.9 per cent in the

first quarter of 2009-10 from 6.3 per cent


previous year (Table 1.8).

I.19 The lead indicators of services sector

activity for 2009-10, so far, suggest decline

in growth in respect of foreign tourist

arrivals and production of commercial

vehicles, while most of the other lead

indicators pertaining to transport services

also display a subdued outlook. The

production of cement has, however, shown


MONETARY POLICY

STATEMENT 2009-10



a turnaround along with some buoyancy in

steel output, indicating growing momentum

in construction activities. There is also pick

up in the growth in respect of passengers

handled at domestic terminals (Table 1.9).

Telecommunication services remain

buoyant on considerable growth in the cell

phone connections.

Table 1.9: Indicators of Services Sector Activity

(Growth in per cent)

April-September

2007-08 2008-09 2008-09 2009-10

1 2 3 4 5

Tourist arrivals 12.2 -2.5 8.9 -2.8

Commercial vehicles production# 4.8 -24.0 4.4 -7.4

Railway revenue earning freight traffic 9.0 4.9 18.9 7.5

Cell phone connections^ 38.3 44.8 24.9 62.3

Cargo handled at major ports^ 12.0 2.1 8.4 1.8

Civil aviation

Export cargo handled^ 7.5 3.4 7.7 1.5

Import cargo handled^ 19.7 -5.7 6.2 -9.3

Passengers handled at international terminals^ 11.9 3.8 7.8 1.8

Passengers handled at domestic terminals^ 20.6 -12.1 -5.1 2.4

Cement ## 7.8 7.5 5.0 13.5

Steel ## 6.8 0.6 3.5 2.6

# : Leading Indicator for Transportation.

^ : Data for 2009-10 pertains to April-August.

## : Leading Indicator for construction and data for 2009-10 pertains to April-August.

Source : Ministry of Tourism; Ministry of Commerce and Industry; Ministry of Statistics and Programme

Implementation; Reserve Bank of India; and Centre for Monitoring Indian Economy.

Table 1.8: Contribution of Services to Real GDP Growth

(Per cent)

Year/Quarter Construction Trade, Hotels, Financing, Insurance, Community, Social Total Services

Transport and Real Estate and and Personal

Communication Business Services Services

1 2 3 4 5 6

2005-06 1.1 3.0 1.5 1.0 6.7

2006-07 0.8 3.5 1.9 0.8 6.9

2007-08 0.7 3.4 1.7 0.9 6.7

2008-09 RE 0.5 2.5 1.1 1.7 5.9

2008-09 : Q1 0.6 3.5 1.0 1.0 6.3

: Q2 0.7 3.4 1.0 1.3 6.4

: Q3 0.3 1.6 1.2 2.7 5.7

: Q4 0.5 1.8 1.3 1.7 5.4

2009-10 : Q1 0.5 2.3 1.2 0.9 4.9

RE : Revised Estimates.

Source: Central Statistical Organisation.

MONETARY POLICY

STATEMENT 2009-10



I.20 In sum, the aggregate supply conditions

as reflected in the growth of GDP indicate

that although there is a recovery from the

slowdown of the second half of 2008-09, the

pace of revival remains subdued. The

deficient and uneven precipitation during

the South-West monsoon season coupled

with recent floods in some States have

considerably increased the downside risks

for the kharif production during 2009-10.

Nonetheless, given the recent past

experience and the proactive measures

already initiated by the Government, the

rabi production may partly reverse the

shortfall in kharif production, if climatic

and North-East monsoon conditions remain

favourable during the rabi season. During

the current financial year 2009-10 (April-

August), the industrial production has

staged a recovery (5.8 per cent) from the loss

of growth momentum that it witnessed

during the second half of 2008-09. Similarly,

the core infrastructure sector during 2009-

10 (April-August) has also displayed higher

growth (4.8 per cent) over the comparable

period last year, underpinned by

considerable acceleration in coal, cement,

and electricity. Some of the lead indicators

for the services sector also show signs of

momentum in growth.


MONETARY POLICY

STATEMENT 2009-10



II.1 The contagion from the global crisis

operating through the confidence channel

has dampened the private consumption and

investment demand and the impact

persisted even in the first quarter of 2009-10,

when the growth in private consumption

demand fell to one of the lowest levels.

While the real GDP growth measured from

the demand side was higher during the first

quarter of 2009-10, at 6.0 per cent, than the

preceding two quarters, the improvement

largely resulted from a sharper contraction

in imports than in exports, which led to a

II. Aggregate Demand Aggregate demand, which had moderatedconsiderably in 2008-09, remainedsluggish during the first quarter of 2009-10. Private consumption and investmentdemand continued to decelerate during thefirst quarter of 2009-10, with the formerregistering the lowest quarterly growth inrecent years. Government consumptionexpenditure growth, which had risensharply in the third and fourth quartersof 2008-09, moderated during the firstquarter of 2009-10, but continued toremain in double-digits. During April-August, 2009 the key deficit indicators ofthe Central Government, viz., revenuedeficit and fiscal deficit, were significantlyhigher than during the correspondingperiod of the previous year, reflecting thecombined impact of slowdown induceddecline in revenue receipts and increase inpublic expenditure consistent withexpansionary fiscal stance. Corporate sectordata indicate modest decline in salesgrowth during the first quarter of 2009-10, although profit margins improved.

MONETARY POLICY

STATEMENT 2009-10



reversal in the share of net exports in GDP

from negative to positive. The domestic

component of demand continued to remain

weak during the first quarter of 2009-10.

Private consumption demand decelerated

sharply to 1.6 per cent, which is the lowest

growth in recent years. This deceleration is

significant in the context of the high share

of private consumption demand in the

aggregate demand (i.e., 55.6 per cent during

the first quarter of 2009-10). The growth in

investment demand, as could be inferred

from the behavior of gross fixed capital

formation, was less than half of that

registered in the corresponding period of

the preceding year. Growth in government

consumption expenditure continued to

remain in double digits, but was

substantially lower than the high growth

that was witnessed in the third and fourth

quarters of 2008-09. In view of its lower

share in aggregate demand, government

final consumption expenditure could not

fully compensate for the adverse impact of

private consumption and investment

demand on the overall consumption

expenditure. Key deficit indicators of the

Central Government, viz., the revenue

deficit and the gross fiscal deficit during

April-August 2009 were lower, as

proportions to budget estimates, than in the


Corporate performance remained subdued,

and the impact of moderation in demand

was visible in the decline in sales growth in

the first quarter of 2009-10. Gross profits,

however, increased after two consecutive

quarters of decline, mainly due to lower

input and operating costs and higher non-

core income. Net exports turned positive

despite the continued decline in exports,

mainly on account of the sharper

contraction in imports1.

Domestic Demand

II.2 Domestic demand in the form of private

consumption expenditure and investment,

which had moderated in 2008-09, continued

to decelerate in the first quarter of 2009-10,

reflecting weak domestic demand as a

constraint to faster recovery. According to the

data released by the Central Statistical

Organisation (CSO) for the first quarter of

2009-10, private final consumption

expenditure (PFCE) and gross fixed capital

formation (GFCF) witnessed sharp

deceleration in growth as compared with the

corresponding period in 2008-09 (Table 2.1

and Chart II.1). The deficient monsoon could

have further weakened private consumption

demand since the first quarter of 2009-10,

through the adverse effect on rural demand.

The decline in credit card and consumer

durables related credit also point to

persistence of weak consumption demand.

II.3 Growth in government final

consumption expenditure which had

increased considerably in response to policy

driven fiscal stimulus aimed at cushioning

the impact of contraction in other sectors

in 2008-09, registered a double digit growth

in the first quarter of 2009-10, which though

represents a deceleration over the previous

two quarters.

1 Net exports data reported in the GDP for the first

quarter of 2009-10 (at constant prices) differ from net

exports in the balance of payments (BoP) data for the first

quarter because of : (a) release of BoP data after the GDP

data and hence use of estimates of services in the GDP

data and (b) use of deflators for arriving at net exports at

constant prices, as at current prices the differences are

primarily because of (a).


MONETARY POLICY

STATEMENT 2009-10



II.4 In terms of share, the private final

consumption expenditure decreased to 55.6

per cent from 58.0 per cent during the

corresponding period of 2008-09 (Table 2.1).

Combined Budgeted Finances: 2009-10

II.5 An overview of the combined finances

of the Central and State Governments

budgeted for 2009-10 indicates that the key

Table 2.1: Demand side of GDP (1999-2000 Prices)

(Per cent)

Item 2007-08* 2008-09# 2008-09 2009-10

Q1 Q2 Q3 Q4 Q1

1 2 3 4 5 6 7 8

Growth Rates

Real GDP at market prices 9.1 6.1 8.2 7.8 4.8 4.1 6.0

Total Consumption Expenditure 8.3 5.4 3.8 2.1 9.0 6.1 2.8

(i) Private 8.5 2.9 4.5 2.1 2.3 2.7 1.6

(ii) Government 7.4 20.2 -0.2 2.2 56.6 21.5 10.2

Gross Fixed Capital Formation 12.9 8.2 9.2 12.5 5.1 6.4 4.2

Change in Stocks 51.7 2.9 6.0 5.6 1.4 -0.9 3.2

Exports 2.1 12.8 25.6 24.3 7.1 -0.8 -10.9

Less Imports 6.9 17.9 27.4 35.3 21.7 -5.7 -21.2

Relative shares

Total Consumption Expenditure 66.9 66.5 67.5 63.7 69.9 64.8 65.5

(i) Private 57.2 55.5 58.0 55.5 57.4 51.4 55.6

(ii) Government 9.8 11.1 9.6 8.3 12.5 13.4 9.9

Gross Fixed Capital Formation 31.6 32.2 32.2 34.5 30.9 31.6 31.6

Change in Stocks 3.1 3 3.2 3.2 2.9 2.9 3.1

Net Exports -4.3 -5.8 -1.3 -10.5 -8.5 -2.9 1.6

Memo: (Rupees crore)

Real GDP at market prices 34,02,716 36,09,425 8,33,631 8,49,247 9,45,121 9,81,427 8,83,489

* : Quick Estimates # : Revised Estimates.Note : As only major items are included in the table, data will not add up to 100.Source : Central Statistical Organisation.

MONETARY POLICY

STATEMENT 2009-10



deficit indicators as per cent of GDP would

remain at the elevated levels as in 2008-09

(Table 2.2). This increase in the combined

deficits reflects the continuation of

expansionary fiscal stance adopted by both

the Central and State Governments to

contain economic slowdown. Though the

growth in total expenditure would moderate

somewhat from the previous year, the non-

developmental component is budgeted to

increase substantially. The total

expenditure as a per cent of GDP is thus

slated to increase further. Growth in tax

collections, on the other hand, would

decelerate further on account of indirect tax

cuts and the continued moderation in

economic growth. As a result, the combined

revenue receipts as a per cent of GDP is

budgeted to decline in 2009-10 over 2008-09,

even though the non-tax receipts as a

percentage of GDP would increase to 4.2 per

cent from 3.8 per cent. Consequently, the

combined revenue deficit and fiscal deficit

as percent of GDP in 2009-10 would increase

by 1.1 and 1.3 percentage points to 5.5 per

cent and 10.2 per cent, respectively.

Central Government Finances

II.6 Available information on Central

Government finances for the first five

months of 2009-10 (April-August) from the

Controller General of Accounts indicates

that both revenue deficit and gross fiscal

deficit (GFD) were substantially higher, in

absolute terms, than the corresponding

period of previous year, but were lower as

proportions of budget estimates (Chart II.2a

and b and Table 2.3).

Table 2.2: Key Fiscal Indicators

(Per cent to GDP)

Year Primary Deficit Revenue Deficit Gross Fiscal Deficit Outstanding Liabilities*

1 2 3 4 5

Centre

2007-08 -0.9 1.1 2.7 60.1

2008-09 RE 2.5 4.4 6.0 58.9(2.6) (4.6) (6.2)

2009-10 BE 3.0 4.8 6.8 59.7

States

2007-08 # -0.6 -0.9 1.5 27.8

2008-09 # RE 0.7 -0.1 2.7 27.1

2009-10 # BE 1.4 0.6 3.4 27.5

Combined

2007-08 -1.3 0.2 4.2 75.1

2008-09 RE 3.5 4.4 8.9 74.7

2009-10 BE 4.5 5.5 10.2 76.6

RE : Revised Estimates. BE : Budget Estimates.

* : Includes external liabilities at historical exchange rates.

# : Data pertain to 27 State Governments of which two are Vote-on-Accounts.

Note: 1. Negative sign indicates surplus.

2. Figures in parentheses relate to provisional accounts.

3. Excludes issuances of special bonds to oil/FCI/fertiliser companies amounting to 0.8 per cent in 2007-08,1.8 per cent of GDP in 2008-09 and 0.2 per cent in 2009-10.


MONETARY POLICY

STATEMENT 2009-10



II.7 The pattern of Central Government

finances during April-August 2009 showed

that net tax revenue as a proportion of

budget estimates was lower than in April-

August 2008, due to a sharp decline in gross

tax revenue in each of the five months, as

against an increase in the corresponding

period of the previous year. Reflecting the

impact of economic slowdown, collections

under direct taxes such as corporation tax

and income tax decelerated to single digit

growth in April-August 2009 as compared

Table 2.3: Central Government Finances during April-August 2009

Item April-August Percentages to Growth Rate(Rupees crore) Budget Estimates for (Per cent)

2008 2009 2008-09 2009-10 2008-09 2009-10

1 2 3 4 5 6 7

1. Revenue Receipts 1,61,511 1,57,198 26.8 25.6 24.5 -2.7i) Tax Revenue (Net) 1,25,436 1,06,837 24.7 22.5 26.2 -14.8ii) Non-Tax Revenue 36,075 50,361 37.7 35.9 18.6 39.6

2. Non-Debt Capital Receipts 1,203 3,835 8.2 71.7 -69.5 –

3. Non-Plan Expenditure 1,92,962 2,45,275 38.0 35.3 18.0* 27.1

of which :

(i) Interest Payments 65,841 72,133 34.5 32.0 4.4 9.6(ii) Defence 24,811 41,129 23.5 29.0 6.1 65.8(iii) Major Subsidies 51,780 54,193 77.2 51.1 72.4 4.7

4. Plan Expenditure 86,642 98,048 35.6 30.2 19.8 13.2

5. Total Expenditure 2,79,604 3,43,323 37.2 33.6 18.6 * 22.8

6. Revenue Expenditure 2,59,390 3,12,283 39.4 34.8 19.2 20.4

7. Capital Expenditure 20,214 31,040 21.8 25.1 10.8 * 53.6

8. Revenue Deficit 97,879 1,55,085 177.4 54.9 11.4 58.4

9. Fiscal Deficit 1,16,890 1,82,290 87.7 45.5 14.5 56.0

10. Gross Primary Deficit 51,049 1,10,157 -88.8 62.8 30.6 –

* : Growth rate is worked out after netting out acquisition cost of Reserve Bank’s Stake in SBI in June 2007.Source: Controller General of Accounts, Ministry of Finance, Government of India.

MONETARY POLICY

STATEMENT 2009-10



with significantly high growth registered

during April-August 2008. While revenue

from customs declined over the same period

due to the sharp fall in imports, revenue from

excise duties declined due to tax cuts and

fall in domestic sales. Non-tax revenue

registered a growth of nearly 40 per cent over


year, with the transfer of surplus from the

Reserve Bank accounting for about 50 per

cent of the total non-tax revenue. Despite the

substantial increase in the growth of non-tax

revenue, revenue receipts recorded a decline

in April-August 2009 over the corresponding

period of the preceding year.

II.8 Revenue expenditure increased at a

higher rate during April-August 2009 than

during April-August 2008, mainly on

account of higher expenditure on interest

payments, food subsidies, defence revenue

expenditure and pensions (Chart II.3a).

While higher interest payments were

mainly due to the large borrowing

undertaken in 2008-09, increased salary

payout under the Sixth Pay Commission

Award raised the expenditure under

defence and pensions. Total revenue

expenditure as a proportion of budget

estimates was, however, lower than the


Thus, revenue deficit during the first five

months of 2009-10 was substantially lower

at 54.9 per cent of budget estimates as

compared with 177.4 per cent during the


II.9 During April-August 2009, capital

expenditure registered a high double-digit

growth (Chart II.3b). While defence capital

expenditure registered nearly a three-fold

increase, non-defence capital outlay was

high in railways. Aggregate expenditure

during April-August 2009 accelerated over

April-August 2008 but accounted for a lower

share of budget estimates. GFD during the

same period was 45.5 per cent of the budget

estimates as compared with 87.7 per cent

during April-August 2008. The Centre

recorded a large gross primary deficit of 62.8

per cent of budget estimates during the first

five months of 2009-10.

II.10 According to the latest available data,

direct tax collections during the current

financial year (up to end-September 2009)


MONETARY POLICY

STATEMENT 2009-10



registered a growth of 3.7 per cent over the

same period of last fiscal year. While

corporate tax collections grew by 5.6 per

cent, collections under personal income tax

(including security transaction tax)

increased by 0.38 per cent. Advance tax

collections were reported to have been

higher during the second quarter of 2009-

10 than the preceding quarter of the year.

State Finances: 2009-102

II.11 The fiscal correction and consolidation

witnessed till 2007-08 reversed somewhat

during 2008-09 on account of the economic

slowdown. The consolidated revenue

account of the State Governments is

budgeted to turn into deficit of 0.6 per cent

of GDP during 2009-10, after being in

surplus in the previous three years, due to

the sluggishness in own tax collections and

devolution from the Centre along with

higher expenditure commitment to

implement recommendations of the Sixth

Pay Commission by many of the State

Governments. As a result, GFD is budgeted

to be higher at 3.4 per cent of GDP as

compared with 2.7 per cent in 2008-09 (RE).

The consolidated primary deficit is

budgeted to increase to 1.4 per cent of GDP

in 2009-10 from 0.7 per cent in 2008-09 (RE)

(Table 2.2).

II.12 Keeping in view the need for spurring

aggregate demand in the economy, the

Central Government allowed the States to

raise additional market borrowings of 0.5 per

cent of Gross State Domestic Product (GSDP),

thus increasing the limit of GFD to 4.0 per

cent of GSDP during 2009-10 (3.5 per cent of

GSDP during 2008-09). However, the

aggregate expenditure of States at

consolidated level is budgeted to rise by 12.2

per cent in 2009-10 (BE) as compared with

26.0 per cent during 2008-09 (RE).

Corporate Performance

II.13 An analysis of the performance of

select non-financial non-government

companies showed that the sales growth,

that had been substantial in the first and

second quarters of 2008-09, witnessed sharp

deceleration post-September 2008 on

account of falling demand and confidence.

Sluggishness in demand and lower

commodity prices affected sales growth,

which turned negative in the first quarter

of 2009-10 (Table 2.4). Despite a fall in

revenues, corporates on an aggregate were

able to improve their performance largely

on account of higher profit margins, which,

in turn, were driven primarily by lower

input costs, significant deceleration in

interest payments, lower foreign exchange

related losses and high growth in non-core

other income. Improved margins in the first

quarter of 2009-10 also reflected the

corporate sector’s cost reduction initiatives

in response to the slowdown in economic

conditions that helped in controlling

operating expenses. The subdued sales and

improved profit performance in first quarter

was also partly on account of base effects,

as private corporate sector had posted

around 7 per cent profit growth during the

corresponding period last year, on the back

of 29.3 per cent growth in sales.

II.14 In terms of sectoral breakdown, the

slowdown in sales and profits performance

for companies in manufacturing sector was

more evident vis-à-vis those in information

2 Based on the budget documents of 27 State

Governments, of which two are vote on account.

MONETARY POLICY

STATEMENT 2009-10



technology and other services sectors. The

aggregate sales of manufacturing companies

that had decelerated sharply in third quarter

of 2008-09 in relation to increases in sales

in first two quarters, witnessed a modest

fall in the first quarter of 2009-10, reflecting

sluggishness in product prices and subdued

demand growth. The net profit margin,

measured as net income to sales ratio, which

was the lowest for manufacturing sector and

had declined to less than 5.0 per cent in the

third quarter of 2008-09, recovered to 9.2

per cent in the first quarter of 2009-10, as

operating conditions improved and interest

outflow decelerated considerably. In

comparison, companies in services sector

more or less maintained profit margins

despite the sales deceleration in the first

quarter of 2009-10.

II.15 Select non-financial listed government

(oil and non-oil) companies recorded 20.1 per

cent rise in net profits despite 24.3 per cent

decline in sales in the first quarter of 2009-

10. The overall performance was driven by

the performance of oil companies, for which

the net profit margin improved considerably

due to fall in interest payments, raw material

and staff costs, on the one hand and sizeable

rise in other income, on the other. The

operating margin for non-oil government

companies, however, declined as

expenditure outpaced sales.

External Demand

II.16 External demand continued to remain

adverse on account of the global recession

and decline in world trade volume,

(Growth Rate/Ratios in per cent)

Item 2007-08 2008-09 2008-09 2009-10

Q1 Q2 Q3 Q4 Q1

1 2 3 4 5 6 7 8

Sales 18.6 17.2 29.3 31.8 9.5 1.9 -0.9

Other Income* 62.2 6.6 -8.4 -0.6 -4.8 39.4 50.2

Expenditure 19.4 19.5 33.5 37.5 12.6 -0.5 -4.4

Depreciation provision 15.7 17.4 15.3 16.5 16.8 19.6 21.5

Gross profits 24.9 -4.2 11.9 8.7 -26.7 -8.8 5.8

Interest payments 29.4 57.3 58.1 85.3 62.9 36.5 3.7

Profits after tax 26.0 -18.4 6.9 -2.6 -53.4 -19.9 5.5

Select Ratios

Change in Stock-in-trade to Sales 1.9 0.4 2.9 2.2 -1.7 -1.8 0.6

Gross Profits to Sales 14.9 13.3 14.5 13.5 11.0 13.7 15.7

Profits After Tax to Sales 9.8 8.1 9.7 8.6 5.3 8.1 10.2

Interest to Sales 2.5 3.1 2.4 2.9 3.8 3.2 2.8

Interest to Gross Profits 16.8 23.6 16.8 21.5 34.6 23.3 18.0

Interest coverage (Times) 5.8 4.2 6.0 4.6 2.9 4.3 5.6

* : Excludes extraordinary income/expenditure if reported explicitly.

Notes: 1. Data for 2007-08 is based on audited financial accounts; data for 2008-09 and 2009-10 are based on

abridged financial results of the select non-government non-financial public limited companies.

2. Growth rates are percentage changes in the level for the period under reference over the corresponding

period of the previous year for common set of companies.

Table 2.4: Corporate Sector - Financial Performance


MONETARY POLICY

STATEMENT 2009-10



notwithstanding the recent signs of

recovery. In the first quarter of 2009-10,

India’s imports of goods and services

contracted faster than exports, and as a

result net exports, which had negative

contribution to GDP in the previous

quarters, turned positive (Table 2.1).

Information on net exports beyond the first

quarter of 2009-10 could be partially

inferred from the behavior of merchandise

trade. Merchandise trade deficit during

April-August 2009 stood at US $ 38.2 billion,

which was lower by 37.1 per cent than US $

60.7 billion in April-August 2008, due to

relatively larger year-on-year decline in

imports than exports during the period. A

detailed discussion on the external demand

conditions is set out in Chapter III.

II.17 On balance, aggregate demand

continues to remain weak, notwithstanding

the role of policy stimulus in providing

support to private demand. Growth in

private consumption demand decelerated

so sharply during the first quarter of 2009-

10 that it could be reasonable to expect

considerable revival from that level in

subsequent quarters. Consumption could

also be expected to improve in the current

fiscal year on account of continuation of the

expansionary fiscal policy, particularly

higher expenditure under the National Rural

Employment Guarantee Scheme (NREGS)

and disbursement of remaining arrears of

Sixth Pay Commission award which could

stimulate private consumption. The drought

could adversely affect agricultural income

and hence rural spending but higher

minimum support price announced by the

Government in August 2009 could help in

moderating any deceleration in rural

demand. Investment demand could pick up

in the near term with a lag, in line with the

improved domestic business sentiments,

favourable domestic capital market

conditions, signs of revival in global capital

markets and reduced risk premia.

MONETARY POLICY

STATEMENT 2009-10



III.1 The external economic environment

improved in the recent months with

emerging signs of recovery from the global

recession, though recession like conditions

still persist and the outlook for the global

economy points to a slow paced recovery.

The balance of payments transactions of the

countries, which were severely disrupted by

the crisis induced shocks to every important

channel of globalisation, are yet to recover

to normal levels. India’s balance of payments

had exhibited resilience to the channels of

III. The External Economy The adverse impact of the global crisisoperating through the trade channelcontinued to depress India’s tradetransactions in 2009-10. In the first fivemonths of 2009-10, merchandise exportsand imports declined by 31.0 per cent and33.4 per cent (year-on-year), respectively.In India’s balance of payments for the firstquarter of 2009-10, while exports declined,imports increased over the precedingquarter, reflecting the increase in oil prices.As a result, the balance of paymentswitnessed a higher trade deficit over thepreceding quarter. Surplus in net invisibles,led by buoyant remittances, financed about78 per cent of the trade deficit. The currentaccount, as a result, remained in deficit ofUS$ 5.8 billion. Return of capital inflowsafter the phase of net outflows experiencedduring the last two quarters of 2008-09,however, ensured the financing of thedeficit without any loss of reserves.Including valuation gains and the SDRsallocated to India by the IMF, India’sforeign exchange reserves increased by US$32.8 billion during 2009-10 to US$ 284.8billion as on October 16, 2009.


MONETARY POLICY

STATEMENT 2009-10



contagion, which is evident from a current

account deficit of 2.6 per cent of GDP and a

reserve loss (net of valuation) of US$ 20.1

billion during 2008-09. In 2009-10, while the

year-on-year decline in exports and imports

continued, remittance related inflows

remained buoyant and return of capital

inflows has also reversed the pattern that was

experienced in the capital account during the

last two quarters of 2008-09.

International Developments

III.2 The global economy exhibited early

signs of end of the recession with several

advanced economies recording modest

positive growth in the second quarter of

2008-09, while the pace of contraction in

output declining significantly in others. The

pace of global recovery, however, continues

to be uncertain, given the fact that the

recovery is still gaining support from the

unprecedented stimulus measures amidst

persisting stress in the financial systems of

advanced economies. After successive

rounds of downward revisions to the 2009

growth outlook from 3.9 per cent in July

2008 to -1.4 per cent in July 2009, the IMF

for the first time, revised the growth outlook

upwards to -1.1 per cent in October 2009.

China and India are expected to lead the

global recovery.

III.3 Following a contraction in the last

quarter of 2008 and the first quarter of 2009,

global growth turned positive in the second

quarter of 2009 bolstered by the strong

performance of the Asian economies and

stabilisation in other regions. Different

economies are at differing points of the

cycle. Although advanced economies

continue to be in recession with a growth

forecast of -3.4 per cent, the emerging and

developing economies are forecast to grow

by 1.7 per cent during 2009 (Table 3.1).

Emerging Asia is leading the global rebound,

with significant acceleration in growth in

the second quarter in China, Hong Kong,

Singapore and South Korea. In China, GDP

growth is estimated to have further

accelerated to 8.9 per cent in the third

quarter, supported by the substantial fiscal

stimulus and rapid increase in bank lending.

GDP growth in other Asian emerging-market

economies has also strongly recovered,

partly in response to policy stimulus.

III.4 Going forward, the global economy is

expected to make a modest recovery in

2010. In October 2009, the IMF revised its

growth forecast for world output for 2010

upwards to 3.1 per cent from 2.9 per cent

forecast in July 2009. The recovery is,

however, expected to be slow and there are

concerns about the prospect of long-term

damage to the potential growth path of the

world economy.

III.5 Although global economic prospects

continue to be uncertain, the risks to global

activity are overall viewed to be broadly

balanced. On the positive side, inventories

appear to be leaner, world trade seems to

be stabilising and capital flows are returning

to the emerging world. There are, however,

many challenges on the road to a sustained

global recovery. An important concern is

rising unemployment and associated

sluggish consumer spending.

III.6 A critical and complex issue that will

have a bearing on the global recovery relates

to appropriate timing and pace of exit from

the current unprecedented levels of

expansionary macroeconomic policies.

MONETARY POLICY

STATEMENT 2009-10



Table 3.1: Select Economic Indicators - World

Item 2007 2008 2009P 2010P

1 2 3 4 5

I. World Output (Per cent change) # 5.2 3.0 -1.1 3.1(3.8) (1.8) (-2.3) (2.3)

i) Advanced Economies 2.7 0.6 -3.4 1.3

ii) Other Emerging Market and Developing Countries 8.3 6.0 1.7 5.1

of which: Developing Asia 10.6 7.6 6.2 7.3

India 9.4 7.3 5.4 6.4

II. Consumer Price Inflation (Per cent)

i) Advanced Economies 2.2 3.4 0.1 1.1

ii) Other Emerging Market and Developing Countries 6.4 9.3 5.5 4.9

of which: Developing Asia 5.4 7.5 3.0 3.4

III. Net Capital Flows* (US$ billion)

i) Net Private Capital Flows (a+b+c)** 696.5 129.5 -52.5 28.3

a) Net Private Direct Investment 411.2 425.0 279.0 269.5

b) Net Private Portfolio Investment 88.1 -85.4 -99.8 -110.4

c) Net Other Private Capital Flows 197.1 -210.1 -231.6 -130.8

ii) Net Official Flows -69.5 -105.7 50.3 -14.2

IV. World Trade @

i) Trade Volume 7.3 3.0 -11.9 2.5

ii) Export Volume 7.4 2.8 -11.4 2.6

iii) Trade Price Deflator 8.1 11.2 -12.2 5.4

V. Current Account Balance (Per cent to GDP)

i) US -5.2 -4.9 -2.6 -2.2

ii) China 11.0 9.8 7.8 8.6

iii) India -1.0 -2.2 -2.2 -2.5

iv) Middle East 18.1 18.3 2.6 7.9

P : IMF Projections.

# : Growth rates are based on exchange rates at purchasing power parities. Figures in parentheses are growth rates atmarket exchange rates.

* : Net capital flows to emerging market and developing countries.

** : On account of data limitations, flows listed under ‘Net private capital flows’ may include some official flows.

@ : Average of annual percentage change for world exports and imports of goods and services.

Source : World Economic Outlook, October 2009, International Monetary Fund.

While early reversal of easy monetary policy

may thwart the incipient recovery, delaying

the exit can potentially fuel inflation and

inflationary expectations. That, in turn,

would push up interest rates, which would

militate against sustained growth. Different

timings of the exit from accommodative

monetary policy in different countries

would result in interest rate differentials,

with the resultant effects on capital flows

and exchange rates, which may have to be

managed prudently in emerging markets to

contain the adverse implications for growth

and inflation.

III.7 The OECD Economic Outlook

(September 2009) points to a recovery

earlier than what was envisaged a few

months ago. There has been a marked

improvement in the overall financial

conditions, though bank lending continues

to decline and concerns about the health of


MONETARY POLICY

STATEMENT 2009-10



the banking system remain. The inventory

adjustment underway appears to have

progressed and augurs well for the growth

in the near-term. Similarly, decline in global

trade appears to have reached a trough, with

exports in the second quarter showing

positive growth over the first quarter of

2009. The pace of the recovery, however, is

likely to remain modest for some time to

come as ample spare capacity, low levels of

profitability, high and rising unemployment,

anaemic growth in labour income and

ongoing housing market corrections will

dampen any upturn in private demand.

III.8 The global financial crisis had

affected the world economy through various

channels. In addition to the growth

slowdown and trade contraction worldwide,

which was a common shock for all the

countries, the advanced economies were

affected by rising unemployment, which

lowered the demand, while the emerging

market economies (EMEs) experienced

significant reversal in capital flows that

affected their markets and the growth

outlook. Unemployment rates in advanced

economies continue to be high, even though

EMEs have started to experience return of

capital flows (Chart III.1).

III.9 World merchandise exports started

declining from November 2008 as a result

of depressed world economic activity

under the impact of global economic crisis.

The decline in world exports accelerated

over successive months during 2009.

Subsequently, however, world exports

MONETARY POLICY

STATEMENT 2009-10



Table 3.2: Growth in Exports - Global Scenario

(Per cent)

Region/Country 2007 2008 2008 2009

January-December January-June

1 2 3 4 5

World 14.1 16.2 25.9 -29.5

Advanced

Economies 13.5 11.0 21.6 -31.1

US 12.0 11.9 18.0 -23.8

France 12.8 10.0 22.5 -32.0

Germany 18.0 10.6 23.6 -33.4

Japan 7.8 12.3 23.2 -37.9

Emerging and

Developing

Economies 15.1 25.6 34.1 -27.6

Singapore 10.1 13.0 23.8 -31.7

China 25.6 17.3 21.8 -21.7

India 23.3 20.0 39.8 * -25.6 *

Indonesia 14.7 24.4 27.8 -28.3

Korea 14.1 13.6 20.4 -22.7

Malaysia 9.6 19.1 24.2 -31.2

Thailand 17.0 12.9 25.0 -23.4

*: Pertains to January-August over the corresponding period

of previous year.

Source: 1. IMF (www.imfstatistics.org)

2. DGCI&S for India.

came to show an improvement in June

2009, with the year-on-year decline being

the smallest (26.9 per cent) in 2009 so far.

According to the IMF’s International

Financial Statistics, world merchandise

exports (in dollar terms) showed a sharp

decline of 29.5 per cent during January-

June 2009, as against a growth of 25.9 per

cent a year ago (Table 3.2). During the same

period, exports of advanced economies

witnessed an even sharper negative growth

of 31.1 per cent in contrast with a growth

of 21.6 per cent a year back. According to

the WTO, world merchandise exports

increased by about 8 per cent in the second

quarter of 2009 over the preceding quarter,

though year-on-year growth continued to

decline by 33.0 per cent.

Merchandise Trade

Exports

III.10 In India, the decline in exports,

which began in October 2008 as an impact

of the global economic crisis through the

trade channel, continued in 2009-10. The

rate of decline in exports peaked in April

2009, before moderating somewhat during

the subsequent months (Chart III.2).

Overall, India’s merchandise exports during

the first five months of 2009-10 (April-

August 2009) posted a decline of 31.0 per

cent, as against a high growth of 52.3 per

cent during the same period last year.

III.11 The composition of India’s export

basket during 2008-09 suggests that the

manufactured goods account for the largest

share in total exports at 67.2 per cent,

followed by petroleum and primary

products. During 2008-09, the exports of

major commodity groups slowed down, that

of gems and jewellery exhibited substantial

acceleration, while engineering goods

displayed a marginal improvement in

growth (Table 3.3).

III.12 Destination-wise, developing and

OECD countries were the major markets for

India’s exports during 2008-09 with each

group accounting for over 37.0 per cent of

share in total exports followed by the OPEC

(21.2 per cent). Country-wise, the UAE

became the single largest export destination

for India in 2008-09, replacing thereby the

US, which had remained India’s largest

export market for a number of years.

Overall, the direction of India’s exports

during 2008-09 indicated that the exports

to Asian developing countries declined;

exports growth to EU and North America


MONETARY POLICY

STATEMENT 2009-10



decelerated, while exports to OPEC showed

accelerated growth (Table 3.4).

Imports

III.13 The phase of deceleration in

imports, which prevailed during October-

November 2008, turned negative thereafter

with the rate of fall in imports

progressively increasing and reaching a

peak in May 2009 (39.2 per cent). Although

the rate of fall in imports moderated

considerably during June 2009, it again

accelerated in July 2009. The decline in

imports, however, during August 2009 was

lower than that in July 2009. During April-

August 2009, imports registered a decline

Table 3.3: Exports of Principal Commodities

Commodity/Group US $ billion Variation (Per cent)

2006-07 2007-08R 2008-09P 2007-08 2008-09

April-March April-March

1 2 3 4 5 6

1. Primary Products 19.7 27.6 25.3 40.0 -8.1

of which:

a) Agriculture and Allied Products 12.7 18.4 17.5 45.3 -4.9

b) Ores and Minerals 7.0 9.1 7.8 30.2 -14.5

2. Manufactured Goods 84.9 103.0 122.8 21.3 19.3

of which:

a) Chemicals and Related Products 17.3 21.2 22.6 22.3 6.8

b) Engineering Goods 29.6 37.4 47.3 26.4 26.5

c) Textiles and Textile Products 17.4 19.4 20.0 11.8 3.0

d) Gems and Jewellery 16.0 19.7 27.7 23.2 40.8

3. Petroleum Products 18.6 28.4 26.8 52.2 -5.4

4. Total Exports 126.4 162.9 182.6 28.9 12.1

Memo:

Non-oil Exports 107.8 134.5 155.8 24.8 15.8

R : Revised. P : Provisional.Source : DGCI&S.

MONETARY POLICY

STATEMENT 2009-10



of 33.4 per cent in contrast with a growth

of 52.1 per cent a year ago and the decline

was seen in both POL and non-POL imports.

The decline in imports witnessed in the last

nine consecutive months was mainly an

outcome of lower international crude oil

prices and slowdown in domestic economic

activity, apart from the high base effect.

III.14 Commodity-wise imports indicated

that growth of POL imports showed a

deceleration (14.6 per cent) during 2008-09

from the level a year ago (39.9 per cent),

mainly due to sharp reduction in

international crude oil prices since August

2008, as also due to slowdown in the growth

of volume of POL imports (Chart III.3).

Table 3.4: Direction of India's Exports

Group/Country US $ billion Variation (Per cent)

2006-07 2007-08R 2008-09P 2007-08 2008-09


1 2 3 4 5 6

1. OECD Countries 53.1 64.3 68.3 21.1 6.2

of which:

a) EU 26.8 34.5 39.0 28.7 12.9

b) North America 20.0 22.0 22.2 10.0 0.9

US 18.9 20.7 20.8 9.8 0.5

2. OPEC 21.0 27.0 38.8 28.8 43.8

of which:

UAE 12.0 15.6 23.9 29.9 53.1

3. Developing Countries 50.4 69.2 68.6 37.2 -0.8

of which:

Asia 37.6 51.5 51.4 36.9 -0.2

People’s Republic of China 8.3 10.8 9.3 30.6 -14.3

Singapore 6.1 7.4 8.2 21.4 11.4

4. Total Exports 126.4 162.9 182.6 28.9 12.1

R: Revised. P: Provisional.

Source: DGCI&S.


MONETARY POLICY

STATEMENT 2009-10



Growth in non-POL imports also witnessed

moderation (16.5 per cent) from the

previous year’s level (33.4 per cent), with

deceleration mainly emanating from the

imports of capital goods, gold and silver, and

iron and steel. Imports of pearls, precious

and semi-precious stones, however, grew

considerably during the year (Table 3.5).

III.15 Source-wise, developing countries

occupied the highest share in India’s

imports (32.9 per cent), followed by OPEC

and OECD countries during 2008-09. This

was in contrast with 2007-08 when OECD

countries had the highest share in India’s

imports. Country-wise, China continued to

be the single largest source of imports

followed by the UAE, Saudi Arabia, the US,

Iran and Germany.

III.16 India’s merchandise trade deficit

witnessed an increase from 7.5 per cent of

GDP in 2007-08 to 9.4 per cent in 2008-09.

During April-August 2009, merchandise

trade deficit declined over the

corresponding period of previous year,

reflecting relatively larger decline in imports

than exports (Table 3.6).

Balance of Payments (BoP)

Current Account

III.17 The combined impact of synchronised

global economic recession and deceleration

in world trade witnessed since the second

half of 2008-09 continued to affect the

transactions in India’s current account

during the first quarter of 2009-10. The

decline in exports observed since October

2008 persisted during the first quarter of

2009-10. On a BoP basis, India’s merchandise

exports recorded a decline of 21.0 per cent

during April-June 2009 as against a high

Table 3.5: Imports of Principal Commodities

Commodity/Group US $ billion Variation (Per cent)

2006-07 2007-08R 2008-09P 2007-08 2008-09


1 2 3 4 5 6

Petroleum, Petroleum Products andRelated Material 56.9 79.6 91.3 39.9 14.6

Edible Oil 2.1 2.6 3.4 21.4 34.4

Iron and Steel 6.4 8.7 9.4 35.2 7.8

Capital Goods 47.1 70.1 70.5 49.0 0.6

Pearls, Precious and Semi-Precious Stones 7.5 8.0 14.4 6.5 81.1

Chemicals 7.8 9.9 12.2 26.4 22.8

Gold and Silver 14.6 17.9 18.7 22.0 4.6

Total Imports 185.7 251.4 291.5 35.4 15.9

Memo:

Non-oil Imports 128.8 171.8 200.2 33.4 16.5

Non-oil Imports excluding Gold and Silver 114.1 153.9 181.5 34.9 17.9

Mainly Industrial Inputs* 104.8 140.9 160.3 34.4 13.8

R: Revised. P: Provisional.*: Non-oil imports net of gold and silver, bulk consumption goods, manufactured fertilisers and professional instruments.Source : DGCI&S.

MONETARY POLICY

STATEMENT 2009-10



growth of 43.0 per cent during April-June

2008. Similarly, the trend of negative import

growth that surfaced during the fourth

quarter of 2008-09 after a gap of almost seven

years, continued in the first quarter of 2009-

10. Imports declined by 19.6 per cent during

the first quarter of 2009-10 as against a

positive growth of 42.9 per cent during the

corresponding period a year ago – mainly due

to lower oil import bill. However, as

compared to the last quarter of 2008-09,

exports during the first quarter of 2009-10

declined, while imports recorded an increase

reflecting the increase in oil prices. As a

result, there was a higher trade deficit (US$

26.0 billion) during the first quarter of 2009-

10 over the preceding quarter, although it

was lower than the deficit observed during

the first quarter of 2008-09 (Table 3.7).

Invisibles

III.18 Manifesting the impact of

continuing global recession, the gross

invisibles receipts registered a marginal

decline, while invisibles payments

recorded a positive growth during the first

quarter of 2009-10 (Table 3.8). The decline

in invisibles receipts during the quarter

was on account of a decline in almost all

the categories of services except insurance

and financial services, and a sharp decline

in investment income receipts (20.3 per

cent) mainly due to lower interest rates

prevailing in other countries. Although

exports of software services registered a

decline during the first quarter, they are

projected (by NASSCOM) to grow by 4 to 7

per cent during the financial year 2009-10.

Private transfer receipts, comprising

mainly remittances from Indians working

overseas and local withdrawals from NRI

Rupee deposits increased during the first

quarter of 2009-10. A positive growth

observed in invisibles payments during the

quarter was mainly due to a higher growth

in payments under non-software services

such as business and financial services and

the income account. Investment income

payments increased marginally owing to

increased reinvested earnings of FDI

companies in India.

III.19 Although, net invisibles (invisibles

receipts minus invisibles payments) were

marginally lower during the first quarter

of 2009-10 than that in the corresponding

period of the previous year, the invisibles

surplus financed about 77.7 per cent of the

trade deficit during the first quarter of

2009-10 (71.3 per cent during the first

quarter of 2008-09). Despite net invisibles

Table 3.6: India's Merchandise Trade

(US $ billion)

Item 2008-09R 2008-09R 2009-10P

April-August

1 2 3 4

Exports 182.6 93.0 64.1

Oil 26.8 16.0 ..

Non-oil 155.8 77.0 ..

Imports 291.5 153.7 102.3

Oil 91.3 53.7 28.3

Non-oil 200.2 99.9 74.0

Trade Balance -108.8 -60.7 -38.2

Non-Oil Trade

Balance -44.4 -23.0 ..

Variation (per cent)

Exports 12.1 52.3 -31.0

Oil -5.4 50.8 ..

Non-oil 15.8 52.6 ..

Imports 15.9 52.1 -33.4

Oil 14.6 86.6 -47.4

Non-oil 16.5 38.4 -25.9

R: Revised. P: Provisional... : Not Available.Source: DGCI&S.


MONETARY POLICY

STATEMENT 2009-10



surplus, the large trade deficit mainly on

account of decline in exports and increase

in imports over the preceding quarter led

to a current account deficit of US$ 5.8

billion during the first quarter of 2009-10

as against US$ 9.0 billion during the first

quarter of 2008-09. During 2008-09, current

account deficit as a per cent of GDP stood

at 2.6 per cent, higher than 1.5 per cent a

year ago (Chart III.4).

Capital Account

III.20 During the first quarter of 2009-10,

capital account witnessed a revival after

undergoing a sustained pressure since the

third quarter of 2008-09, on the back of

massive deleveraging in the advanced

Table 3.7: India's Balance of Payments

(US $ billion)

Item April-March 2008-09 2009-10

2007-08 PR 2008-09 P Apr-Jun PR Jul-Sep PR Oct-Dec PR Jan-Mar PApr-Jun P

1 2 3 4 5 6 7 8

1. Exports 166.2 175.2 49.1 49.0 37.3 39.8 38.8

2. Imports 257.8 294.6 80.5 87.7 72.0 54.4 64.8

3. Trade Balance (1-2) -91.6 -119.4 -31.4 -38.7 -34.7 -14.6 -26.0

4. Net Invisibles 74.6 89.6 22.4 26.2 21.7 19.3 20.2

5. Current Account Balance (3+4) -17.0 -29.8 -9.0 -12.5 -13.0 4.7 -5.8

6. Gross Capital Inflows 433.0 302.5 90.9 85.0 69.5 57.1 78.5

7. Gross Capital Outflows 325.0 293.3 79.7 77.5 73.7 62.4 71.8

8. Net Capital Account (6-7) 108.0 9.1 11.1 7.6 -4.3 -5.3 6.7

9. Overall Balance (5+8)# 92.2 -20.1 2.2 -4.7 -17.9 0.3 0.1

Memo:

i. Export growth (%) 28.9 5.4 43.0 28.0 -9.1 -24.2 -21.0

ii. Import growth (%) 35.2 14.3 42.9 47.3 7.3 -27.3 -19.6

iii. Trade balance (as a % of GDP) -7.8 -10.3

iv. Invisible receipts growth (%) 29.7 9.4 30.3 34.3 1.8 -16.6 -0.7

v. Invisibles payments growth (%) 18.7 -1.4 13.5 14.4 3.1 -24.7 11.9

vi. CAD as a % of GDP 1.5 2.6

vii. Foreign Exchange Reserves

(as at end of the period) 309.7 252.0 312.1 286.3 256.0 252.0 265.1

#: Overall balance also includes errors and omissions apart from items 5 and 8.

PR: Partially Revised. P: Preliminary.

financial markets. With the revival in capital

inflows to India, particularly foreign

investments, the capital account showed a

turnaround from a negative balance in the

last two quarters of 2008-09 to a positive

balance of US$ 6.7 billion during the first

quarter of 2009-10 (Table 3.9).

III.21 Component-wise, net inward FDI

into India remained buoyant during April-

June of 2009-10, reflecting relatively better

investment climate in India and the

continuing liberalisation measures to attract

FDI. During the first quarter of 2009-10,

manufacturing sector continued to attract

most part of FDI (19.2 per cent), followed

by real estate activities (15.6 per cent) and

financial services (15.4 per cent).

MONETARY POLICY

STATEMENT 2009-10



III.22 Portfolio investment, primarily

comprising foreign institutional investors’

(FIIs) investments and American Depository

Receipts (ADRs)/Global Depository Receipts

(GDRs) witnessed a sharp turnaround from

net outflows in the fourth quarter of 2008-09

to net inflows during the first quarter of 2009-

10. During 2009-10, the sharp increase in FII

inflows could be attributed mainly to the

recovery in domestic stock markets following

Table 3.8: Invisibles Gross Receipts and Payments

(US $ billion)

Item Invisibles Receipts Invisibles Payments

April-March April-June April-March April-June

2008-09(P) 2008-09(PR) 2009-10 (P) 2008-09(P) 2008-09(PR) 2009-10(P)

1 2 3 4 5 6 7

1. Travel 10.9 2.5 2.3 9.4 2.2 2.0

2. Transportation 11.1 2.6 2.5 12.8 3.3 2.8

3. Insurance 1.4 0.4 0.4 1.1 0.2 0.3

4. Govt. not included elsewhere 0.4 0.1 0.1 0.8 0.1 0.1

5. Miscellaneous 77.5 17.5 17.1 27.3 5.6 8.2

Of which:

Software 47.0 12.2 10.8 2.8 0.9 0.4

Non-Software 30.5 5.3 6.4 24.5 4.8 7.8

6. Transfers 47.0 12.3 13.3 2.7 0.7 0.5

Of which

Private Transfers 46.4 12.2 13.3 2.3 0.5 0.4

7. Income 14.3 3.6 3.0 18.8 4.4 4.7

Investment Income 13.5 3.4 2.7 17.5 4.1 4.4

Compensation of Employees 0.8 0.2 0.2 1.3 0.3 0.3

Total (1 to 7) 162.6 38.9 38.7 73.0 16.5 18.5

P : Preliminary. PR : Partially Revised.


MONETARY POLICY

STATEMENT 2009-10



the international trends and comparatively

better growth prospects in India. Net inflows

under ADRs/GDRs were significantly lower

during the first quarter of 2009-10 as

compared to the coresponding quarter of the

previous year, reflecting continued

tightness in liquidity in the overseas

markets. The net ECBs recorded an outflow

during the first quarter of 2009-10 as against

net inflows during the first quarter of 2008-

09. Banking capital mainly consists of

foreign assets and liabilities of commercial

banks. NRI deposits constitute major part

of the foreign liabilities. Net Banking capital,

including NRI deposits also were negative

during the first quarter of 2009-10 as against

a positive net inflow witnessed during the

first quarter of 2008-09.

III.23 During April-June 2009, the

disbursement under short-term trade credit

continued to remain steady on the back of

various policy measures undertaken such as

hike in the all-in-cost ceilings for trade credit

of various maturities that was necessary in

the context of hardening of cost of funds in

the international markets. The repayments

were, however, somewhat higher than the

comparable period of the previous year. It

is expected that the current trend in

disbursement of short-term trade credit will

continue.

III.24 The latest available information on

certain indicators of the capital account

indicates a revival in capital flows to India

(Table 3.10). This could be attributed to

Table 3.9: Net Capital Flows

(US $ billion)

Item 2008-09 2008-09 2009-10April- Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun

March P PR PR PR P P

1 2 3 4 5 6 7

1. Foreign Direct Investment (FDI) 17.5 9.0 4.9 0.4 3.2 6.8

Inward FDI 35.0 11.9 8.8 6.3 8.0 9.5

Outward FDI 17.5 2.9 3.9 5.9 4.8 2.6

2. Portfolio Investment -14.0 -4.2 -1.3 -5.8 -2.7 8.3

Of which:

FIIs -15.0 -5.2 -1.4 -5.8 -2.6 8.2

ADR/GDRs 1.2 1.0 0.1 0.0 0.02 0.04

3. External Assistance 2.6 0.4 0.5 1.0 0.8 0.08

4. External Commercial Borrowings 8.2 1.5 1.7 3.9 1.1 -0.4

5. NRI Deposits 4.3 0.8 0.3 1.0 2.2 1.8

6. Banking Capital excluding

NRI Deposits -7.7 1.9 1.9 -6.0 -5.4 -5.2

7. Short-term Trade Credit -5.8 2.4 1.3 -4.0 -5.5 -3.1

8. Rupee Debt Service -0.1 -0.03 - - -0.07 -0.02

9. Other Capital 4.1 -0.5 -1.6 5.2 1.1 -1.6

Total (1 to 9) 9.1 11.1 7.6 -4.3 -5.3 6.7

P: Preliminary. PR: Partially Revised.

MONETARY POLICY

STATEMENT 2009-10



relatively better macroeconomic

performance of India during 2008-09 and

positive sentiments of global investors

about the growth potential of EMEs,

including India.

Foreign Exchange Reserves

III.25 The foreign exchange reserves on BoP

basis (i.e., excluding valuation) increased by

US$ 0.1 billion during the first quarter of

2009-10 as compared with an increase of

US$ 2.2 billion during the corresponding

quarter of 2008-09. Taking into account the

valuation gain due to depreciation of the US

dollar against the major currencies, the

foreign exchange reserves increased by US$

13.2 billion during April-June 2009 as

compared with an increase of US$ 2.4 billion

during April-June 2008 (Chart III.5).

III.26 As on October 16, 2009, India’s

foreign exchange reserves stood at US$

284.8 billion, which is higher by US$ 32.8

billion over end-March 2009 level (US$ 252.0

billion). The increase in foreign exchange

reserves during this period also includes the

SDRs allocation made by the IMF in two

consecutive tranches on August 28, 2009 and

September 9, 2009, respectively (Table 3.11).

External Debt

III.27 India’s external debt was placed at US$

227.7 billion at the end of June 2009 as

compared to US$ 224.0 billion as at the end

of March 2009. The increase in the external

debt by 1.7 per cent during this period was

Table 3.10: Capital Flows in 2009-10 so far

(US $ billion)

Component Period 2008-09 2009-10

1 2 3 4

FDI to India April-August 16.5 16.2

FIIs (net) April-October * -9.5 18.4

ADRs/GDRs April-September 1.1 2.6

ECB Approvals April-September 10.2 7.1

NRI Deposits (net) April-September 1.1 2.7

* : Up to October 16, 2009.

FDI : Foreign Direct Investment.

FII : Foreign Institutional Investors’ Investment.

ECB : External Commercial Borrowings.

NRI : Non Resident Indians.

ADR : American Depository Receipts

GDR : Global Depository Receipts.


MONETARY POLICY

STATEMENT 2009-10



Table 3.11: India’s Foreign Exchange Reserves

(US $ million)

End of Month Gold SDR@ Foreign Reserve Total Memo:

Currency Position (2+3+ Outstanding Net

Assets* in the IMF 4+5) Forward Sales (-) /

Purchases (+) of US

dollar by the Reserve

Bank at the end

of the month

1 2 3 4 5 6 7

March 2000 2,974 4 35,058 658 38,694 (-) 675

March 2005 4,500 5 135,571 1,438 141,514 –

March 2006 5,755 3 145,108 756 151,622 –

March 2007 6,784 2 191,924 469 199,179 –

March 2008 10,039 18 299,230 436 309,723 (+) 14,735

March 2009 9,577 1 241,426 981 251,985 (-) 2,042

April 2009 9,231 1 241,487 983 251,702 (-) 1,071

May 2009 9,604 1 251,456 1,245 262,306 (+) 131

June 2009 9,800 1 254,093 1,248 265,142 (+) 745

July 2009 9,671 1 260,631 1,338 271,641 (+) 800

August 2009 9,828 4,828 261,247 1,349 277,252 (+) 619

September 2009 10,316 5,224 264,373 1,365 281,278 –

October 2009# 10,316 5,250 267,898 1,372 284,836 –

* : Exclude US$ 250 million invested in foreign currency denominated bonds issued by IIFC(UK) since March 20,

2009.

@ : Include SDRs 3,082.5 million allocated under general allocation and SDRs 214.6 million allocated under special

allocation by the IMF done on August 28, 2009 and September 9, 2009, respectively.

# : As on October 16, 2009. – : Not available.

mainly due to the increase in long term

external debt, particularly Non-Resident

Indian (NRI) deposits (Table 3.12). Short-term

debt, however, declined by US$ 3.0 billion

during the same period mainly on account

of decline in short-term trade credit (up to 6

months). Accordingly, the ratio of short-term

to total debt declined to 17.8 per cent from

19.5 per cent during the same period. The

ratio of external debt to GDP increased to

21.4 per cent as at end-March 2009 from 18.9

per cent as at end-March 2008. The debt

service ratio declined steadily during the last

three years and stood at 4.6 per cent as at

end-March 2009. The debt service ratio for

April-June 2009 worked out to 5.5 per cent.

III.28 Based on the measure of residual

maturity of the outstanding debt - an

indicator for assessing the debt service

liability in the short-run - the revised short-

term debt (below one year) as at end-March

2009 was estimated at around US$ 87.5

billion, which would become due for

repayment during 2009-10. This includes

short-term debt based on original maturity

at US$ 43.6 billion and long term external

debt due for payments within one year of

US$ 43.9 billion. Out of these US$ 43.9

billion, the NRI deposits constitute US$ 32.1

billion. The bulk of NRI deposits (around

70 per cent) are in rupee-terms and there

have been net accretions of around US$ 2.7

MONETARY POLICY

STATEMENT 2009-10



billion during 2009-10 so far (up to

September 30, 2009).

International Investment Position

III.29 India’s net international liabilities

were placed at US$ 82.5 billion as at end-

June 2009 as compared to US$ 59.4 billion

as at end-March 2009. The international

assets increased from US$ 350.0 billion at

end-March 2009 to US$ 360.2 billion at end-

June 2009 mainly on account of increase

in reserve assets during the quarter. The

increase in international liabilities from

US$ 409.4 billion to US$ 442.7 billion

during the same period was on account of

an increase in inward direct investment

and portfolio equity investment in India

(Chart III.6).

III.30 During the first quarter of 2009-10

(April-June), exports declined and imports

increased over the preceding quarter, while

private transfer receipts remained buoyant.

Notwithstanding net invisibles surplus,

higher trade deficit on account of decline in

exports and increase in imports resulted in

a current account deficit during the first

quarter of 2009-10. Nevertheless, the

renewed confidence of international

investors in India has led to the revival in

capital inflows, turning the capital account

Table 3.12: India's External Debt

(US $ billion)

Item End-March End-March End-June Variation

2008 2009 PR 2009 P(June 2009 over

March 2009)

Amount Per cent

1 2 3 4 5 6

1. Multilateral 39.5 39.5 41.2 1.7 4.3

2. Bilateral 19.7 20.6 21.4 0.8 3.9

3. International Monetary Fund 0 0 0 0.0 0

4. Trade Credit (above 1 year) 10.4 14.6 15.1 0.4 2.9

5. External Commercial Borrowings 62.3 62.5 63.2 0.6 1.0

6. NRI Deposit 43.7 41.6 44.6 3.0 7.3

7. Rupee Debt 2.0 1.5 1.6 0.1 5.2

8. Long-term (1 to 7) 177.6 180.4 187.1 6.7 3.7

9. Short-term 45.7 43.6 40.6 -3.0 -6.8

Total (8+9) 223.3 224.0 227.7 3.7 1.7

Memo: (Per cent)

Total Debt /GDP 18.9 21.4 –

Short-term Debt/Total Debt 20.5 19.5 17.8

Short-term Debt/Reserves 14.8 17.3 15.3

Concessional Debt/Total Debt 19.8 18.7 19.0

Reserves/Total Debt 138.7 112.5 116.5

Debt Service Ratio 4.8 4.6 5.5

P: Provisional. PR: Partially Revised.


MONETARY POLICY

STATEMENT 2009-10



from a deficit in the last two quarters of

2008-09 into a surplus in the first quarter of

2009-10. Accordingly, there was a marginal

increase in foreign exchange reserves on BoP

basis (i.e., excluding valuation). Including

valuation effects, reserves showed a larger

increase during the first quarter of 2009-10

and reserve accretion continued in the

second quarter of 2009-10. Thus, the balance

of payments developments indicate that

concerns relating to the external sector have

receded with the revival in capital flows and

modest level of current account deficit. The

Indian rupee has exhibited some

appreciation in the recent period while the

country’s reserve levels have increased.

MONETARY POLICY

STATEMENT 2009-10



IV.1 Monetary and liquidity conditions

during 2009-10 so far have been conditioned

by the continuation of accommodative

monetary policy stance of the Reserve Bank

to support a faster economic recovery. Broad

money growth (year-on-year) witnessed

some moderation during the second quarter

of 2009-10 but still remained above the

Reserve Bank’s projected trajectory of 18.0

per cent for 2009-10. On the sources side of

monetary expansion, banking system’s

credit to the Government continued to be the

major driver as bank credit to the commercial

sector continued to exhibit deceleration. On

the component side of monetary expansion,

the key driver was the high growth in

aggregate deposits. The movements in

reserve money reflected the changes in net

Reserve Bank credit to the Centre and net

IV. Monetary Conditions The accommodative monetary policystance of the Reserve Bank has continuedduring 2009-10 so far to support theemerging recovery. While broad moneygrowth witnessed some moderation inrecent period, availability of surplusliquidity in the system was evident in thelarge daily absorption through reverse repoby the Reserve Bank. With the persistenceof deceleration in bank credit to thecommercial sector, high deposit growth andthe Reserve Bank’s liquidity augmentingmeasures created space for marketabsorption of the large governmentborrowing programme. Flow of resourcesfrom non-bank sources to the commercialsector during 2009-10 so far has beenmarginally higher than the correspondingperiod of the previous year.


MONETARY POLICY

STATEMENT 2009-10



foreign assets with the Reserve Bank.

Expansion of net Reserve Bank credit to the

Centre through purchases under open

market operations and unwinding of MSS

was moderated significantly due to large

daily absorption of liquidity through reverse

repo window under LAF. Net foreign assets

(net of valuations) with the Reserve Bank

recorded an increase in the second quarter

of 2009-10, after witnessing decline in the

previous quarter.

IV.2 The thrust of the various policy

initiatives taken by the Reserve Bank since

mid-September 2008 has been on providing

ample rupee for the smooth functioning of

the financial market, ensuring comfortable

dollar liquidity and maintaining a market

environment conducive for the continued

flow of credit to productive sectors to revive

the economic growth in the midst of severe

global recession. The important measures

which reflect the accommodative monetary

policy stance include reduction of the repo

and reverse repo rates, reduction of the CRR

and the SLR, and institution of several

sector-specific liquidity facilities. Since

October 11, 2008, the Reserve Bank reduced

CRR by a cumulative 400 basis points to 5.0

per cent of net demand and time liabilities

(NDTL), repo rate by 425 basis points to 4.75

per cent and the reverse repo rate by 275

basis points to 3.25 per cent. The nature of

injection of liquidity through unwinding of

MSS and reduction of CRR ensured the

attainment of the Reserve Bank’s objective

of maintaining ample liquidity in the

system without expanding the balance sheet

of the Reserve Bank or compromising on the

quality of the assets in the balance sheet.

Monetary Survey

IV.3 On a year-on-year (y-o-y) basis, M3

growth was 18.9 per cent as on October 9,

2009 as compared with 20.9 per cent a year

ago. The growth in M3 mainly reflected the

sustained expansion in aggregate deposits

during this period. Within aggregate

deposits, time deposits registered a growth

(y-o-y) of 20.9 per cent as on October 9,


ago (Table 4.1 and Chart IV.1). Banks

mobilised large time deposits during the

third quarter of 2008-09, as investors

reallocated their portfolios in favour of

bank deposits with the intensification of

financial crisis and increase in risk

perception in the face of snowballing

uncertainty. This period also witnessed a

shift from demand deposits to time

deposits. Demand deposits that posted a

sharp decline in the last two quarters of

2008-09 and registered a growth of only 0.5

per cent at end-March 2009 witnessed a

turnaround. Demand deposits expanded

by 10.3 per cent (y-o-y) as on October 9,


ago. The net outflows from small savings

schemes that started in December 2007

continued up to July 2009 (the latest period

for which the data are available) (Chart

IV.2). Growth in currency with the public

moderated to 16.2 per cent (y-o-y) as on

October 9, 2009 as compared with 20.1 per

cent a year ago, mainly reflecting the

impact of moderation in economic activity

on currency demand.

IV.4 On a financial year basis, growth in

M3 during 2009-10 (up to October 9, 2009)

MONETARY POLICY

STATEMENT 2009-10



was 8.0 per cent as compared with 7.7 per

cent during the corresponding period of

the previous year (Table 4.2).

IV.5 A quarter-wise analysis of growth in

bank credit shows that expansion in bank

credit recovered in the second quarter of 2009-

Table 4.1: Monetary Indicators

(Amount in Rupees crore)

Item Variation (year-on-year)

October 10, 2008 October 9, 2009

Absolute Per cent Absolute Per cent

1 2 3 4 5 6

I. Reserve Money* 10,10,786 1,35,117 17.6 1,09,589 12.2

(Reserve Money Adjusted for CRR changes) (22.8) (19.5)

II. Narrow Money (M1) 12,96,628 1,81,395 18.8 1,52,610 13.3

III. Broad Money (M3) 51,46,157 7,47,558 20.9 8,17,802 18.9

a) Currency with the Public 7,01,417 1,01,095 20.1 97,846 16.2

b) Aggregate Deposits 44,40,318 6,46,568 21.0 7,20,413 19.4

i) Demand Deposits 5,90,788 80,405 17.7 55,221 10.3

ii) Time Deposits 38,49,530 5,66,162 21.6 6,65,192 20.9

VI. Major Sources of Broad Money

a) Net Bank Credit to the Government (i+ii) 14,35,356 1,42,385 16.8 4,44,655 44.9

i) Net Reserve Bank Credit to Government 5,365 1,05,435 – 36,641 –

of which: to the Centre 5,407 1,05,182 – 37,037 –

ii) Other Banks’ Credit to Government 14,29,991 36,950 3.8 4,08,014 39.9

b) Bank Credit to the Commercial Sector 31,35,885 6,08,888 27.4 3,04,381 10.7

c) Net Foreign Assets of the Banking Sector 13,33,575 3,11,273 30.0 -16,445 -1.2

d) Government Currency Liability to Public 10,504 975 11.2 849 8.8

e) Net Non-Monetary Liabilities of the Banking Sector 7,69,163 3,15,963 58.8 -84,362 -9.9

*: Data pertain to October 16, 2009.

Note: Data are provisional.

Outstand-ing

as onOctober9, 2009


MONETARY POLICY

STATEMENT 2009-10



10 from an absolute decline posted in the first

quarter, although the expansion of credit

remained much lower than the corresponding

quarter of the previous year (Chart IV.3).

Table 4.2: Monetary Aggregates - Variations


Item 2008-09 2009-10 2008-09 2009-10(up to (up to Q1 Q2 Q3 Q4 Q1 Q2

October October10, 2008) 9, 2009)

1 2 3 4 5 6 7 8 9

M3 (1+2+3 = 4+5+6+7-8) 3,10,472 3,82,138 89,283 1,76,379 1,60,487 3,19,987 1,70,385 1,61,408

(7.7) (8.0)

Components

1. Currency with the Public 35,161 35,053 35,772 -18,037 40,405 39,813 24,400 2,682(6.2) (5.3)

2. Aggregates Deposits with Banks 2,79,487 3,48,235 57,621 1,93,902 1,13,039 2,87,103 1,41,942 1,64,282(8.1) (8.5)

2.1 Demand Deposits with Banks -42,805 9,540 -79,325 52,771 -62,157 91,586 -34,409 62,870(-7.4) (1.6)

2.2 Time Deposits with Banks 3,22,292 3,38,695 1,36,946 1,41,131 1,75,195 1,95,517 1,76,350 1,01,412(11.3) (9.6)

3. ‘Other’ Deposits with Banks -4,175 -1,150 -4,110 514 7,044 -6,930 4,044 -5,555(-46.1) (-20.6)

Sources

4. Net Bank Credit to Government 91,183 1,58,157 36,124 31,654 1,29,335 1,80,568 1,19,062 63,346(10.1) (12.4)

4.1 RBI’s Net Credit to Government 81,933 -56,214 -13 51,360 30,230 93,212 -11,145 -14,9534.1.1 RBI’s Net credit to the Centre 83,006 -56,355 1,430 51,379 29,932 93,657 -11,497 -14,968

4.2 Other Banks’ Credit to Government 9,250 2,14,372 36,137 -19,706 99,106 87,356 1,30,207 78,2995. Bank Credit to the Commercial Sector 2,52,515 1,22,548 30,811 1,63,138 90,616 1,49,783 -7,737 1,15,625

(9.8) (4.1)6. NFA of Banking Sector 54,889 -18,609 66,858 7,271 -1,32,461 1,15,385 -37,923 50,120

6.1 NFA of the RBI 95,028 2,564 1,03,932 10,336 -1,56,330 86,048 -16,750 50,1207. Government’s Currency

Liabilities to the Public 431 450 225 206 186 213 254 1968. Net Non-Monetary liabilities

of the Banking Sector 88,546 -1,19,591 44,735 25,890 -72,811 1,25,961 -96,730 67,879

NFA: Net Foreign Assets.Note: 1. Data are provisional.

2. Figures in parentheses are percentage variations.

MONETARY POLICY

STATEMENT 2009-10



IV.6 Much of the financial year expansion

in broad money (M3) during 2009-10 (up to

October 9, 2009) resulted from the increase

in commercial banks’ credit to the

Government. On the other hand, net

Reserve Bank credit to the Centre during

2009-10 (up to October 9, 2009) decreased,

reflecting large absorption under the LAF,

despite the sizeable decline in outstanding

balances under MSS with the Reserve Bank

and increase in purchases under OMOs.

IV.7 Non-food credit growth (y-o-y) of

scheduled commercial banks (SCBs) that

reached its peak in October 2008, witnessed

sustained deceleration thereafter, reflecting

moderation in economic activity. Non-food

credit by SCBs expanded by 11.2 per cent,

y-o-y, as on October 9, 2009, lower than 29.4

per cent a year ago and the Reserve Bank’s

indicative projected trajectory of 20.0 per

cent as set out in the First Quarter Review

for 2009-10. The lower expansion in credit

relative to the significant expansion in

deposits during 2009-10 has resulted in a

decline in the incremental credit-deposit

ratio (Chart IV.4).


MONETARY POLICY

STATEMENT 2009-10



IV.8 Though the moderation in credit

growth was witnessed across the banking

sector, credit growth decelerated sharply for

private banks while foreign banks registered

a decline (Table 4.3). The expansion of credit

from the public sector banks has also

moderated to some extent.

IV.9 Scheduled commercial banks’

investment in SLR securities expanded by

40.9 per cent (y-o-y) as on October 9, 2009,

as compared with 3.2 per cent a year ago,

driven by the higher market borrowing by

the Government (Table 4.4). This was

facilitated by low credit growth and ample

liquidity in the system. Commercial banks’

holdings of such securities as on October 9,

2009 at 30.4 per cent of their net demand

and time liabilities (NDTL) were higher than

28.1 per cent at end-March 2009 and 25.7

per cent a year ago. Excess SLR investments

of SCBs increased to Rs.2,91,279 crore as on

October 9, 2009 from Rs.1,69,846 crore at

end-March 2009 and Rs.26,933 crore a year

ago. SCB’s also increased their investment

in non-SLR securities substantially.

Simultaneously, SCBs reduced their

overseas foreign currency borrowings and

increased their holding of foreign currency

assets.

IV.10 Growth and inflation conditions

changed significantly during the course of

2008-09. In 2009-10 so far, while growth

impulses remained subdued, the divergence

between WPI and CPI inflation reached a

high level. Given such high variability in

growth and inflation, money growth may

have to be seen in relation to the recent trend

in income velocity of money (Chart IV.5).

IV.11 Disaggregated data on sectoral

deployment of gross bank credit available up

to August 28, 2009 show that 53.8 per cent

of incremental non-food credit (y-o-y) was

absorbed by industry as compared with 47.5

per cent in the corresponding period of the

previous year. The agricultural sector

absorbed 21.8 per cent of the incremental

non-food bank credit as compared with 8.5

per cent in the corresponding period of the

previous year. Personal loans that accounted

for 4.1 per cent of the incremental non-food

credit witnessed moderation; within

personal loans, housing loans decelerated to

a large extent. Growth in loans to commercial

Table 4.3: Credit Flow from Scheduled Commercial Banks



As on Oct. 10, 2008 As on Oct. 9, 2009

Amount Per cent Amount Per cent

1 2 3 4 5 6

1. Public Sector Banks 21,44,697 4,58,297 32.7 2,84,513 15.3

2. Foreign Banks 1,57,601 46,421 32.9 -29,771 -15.9

3. Private Banks 5,15,474 82,704 19.7 12,402 2.5

4. All Scheduled Commercial Banks* 28,90,316 5,94,220 29.5 2,80,627 10.8

*: Including Regional Rural Banks


Outstanding

as on

Oct. 9, 2009

MONETARY POLICY

STATEMENT 2009-10



real estate, however, remained high. Credit

card and consumer durables segments

exhibited negative growth in credit, which

corroborates the sharp decline in private

consumption demand as per GDP data for

the first quarter of 2009-10. Growth in

incremental credit for services activities also

exhibited significant deceleration (Table 4.5).

Table 4.4: Scheduled Commercial Bank Survey



As on October As on October

10, 2008 09, 2009

Amount Per cent Amount Per cent

1 2 3 4 5 6

Sources of Funds

1. Aggregate Deposits 41,61,354 6,14,272 21.5 6,92,986 20.0

2. Call/Term Funding from Financial Institutions 98,432 29,097 33.3 -18,058 -15.5

3. Overseas Foreign Currency Borrowings 27,702 31,244 100.6 -34,586 -55.5

4. Capital 58,940 8,948 24.5 13,433 29.5

5. Reserves 3,24,335 60023 27.2 43,706 15.6

Uses of Funds

1. Bank Credit 28,90,316 5,94,220 29.5 2,80,627 10.8

of which: Non-food Credit 28,47,595 5,82,344 29.4 2,86,801 11.2

2. Investments in Government and

Other Approved Securities 13,77,910 30,131 3.2 4,00,027 40.9

a) Investments in Government Securities 13,62,250 31,501 3.4 3,96,844 41.1

b) Investments in Other Approved Securities 15,661 -1,370 -9.9 3,183 25.5

3. Investments in non-SLR Securities 2,82,655 -32,157 -17.6 1,31,868 87.5

4. Foreign Currency Assets 42,662 -6,406 -21.9 19,776 86.4

5. Balances with the RBI 1,88,727 99,638 45.6 -1,29,595 -40.7


Outstanding

as on

October

09, 2009


MONETARY POLICY

STATEMENT 2009-10



Table 4.5: Deployment of Gross Bank Credit by Major Sectors

(Amount in Rs. crore)

Sector Outstanding Year-on-Year Variationsas on August 29, 2008 August 28, 2009

August 28, 2009Absolute Per cent Absolute Per cent

1 2 3 4 5 6

Non-Food Gross Bank Credit (1 to 4) 26,23,551 4,84,805 26.5 3,08,718 13.3

1. Agriculture & Allied Activities 3,29,847 41,185 18.6 67,228 25.6

2. Industry 10,96,764 2,30,229 32.9 1,66,121 17.9

3. Personal Loans 5,64,689 69,763 14.5 12,594 2.3

Housing 2,84,721 29,872 12.4 14,668 5.4

Advances against Fixed Deposits 44,760 2,919 7.0 290 0.7

Credit Card Outstanding 24,889 7,173 32.8 -4,167 -14.3

Education 32,017 6,576 38.2 8,217 34.5

Consumer Durables 7,832 -304 -3.1 -1,571 -16.7

4. Services 6,32,251 1,43,628 33.7 62,775 11.0

Transport Operators 39,250 7,485 26.3 3,264 9.1

Professional Services 46,383 15,114 64.6 7,889 20.5

Trade 1,47,354 22,686 21.3 17,951 13.9

Real Estate Loans 96,701 20,580 43.1 28,353 41.5

Non-Banking Financial Companies 1,01,281 26,443 51.8 23,837 30.8

Memo

Priority Sector 9,27,322 1,46,145 22.7 1,37,965 17.5

Micro and Small Enterprises* 2,77,728 38,013 21.1 59,764 27.4

Industry 10,96,764 2,30,229 32.9 1,66,121 17.9

Food Processing 53,137 11,757 30.4 2,743 5.4

Textiles 1,06,033 17,402 21.9 9,036 9.3

Paper & Paper Products 15,795 3,037 26.6 1,342 9.3

Petroleum, Coal Products and Nuclear Fuels 60,273 29,713 90.7 -2,183 -3.5

Chemicals and Chemical Products 73,303 16,172 30.2 3,546 5.1

Rubber, Plastic & their Products 13,496 2,415 24.9 1,372 11.3

Iron and Steel. 1,08,758 21,177 31.6 20,490 23.2

Other Metal and Metal Products 31,271 5,403 25.7 4,844 18.3

Engineering 61,766 9,941 21.3 5,224 9.2

Vehicles, Vehicle Parts and Transport Equipments 35,850 7,244 27.9 2,657 8.0

Gems & Jewellery 29,141 3,693 15.7 1,890 6.9

Construction 37,421 10,020 47.6 6,354 20.5

Infrastructure 3,03,013 55,533 36.1 93,647 44.7

*: Micro and small enterprises include services sector enterprises also.Note: Data are provisional and relate to select banks. Data also include the effects of mergers of Bharat Overseas Bank

with Indian Overseas Bank, American Express Bank with Standard Chartered Bank and State Bank of Saurashtrawith State Bank of India.

IV.12 Apart from banks, the commercial

sector mobilised resources from a variety

of other sources such as capital markets,

issuance of commercial papers (CPs), non-

banking financial companies (NBFCs),

financial institutions, external commercial

borrowings (ECBs), American Depository

Receipts (ADRs)/Global Depository Receipts

MONETARY POLICY

STATEMENT 2009-10



(GDRs) and foreign direct investment.

During the first half of 2009-10, flow of

resources from external sources was lower

as compared with the corresponding period

of the previous year, although they were

significantly higher as compared to the

second half of 2008-09. On the other hand,

resources mobilised through domestic non-

bank sources recorded an increase during

this period with significant increase in

issuance of CPs and private placements.

Thus, total flow of resources from non-bank

sources has recorded an increase during

2009-10 so far as compared with the


(Table 4.6). The total flow of financial

resources to the commercial sector,

however, remained lower, reflecting

moderation in expansion in bank credit to

the commercial sector.

Table 4.6: Flow of Financial Resources to Commercial Sector

(Rupees crore)

Item Full Year April-September*

2007-08 2008-09 2008-09 2009-10

1 2 3 4 5

A. Adjusted non-food Bank Credit (NFC) 4,44,807 4,21,091 2,40,092 1,07,861 **

i) Non-Food Credit 4,32,846 4,11,824 2,43,280 1,18,257

of which petroleum and fertilizer credit 5,057 31,632 22,391 -9,179 ^

ii) Non-SLR Investment by SCBs 11,961 9,267 -3,188 -10,395

B. Flow from Non-banks (B1+B2) 5,64,558 4,68,567 2,28,119 2,30,130

B1. Domestic Sources 2,55,230 2,98,351 1,22,518 1,40,213

1. Public issues by non-financial entities 51,478 14,205 11,913 13,617

2. Gross private placements by non-financial entities 68,249. 77,856 17,847 34,790 #

3. Net issuance of CPs subscribed by non-banks 10,660 5,590 22,187 51,012

4. Net Credit by housing finance companies 41,841 26,634 14,893 8,124

5. Total gross accommodation by 4 RBI regulated

AIFIs - NABARD, NHB, SIDBI & EXIM Bank 22,267 31,423 7,248 -3,347

6. Systemically important non-deposit taking NBFCs

net of bank credit 36,460 76,828 37,744 17,990 ^

7. LIC’s gross investment in Corporate Debt,

Infrastructure and Social Sector 24,275 65,815 10,686 18,027 ^

B2. Foreign Sources 3,09,328 1,70,216 1,05,601 89,917

1. External Commercial Borrowings / FCCB 91,180 38,009 10,906 6,486

2. ADR/GDR Issues excluding banks and

financial institutions 11,836 4,788 4,652 12,645

3. Short-term Credit from abroad 68,878 -31,160 21,009 -8,133 ^

4. Foreign Direct Investment to India 1,37,434 1,58,579 69,034 78,919 ^

C. Total Flow of Resources (A+B) 10,09,365 8,89,658 4,68,211 3,37,991

Memo Item:

Mutual Funds Investments in Debt (non-Gilt) Instruments 88,457 -32,168 19,896 1,01,956

**: up to October 9, 2009. ^: Data pertain to April-August.

*: Comparable period for respective items. #: Data pertain to April-June.


MONETARY POLICY

STATEMENT 2009-10



Reserve Money Survey

IV.13 Growth in reserve money that

remained low/negative during the 2009-10

up to the second week of October 2009

registered a growth of 12.2 per cent, y-o-y,

as on October 16, 2009 as compared with a

growth of 17.6 per cent a year ago. The

significant acceleration in growth in reserve

money in the week ended October 16, 2009

reflects the reduction in CRR by 250 basis

points by the Reserve Bank effective from

the fortnight beginning October 11, 2008

and consequent decline in bankers' deposits

with the Reserve Bank. The reserve money

growth as on October 16, 2009, therefore,

is over a lower base that resulted from the

reduction in CRR a year ago. Reserve Bank

has reduced CRR by 400 basis points since

October 2008 to augment domestic liquidity

in view of the intensification of global

financial crisis and its related impact on

domestic markets. The movement in

reserve money in the second quarter of

2009-10 was mainly driven by liquidity

management operations of the Reserve

Bank and variation in bankers' deposits with

the Reserve Bank. The growth in reserve

money has to be seen along with policy

driven changes to the CRR, since the

combined impact gets reflected in the

growth of broad money. A reduction in CRR

may lead to a corresponding fall in reserve

money in the first round; the higher money

multiplier resulting from lower CRR,

however, will lead to higher growth in broad

money, though with a lag. When the

variation in reserve money reflects the

result of a policy driven change in CRR, for

the purpose of analytical comparison

reserve money adjusted for CRR changes

becomes more relevant. Adjusted for the

first round effect of the changes in CRR,

reserve money growth (y-o-y) as on October

16, 2009 was 19.5 per cent as compared with

22.8 per cent a year ago. The CRR impact

explains the difference between 'reserve

money' and 'adjusted reserve money'

(Chart IV.6).

IV.14 The money multiplier, which had

declined from 4.7 at end-March 2007 to 4.3

at end-March 2008 in the wake of CRR hikes,

increased to 4.8 as on March 31, 2009 and

MONETARY POLICY

STATEMENT 2009-10



5.4 by end-July 2009, reflecting subsequent

lowering of CRR by 400 basis points. The

money multiplier at end-September 2009

was 5.3 (Chart IV.7).

IV.15 Reserve money during the financial

year 2009-10 (up to October 16, 2009)

recorded a growth of 2.3 per cent as against

a decline of 2.9 per cent in the


(Table 4.7). On the sources side, both net

Reserve Bank credit to the Centre and net

foreign assets (adjusted for valuation)

increased. Net Reserve Bank's credit to the

Centre increased by Rs. 24,123 crore (up to

October 16, 2009) as compared with an

increase of Rs.15,534 crore during the


The Reserve Bank's foreign currency assets

(adjusted for valuation) increased by

Rs.31,150 crore as against a decrease of

Rs.34,556 crore during the corresponding

period of the previous year (Chart IV.8).

Adjusted for the first round impact of the

changes in CRR (up to October 16, 2009),

reserve money expanded by 2.2 per cent as

compared with an increase of 1.8 per cent


previous year.

IV.16 Movements in the Reserve Bank's net

credit to the Central Government during

2009-10 (up to October 16, 2009) largely

reflected the liquidity management

operations of the Reserve Bank and changes

in Central Government deposits with the

Reserve Bank. Liquidity condition eased

from mid-November 2008, in response to

the liquidity augmenting measures of the

Reserve Bank and on an average, Reserve

Bank started absorbing large amount of

liquidity through reverse repo under the

LAF. Accordingly, Reserve Bank's holding of

government securities (up to October 16,

2009) declined on account of an increase in

absorption under the LAF (Rs.74,775 crore).

The Centre's surplus cash balances with the

Reserve Bank also increased (Rs.45,124

crore). On the other hand, unwinding of

MSS securities (Rs.69,304 crore) led to a

decline in Central Government deposits

with the Reserve Bank. Furthermore, net

open market purchases under OMO/special

market operations (SMO) led to higher


MONETARY POLICY

STATEMENT 2009-10



Table 4.7: Reserve Money - Variations


Item 2008-09 2008-09 2009-10 2008-09 2009-10(April- (Up to (Up to Q1 Q2 Q3 Q4 Q1 Q2

March) Oct.17) Oct.16)

1 2 3 4 5 6 7 8 9 10

Reserve Money 59,698 -27,105 22,786 3,416 25,218 -70,453 1,01,517 -38,929 16,100(-2.9) (2.3)

(Adjusted Reserve Money) (1.8) (2.2)

Components (1+2+3)

1. Currency in Circulation 1,00,352 43,226 53,369 36,859 -14,516 38,277 39,733 29,692 976(7.3) (7.7)

2. Bankers’ Deposits with RBI -37,172 -66,793 -30,973 -29,333 39,219 -1,15,773 68,714 -72,664 20,680(-20.3) (-10.6)

3. ‘Other’ Deposits with the RBI -3,482 -3,538 390 -4,110 514 7,044 -6,930 4,044 -5,555( -39.1) (7.0)

Sources (1+2+3+4-5)

1. RBI’s net credit to Government 1,74,789 15,196 23,153 -13 51,360 30,230 93,212 -11,145 -14,953

of which: to Centre (i+ii+iii+iv-v) 1,76,397 15,534 24,123 1,430 51,379 29,932 93,657 -11,497 -14,968

2. RBI’s Credit to Banks andCommercial Sector 17,799 5,886 -17,520 -3,358 4,963 5,032 11,163 -9,623 -3,747

3. Net Foreign Assets of RBI 43,986 93,402 10,144 1,03,932 10,336 -1,56,330 86,048 -16,750 50,120(7.6) (0.8)

of which :FCA, adjusted for valuation -1,00,308 -34,556 31,150 15,535 -31,641 -92,102 7,900 -6,245 33,441

4. Governments’ Currency Liabilitiesto the Public 831 431 450 225 206 186 213 254 196

5. Net Non-Monetary liabilities of RBI 1,77,706 1,42,021 -6,558 97,369 41,648 -50,430 89,119 1,664 15,516

Memo:

Net Domestic assets 15,712 -1,20,507 12,641 -1,00,516 14,882 85,877 15,469 -22,178 -34,020

LAF- Repos (+) / Reverse Repos(-) -51,835 -41,710 -74,775 -45,350 51,480 -62,170 4,205 -1,32,800 28,170

Net Open Market Sales # * -94,548 -19,227 -74,068 -8,696 -10,535 -7,669 -67,649 -42,001 -31,591

Centre’s Surplus -60,367 -43,130 45,124 -42,427 6,199 -32,830 8,691 -13,156 77,713

Mobilisation under the MSS -80,315 1,103 -69,304 6,040 -628 -53,754 -31,973 -65,187 -4,117

Net Purchases(+)/Sales(-) fromAuthorised Dealers -1,78,592 -73,331 -14,385^ 3,956 -52,761 -1,11,877 -17,910 -15,889 1,504^

NFA/Reserve Money @ 129.6 147.5 127.6 143.8 141.1 134.7 129.6 133.1 136.1

NFA/Currency @ 185.2 209.7 173.3 213.5 220.2 183.3 185.2 175.3 182.0

NFA: Net Foreign Assets. FCA: Foreign Currency Assets. LAF: Liquidity Adjustment Facility.

* : At face value. # : Excludes Treasury Bills. @ : Per cent; end of period. ^ : up to August 28, 2009.

Note: 1. Data are based on March 31 for Q4 and last reporting Friday for all other quarters.

2. Figures in parentheses are percentage variations during the fiscal year.

holding of Central Government securities/

bonds (Rs.74,068 crore) by the Reserve Bank.

Reflecting combined effect of these

developments, the Reserve Bank's net credit

to the Centre increased during 2009-10 (up

to October 16, 2009).

MONETARY POLICY

STATEMENT 2009-10



IV.17 To sum up, the growth-supportive

accommodative monetary policy stance

was evident from sustained high growth

in broad money notwithstanding the

recent moderation, and also the daily

absorption of excess liquidity in excess of

Rs.1,00,000 crore on average throughout

the second quarter of 2009-10. High growth

in deposits on the component side and

high growth in investment of the banking

system in government securities in the

wake of large market borrowing

programme of the Government on the

sources side have been the major drivers

of growth in monetary aggregates.

Moderation in non-food credit growth

continued. Momentum in capital inflows

and revival in demand for credit from the

private sector could, however, alter the

monetary conditions over time.


MONETARY POLICY

STATEMENT 2009-10



V.1 The global financial markets further

extended the steady improvement in Q3 of

2009 that had started in Q2, with significant

reduction in liquidity and credit risk across

asset classes, though some segments in the

V. Financial Markets The global financial markets witnessedfurther easing of pressures on the back ofreceding uncertainties and risk, and a strongrebound in activity in various marketsegments in Q3 of 2009, albeit, withpersistence of weakness in credit andmortgage markets. The equity markets inboth advanced economies and EMEsrecovered a large part of losses incurred inthe aftermath of the global crisis; bondmarkets turned to normalcy with pick up inglobal issuances; sovereign and corporate -financial and non-financial - credit spreadsdeclined further. The domestic financialmarkets continued to function normally andalso witnessed further moderation in riskpremia in Q2 of 2009-10, besides significantimprovement in market activity. While themoney markets continued to reflect theimpact of ample liquidity and lower policyrates, the long term government bond yieldsreflected concerns about governmentborrowing programme. The rupee witnessedappreciating trend against the US dollar,reflecting in part the impact of revival incapital inflows and the general weakness ofthe US dollar against major currencies.While the secondary equity market continuedto outperform most other EMEs, the primarymarket witnessed strong resumption ofactivity in terms of primary issuances, privateplacements and mobilisation of resources bythe mutual funds.

MONETARY POLICY

STATEMENT 2009-10



credit and mortgage markets still remain

weak. Alongside easing of stress in the

global market conditions, the domestic

financial markets also witnessed further

decline of risk premia and significant

recovery in asset prices – extending the

pattern that had started in Q1 of 2009-10. A

combination of factors such as improving

market perception about the growth

outlook, ample liquidity in the system and

continuance of low policy rates facilitated

overall easing of the market conditions.

Notwithstanding the gradual moderation in

lending rates, indicating improved

transmission of monetary policy with a lag,

there was further moderation in credit

growth. The equity markets, apart from

recovery in prices, also exhibited substantial

improvement in activity in the primary

market with higher momentum in IPOs,

private placements and mobilisation of

resources by the mutual funds.

International Financial Markets

V.2 The global financial markets had

witnessed signs of stabilisation in Q2 of

2009, with strong rebound in activity in

some of the market segments on the back

of incipient signs of slowdown in the pace

of deterioration of economic conditions in

the advanced economies, better than

expected corporate performance and

confidence building measures taken by the

governments and central banks. The

financial markets showed further

improvement in Q3 of 2009 with increasing

risk tolerance and receding risk premia on

various asset classes. According to the BIS

Quarterly Review (September 2009), while

in interbank money markets key spreads

narrowed to levels not seen since the

beginning of 2008, improvements were also

evident in credit markets, although

important segments continued to rely on

central bank support.

V.3 The easing of pressures in money

markets in Q3 of 2009 was evident from the

significant and sustained moderation in

inter-bank rates from the peak seen during

the early phase of the global crisis (Chart V.1a).

The bonds market also mirrored the

receding liquidity premia and return of risk

appetite. However, government bond yields

witnessed some intermittent volatility due

to factors such as fluctuating perceptions

about the future path of global recovery and

the expected reversal in the stance of

monetary policies. The long-term

government bond yields, which rose in the

first two quarters of 2009 on concerns of

rising fiscal deficits, did witness signs of

stabilisation in Q3 of 2009 upon changing

outlook regarding macroeconomic

conditions and fiscal and monetary policies

(Chart V.1b). Furthermore, the steepening

of yield curve witnessed in the first two

quarters was not so evident during Q3 of

2009. However, the long-term bond yield in

the US continued to reflect the

consequences of large government debt and

borrowing programme.

V.4 The equity markets in developed as

well as EMEs have witnessed perceptible

recovery and reduced volatility since March

2009, with intermittent corrections in

response to specific adverse news/

perceptions (Chart V.1c, d and e). In Q3 of

2009, the pace of recovery of global equity

prices accelerated further and displayed a

more firm pattern. Both Dow Jones and

NASDAQ equity indices recorded around 16

per cent rise during Q3 of 2009 over the


MONETARY POLICY

STATEMENT 2009-10



MONETARY POLICY

STATEMENT 2009-10



preceding quarter. Thus, the markets have

been able to recoup a part of the household

wealth lost in the aftermath of the financial

crisis. Although equity markets rallied on

better than expected economic data and

corporate earnings results for Q2 of 2009

with financial sector showing significant

improvement, and upward shift in the

earnings expectations, there were episodes

of intermittent volatility caused by

investors’ reaction to any negative news

relating to the pace of economic recovery.

Furthermore, concerns on the quality and

sustainability of the financial sector

profitability continue to worry the markets,

as evident from the still relatively higher

credit default swap spreads for the banks

and the insurance sector (Chart V.1f).

V.5 Both sovereign and corporate

(financial and non-financial) credit spreads

narrowed further, indicating significant

drop in risk and liquidity premiums (Chart

V.1g, h and i). The improvement in credit

market conditions was also evident in the

high level of global corporate bond

issuances, although there was at the same

time deleveraging by the banks.

Furthermore, in the US, while there were

signs of recovery in the commercial paper

(CP) market, asset backed securities (ABS)

and commercial mortgage backed securities

(CMBS) markets continued to mirror weak

sentiments. Lower risk spread and

improved market liquidity helped in lifting

the pace of domestic as well as international

bond issuances by the corporates.

V.6 EME equity markets reflected

investors’ increasing risk tolerance

which continued to support asset prices

(Chart V.1d). The resumption of capital

flows to EMEs and return of investors’ risk

appetite, bolstered by the strong recovery

and rebound in domestic consumption

demand in Asia, incipient recovery in

commodity exporting countries in Latin

America and the Middle East, led to further

acceleration in growth of equity prices in

Q3 of 2009. The Morgan Stanley Capital

International (MSCI) index increased by

17.4 per cent during the Q3 of 2009,

although the pace of increase in equity

prices differed across EMEs depending on

the domestic factors (Table 5.1). Between

mid-September 2009 and end-March 2009,

MSCI increased by 56.9 per cent.

V.7 In the foreign exchange market, the

US dollar which depreciated in the first

quarter of 2009-10, continued to depreciate

during the second quarter on the back of

declining flows to the US, continuation of

easy monetary policy in the US and change

in market sentiment against the dollar

(Chart V.1j). Between end-March 2009 and

October 20, 2009, the US dollar depreciated

by 11.1 per cent against the euro, 12.6 per

cent against the pound sterling and 7.8 per

cent against the Japanese yen. The EME

currencies witnessed appreciating trend in

Q3 of 2009, reflecting in part their relative

attractiveness to foreign investors for

higher yields. Coming to Asian currencies,

the US dollar depreciated against Indian

rupee, Indonesian rupiah, Malaysian

ringgit, South Korean won and Thai Baht.

Among other emerging market currencies,

the US dollar registered significant

depreciation against South African Rand,

Brazilian real, Mexican peso, Turkish lira

and Russian ruble. However, it appreciated

against the Argentine peso during the

period (Table 5.1).


MONETARY POLICY

STATEMENT 2009-10



Domestic Financial Markets

V.8 All through the crisis, financial

markets in India continued to function

normally. However, financial market

conditions tightened in sympathy with the

international markets and this was reflected

in the large credit spreads and higher

liquidity premia. However, the financial

markets recovered from this sooner than

their counterparts elsewhere, with some

indications of risk perception and volumes

returning to the pre-Lehman levels. The

domestic markets recorded further

improvement in Q2 of 2009-10, with

external financial environment turning

more favourable. The call rate in the money

market remained within the informal LAF

corridor, while volumes increased,

indicating declining risk and liquidity

premia. In the foreign exchange market, the

Indian rupee generally appreciated against

major currencies as the appetite for EME

assets rose and capital flows gained further

momentum. In the credit market, the

lending rates of scheduled commercial

banks (SCBs) further softened, although

concerns remained regarding the pace of

pick up in bank credit. The activity in the

government securities market further

picked up in Q2 of 2009-10 as 69.3 per cent

of the Government’s gross market

borrowing programme was completed by

the end of September. Ample liquidity

conditions ensured by the Reserve Bank and

high growth in bank deposits in the face of

subdued growth in credit to private sector

continued to contain pressure on bond

yields. Indian equity markets outperformed

most of the EMEs.

Liquidity conditions

V.9 The Reserve Bank carried forward its

stance of maintaining ample liquidity in the

system in Q2 of 2009-10, which was

Items End- End- OctoberMarch 08 @ March 09 @ 20, 2009*

1 2 3 4

Items End- End- OctoberMarch 08 @ March 09 @ 12, 2009*

1 5 6 7

@ : Year-on-year variation. * : Variation over end-March 2009. ** : Data as on October 09, 2009.Source: Bloomberg and the IFS, IMF.

Table 5.1: Currency and Stock Price Movement in EMEs

(Per cent)

Stock Price Variations

Indonesia 33.7 71.3 67.2(Jakarta Composite)Brazil (Bovespa)** 33.1 56.6 47.5Thailand (SETComposite) 21.3 74.2 67.2India (BSE Sensex) 19.7 75.4 71.9South Korea (KOSPI) 17.3 35.9 40.2China 9.1 22.0 19.6(Shanghai SEComposite)Taiwan (TaiwanIndex) 8.7 45.9 41.0Russia (RTS) 6.1 107.1 77.7Malaysia (KLSEComposite) 0.1 41.9 39.5Singapore (StraitsTimes) -4.9 57.7 56.6

Appreciation (+)/Depreciation (-) of the US Dollar

Japanese Yen -14.9 -2.0 -7.8

Chinese Yuan -9.3 -2.6 -0.1

Russian Ruble -9.7 44.3 -13.9

Turkish Lira -5.8 27.7 -13.3

Indian Rupee -8.3 27.5 -9.6

Indonesian Rupiah 1.1 25.6 -19.1

Malaysian Ringgit -7.8 14.4 -7.9

South Korea Won 5.5 38.9 -14.6

Thai Baht -10.2 12.9 -5.8

Argentina 2.1 17.3 2.9

Brazilian Real -17.0 31.2 -23.4

Mexican Peso -3.5 32.9 -8.6

MONETARY POLICY

STATEMENT 2009-10



reflected in the average reverse repo

balances on daily basis with the Reserve

Bank increasing to about Rs.1,26,811 crore

in Q2 from Rs.1,16,993 crore in Q1 of 2009-

10 (Table 5.2). As against a steep decline in

cash balances of the Central Government

with the Reserve Bank in Q1 of 2009-10,

there was a large build up of cash balances

in Q2, mainly reflecting market borrowings

of the Central Government and surplus

transfer by the Reserve Bank (Chart V.2). The

Reserve Bank, as against its intention to

purchase government securities amounting

to Rs.80,000 crore under the Open Market

Operation (OMO) programme for the first

half of 2009-10, purchased securities

Year/ Call Money Government Foreign Exchange Liquidity EquityMonth Securities Management

Average Average Average Average Average Average RBI’s Net Average Average Average Average Average AverageDaily Call Turnover 10-Year Daily Exchange Foreign MSS Daily Daily Daily BSE S&P

Turnover Rates* in Govt. Yield@ Inter- Rate Currency Out- Reverse BSE NSE Sensex** CNX(Rs. (Per Securities (Per bank (Rs. per Sales (-)/ stand- Repo Turnover Turnover Nifty**

crore) cent) (Rs. cent) Turnover US$) Purchases ing# (Rs. (LAF) (Rs. (Rs.crore)+ (US$ (+) crore) Out- crore) crore)

million) (US$ standingmillion) (Rs.

crore)

1 2 3 4 5 6 7 8 9 10 11 12 13 14

2006-07 21,725 7.22 4,863 7.78 18,540 45.28 26,824^ 37,698 21,973 3,866 7,812 12277 3572

2007-08 21,393 6.07 8,104 7.91 34,044 40.24 78,203^ 1,28,684 4,677 6,275 14,148 16569 4897

2008-09 22436 7.06 10,879 7.54 34,712 45.92 -2,910^ 1,48,889 2,885 4,498 11,272 12303 3713

2008

Apr 19,516 6.11 6,657 8.10 37,580 40.02 4,325 1,70,726 26,359 5,773 13,561 16291 4902

May 19,481 6.62 8,780 8.04 32,287 42.13 148 1,75,565 11,841 6,084 13,896 16946 5029

Jun 21,707 7.75 6,835 8.43 38,330 42.82 -5,229 1,74,433 -8,622 5,410 12,592 14997 4464

Jul 24,736 8.76 5,474 9.18 37,173 42.84 -6,320 1,72,169 -27,961 5,388 12,862 13716 4125

Aug 23,408 9.1 7,498 9.06 38,388 42.94 1,210 1,71,944 -22,560 4,996 11,713 14722 4417

Sep 23,379 10.52 10,418 8.45 44,700 45.56 -3,784 1,75,666 -42,591 5,147 12,489 13943 4207

Oct 28,995 9.9 8,641 7.85 36,999 48.66 -18,666 1,69,123 -45,612 3,911 10,810 10550 3210

Nov 21,812 7.57 11,732 7.41 31,322 49.00 -3,101 1,47,648 -8,017 3,539 9,618 9454 2835

Dec 21,641 5.92 22,903 5.88 34,874 48.63 -318 1,24,848 22,294 3,851 10,141 9514 2896

2009

Jan 18,496 4.18 19,136 5.84 27,895 48.83 -29 1,13,535 45,474 3,526 9,559 9350 2854

Feb 22,241 4.16 11,831 5.98 25,068 49.26 230 1,02,934 50,649 2,859 7,887 9188 2819

Mar 23,818 4.17 10,644 6.59 33,126 51.23 -3,388 88,077 33,360 3,489 10,140 8966 2802

Apr 21,820 3.28 15,997 6.55 27,796 50..06 -2,487 75,146 1,01,561 5,232 15,688 10911 3360

May 19,037 3.17 14,585 6.41 32,227 48.53 -1,437 45,955 1,25,728 6,427 19,128 13046 3958

Jun 17,921 3.21 14,575 6.83 32,431 47.77 1,044 27,140 1,23,400 7,236 21,928 14782 4436

Jul 14,394 3.21 17,739 7.01 30,396 48.48 -55 22,159 1,30,891 6,043 18,528 14635 4343

Aug 15,137 3.22 9,699 7.18 27,284 48.34 181 19,804 1,28,275 5,825 17,379 15415 4571

Sep 16,118 3.31 16,988 7.26 27,574 48.41 – 18,773 1,21,548 6,211 18,253 16338 4859

* : Average of daily weighted call money borrowing rates. + : Average of daily outright turnover in Central Government dated securities.

@ : Average of daily closing rates. # : Average of weekly outstanding MSS.

** : Average of daily closing indices. ^ : Cumulative for the financial year.

LAF : Liquidity Adjustment Facility. MSS : Market Stabilisation Scheme. BSE: Bombay Stock Exchange Limited.

NSE : National Stock Exchange of India Limited. – : Not available.

Note: In column 10, (-) indicates injection of liquidity, while (+) indicates absorption of liquidity.

Table 5.2: Domestic Financial Markets at a Glance


MONETARY POLICY

STATEMENT 2009-10



through the auction route amounting to

Rs.57,487 crore up to end-September 2009.

Cash Management of the Government

V.10 During Q1 of 2009-10, the Central

Government took recourse to ways and

means advances (WMA) and overdrafts (OD)

on several occasions (Table 5.3). The cash

balances turned positive on June 16, 2009 on

account of the quarterly advance tax inflows

and remained so almost throughout Q2 of

2009-10. The surplus cash balance increased

from Rs.18,527 crore as at end-June 2009 to

Rs.91,410 crore as at end-September

2009,buoyed by the improvement in tax

revenue (direct as well as indirect)

collections, increase in surplus transfer from

the Reserve Bank and increased quantum of

market borrowings. The surplus cash balance

moderated to Rs.69,554 crore as on October

20, 2009.

Liquidity Management

V.11 Liquidity conditions eased further

during Q2 of 2009-10 with the average daily

absorption under the LAF remaining high.

The daily absorption under LAF which had

peaked on September 4, 2009, however,

moderated somewhat during the second-

half of September 2009, reflecting

significant outflows on account of advance

tax payments (Table 5.4). The easing of

liquidity conditions in the banking system

in Q2, despite an increase in the cash

balances of the Central Government,

mainly reflected MSS unwinding (Rs.4,500

crore) and OMO auction-based purchases

(Rs.29,298 crore). During 2009-10 (up to

September 2009), MSS unwinding at

Up to end-September

2007-08 2008-09 2008-09 2009-10

1 2 3 4 5

Number of Days

WMA @ 91 109 16 76

OD 37 65 – 44

Cash Deficit 91 109 16 76

Average Utilisation(Rupees crore)

WMA 3,605 2,077 371 6,194

OD 645 1,823 – 2,309

@ : Includes days of OD.

Table 5.3: Cash Management of theCentral Government

MONETARY POLICY

STATEMENT 2009-10



Rs.70,000 crore (de-sequestering of

Rs.28,000crore) was used as a key

instrument of liquidity management

(Chart V.3).

V.12 The significantly reduced rupee

liquidity needs of the banking system were

also evident from the fact that the special

term repo facility has not been availed

Table 5.4: Liquidity Position

(Rupees crore)

@ : Excludes minimum cash balances with the Reserve Bank in case of surplus.

* : Data pertain to March 31.

Note : 1. Negative sign in column 2 indicates injection of liquidity through LAF.

2. The Second LAF, conducted on a daily basis from September 17, 2008 to May 5, 2009 is being conducted only onreporting Fridays from May 8, 2009.

3. Negative sign in column 4 indicates injection of liquidity through WMA/OD.

2009

January 54,605 1,08,764 -9,166 1,54,203

February 59,820 1,01,991 -9,603 1,52,208

March* 1,485 88,077 16,219 1,05,781

April 1,08,430 70,216 -40,412 1,38,234

May 1,10,685 39,890 -6,114 1,44,461

June 1,31,505 22,890 12,837 1,67,232

July 1,39,690 21,063 26,440 1,87,193

August 1,53,795 18,773 45,127 2,17,695

September 1,06,115 18,773 80,775 2,05,663

October 16 76,260 18,773 61,343 1,56,376

2008

January 985 1,66,739 70,657 2,38,381

February 8,085 1,75,089 68,538 2,51,712

March* -50,350 1,68,392 76,586 1,94,628

April 32,765 1,72,444 36,549 2,41,758

May -9,600 1,75,362 17,102 1,82,864

June -32,090 1,74,433 36,513 1,78,856

July -43,260 1,71,327 15,043 1,43,110

August -7,600 1,73,658 17,393 1,83,451

September -56,480 1,73,804 40,358 1,57,682

October -73,590 1,65,187 14,383 1,05,980

November -9,880 1,32,531 7,981 1,30,632

December 14,630 1,20,050 3,804 1,38,484

Outstanding LAF MSS Centre’s Totalas on Surplus (2 to 4)Last Friday with the

RBI @

1 6 7 8 9

Outstanding LAF MSS Centre’s Totalas on Surplus (2 to 4)Last Friday with the

RBI @

1 2 3 4 5


MONETARY POLICY

STATEMENT 2009-10



continuously since August 17, 2009. In

view of the ample liquidity conditions, the

term repo auctions which were being

conducted on a daily basis since October

14, 2008 are now being conducted on a

weekly basis since April 27, 2009.

Furthermore, the outstanding under the

forex swap facility, which was instituted

to provide forex liquidity to Indian banks

having foreign branches or subsidiaries,

also declined to Rs.240 crore at end-

September 2009 from Rs.595 crore as at

end-June 2009. The tenure of the term repo

and the forex swap facilities, which have

been extended from time to time, is up to

end-March 2010. The surplus cash balances

of the centre emerged as the key drivers

of liquidity conditions in Q2 of 2009-10

(Table 5.5).

Money Market

V.13 The money market continued to

remain orderly during Q2 of 2009-10.

Reflecting the surplus liquidity conditions,

the call rate hovered around the lower

bound of the informal LAF corridor during

the Q2 of 2009-10 (Chart V.4). The call rate

averaged 3.25 per cent in Q2, which was

marginally higher than 3.22 per cent in Q1.

V.14 Interest rates in the collateralised

segments of the money market – the market

repo (outside the LAF) and the collateralised

borrowing and lending obligation (CBLO) –

moved in tandem with the call rate during

Q2 but remained below the call rate (Chart

V.5). The weighted average interest rate in

the collateralised segment of the money

market marginally increased to 2.7 per cent

Table 5.5: Reserve Bank’s Liquidity Management Operations

(Rupees crore)

Item 2008-09 2008-09 2009-10Apr-Mar Q1 Q2 Q3 Q4 Q1 July Aug

1 2 3 4 5 6 7 8 9

A. Drivers of Liquidity (1+2+3+4) -1,67,708 6,061 -18,851 -1,01,278 -53,640 -44,599 1,237 -57

1. RBI’s net Purchase from Authorised Dealers -1,78,592 -8,555 -40,249 -1,12,168 -17,620 -15,874 1,665 -176

2. Currency with the Public -97,921 -30,063 12,360 -40,070 -40,147 -18,178 8,219 -3,197

3. a. Surplus Cash balances of the Centre

with the Reserve Bank 60,367 40,073 -3,845 36,554 -12,415 3,382 -13,603 -18,686

3. b. WMA and OD 0 0 0 0 0 0 0 0

4. Others (residual) 48,438 4,606 12,884 14,406 16,542 -13,929 4,956 22,003

B. Management of Liquidity (5+6+7+8) 2,35,209 -37,659 7,217 1,33,325 1,32,326 -21,674 -317 492

5. Liquidity impact of LAF Repos -51,835 -18,260 24,390 -71,110 13,145 -1,30,020 -8,185 -14,105

6. Liquidity impact of OMO (net) * 104,480 14,642 11,949 10,681 67,208 43,159 6,040 12,307

7. Liquidity impact of MSS 80,314 -6,041 628 53,754 31,973 65,187 1,827 2,290

8. First round liquidity impact due to

CRR change 1,02,250 -28,000 -29,750 1,40,000 20,000 – – –

C. Bank Reserves # (A+B) 67,501 -31,598 -11,634 32,047 78,686 -66,273 920 435

(+) : Indicates injection of liquidity into the banking system.

(-) : Indicates absorption of liquidity from the banking system.

* : Includes oil bonds but excludes purchases of government securities on behalf of State Governments.

# : Includes vault cash with banks and adjusted for first round liquidity impact due to CRR change.

Note : Data pertain to March 31 and last Friday for all other months.

MONETARY POLICY

STATEMENT 2009-10



during Q2 of 2009-10 from 2.4 per cent

during Q1. Transaction volumes in CBLO

and market repo segments continued to

remain high during Q2 of 2009-10 reflecting

the easy liquidity and active market

conditions (Table 5.6). Banks as a group are

the major borrowers in the collateralised

segment whereas mutual funds (MFs)

continue to remain the single largest lender

of funds in that segment. In fact, more than

75 per cent of the lending in the

collateralised segment was contributed by

the MFs in Q2, reflecting their continued

enhanced lending capacity. The

collateralised market remained the

predominant segment of the money market,

accounting for more than 80 per cent of the

total volume in the money market in Q2.

V.15 There has been some circularity in

the movement of funds between MFs and

banks. Banks invest a part of their resources

in MFs. The MFs also lend funds to banks

through CBLO and market repo. For

instance, in Q2 of 2009-10, almost over 50


MONETARY POLICY

STATEMENT 2009-10



per cent of the banks’ investment in MFs

was in turn lent to banks by the MFs in the

collateralised segments (Table 5.7).

Certificates of Deposit

V.16 With the easing of liquidity

conditions, the fortnightly average

issuance of certificates of deposit (CD) has

picked up in 2009-10 so far. Most of the

CD issued were of more than six months

duration. The average interest rate on CD,

on the back of abundant liquidity, declined

between end-March 2009 and mid-June

2009 but has increased somewhat

thereafter (Table 5.6).

Commercial Paper

V.17 During 2009-10, the commercial

paper (CP) market also picked up with the

easing of liquidity conditions and the size

of fortnightly issuance has increased

significantly. Leasing and finance

companies continued to be the major

issuers of CPs (45 per cent), followed by

‘manufacturing and other companies’ (41

per cent) and financial institutions (14 per

Table 5.6: Activity in Money Market Segments

(Rupees crore)

Year/Month

Call Market CBLO Total Money Term Outsta- WADR Outsta- WADR

Repo (2+3+4) Market Money nding (Per nding (Per

Rate* Market cent) cent)

(per cent)

1 2 3 4 5 6 7 8 9 10 11

2008-09

April 9,758 14,966 38,828 63,552 5.31 374 37,584 8.85 1,50,865 8.49

May 9,740 14,729 36,326 60,795 6.29 420 42,032 9.02 1,56,780 8.95

June 10,854 11,262 35,774 57,890 7.35 253 46,847 10.03 1,63,143 9.16

July 12,368 8,591 23,669 44,628 8.09 226 51,569 10.95 1,64,892 10.23

August 11,704 10,454 22,110 44,268 8.65 501 55,036 11.48 1,71,966 10.98

September 11,690 10,654 20,547 42,891 9.26 335 52,038 12.28 1,75,522 11.56

October 14,497 9,591 16,818 40,906 8.66 345 48,442 14.17 1,58,562 10.00

November 10,906 15,191 24,379 50,476 6.58 319 44,487 12.42 1,51,493 10.36

December 10,820 16,943 32,261 60,024 5.37 415 40,391 10.70 1,51,214 8.85

January 9,248 18,053 31,794 59,095 3.99 454 51,668 9.48 1,64,979 7.33

February 11,121 19,929 38,484 69,534 3.89 669 52,560 8.93 1,75,057 6.73

March 11,909 21,593 48,319 81,821 3.76 451 44,171 9.79 1,92,867 7.53

2009-10

April 10,910 20,545 43,958 75,413 2.41 332 52,881 6.29 2,10,954 6.48

May 9,518 22,449 48,505 80,472 2.34 338 60,740 5.75 2,18,437 6.20

June 8,960 21,694 53,553 84,207 2.69 335 68,721 5.00 2,21,491 4.90

July 7,197 20,254 46,501 73,952 2.83 389 79,582 4.71 2,40,395 4.96

August 7,569 23,305 57,099 87,973 2.62 461 83,026 5.05 2,32,522 4.91

September 8,059 27,978 62,388 98,425 2.73 381 88,161+ 4.96+ – –

* : Weighted average rate of call, market repo and CBLO. + : As on September 15, 2009.

WADR: Weighted average discount rate.

Average Daily Volume (One Leg) Commercial Paper Certificates of Deposit

MONETARY POLICY

STATEMENT 2009-10



cent) as at end-August 2009. The share of

‘manufacturing and other companies’ and

‘financial institutions’ in the total

outstanding CPs has increased in the recent

period (Table 5.8).

V.18 The significant easing of risk in the

commercial paper market was evident in the

secular decline in spread of CPs over 91-day

treasury bills from a peak of 604 basis points

in October 2008 to 161 basis points in

September 2009 (Chart V.6). During 2009-10

so far, the most preferred tenor for issuance

of CPs has been 60-180 days, as compared

with more than 180 days in the previous year.

Treasury Bills

V.19 The gross amount mobilised through

treasury bills remained substantially

higher at Rs.2,23,210 crore during 2009-10

(up to October 23, 2009) as compared to

the same period last year, reflecting in part

the higher liquidity requirements of the

Government. On July 16, 2009, it was

decided to roll over the maturing amount

(Rupees crore)

Reporting Friday MF Lending Banks’ MFs lending in the collateralised

Outstanding segment as % of Banks’

Investment Investment in MFs

CBLO Market repo in MFs CBLO Market Repo

1 2 3 4 5 6

03-Jul-09 28,320 28,846 89,472 32 32

17-Jul-09 34,851 33,984 1,29,998 27 26

31-Jul-09 42,485 26,724 1,39,619 30 19

14-Aug-09 55,540 43,203 1,56,910 35 28

28-Aug-09 58,725 33,596 1,51,136 39 22

11-Sep-09 59,899 46,754 1,56,573 38 30

25-Sep-09 29,504 29,328 66,687 44 44

Table 5.7: Movement of Funds between Banks and Mutual Funds

(Rupees crore)

Category of Issuer End of

Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Aug-09

1 2 3 4 5 6 7

Leasing and Finance 34,957 39,123 27,965 27,183 34,437 36,926

(74.6) (75.0) (73.5) (61.5) (50.1) (44.5)

Manufacturing 8,150 9925 6,833 12,738 23,454 33,985

(17.4) (19.10) (18.0) (28.9) (34.1) (40.9)

Financial Institutions 3,740 3,060 3,257 4,250 10,830 12,115

(8.0) (5.9) (8.5) (9.6) (15.8) (14.6)

Total 46,847 52,108 38,055 44,171 68,721 83,026

Note: Figures in brackets are percentage share in total.

Table 5.8: Commercial Paper-Major Issuers


MONETARY POLICY

STATEMENT 2009-10



of Treasury Bills till September 30, 2009.

The implicit yield on 182-day and 364-day

Treasury Bills increased somewhat in

recent months (Table 5.9).

Year/Month Notified Average Implicit Yield at Average Bid-Cover RatioAmount Minimum Cut-off Price

(Rupees crore) (Per cent)

91-day 182-day 364-day 91-day 182-day 364-day

1 2 3 4 5 6 7 8

2007-08 2,24,500 @ 7.10 7.40 7.42 2.84 2.79 3.21

2008-09 2,99,000 @ 7.10 7.22 7.15 3.43 2.91 3.47Apr 2008 22,000 7.28 7.41 7.53 1.70 1.36 2.36May 2008 21,000 7.41 7.55 7.61 2.65 2.78 3.05Jun 2008 11,500 8.01 8.42 7.93 2.00 2.76 2.80Jul 2008 16,000 9.07 9.33 9.39 2.35 2.72 2.70Aug 2008 23,500 9.15 9.31 9.24 2.99 2.86 4.35Sept 2008 25,000 8.69 8.92 8.83 3.06 3.04 3.57Oct 2008 35,000 8.13 8.36 7.92 1.95 2.42 4.00Nov 2008 28,000 7.30 7.13 7.23 7.95 2.97 4.33Dec 2008 16,500 5.69 5.35 5.07 5.36 4.67 5.14Jan 2009 38,500 4.69 4.60 4.64 4.56 3.22 4.80Feb 2009 32,000 4.78 4.71 4.62 2.81 1.86 2.62March 2009 30,000 4.77 4.86 5.25 2.10 2.67 1.44

2009-10April 2009 39,000 3.81 4.11 4.07 3.22 2.79 5.07May 2009 29,000 3.26 3.54 3.58 3.18 2.25 3.14June 2009 22,500 3.35 3.56 3.99 3.37 5.65 2.86July 2009 40,000 3.23 3.45 3.77 3.92 2.86 3.90Aug 2009 28,000 3.35 3.84 4.25 3.04 2.18 3.76Sept 2009 32,000 3.35 3.94 4.47 3.67 4.17 4.05

@: Total for the financial year.Note: 1. 182-day Treasury Bills were reintroduced with effect from April 2005.

2. Notified amounts are inclusive of issuances under the MSS.

Table 5.9: Treasury Bills in the Primary Market

MONETARY POLICY

STATEMENT 2009-10




Central Government Securities

V.20 The Central Government completed

a large part (74.0 percent) of the budgeted

gross market borrowing programme

(including amounts raised through de-

sequestering of MSS balances) during 2009-

10 (up to October 23, 2009). Ample liquidity

in the system facilitated borrowings,

although there was some impact on interest

rates arising from financing of higher fiscal

deficit (Table 5.10).

State Government Securities

V.21 The Annual Policy Statement for

2009-10 had projected States’ net market

borrowings at Rs.1,26,000 crore, which was

subsequently raised to Rs.1,40,000 crore.

Up to October 22, 2009, 21 states mobilised

Rs.72,216 crore (net Rs.58,683 crore) as

compared with Rs.17,896 crore (net

Rs.4,438 crore) raised by 12 states during


year. Despite higher borrowings, the

interest rate on the State Government

securities moderated reflecting the market

liquidity, although there has been some

pressure on interest rates in recent

months (Table 5.10).

Secondary Market

V.22 The gradual increase in yield across

the maturity spectrum was evident during

Q2 of 2009-10. Between end-June 2009 and

end-September 2009, the yield on 1-30 year

maturity increased between 16-70 basis

points. The yield curve continued to reveal

moderation in rates towards the short end

on account of prevalence of abundant

liquidity in the financial system. However,

the medium to long-term yields hardened

on concerns of large fiscal deficit (Chart V.7).

The turnover in government securities

market started showing signs of pick up in

the current fiscal year so far (Chart V.8).

V.23 The yield on 5-year AAA-rated

corporate bonds started hardening in Q2 of

2009-10, in tandem with increase in

2007-08 2008-09 2008-09# 2009-10#

1 2 3 4 5

Central Government

Gross amount raised (Rupees crore) 1,56,000 2,73,000 1,06,000 3,23,000

Re-issuances 34 52 20 64

New issues 1 4 1 5

Bid-cover ratio (Range) 1.6-4.8 1.7-4.5 1.4-3.5 1.4-3.6

Weighted average maturity (years) 14.9 13.8 15.5 10.9

Weighted average yield (per cent) 8.12 7.69 8.81 7.08

Devolvement on PDs (Rupees crore) 957 10,773 2,420 6050

State Governments

Gross amount raised (Rupees crore) 67,779 1,18,138 15,884 63,212

Cut-off yield 7.84-8.90 5.80-9.90 8.39-9.90 7.04-8.37

Weighted average yield (per cent) 8.25 7.87 9.05 7.90

# : Up to September 30.

Table 5.10: Issuances of Central and State Government Dated Securities


MONETARY POLICY

STATEMENT 2009-10



government bond yields. The risk spread on

corporate bonds, however, continued to

narrow to broadly return to the pre-Lehman

level (Chart V.9).

Credit Market

V.24 In response to the prevailing amplemarket liquidity and the lower policy

interest rate environment, the SCBs

continued to soften their deposit rates for

various maturities by 25-225 basis points

during Q2 2009-10 (Table 5.11). The impact

of the lower cost of funds for banks was

also transmitted to the interest rates on

bank loans with benchmark prime lending

rates (BPLRs) of SCBs declining by 25-100

basis points during the same period.

V.25 The weighted average BPLRs of public

sector and private sector banks exhibited

a secular decline after September 2008

(Chart V.10). The share of sub-BPLR lending

for all SCBs (excluding export credit and

MONETARY POLICY

STATEMENT 2009-10



small loans) declined from 75.8 per cent in

March 2008 to 66.9 per cent in March 2009.

On the whole, gradual moderation in

lending and deposit rates continued,

contributing thereby to an improvement in

the monetary policy transmission.

(Per cent)

March 2007 March 2008 March 2009 June 2009 October 2009#

1 2 3 4 5 6

1) Domestic Deposit Rate

Public Sector BanksUp to 1 year 2.75-8.75 2.75-8.50 2.75-8.25 1.00-7.00 1.00-6.75> 1year-3 years 7.25-9.50 8.25-9.25 8.00-9.25 6.50-8.00 6.25-7.50> 3 years 7.50-9.50 8.00-9.00 7.50-9.00 7.00-8.50 6.50-8.00

Private Sector BanksUp to 1 year 3.00-9.00 2.50-9.25 3.00-8.75 2.00-7.50 2.00-7.00> 1year-3 years 6.75-9.75 7.25-9.25 7.50-10.25 6.00-8.75 5.25-8.00> 3 years 7.75-9.60 7.25-9.75 7.50-9.75 6.00-9.00 5.75-8.25

Foreign BanksUp to 1 year 3.00-9.50 2.25-9.25 2.50-8.50 1.80-8.00 1.25-8.00> 1year-3 years 3.50-9.50 3.50-9.75 2.50-9.50 2.25-8.50 2.25-8.50> 3 years 4.05-9.50 3.60-9.50 2.50-10.00 2.25-9.50 2.25-8.50

2) BPLR1. Public Sector Banks 12.25-12.75 12.25-13.50 11.50-14.00 11.00-13.50 11.00-13.502. Private Sector Banks 12.00-16.50 13.00-16.50 12.75-16.75 12.50-16.75 12.50-16.753. Foreign Banks 10.00-15.50 10.00-15.50 10.00-17.00 10.50-16.00 10.50-16.00

3) Actual Lending Rate*1. Public Sector Banks 4.00-17.00 4.00-17.75 3.50-18.00 3.50-17.50 –2. Private Sector Banks 3.15-25.50 4.00-24.00 4.75-26.00 4.10-26.00 –

3. Foreign Banks 5.00-26.50 5.00-28.00 5.00-25.50 2.76-25.50 –

* : Interest rate on non-export demand and term loans above Rs. 2 lakh excluding lending rates at the extreme five

per cent on both sides.

# : As on October 15, 2009. –: Not available.

Table 5.11: Deposit and Lending Rates


MONETARY POLICY

STATEMENT 2009-10



V.26 Despite lower interest rates on

lending, the growth of non-food bank credit

continued to decelerate in Q2 of 2009-10

(Chart V.11). This should be interpreted

though along with the increase in resources

mobilised from the non-banking sources,

particularly in the form of issuance of CPs

and private placements in equity market.

Nevertheless, credit cards and consumer

durables related credit have exhibited

negative growth so far suggesting persistent

slowdown in consumption demand.

Foreign Exchange Market

V.27 After exhibiting appreciating trend in

Q1 of 2009-10, the rupee exhibited greater

two-way movements during Q2 on the back

of return of capital inflows. The resilience

shown by the Indian economy in the face

of global economic crisis and continued

weakness of the US dollar in the

international markets also contributed to

the strength of the rupee (Chart V.12). The

rupee has strengthened against the US

MONETARY POLICY

STATEMENT 2009-10



dollar during October 2009 so far on the back

of sustained dollar inflows and continued

weakness of the US dollar against the euro.

As on October 22, 2009, the rupee

appreciated by 9.2 per cent against the US

dollar and 1.7 per cent against the Japanese

yen over end-March 2009 level. The rupee,

however, depreciated by 5.9 per cent against

the pound sterling and 3.4 per cent against

the euro.

V.28 The average 6-currency trade-based

REER (base: 1993-94=100) appreciated by

5.2 per cent between March and August

2009, mainly on account of appreciation of

the rupee against the US dollar and increase

in inflation differential between India and its

trading partners (Chart V.12 and Table 5.12).

The 6-currency REER stood at 104.2 on

October 21, 2009. In relation to the base

year, over a long-term, the REER exhibits

relative stability.

V.29 Reflecting the easing supply

conditions in the foreign exchange market

led by capital inflows, the forward premia

generally exhibited declining trend during

Table 5.12: Nominal and Real EffectiveExchange Rate of the Indian Rupee

(Trade Based Weights, Base : 1993-94(April-March) = 100)

Year/Month 6-Currency Weights 36-Currency Weights

NEER REER NEER REER

1 2 3 4 5

2007-08 74.76 114.23 93.91 104.81

2008-09 (P) 64.87 104.47 86.15 94.62

Sep. 2008(P) 64.81 106.96 85.42 95.96

Oct 2008(P) 62.34 102.09 83.23 92.31

Nov 2008(P) 63.25 102.45 84.69 92.59

Dec 2008(P) 62.35 99.93 83.91 90.48

Jan 2009(P) 62.49 99.23 83.62 90.02

Feb 2009(P) 62.97 99.43 85.20 91.02

Mar, 2009(P) 60.35 95.68 82.13 88.51

Apr 2009(P) 61.49 98.58 82.67 89.72

May 2009(P) 62.31 101.37 83.41 91.76

June 2009(P) 62.43 101.11 83.71 92.19

July 2009(P) 61.36 99.93 82.33 91.54

Aug 2009(P) 61.22 100.68 82.02 91.58

Per cent Change

2007-08 2008-09 (P) 2008-09 2009-10

(Apr- (Apr-

Aug) Aug)

36-REER 6.4 -9.7 -2.2 3.5

36-NEER 9.3 -8.3 -1.6 -0.1

6-REER 8.2 -8.5 0.2 5.2

6-NEER 7.6 -13.2 -4.7 1.4

Rs/USD 12.5 -12.4 -14.8* 6.0*

NEER : Nominal Effective Exchange Rate.

REER : Real Effective Exchange Rate.

P : Provisional. - : Not available. * : Up to end-September

Note: 1. Data from 2008-09 onwards are provisional.

2. Rise in indices indicates appreciation of the rupee andvice versa.


MONETARY POLICY

STATEMENT 2009-10



April-July 2009. However, the forward

premia have exhibited both hardening as

well as softening trend since August 2009,

reflecting underlying demand and supply

conditions (Chart V.13). The daily average

turnover in the foreign exchange market,

which showed some signs of improvement

in May 2009, registered decline during the

period June-September 2009. The ratio of

inter-bank to merchant turnover increased

to 2.9 during April-September 2009 from 2.6

a year ago (Chart V.14).

Equity Market

V.30 During 2009-10 so far, the Indian

capital market outperformed most EMEs,

recovering a large part of the household

wealth that was eroded by the contagion

from global financial crisis. The secondary

markets continued to register

considerable gains on the back of credible

indications of pickup in the domestic

industrial activity and emerging signs of

recovery in the world economy. The

MONETARY POLICY

STATEMENT 2009-10



primary market, which had remained

subdued up to May 2009 also resumed

activity. Indeed, a few IPOs were

oversubscribed by more than 20 times.

Resource mobilisation by mutual funds

also increased substantially. The volatility

in the stock market during April-September

2009 was higher compared with the same

period of last year (Table 5.13) arising from

intermittent uncertainty regarding global

economy and the changing perception

about the real impact of domestic monsoon

situation. The turnover in cash segment

and market capitalisation increased during

April-September 2009 compared with April-

September 2008. The turnover in the

derivative segment at the NSE was also

higher during the period.

Primary Market

V.31 The activity in the primary market

segment of the domestic capital market

has displayed signs of revival since June 2009.

Cumulatively, resources raised through

public issues increased considerably during

April-September 2009 (Table 5.14). The

resources raised through Euro issues by the

Indian corporates also increased markedly.

V.32 Mobilisation of resources through

private placement increased by 28.7 per cent

during April-June 2009 (the latest data

available) as against decline of 15.7 per cent

during April-June 2008. Resource

mobilisation through financial

intermediaries (both public and private

sector) registered a decline of 19.1 per cent,

Indicator BSE NSE

2007-08 2008-09 April-September 2007-08 2008-09 April-September

2008-09 2009-10 2008-09 2009-10

1 2 3 4 5 6 7 8 9

1. BSE Sensex / S&P CNX Nifty

(i) End-period 15644 9709 12860 17127 4735 3021 3921 5084

(ii) Average 16569 12366 15059 14298 4897 3731 4511 4284

2. Coefficient of Variation 13.7 24.2 8.7 12.5 14.5 23.2 8.3 11.6

3. Price-Earning Ratio

(end-period)* 20.1 13.7 16.2 22.2 20.6 14.3 16.9 22.9

4. Price-Book Value Ratio

(end-period)* 5.2 2.7 3.4 4.1 5.1 2.5 3.3 3.8

5. Yield* (per cent per annum)

(end-period) 1.1 1.8 1.4 1.1 1.1 1.9 1.5 1.0

6. Listed Companies 4,867 4,929 4,926 4,946 1,381 1,432 1,424 1,435

7. Cash Segment Turnover

(Rupees crore) 15,78,856 11,00,074 6,82,658 7,62,205 35,51,038 27,52,023 16,05,906 22,87,846

8. Derivative Segment

Turnover (Rupees crore) 2,42,308 12,268 11,983 1,007 1,30,90,478 1,10,10,482 59,63,895 83,38,128

9. Market Capitalisation

(Rupees crore) @ 51,38,015 30,86,076 41,65,388 57,08,338 48,58,122 28,96,194 39,00,185 53,53,880

10. Market Capitalisation to

GDP Ratio (per cent) 108.8 58.0 78.3 107.3 102.9 54.4 73.3 100.6

*: Based on 30 scrips included in the BSE Sensex and 50 scrips included in the S&P CNX Nifty. @: As at end-period.

Source: Bombay Stock Exchange Ltd. (BSE) and National Stock Exchange of India Ltd. (NSE).

Table 5.13: Stock Market Indicators


MONETARY POLICY

STATEMENT 2009-10



while the non-financial intermediaries

registered an increase of 94.6 per cent

during the same period.

V.33 During April-September 2009, net

resource mobilisation by mutual funds

increased sharply with liquidity conditions

remaining comfortable and the stock

markets witnessing considerable gains

(Table 5.15). Scheme-wise, during April-

September 2009, income/debt oriented

schemes witnessed a net inflow of

Table 5.14: Mobilisation of Resources from the Primary Market


Item No. of Issues Amount No. of Issues Amount

2008-09 (April-September) 2009-10 (April-September)

1 2 3 4 5

A. Prospectus and Rights Issues*

1. Private Sector (a+b) 32 12,361 25 6,814

a) Financial 1 448 – –

b) Non-financial 31 11,913 25 6,814

2. Public Sector (a+b+c) – – 2 6,803

a) Public Sector Undertakings – – 1 4,026

b) Government Companies – – 1 2,777

c) Banks/Financial Institutions – – - –

3. Total (1+2) 32 12,361 27 13,617

of which:

(i) Equity 32 12,361 26 13,437

(ii) Debt – – 1 180

Memo:

B. Euro Issues 10 4,652 8 12,645

P : Provisional. * : Excluding offers for sale. – : Nil/Negligible.

Table 5.15: Resource Mobilisation by Mutual Funds

(Rupees crore)

April-March April-September

Category 2008-09 2008-09 2009-10

Net Net Net Net Net Net

Mobilisation@ Assets # Mobilisation@ Assets # Mobilisation@ Assets #

1 2 3 4 5 6 7

Private Sector -34,017 3,35,527 -2,667 3,95,074 83,864 4,95,709

Public Sector * 5,721 81,772 5,141 88,205 28,563 1,32,290

Total -28,296 4,17,300 2,473 4,83,278 1,12,427 6,27,999

@ : Net of redemptions. # : End-period. * : Including UTI Mutual fund.

Note : Data exclude funds mobilised under Fund of Funds Schemes.

Source : Securities and Exchange Board of India.

MONETARY POLICY

STATEMENT 2009-10



Rs.1,07,012 crore, while growth/equity

oriented schemes registered a net inflow

Rs.5,721 crore.

Secondary Market

V.34 The market sentiments continued to

remain positive during Q2 of 2009-10. After

remaining subdued at the beginning of July

2009, the markets moved up subsequently

following the firm trend in the international

equity markets, better than expected

earnings result by some Indian corporates

and banks, besides the Reserve Bank

allowing FIIs and NRIs to invest in Indian

Depository Receipts. The Indian stock

markets again witnessed some correction

beginning in the second week of August

2009 with negative feedback from the US

unemployment and retail data, concerns

over expected tightening of bank lending in

China, deficient monsoon and sustained

decline in India’s exports. The markets,

thereafter, recovered on better than

expected economic data from the US and

the Euro area, robust IIP growth in India for

June 2009 and higher GDP growth for Q1 of

2009-10. The positive sentiments continued

through September 2009 mainly on account

of strong global cues such as G-20 leaders

pledging to maintain stimulus measures,

Federal Reserve’s survey reporting

economic activity stabilising or improving

in most regions of US in July-August 2009,

strong growth in Chinese industrial

production, the Bank of Japan upgrading its

economic outlook as well as positive

domestic developments such as higher

advance tax paid by major Indian banks and

corporates indicating robust quarterly

earnings. The Sensex crossed 17000 mark

by the end-September 2009 with strong

support from FII inflows and positive global

data. As at end-September 2009, the BSE

Sensex and the S&P CNX Nifty both

registered gains of about 18 per cent over

end-June 2009 (Chart V.15).

V.35 FIIs and mutual funds made net

purchases in the stock markets in Q2 of

2009-10. According to the data released by

the Securities and Exchange Board of India

(SEBI), FIIs made net purchases of US$ 7.4

billion in the Indian equity market during

Q2 of 2009-10 as against net sales of US $2.4

billion in the comparable period of the


MONETARY POLICY

STATEMENT 2009-10



previous year (Chart V.16). Mutual funds

purchases in stock markets, however,

decreased during Q2 of 2009-10 compared

with the comparable period of previous year.

V.36 The sectoral indices witnessed

buying pressure across the board during the

current financial (up to end-September

2009) with rising investor interest. This

resulted in significant gains in prices in

sectors such as realty, metal, banking, auto,

consumer durable, capital goods and

information technology sector stocks

(Table 5.16).

Table 5.16: BSE Sectoral Stock Indices

(Base: 1978-79=100)

Sector Variation (per cent)

End-March 2008@ End-March 2009@ End-September 2009#

1 2 3 4

Fast Moving Consumer Goods 31.7 -11.1 26.5

Public Sector Undertakings 25.4 -29.6 70.3

Information Technology -27.6 -35.6 100.0

Auto -7.1 -32.3 116.4

Oil and Gas 56.0 -29.6 48.5

Metal 65.2 -58.7 144.6

Health Care 5.4 -26.5 55.6

Bankex 18.0 -41.8 119.5

Realty 33.8 -79.3 188.9

Capital Goods 54.4 -53.8 112.8

Consumer Durables 8.8 -58.1 115.8

BSE 500 24.3 -42.8 86.0

BSE Sensex 19.7 -37.9 76.4

@ : Year-on-year variation. # : Variation over end-March 2009.

Source: Bombay Stock Exchange Limited.

MONETARY POLICY

STATEMENT 2009-10



V.37 During Q3 of 2009, international

financial markets exhibited higher

confidence, improved risk appetite,

narrowing of spreads and reduced volatility.

In the interbank money market, key spreads

narrowed to further low levels due to

receding risks and continuation of easing

policy stance by the major central banks;

improvements were also evident in credit

markets although still marked by

weaknesses in some segments of the

mortgage market. Despite deleveraging by

the international financial institutions, the

pace of corporate bond issuances picked up,

indicating momentum in the underlying

investment and real activity. The risk spread

on EME bonds significantly receded,

indicating rise in risk appetite towards EME

assets and improvement in their access to

international capital. The equity markets of

both advanced economies and EMEs staged

further recovery in Q3 of 2009.

V.38 The domestic financial markets

witnessed further reduction in risk and

liquidity premia in various segments

besides a pickup in transaction volumes

during Q2 of 2009-10. The prevalence of

easy liquidity conditions in money market

was evident in the large absorption through

the reverse repo operation. This ample

liquidity condition facilitated low interest

rates in money market with call rates

hovering within the LAF corridor.

Transaction volumes in CBLO and market

repo segments continued to remain high

during Q2 of 2009-10, reflecting easy

liquidity conditions. The CP issuances also

increased significantly. The longer-term

yield, however, witnessed some increase,

both for the government and corporate

bonds, reflecting the concerns regarding

government borrowing programme,

incipient inflationary pressures and

possible increase in demand for credit with

expected recovery in the real activity.

Although the growth of bank credit to

private sector continued to be moderate,

improved transmission of policy rates to

lending rates was discernible. The equity

markets made substantial recovery on the

strength of improved domestic

fundamentals, on clearer signs of recovery

in the global economy and resumption of

capital flows. In the primary market there

was improvement in resource mobilisation

by corporates in Q2 of 2009-10. The net

resources mobilised by mutual funds

recorded substantial increase, with liquidity

conditions remaining comfortable. The

equity prices witnessed considerable gains

in sectors such as realty, metal, banking,

auto, consumer durables, capital goods and

information technology. Overall, the

domestic financial markets remained stable

and supportive of recovery in growth.


MONETARY POLICY

STATEMENT 2009-10



VI.1 The significant moderation in global

inflation that had started with the onset of

the global crisis in 2008-09, continued in

2009-10, with several advanced countries

experiencing negative inflation due to sharp

fall in commodity prices in the second half

of 2008-09 and the sustained recession in

aggregate demand. Prices of food, fuel and

metal prices had bottomed in December

2008 and have been firming up moderately

since then. Sluggish global demand and

presence of unutilised capacity have,

however, contained the risk of inflation,

VI. Price Situation The decline in WPI inflation from a peakof 12.9 per cent in August 2008 coincidedwith the moderation in economic growth,thereby creating space for the adoption ofan accommodative growth supportivemonetary policy stance, which hascontinued in 2009-10 so far. The emerginginflationary pressures are clearly visible interms of the increase in WPI by 5.9 percent over its end-March level as well ashigh and rigid CPI inflation. Thechanging inflation environment is beingdriven by high order of price increases inessential commodities, particularly in itemsof mass consumption like vegetables, pulsesand sugar. The dominance of the food priceinflation is evident from the fact thatinflation in WPI (y-o-y) excluding thefood category remains significantly lowerat (-)3.4 per cent, as against the headlineinflation of 1.2 per cent as on October 10,2009. Given the nature of the sources ofemerging inflation, sustained policyemphasis on improving both supplyconditions and supply chain fordistribution would be necessary.

MONETARY POLICY

STATEMENT 2009-10



thereby allowing the central banks around

the world to sustain the accommodative

monetary policy stance to spur economic

growth.

VI.2 In India, inflation as measured by

year-on-year variations in the wholesale

price index (WPI), which had tracked the

global inflation in 2008-09, declined

sharply from 12.9 per cent in August 2008

to 0.8 per cent by end-March 2009. The

gradual moderation, thereafter, yielded

negative inflation for 13 consecutive weeks

beginning in June 2009, before WPI

inflation turned positive again since early

September 2009. The emerging inflationary

pressure is evident from the increase in

WPI inflation during the current financial

year over end-March 2009 by 5.9 per cent

(up to October 10, 2009) and high CPI

inflation in the range of 11.7-13.2 per cent

in August/September 2009. Given the weak

demand as well as slowdown in economic

activities, it is the supply constraints in a

limited number of commodities, led by

food, which have been driving the current

inflation pressures.

Global Inflation

VI.3 After registering high levels of

inflation during the first half of 2008-09,

headline inflation in major advanced

economies steeply declined subsequently

and turned negative in 2009. Year-on-year

consumer price inflation in OECD

countries, which had consistently been

declining up to July 2009 from its peak of

4.9 per cent in July 2008, moved up

marginally in August 2009, but continued to

remain negative at (-) 0.3 per cent. The recent

decline in inflation in OECD countries was

led by a sharp decline in CPI for energy.

Amongst the major economies, headline

inflation in the US, Japan and Euro Area has

turned negative while in the UK, inflation

has been steadily declining (Chart VI.1).

Core inflation also moderated in major

economies. In OECD countries, inflation,

excluding food and energy, decelerated to

1.5 per cent in August 2009 from 2.4 per cent

in September 2008. Producer Price Index

(PPI) inflation declined sharply both in

advanced as well as emerging market

economies (EMEs). PPI inflation in the euro-


MONETARY POLICY

STATEMENT 2009-10



area, which firmed up to 9.9 per cent in July

2008, declined steadily during 2009; the

maximum decline of 8.4 per cent was

registered in July 2009. The rate of decline

was lower at (-) 7.5 per cent in August 2009,

with the index of euro-area manufacturing

posting the highest month-on-month

increase in the past 14 months.

VI.4 Even though the headline inflation

in most of the advanced countries have

declined significantly since mid-2008, the

earlier concerns over a possible deflationary

spiral created by the negative inflation in

the US, Japan and the Euro Area during the

first half of 2009, have moderated to some

extent, due to signs of policy induced

recovery in terms of a rebound in

manufacturing and a turn in the inventory

cycle. Major factors that contributed to the

disinflation process include the steep

decline in oil prices from the record level

in July 2008, large downward corrections in

food and metals prices, lower transportation

costs and the existence of significant

industrial slackness due to sub-optimal

capacity utilisation. According to the IMF

(October 2009), global inflation is expected

to remain subdued and vulnerable to mild

deflation. With inflationary expectations

remaining generally well-anchored, risks for

sustained deflation are, however, perceived

to be small. On the other hand, inflation

risk may be more in emerging economies

where output gaps are smaller and recovery

may be stronger. IMF projects the inflation

in advanced economies to be close to zero

in 2009, with modest increase to 1 per cent

in the following year; inflation in emerging

economies is expected to hover around 5

per cent in 2009-10. China, a few ASEAN

economies and most emerging European

economies are likely to experience inflation

of less than 5 per cent.

VI.5 Mitigating the adverse impact of the

financial crisis continued to be the focus of

monetary policy actions of most central

banks. Policy rates in advanced economies

such as US and Japan, which had reached

near zero levels in 2008, were left

unchanged during 2009. Policy rate cuts

were effected by central banks in other

advanced economies such as the U.K., Euro

Area and Canada between March-May 2009,

with no subsequent changes. Reserve Bank

of Australia had reduced its policy rate by

25 basis points on April 8, 2009 but reversed

it in October 7, 2009 on signs of economic

recovery and improvement in measures of

confidence (Table 6.1). Bank of Israel had

also reduced its policy rate by 25 basis

points effective from April 2009 but raised

it back by 25 basis points effective from

September 2009.

VI.6 In the emerging economies, inflation

eased significantly since July 2008, in line

with decreases in international commodity

prices and general slowdown in economic

activity brought about by the global financial

crisis. Among the major emerging economies,

consumer price inflation in China and

Thailand turned negative in early 2009, while

it turned negative in Malaysia in June 2009;

other major economies also witnessed

significant easing in price pressures. Most

central banks in emerging economies (except

China) reduced their policy rates in 2009 in

an effort to arrest the moderation in growth

and to counter the spillover effects of the

global financial crisis. The central banks of

Russia, Thailand, Indonesia and Philippines

continued to reduce their policy rates during

the July-September quarter of 2009.

MONETARY POLICY

STATEMENT 2009-10



Global Commodity Prices

VI.7 International commodity prices, after

sharply declining during the period July to

December 2008, witnessed increases in 2009

up to September 2009 on account of crude oil

and metal prices. Prices of foodgrains, such

as rice, wheat and maize, however, declined

both on a year-on-year basis as well as over

end-March 2009 (Table 6.2). Most commodity

prices, however, remained substantially

below the very high levels recorded during

the first half of 2008, which contributed to

the negative year-on-year changes (Chart VI.2).

Expectations of global economic recovery and

weak supply prospects in major agricultural

products, such as sugar and tea have been the

major drivers of the recent increases in

international commodity prices.

Table 6.1: Global Inflation Indicators

(Per cent)

Country/ Key Policy Policy Rate Changes in Policy CPI InflationRegion Rate (As on October 22, 2009) Rates (basis points) (y-o-y)

Sept 08 - Since end- Sep. 2008 Sep. 2009Mar 09 Mar 09

1 2 3 4 5 6 7

Developed economies

Australia Cash Rate 3.25 (Oct.7, 2009) (-) 400 0 4.5 ^ 1.5 ^

Canada Overnight Rate 0.25 (Apr.21,2009) (-) 250 (-) 25 3.4 -0.9

Euro area Interest Rate on Main

Refinancing Operations 1.00 (May 13,2009) (-) 275 (-) 50 3.6 -0.3

Japan Uncollateralised

Overnight Call Rate 0.10 (Dec.19,2008) (-) 40 0 2.1 * -2.2 *

UK Official Bank Rate 0.50 (Mar. 5,2009) (-) 450 0 5.2 1.1

US Federal Funds Rate 0.00 to 0.25 (Dec.16,2008) (-) 200 0 4.9 -1.3

Developing economies

Brazil Selic Rate 8.75 (July 22, 2009) (-) 250 (-) 250 6.3 4.3

India Reverse Repo Rate 3.25 (Apr. 21, 2009) (-) 250 (-) 25 9.0 * 11.7 *

Repo Rate 4.75 (Apr. 21, 2009) (-) 400 (-) 25

(-400) 0

China Benchmark 1-year 5.31 (Dec 23, 2008) (-) 216 0 4.6 -0.8

Lending Rate (-300) 0

Indonesia BI Rate 6.50 (Aug. 5, 2009) (-) 150 (-) 125 12.2 2.8

Israel Key Rate 0.75 (Sep. 1, 2009) (-) 350 0 5.5 2.8

Korea Base Rate 2.00 (Feb. 12, 2009) (-) 325 0 5.1 2.2

Philippines Reverse Repo Rate 4.00 (Jul. 9, 2009) (-) 125 (-) 75 11.9 0.7

Russia Refinancing Rate 10.00 (Sep 30, 2009) 200 (-) 300 15.1 10.7

South Africa Repo Rate 7.00 (Aug.14, 2009) (-) 250 (-) 250 13.7 * 6.4 *

Thailand 1-day Repurchase Rate 1.25 (Apr. 8, 2009) (-) 225 (-) 25 6.0 -1.0

^ : Q2. *: August.

Note : 1. The central banks of Australia and Israel had reduced their policy rates by 25 basis points, effective from April 2009

but increased them again by 25 basis points, effective from October 2009 and September 2009, respectively.

2. For India, data on inflation pertain to CPI for Industrial Workers.

3. Figures in parentheses in column (3) indicate the dates when the policy rates were last revised.

4. Figures in parentheses in column (4) indicate the variation in the cash reserve ratio during the period.

Source: International Monetary Fund, websites of respective central banks and The Economist.


MONETARY POLICY

STATEMENT 2009-10



Table 6.2: International Commodity Prices

Commodity Unit Market Index (2004=100) VariationPrice (Per cent)

(2004) 2006 2007 2008 2009 Sep-09 Sep-09Mar Apr May Jun Jul Aug Sep over over

Sep-08 Mar 09

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Energy

Coal $/mt 53 93 124 240 115 120 122 135 139 137 128 -54.9 10.9

Crude oil (Average) $/bbl 38 170 188 257 124 133 154 183 171 190 181 -31.4 46.5

Non-Energy Commodities

Palm oil $/mt 471 101 165 201 127 149 170 154 136 153 143 -12.6 12.7

Soybean oil $/mt 616 97 143 204 118 130 145 145 136 144 137 -31.0 16.4

Soybeans $/mt 307 88 125 171 124 135 152 164 151 154 140 -15.5 13.5

Rice $/mt 238 128 137 274 247 231 224 242 241 221 218 -24.1 -11.8

Wheat $/mt 157 122 163 208 147 149 167 164 143 134 121 -35.6 -17.6

Maize $/mt 112 109 146 200 147 151 161 161 136 136 135 -35.7 -8.6

Sugar c/kg 16 206 141 178 187 190 224 229 257 313 322 70.4 72.1

Cotton A Index c/kg 137 93 102 115 83 92 100 99 105 104 103 -13.0 24.4

Aluminium $/mt 1716 150 154 150 78 83 85 92 97 113 107 -27.4 37.3

Copper $/mt 2866 235 248 243 131 154 159 175 182 215 216 -11.4 65.2

Gold $/toz 409 148 170 213 226 218 227 231 228 232 244 20.1 7.9

Silver c/toz 669 173 200 224 196 187 211 219 200 216 246 35.2 25.7

Steel cold-rolled coil sheet $/mt 607 114 107 159 148 115 115 115 115 115 115 -36.4 -22.2

Steel hot-rolled coil sheet $/mt 503 119 109 176 159 119 119 119 119 119 119 -40.0 -25.0

Tin c/kg 851 103 171 217 125 138 162 176 165 175 175 -19.1 39.3

Zinc c/kg 105 313 309 179 116 132 142 149 151 174 180 8.6 54.8

$: US dollar. c: US cent. bbl: Barrel. mt: metric tonne. kg:Kilogram. toz: troy oz.

Note: The year 2004 has been taken as the base to exhibit price trends over the relevant period.

Source: World Bank.

VI.8 After exhibiting the highest intra-year

volatility in 2008-09, international crude oil

prices have gradually firmed up since March

2009, in response to expected global

economic recovery and successive

production cuts by Oil Producing and

MONETARY POLICY

STATEMENT 2009-10



Exporting Countries (OPEC) to support

prices. Crude oil prices breached the US $70

per barrel level in June 2009 and again in

August 2009. While crude oil prices

marginally declined in September 2009, they

started firming up in October 2009 and

crossed US $ 80 per barrel on October 21,

2009 due to the weakness of the US dollar

and expectations of a recovery in global oil

consumption in the face of sustained

economic growth in China and signs of a

turnaround in other Asian countries.

According to the US Energy Information

Association, the presence of high oil

inventories and expectation of increased

supplies by both OPEC and non-OPEC

members during the second half of 2009 may

prevent any sustained increase in oil prices.

VI.9 Metal prices, which had witnessed a

declining trend since the second quarter of

2008 due to recessionary conditions

prevailing in major economies, registered

the sharpest decline in March 2009; prices

have rebounded since April 2009, led by

copper, lead and nickel. Improvement in

global economic prospects has impacted the

prices of cyclically sensitive base metals.

Supply cutbacks in response to the

prolonged decline in prices have impacted

on the prices of certain key metals such as

aluminium, tin and zinc. Increased demand

from China to build up inventories and

support domestic industrial revival has lent

impetus to the rebound in metal prices.

VI.10 Improved supplies, particularly in

foodgrains and oilseeds, and unwinding of

commodity investments by financial

markets participants had eased the pressure

on international food prices, which had

peaked in 2008. There is, however, wide

divergence in prices across various

commodities due to commodity-specific

factors such as weather conditions and

acreage. International sugar prices, which

had remained high in 2008, increased

further in 2009. Price pressures mainly

emanate from reduced global output, with

India, the second major producer of sugar,

turning a net importer in 2009-10, following

a sharp decline in its sugar output in 2008-

09. Sugar output in India is expected to

decline further during 2009-10 due to

drought in some of the major sugarcane

growing States and unseasonal rains in

others, which are likely to affect sugarcane

output and sugar recovery rate from

sugarcane, respectively. Wet weather

conditions in Brazil, the largest producer of

sugar, has also hampered harvest, thereby

further reducing global supplies.

VI.11 Agricultural raw materials exhibited

greater volatility on account of changes in

rubber prices, which track the crude oil

prices. Strong demand and supply

disruptions caused by unfavourable weather

conditions exerted pressure on rubber price

in recent months. Global cotton prices,

which had slumped to a four-year low in

March 2009 due to weak demand, firmed

up in the subsequent months, particularly

in October 2009, on expectations of a

supply-demand mismatch due to a possible

rebound in consumption from textile

manufacturers and a shortfall in production.

The International Cotton Advisory

Committee (ICAC) expects the world cotton

production to fall by 1 per cent in 2009-10

over the previous year.

Inflation Conditions in India

VI.12 The sharp decline in WPI inflation

from the peak of 12.9 per cent in August


MONETARY POLICY

STATEMENT 2009-10



2008 had created adequate space for the

Reserve Bank to adopt and sustain an

accommodative monetary policy stance

since mid-September 2008 so as to remove

uncertainty about the availability of

liquidity in the system and to contain the

moderation in growth.

VI.13 The Annual Policy Statement (APS) of

the Reserve Bank for the year 2009-10,

formulated against the backdrop of the

slump in global demand and the resultant

abatement of global commodity prices and

the collapse of WPI inflation to near zero

level in March 2009, continued to

emphasise on the need to support the

revival of economic growth while ensuring

price stability and anchoring inflationary

expectations. Accordingly, the policy rates

were further reduced by 25 basis points as

part of the monetary stimulus measures

(Table 6.3). The APS projected WPI inflation

at around 4.0 per cent by end-March 2010,

keeping in view the global trends in

commodity prices and domestic demand-

supply balance.

Table 6.3: Movements in Key Policy Rates in India

(Per cent)

Effective since Reverse Repo Rate Cash Reserve WPI CPI (IW)Repo Rate Ratio Inflation Inflation

1 2 3 4 5 6

April 14, 2007 6.00 7.75 6.25 (+0.25) 6.3 6.7

April 28, 2007 6.00 7.75 6.50 (+0.25) 6.0 6.7

August 4, 2007 6.00 7.75 7.00 (+0.50) 4.4 7.3

November 10, 2007 6.00 7.75 7.50 (+0.50) 3.2 5.5

April 26, 2008 6.00 7.75 7.75 (+0.25) 8.3 7.8

May 10,2008 6.00 7.75 8.00 (+0.25) 8.6 7.8

May 24,2008 6.00 7.75 8.25 (+0.25) 8.9 7.8

June 12, 2008 6.00 8.00 (+0.25) 8.25 11.7 7.7

June 25, 2008 6.00 8.50 (+0.50) 8.25 11.9 7.7

July 5, 2008 6.00 8.50 8.50 (+0.25) 12.2 8.3

July 19, 2008 6.00 8.50 8.75 (+0.25) 12.5 8.3

July 30, 2008 6.00 9.00 (+0.50) 8.75 12.5 8.3

August 30, 2008 6.00 9.00 9.00 (+0.25) 12.4 9.0

October 11, 2008 6.00 9.00 6.50 (–2.50) 11.3 10.4

October 20, 2008 6.00 8.00 (–1.00) 6.50 10.8 10.4

October 25, 2008 6.00 8.00 6.00 (–0.50) 10.7 10.4

November 3, 2008 6.00 7.50 (–0.50) 6.00 8.7 10.4

November 8, 2008 6.00 7.50 5.50 (–0.50) 8.7 10.4

December 8, 2008 5.00 (–1.00) 6.50 (–1.00) 5.50 6.6 9.7

January 5, 2009 4.00 (–1.00) 5.50 (–1.00) 5.50 5.3 10.4

January 17, 2009 4.00 5.50 5.00 (–0.50) 4.9 10.4

March 4, 2009 3.50 (-0.50) 5.00 (-0.50) 5.00 0.9 8.0

April 21, 2009 3.25 (-0.25) 4.75 (-0.25) 5.00 1.6 8.7

Note: 1. Reverse repo indicates absorption of liquidity and repo signifies injection of liquidity.2. Figures in parentheses indicate change in policy rates.

MONETARY POLICY

STATEMENT 2009-10



VI.14 The First Quarter Review of Monetary

Policy 2009-10 (FQR) (July 2009) noted that

the negative WPI inflation in June 2009 was

due to the base effect and was not indicative

of a contraction of demand. It also observed

that the sharp decline in WPI had not

brought about a commensurate decline in

inflationary expectations. The FQR,

therefore, revised the WPI inflation

projection upward to 5.0 per cent.

VI.15 The WPI inflation, which had turned

negative by the first week of June 2009,

remained so for 13 consecutive weeks

before moving up to above zero in

September 2009. Unlike the volatile pattern

in WPI inflation, CPI inflation continues to

remain high in the range of 11.7 per cent to

13.2 per cent during August/September

2009. The divergence between the WPI and

CPI inflation was highlighted both in the

APS and the FQR. The FQR stated that the

immediate challenge for the Reserve Bank

was to manage the balance between the

short-term compulsions of providing ample

liquidity and the potential build-up of

inflationary pressure on the way forward.

The inflationary pressures have increased

since the presentation of FQR, as evident

from the recent trends in WPI, CPIs and

inflation expectations.

Wholesale Price Inflation

VI.16 WPI inflation in India declined

steadily since August 2008 and reached near

zero levels by end-March 2009, driven by the

reduction in the administered prices of

petroleum products and electricity as well

as decline in prices of freely priced minerals

oil items, iron and steel, oilseeds, edible

oils, oil cakes and raw cotton. Significant

part of the decline in WPI inflation during

this period was also on account of the base

effect.

VI.17 Year-on-year WPI inflation declined

further during 2009-10 and turned negative

on June 6, 2009. WPI inflation turned

positive on September 5, 2009 and has

remained marginally above zero since then

(1.2 per cent as on October 10, 2009), with

the petering out of the strong base effect of

the significant increase in administered

prices of petroleum products in June 2008.

Freely priced products such as iron and

steel, non-ferrous metals, chemicals and

edible oils also recorded year-on-year

declines during this period.

VI.18 During the current financial year so

far, WPI has already increased by 5.9 per

cent in October 10, 2009 over the end-

March-2009 level. The recent increase in the

WPI was largely on account of the upward

revision of prices of petrol and diesel

(effective July 2, 2009), increase in prices of

freely priced products under the fuel group

in line with hardening of international

crude oil prices, and higher prices of sugar,

vegetables and drugs and medicines. Most

non-food commodity prices moved in line

with the international commodity prices

(Table 6.4).

VI.19 In terms of contribution to overall

inflation by the major groups, the

contribution of the fuel group declined

sharply and is negative at present (Chart VI.3).

The contribution of manufactured products

group which had turned negative,

coincidental to the negative phase of WPI

inflation during June-August 2009, moved up

subsequently and is marginally above zero.

The contribution of primary article group

continues to remain positive and strong.


MONETARY POLICY

STATEMENT 2009-10



VI.20 At a disaggregated level, the y-o-y WPI

inflation excluding fuel was lower at 3.5 per

cent as on October 10, 2009 as compared

with 10.4 per cent a year ago. This was on

account of the substantially high WPI fuel

group inflation during the period June-

October 2008. WPI inflation excluding food

and fuel was, however, negative at (-) 1.9 per

cent as on October 10, 2009. The annual

average WPI inflation rate (average of 52

weeks) also declined to 2.5 per cent as on

October 10, 2009 from 8.3 per cent at end-

March 2009. Essential commodities group

increased by 17.8 per cent, y-o-y, as on

October 10, 2009, driven mainly by prices of

sugar (45.1 per cent), pulses (22.8 per cent)

and vegetables (19.6 per cent) (Chart VI.4a).

VI.21 Amongst the major groups, primary

articles inflation, y-o-y, was higher at 8.6 per

cent as on October 10, 2009 from 5.2 per

cent at end-March 2009, mainly on account

of food articles which registered double-digit

inflation (Table 6.5 and Chart VI.4b). The

sharp upward revision in the minimum

support prices (MSP) for most of the

agricultural crops during the 2008-09 crop

season partly accounts for the increase in

Table 6.4: Key Commodity Prices -Global vis-à-vis Domestic

(Per cent)

Item Annual Inflation Recent trends

(y-o-y, Sep. Sep. 2009 over2009) end-Mar. 2009

Global India* Global India*

1 2 3 4 5

1. Rice -24.1 17.2 -11.8 2.9

2. Wheat -35.6 4.2 -17.6 3.0

3. Milk – 8.7 – 5.8

4. Raw Cotton -13.0 -13.3 24.4 5.2

5. Oilseeds -15.5 2.0 13.5 6.5

6. Iron Ore -28.2 -5.8 -28.2 -18.8

7. Coal mining -54.9 -1.0 10.9 0.0

8. Minerals Oil -31.4 -13.2 46.5 10.6

9. Edible Oils -21.8 -7.2 14.5 -1.9

10. Oil Cakes 4.4 0.0 23.5 0.0

11. Sugar 70.4 42.7 72.1 28.0

11. Basic Heavy

Inorganic Chemicals – -26.8 – -4.2

12. Basic Metals, Alloys

and Products# -17.8 -12.7 39.7 1.7

13. Iron and Steel -37.8 -17.2 -17.5 3.4

* : Based on WPI as on September 26, 2009.

# : Represented by IMF metals price index, which covers

copper, aluminium, iron ore, tin, nickel, zinc, lead and

uranium.

Note: Global price increases are based on the World Bank

and IMF primary commodity prices data.

MONETARY POLICY

STATEMENT 2009-10



the prices of foodgrain prices, particularly

for rice and pulses (Chart VI.5). Rice price

increase, y-o-y, has been in double digits

since mid-October 2008, despite a record

harvest and increase in public stocks.

Supply constraints and increases in MSP

affected the prices of pulses. Tea prices

which had increased sharply in 2008-09,

moderated to some extent in April 2009,

only to rise steeply again since May 2009,

with global tea production forecast to

decline. Estimated production of tea up to

August 2009 by the Tea Board of India

showed a decline over the previous year.

Price increases, though, have significantly

decelerated since June 2009, largely on

account of the base effect.

VI.22 Among the non-food articles, y-o-y

inflation in raw cotton declined steadily

since end-May 2009 although there has been

some moderation in the decline in recent

weeks. With the acreage under cotton

increasing in the current financial year so

far, cotton output is estimated to be higher

than the previous year. Oilseed prices which

had declined since June 2009, marginally

increased since September 2009 with

output likely to fall due to delayed and

deficient monsoon.

VI.23 Year-on-year fuel group inflation,

which turned negative in December 2008 in

line with the international crude oil prices,

continued to decline during the current

financial year, dragging down the overall

WPI inflation. Despite the increase in

international crude prices to around US$ 70

per barrel by end-June 2009 and the

corresponding increase in freely priced

products, the disinflation in the fuel group

moved to double digit level in June 2009,

weighed by the base effect of upward

revision of administered prices in June

2008. With the Government announcing

hikes in administered prices of petrol and

diesel effective from July 2, 2009 to partially

offset the under recoveries of oil companies

arising from increase in international crude

prices, fuel price disinflation moderated.

VI.24 Manufactured products inflation,

year-on-year, has also decelerated since

March 2009, reflecting the base effect, and

turned negative in July 2009. It, however,

reversed on September 12, 2009 and


MONETARY POLICY

STATEMENT 2009-10



Table 6.5: Wholesale Price Inflation in India(year-on-year)

(Per cent)

Commodity 2008-09 2008-09 2009-10 Financial Year(October 11) (Mar 28) (October 10) P (over end-

March 09) P

Weight Inflation C Inflation C Inflation C Inflation C

1 2 3 4 5 6 7 8 9 10

All Commodities 100.0 11.3 11.3 0.8 0.8 1.2 1.2 5.9 5.9

1. Primary Articles 22.0 12.6 2.9 5.2 1.2 8.6 2.0 9.8 2.4

Food Articles 15.4 10.2 1.6 7.0 1.1 13.3 2.1 14.1 2.3

i. Rice 2.4 12.4 0.3 14.9 0.3 12.7 0.3 5.9 0.1

ii. Wheat 1.4 5.0 0.1 4.5 0.1 6.7 0.1 3.5 0.1

iii. Pulses 0.6 8.6 0.1 9.4 0.1 22.8 0.2 19.2 0.1

iv. Vegetables 1.5 11.1 0.2 -5.2 -0.1 19.6 0.3 59.3 0.7

v. Fruits 1.5 16.2 0.3 5.9 0.1 3.2 0.1 5.2 0.1

vi. Milk 4.4 7.9 0.3 7.0 0.3 10.0 0.4 7.0 0.3

vii. Eggs, Fish and Meat 2.2 7.6 0.2 3.2 0.1 24.1 0.6 25.3 0.6

Non-Food Articles 6.1 14.1 0.8 0.1 0.0 -1.2 -0.1 3.6 0.2

i. Raw Cotton 1.4 32.5 0.4 2.5 0.0 -11.2 -0.1 3.2 0.0

ii. Oilseeds 2.7 15.2 0.4 -1.6 0.0 0.8 0.0 3.4 0.1

iii. Sugarcane 1.3 -0.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Minerals 0.5 43.6 0.4 7.2 0.1 -3.8 0.0 -13.1 -0.2

2. Fuel, Power, Light and Lubricants 14.2 14.5 3.1 -6.1 -1.3 -6.8 -1.5 7.6 1.5

i. Coal Mining 1.8 9.8 0.2 -1.0 0.0 -1.0 0.0 0.0 0.0

ii Mineral Oils 7.0 22.4 2.8 -8.7 -1.1 -11.6 -1.6 10.5 1.2

iii. Electricity 5.5 1.4 0.1 -2.6 -0.2 2.0 0.1 4.7 0.3

3. Manufactured Products 63.8 9.5 5.3 1.7 1.0 1.3 0.7 3.7 2.1

i. Food Products 11.5 8.8 0.9 8.8 0.9 16.1 1.6 8.0 0.9

of which: Sugar 3.6 13.9 0.3 18.4 0.4 45.1 1.1 31.0 0.9

Edible Oils 2.8 8.9 0.2 -7.6 -0.2 -7.2 -0.2 -3.9 -0.1

ii. Cotton Textiles 4.2 6.3 0.2 16.2 0.4 6.5 0.2 3.3 0.1

iii. Man Made Fibres 4.4 3.5 0.1 -1.5 0.0 -4.7 -0.1 0.8 0.0

iv. Chemicals and Products 11.9 9.7 1.1 2.0 0.2 2.1 0.2 6.6 0.7

of which : Fertilisers 3.7 9.1 0.3 4.8 0.1 -2.9 -0.1 -2.4 -0.1

v. Non-Metallic Mineral Products 2.5 3.6 0.1 1.9 0.0 3.0 0.1 2.7 0.1

of which: Cement 1.7 2.3 0.0 2.2 0.0 0.3 0.0 -0.1 0.0

vi. Basic Metals, Alloys and

Metal Products 8.3 19.7 1.9 -12.2 -1.3 -13.2 -1.4 0.4 0.0

of which: Iron and Steel 3.6 28.4 1.3 -18.4 -1.0 -18.4 -1.0 1.0 0.0

vii. Machinery and Machine Tools 8.4 5.3 0.3 2.6 0.2 -1.5 -0.1 0.9 0.1

of which: Electrical Machinery 5.0 5.2 0.2 1.1 0.0 -2.8 -0.1 1.0 0.0

viii. Transport Equipment and Parts 4.3 7.0 0.2 3.1 0.1 -0.8 0.0 0.5 0.0

Memo:

Food Items (Composite) 26.9 9.6 2.5 7.7 2.0 14.4 3.7 11.6 3.2

WPI Excluding Food 73.1 11.9 8.8 -1.6 -1.2 -3.4 -2.5 3.8 2.7

WPI Excluding Fuel 85.8 10.4 8.2 2.7 2.1 3.5 2.7 5.5 4.4

WPI Essential Commodity Group 17.6 8.7 1.5 9.0 1.4 17.8 2.9 13.8 2.5

C : Contribution to inflation. P : Provisional.

Note: As per the press realease by the Ministry of Commerce and Industry dated October 19, 2009, the current series of WPI(base 1993-94) would be released on a monthly basis instead of the present practice of weekly releases. However, aweekly price index for primary articles and commodities in ‘fuel, power, light and lubricant’ group would be compiled tofacilitate weekly monitoring of sensitive commodities.

MONETARY POLICY

STATEMENT 2009-10



remained marginally positive since then.

The movement in manufactured products

inflation was largely driven by the year-on-

year decline in prices of iron and steel,

edible oils, fertilisers, man-made fibre and

machinery and machine tools.

Manufactured food articles inflation was

mainly driven by sugar prices, which rose

sharply due to falling stocks and weak and

sporadic monsoon. The other major

contributor to manufactured food inflation

was dairy products, the prices of which were

affected by reduced supplies in the wake of

the recent weak monsoon and its impact on

animal fodder.

VI.25 ‘Basic metals, alloys and products’

sub-group of manufactured products

registered negative inflation y-o-y, as on

October 10, 2009, mainly on account of a

decline in the prices of iron and steel which

could be attributed to decline in global

prices and sluggish domestic and external

demand.

VI.26 Primary articles prices have increased

by 9.8 per cent over the end-March 2009

level of the index. Vegetable prices recorded

an increase of around 59.3 per cent over

end-March 2009. This was mainly on

account of a steep increase of over 100 per

cent in the price of potatoes, the second

highest weighted commodity amongst the

vegetables, due to a decline in output in the

current season following a slump in potato

prices during the previous year. Pulses

prices moved into double digit during the

second quarter of 2009-10. Although

increase in rice prices over end-March 2009

were moderate, at less than 3 per cent up

to October 3, 2009, prospects of a decline

in output during 2009-10 due to the shortfall

in acreage under paddy as well as the

damage caused by floods in rice growing

States has led to the firming up of prices to

around 6 per cent as on October 10, 2009.

VI.27 During the current financial year (up

to October 10, 2009), prices of various freely

priced petroleum products increased over

their levels in end-March 2009 in line with

international prices. While increase in the

prices of furnace oil was the highest, at 55.7

per cent, that of bitumen was the least at

5.4 per cent. Price increases in other


MONETARY POLICY

STATEMENT 2009-10



products were 39.9 per cent for avian

turbine fuel, 30.1 per cent for light diesel

oil, 28.1 per cent for naphtha and 6.5 per

cent for high speed diesel.

VI.28 Manufactured product inflation for

the financial year (up to October 10, 2009)

was driven by the increase in manufactured

food products and drugs and medicines. A

sharp increase in the volume of edible oil

imports in the face of low international

prices exerted downward pressure on edible

oils which declined over the end-March

level. With the revival in automobile sales

and the unwinding of stocks, both in the

domestic and international markets, major

steel companies have raised their prices of

flat steel during the current financial year.

This has resulted in a marginal increase in

the price of steel sheets within the iron and

steel sub-group over end-March 2009 level.

VI.29 Overall, the year-on-year deceleration

in WPI inflation has been on account of the

sharp decline in fuel group. While prices of

primary articles continue to remain high,

manufactured products posted modest price

increases.

Consumer Price Inflation

VI.30 Inflation based on y-o-y variation in

consumer price indices (CPIs) has increased

since June 2008, mainly due to increase in

the prices of food, fuel and services

(represented by the ‘miscellaneous’ group).

The various measures of consumer price

inflation remained high in the range of 11.7-

13.2 per cent during August/September 2009

as compared with 8.5-12.4 per cent in

August/September 2008 and 8.0-9.7 per cent

in March 2009 (Table 6.6).

VI.31 CPI inflation has been significantly

different from the WPI inflation in the

recent period and the divergence has also

been increasing (Chart VI.6).

VI.32 The greater divergence between WPI

and CPI inflation could be attributed to the

higher weight in CPIs of food articles, which

have displayed higher inflation in recent

months. When there is an upward pressure

on food prices, CPI (IW) food inflation in

general appears to increase at a faster rate

and remain at the elevated level for a longer

period than the WPI inflation. There has,

however, been a dip in CPI food inflation

in August 2009, bringing it closer to WPI

food inflation (Chart VI.7). The higher order

of inflation in the same commodities at the

retail level (as captured in CPI) could be on

account of intermediation costs, higher

transportation and labour costs between

wholesale and retail markets, as well as

better pricing power in the retail market in

relation to wholesale markets. Thus, the

divergence between WPI and CPI inflation

is not only because of differences in weights

and coverage, but also because of the actual

price differences for similar commodities at

the wholesale and retail levels.

VI.33 Among the non-common groups in

the WPI and CPI, the miscellaneous group

under CPIs (with weights ranging from 11.9

per cent to 24 per cent) which includes

services, also exhibited significant price

pressures. Similarly, metals group (weight

of 8.3 per cent), which is only represented

in the WPI, has exhibited significant

negative inflation, contributing to the

widening of the overall difference between

inflations as per the CPIs and WPI. There

also exists a lag in the movement of CPI

inflation in relation to the WPI inflation.

MONETARY POLICY

STATEMENT 2009-10



Table 6.6: Consumer Price Inflation - Major Groups

(Year-on-year variation in per cent)

CPI Measure Weight Mar-07 Mar-08 Jul-08 Aug-08 Sep-08 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09

1 2 3 4 5 6 7 8 9 10 11 12

CPI-IW (Base: 2001=100)

General 100 6.7 7.9 8.3 9.0 9.8 8 8.7 8.6 9.3 11.9 11.7 –

Food Group 46.2 12.2 9.3 10.3 11.7 13.1 10.6 10.4 11.7 12.2 14.7 13.7 –

Pan, Supari etc. 2.3 4.4 10.9 6.3 6.3 7.8 8.3 6.7 7.5 8.1 8.9 9.6 –

Fuel and Light 6.4 3.2 4.6 9.2 9.9 9.1 7.4 6.6 5.9 1.4 2.1 2.8 –

Housing 15.3 4.1 4.7 3.8 3.8 3.8 6 6 6 6 22.1 22.1 –

Clothing, Bedding etc. 6.6 3.7 2.6 2.5 3.4 2.5 5 4.2 4.1 4.1 5.0 4.1 –

Miscellaneous 23.3 3.3 6.3 7.8 7.7 7.6 7.4 7.4 7.4 6.6 5.8 6.4 –

CPI-UNME (Base: 1984-85=100)

General 100 7.6 6 7.4 8.5 9.5 9.3 8.8 9.7 9.6 13.0 12.9 –

Food Group 47.1 10.9 7.8 10.0 11.5 13.2 12.2 11.1 12.9 13.6 15.3 15.0 –

Fuel and Light 5.5 6.4 4.6 6.2 6.5 6.2 5.9 6.7 5.8 1.3 2.1 2.7 –

Housing 16.4 5.6 4 3.7 3.5 3.5 5.8 6 6 6.0 22.0 22.0 –

Clothing, Bedding etc. 7 3.6 4.3 3.2 3.8 3.1 3.3 4.2 4.2 4.2 5.0 4.1 –

Miscellaneous 24 4.4 4.8 7.3 7.7 8.4 8.6 7.6 8.1 7.3 7.0 6.8 –

CPI-AL (Base: 1986-87=100)

General 100 9.5 7.9 9.4 10.3 11.0 9.5 9.1 10.2 11.5 12.9 12.9 13.2

Food Group 69.2 11.8 8.5 10.7 11.3 12.0 9.7 9.1 11.2 12.4 14 14.1 14.6

Pan, Supari etc. 3.8 5.7 10.4 10.8 11.8 12.8 15.3 14.5 14.4 14.2 15.6 16.5 15.5

Fuel and Light 8.4 6.9 8 9.3 9.5 10.2 11.5 10.9 10.6 11.0 12.0 11.6 12.0

Clothing, Bedding etc. 7 3.5 1.8 3.6 5.0 6.0 7.4 7.9 7.6 8.3 8.8 8.5 8.1

Miscellaneous 11.7 6.8 6.1 7.0 6.9 7.1 6.5 6.2 6.6 6.1 6.5 7.2 7.1

CPI-RL (Base: 1986-87=100)

General 100 9.2 7.6 9.4 10.3 11.0 9.7 9.1 10.2 11.3 12.7 12.7 13.0

Food Group 66.8 11.5 8.2 10.5 11.6 12.0 10 9.1 11.2 12.4 14.2 14.1 14.6

Pan, Supari etc. 3.7 5.7 10.6 10.5 11.5 12.5 15 14 14.1 14.1 15.3 16.2 15.4

Fuel and Light 7.9 6.9 8 9.3 9.8 10.5 11.5 10.9 10.6 11.0 11.8 11.4 12.0

Clothing, Bedding etc. 9.8 3.1 2.8 4.3 5.6 6.5 8.2 8.4 8.3 8.8 9.7 9.1 9.5

Miscellaneous 11.9 6.3 6.2 7.0 7.2 7.4 6.7 6.2 6.4 6.2 6.1 7.0 6.9

Memo:

WPI Inflation

(End of period) 5.9 7.7 12.5 12.4 12.1 0.8 1.7 0.1 -1.1 -0.7 -0.1 0.7

GDP Deflator based

Inflation* 5.5 4.9 – – 10.6 7.0 – – 0.9 – – –

*: Data for March pertain to full year.

IW : Industrial Workers. UNME : Urban Non-Manual Employees. AL : Agricultural Labourers. RL : Rural Labourers.

VI.34 Within the food category of the CPI

(IW), inflation has been the highest in the

pulses sub-group amongst the staples and

in the vegetables sub-group amongst the

perishables, since April 2009 and May 2009,

respectively (Charts VI.8a and b).

VI.35 CPI-IW for housing, which is not

represented in the CPI-AL and CPI-RL

showed a sharp rise of 22.1 per cent in July

2009 on account of revision of imputed rent

for rent-free accommodation, reflecting the

impact of the Sixth Pay Commission award


MONETARY POLICY

STATEMENT 2009-10



on CPI inflation. It may be mentioned that

housing index in the CPI is compiled once

in every six months, viz., January and July.

The index would, therefore, remain at the

elevated level in the months to come.

VI.36 Overall, the emerging price pressures

are already visible, even though year-on-year

WPI inflation remains low. With the base

effect of sharp fuel price increases a year ago

petering out, year-on-year WPI inflation has

emerged out from the negative zone after 13

weeks. Within the WPI, the essential

commodities group, particularly food articles

contributed the most to the increase in

inflation. Reflecting inflation momentum,

WPI has been rising since end-March 2009,

spurred both by domestic supply constraints

in certain commodities and increases in

international commodity prices. Consumer

price inflation continues to remain firm and

the divergence between CPI and WPI

inflation has widened further during the first

half of 2009-10. High CPI inflation is a major

risk to inclusive growth, since it could

MONETARY POLICY

STATEMENT 2009-10



potentially lead to erosion in real income of

the segments of population for which the CPI

indices are prepared. Persistent high CPI

inflation could also lead to wage/cost push

inflation because of the pressures for price/

wage revisions and revisions to minimum

support prices, which are linked to CPI

indices. More importantly, it could further

inflate the inflationary expectations. Given

the supply side sources of emerging

inflationary pressures, the policy focus needs

to be directed at improving both the supply

conditions and the supply chain for more

efficient distribution. Measures are already

afoot to manage the supply side pressure on

inflation. These include the proposed release

of 30 lakh tonnes of wheat during October

2009-March 2010 under the open market sale

scheme; removal of restrictions such as stock

holding limits on wheat in order to facilitate

purchase by private traders during the

harvesting season; restrictions on large

consumers of sugar to conserve stock;

increased release in sugar quota ahead of the

festival season; removal of import duty on

rice, wheat and raw sugar; and permission

for duty free import of white/refined sugar

up to 10 lakh tonnes by Central/State

Government agencies and private traders in

addition to designated agencies. Sustained

high CPI and essential commodities inflation

could pose a challenge to the Reserve Bank’s

objective of firmly anchoring inflation

expectations.


MONETARY POLICY

STATEMENT 2009-10



VII.1 The projections of various domestic

and international agencies as well as the

different forward looking surveys point to an

improvement in India’s growth outlook.

However, the impact of the deficient monsoon

on agricultural output and rural demand could

inhibit a faster recovery. Business confidence

surveys in general exhibit significant

optimism, a marked turnaround from the

bearish sentiments of the previous quarters.

The industrial outlook survey of the Reserve

Bank indicates the return of the economy to

an expansion path. The professional

forecasters’ survey conducted by the Reserve

Bank in September 2009, however, suggests a

downward revision to the growth outlook,

reflecting the expected negative impact of the

deficient monsoon on agricultural output.

VII. MacroeconomicOutlook

Surveys conducted by the Reserve Bank aswell as other agencies to collect leadinformation on the expectations about theoverall business outlook point to significantturnaround and rising optimism, whichis also corroborated by the recovery in theindustrial production up to August 2009.The expected decline in agriculturaloutput under the influence of the deficientmonsoon, however, has impacted the overallgrowth outlook, which is evident from thefindings of the Reserve Bank’s survey ofprofessional forecasters suggesting adownward revision to the growth outlook for2009-10 from 6.5 per cent to 6.0 per cent.The inflation outlook, notwithstanding thelow year-on-year WPI inflation so far, isconditioned by the pressures of emerginghigh inflation in essential commodities aswell as elevated and expanding consumerprice inflation.

MONETARY POLICY

STATEMENT 2009-10



Business Expectations Surveys

VII.2 Surveys conducted by different

agencies to collect lead information on the

forward looking assessment of the

companies about the prospects of the

economy show a general pattern of

optimism, with the relevant business

confidence indices exhibiting significant

increases over the levels in the preceding

quarter (Table 7.1)

VII.3 The Business Confidence Index

(BCI) of the NCAER (National Council of

Applied Economic Research) that was

released in July 2009 showed a 45 percent

increase over the level in the previous

quarter, which represents a reversal of the

declining trend that was noticed in the

previous five quarters. The survey exhibited

improvement in all four components of BCI,

i.e. “investment climate”, “overall economic

conditions”, “financial position of firms” and

“capacity utilisation”. The improvement was

also broad based across all five sectors, i.e.

consumer durables, consumer non-durables,

capital goods, intermediates and services. The

October 2009 NCAER-Mastercard Worldwide

Index of Business Confidence shows further

improvement in the BCI by 21 per cent, over

and above the 45 per cent increase in July

over April 2009. The findings of the survey

suggest business sentiments returning closer

to the pre-crisis levels.

VII.4 The Business Confidence Survey of

the FICCI for Q1:2009-10 that was released

in September 2009 suggests that 70 per cent

of the companies felt the overall economic

conditions to be “moderately to substantially

better” compared to previous six months.

The overall business confidence index rose

by 4.8 per cent over the previous quarter

level, as 50 per cent of the survey

respondents expected sales volume to

increase, 30 per cent expected investment

to increase, and 22 per cent viewed that they

would add to the workforce in the next two

quarters. While 80 per cent of the

respondents recognised the beneficial effects

of the fiscal stimulus on economic activity,

rising cost of raw materials and manpower,

delayed monsoon and high interest rates

were expressed as areas of concern.

VII.5 The Dun and Bradstreet Business

Optimism Index for Q3:2009 which was

conducted in June 2009 rose sharply by 40.8

per cent over the lowest level of the index

in the previous quarter. Five of the six

optimism indices, namely volume of sales,

net profits, new orders, selling prices, and

employee levels recorded improvement over

the previous quarter. Inventory levels,

however, declined by 2 percentage points.

Period NCAER Q3: 2009 FICCI Q1:2009-10 Dun& Bradstreet Q3: 2009

Index Business Confidence Overall Business Business OptimismIndex Confidence Index Index

1 2 3 4

Current level of the Index 118.6 67.2 132.1

Index as per previous survey 81.6 64.1 93.8

Index Levels on Year back 125.4 52.5 136.5

% change (Q-on-Q) sequential 45.4 4.8 40.8

% change (Y-on-Y) -5.7 28.0 -3.2

Table 7.1: Business Expectations Surveys


MONETARY POLICY

STATEMENT 2009-10



VII.6 The HSBC Markit Purchasing

Managers’ Index (PMI) – which is an

indicative measure of the health of the

manufacturing sector – moved up in

September 2009 after the decline in August

2009, but remained above the threshold (of

50) for the sixth month in a row suggesting

expansion in activities. The turnaround into

the expansion phase since April 2009 is

largely driven by home market. PMI for the

services remained in the expansion zone

(i.e., above 50), though with some

moderation in September 2009. The

composite PMI in September 2009 was

almost unchanged in the expansion zone,

as improvement in manufacturing was

offset by moderation in services.

Reserve Bank’s Industrial OutlookSurvey

VII.7 The 47th round of Industrial Outlook

Survey of the Reserve Bank conducted in July-

August 2009 showed further improvement

in the sentiments of the manufacturing

sector after the turnaround that was seen in

the survey findings of the previous quarter.

The survey covered opinions on “assessment

for July-September 2009” and “expectations

for October-December 2009”, and both

indices remained in the growth terrain (i.e.

above 100, which is the threshold that

separates contraction from expansion) for

the last two quarters of 2009. This suggests

that as per expectations of the survey

respondents, the industrial recovery already

seen up to August 2009 in terms of trends

in IIP growth could gain further momentum

during 2009-10 (Chart VII.1). The indices for

assessment (July-September) and

expectations (October-December) reached

107.2 and 116.4, respectively.

VII.8 The survey findings also indicate

improving demand conditions, as reflected

in better expectations about order books,

capacity utilisation and production. The

working capital finance requirement is

expected to grow in the October-December

quarter of 2009, which suggests that demand

for credit from the private sector may exhibit

a turnaround from the persistent

deceleration experienced so far. The overall

survey response indicates that availability of

MONETARY POLICY

STATEMENT 2009-10



finance has further improved and eased,

which corroborates the impact of the

accommodative monetary policy stance in

improving the availability of finance in

general. The survey findings also point to

continuation of pressures on profit margins,

though of a much lower magnitude in

relation to what was experienced in past few

quarters. The input prices are expected to

firm up for the second successive quarter;

with improving demand condition,

however, gradual return of pricing power

could also give rise to higher selling prices.

According to the survey findings, the outlook

for employment is also improving and firms

are expected to increase their workforce on

the back of expected increase in demand

(Table 7.2).

VII.9 The significant upturn in business

expectations could be seen as broad based

across industry groups, though industries

such as transportation, food products,

pharmaceuticals and fertilisers look more

optimistic than the others. The input price

inflation is also felt across the board, but it

is higher for paper, rubber, textiles and food

industries. All industries, excluding textiles,

are expected to increase their employment

levels. The improvement is also seen across

all size groups, but the bigger companies with

annual production of Rs. 1,000 crore or more

look most optimistic.

Survey of ProfessionalForecasters1

VII.10 The general prevailing perception

about the impact of the delayed monsoon

gets reflected in the assessment of the

growth outlook of the professional

forecasters. The results of the ninth round

of survey of professional forecasters'

conducted by the Reserve Bank in

September 2009 shows overall (median)

growth rate for 2009-10 at 6.0 per cent, as

against 6.5 per cent reported in the earlier

survey (Table 7.3). The sectoral growth rate

forecast for the agriculture sector was

revised downwards from 2.5 per cent to (-)

1.4 per cent, whereas for industry the

assessment was revised upwards from 4.8

per cent to 6.3 per cent. For services, the

forecasts suggest modest downward

revision from 8.3 per cent in the earlier

survey to 8.1 per cent in the current survey.

VII.11 The outlook for India’s growth in

2009-10 as projected by different

organisations since June 2009 has been

either revised upwards or maintained

unchanged (Table 7.4). The Asian

Development Bank (ADB) revised the

growth outlook for India upwards in

September 2009 from 5 per cent to 6 per

cent, highlighting the role of both emerging

signs of recovery in business confidence and

continuation of fiscal stimulus. NCAER

outlook released in July 2009 also showed a

higher projected growth figure of 7.2 per

cent for 2009-10, notwithstanding the

significant downward revision in growth

outlook for the agriculture sector to 1 per

cent from the previous projection of 2.5 per

cent. The IMF had already scaled up the

projected growth for India in its July 2009

outlook from 4.5 per cent to 5.4 per cent.

The October 2009 outlook of the IMF retains

the projected growth at the same level for

2009, while highlighting the role of policy

stimulus in boosting domestic demand and

1 Introduced by the Reserve Bank from the quarter endedSeptember 2007. The forecasts reflect the views ofprofessional forecasters and not the Reserve Bank.


MONETARY POLICY

STATEMENT 2009-10



Parameter Response Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec

2008 2008 2009 2009 2009 2009

1 2 4 5 6 7 8 9

1 Overall business situation Better 41.8 33.7 21.1 11.2 24.2 39.8

(42.6) (44.1) (43.9) (47.6) (46.7) (45.4)

2 Financial situation Better 32.7 27.7 16.4 8.4 20.0 33.5

(53.0) (52.5) (53.2) (52.7) (54.4) (52.5)

3 Working capital finance requirement Increase 33.6 33.8 32.9 23.2 26.3 30.4

(57.3) (57.7) (57.1) (61.0) (61.7) (61.0)

4 Availability of finance Improve 30.2 23.3 13.7 9.3 16.6 26.1

(57.9) (59.0) (56.3) (61.7) (62.6) (62.7)

5 Production Increase 43.5 39.8 26.0 9.9 22.4 35.0

(36.6) (42.1) (42.3) (44.9) (45.5) (43.0)

6 Order books Increase 38.5 35.7 20.6 6.4 16.8 32.3

(43.5) (46.1) (46.1) (44.4) (45.8) (45.3)

7 Pending orders, if applicable Below 2.2 4.6 11.5 23.2 19.1 11.0

normal (80.9) (82.0) (77.8) (59.4) (73.4) (80.6)

8 Cost of raw material Decrease -54.7 -61.1 -35.7 -16.2 -27.1 -38.4

Inventory of raw material (39.1) (32.3) (39.7) (33.7) (55.5) (51.6)

Below -3.8 -7.6 -3.3 1.1 -0.5 -1.2

average (81.8) (77.6) (81.3) (80.2) (82.7) (85.0)

9 Inventory of finished goods Below average -1.5 -4.3 -4.4 -4.4 -1.8 -3.7

(84.5) (82.6) (80.9) (78.4) (80.6) (85.3)

10 Capacity utilisation (Main product) Increase 22.2 26.4 12.3 -0.7 10.7 22.0

(58.8) (56.0) (59.1) (55.0) (57.5) (56.2)

11 Level of capacity utilisation Above normal 3.6 -0.5 -7.4 -20.8 -12.1 -3.8

(Compared to the average in the (74.9) (78.7) (73.7) (66.4) (70.8) (76.0)

preceding four quarters)

12 Assessment of the production capacity More than 4.6 5.7 11.8 8.9 5.5 6.5

(With regard to expected demand in adequate (81.3) (81.7) (81.0) (70.7) (76.9) (79.7)

the next six months)

13 Employment in the company Increase 15.8 16.6 7.7 -5.1 1.5 8.8

(71.5) (70.4) (75.7) (74.0) (78.6) (77.2)

14 Exports, if applicable Increase 27.7 27.3 16.0 -3.8 0.1 12.5

(54.9) (54.3) (54.8) (57.3) (59.0) (58.5)

15 Imports, if any Increase 21.3 21.4 9.1 -1.4 4.6 11.5

(66.5) (67.9) (69.7) (68.8) (70.6) (68.9)

16 Selling prices are expected to Increase 21.0 26.2 4.1 -9.1 0.0 6.0

(61.5) (57.6) (61.7) (61.9) (65.6) (67.6)

17 If increase expected in selling prices Increase at 3.0 0.6 0.9 25.9 -100.0 19.4

lower rate (61.3) (54.7) (54.0) (53.5) (0.0) (63.2)

18 Profit margin Increase 3.8 -3.6 -12.9 -18.6 -13.4 -2.8 (59.8) (54.7) (53.3) (50.6) (54.5) (56.8)

Note: 1. ‘Net response’ is measured as the percentage share differential between the companies reporting ‘optimistic’ (positive)

and ‘pessimistic’ (negative) responses; responses indicating status quo (no change) are not reckoned. Higher ‘net response’

indicates higher level of confidence and vice versa.

2. Figures in parentheses are the percentages of respondents with ‘no change over the preceding quarter’ as responses.

Table 7.2: Reserve Bank’s Survey – Net Response on ‘A Quarter Ahead’ ExpectationsAbout the Industrial Performance

relatively lower dependence of India on

exports in relation to other Asian countries.

The Economic Advisory Council to the Prime

Minister projected recently the Indian

economy to grow by 6.5 per cent in 2009-10,

with an assessment suggesting growth

MONETARY POLICY

STATEMENT 2009-10



unlikely to be lower than 6.25 per cent but

with the possibility of reaching 6.75 per cent.

Factors Influencing the CurrentGrowth and Inflation Outlook

VII.12 Emerging upside prospects as well

as possible downside risks condition the

current assessment of India’s growth

outlook for 2009-10. Factors that support

the prospects of a faster and sustained

recovery in growth include: (a) the impact

of the policy stimulus, (b) visible signs of

industrial recovery, as evidenced by 5.8 per

cent growth in IIP during April-August 2009,

with double digit growth recorded in

August, (c) stronger performance of the core

infrastructure sector, showing higher

growth of 4.8 per cent in April-August 2009

as against 3.3 per cent in the corresponding

period of the previous year, besides the

significant acceleration in growth in August

Table 7.3: Median Forecasts of Select Macroeconomic Indicators byProfessional Forecasters 2009-10

Actual Annual forecasts Quarterly forecasts2008-09

2009-10 2010-112009-10 2010-11

Q2 Q3 Q4 Q1 Q2

E L E L E L E L E L E L E L

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

1. Real GDP growth rate at

factor cost (in per cent) 6.7 6.5 6.0 7.5 7.7 6.2 6.2 6.9 5.7 7.1 6.7 7.5 7.3 – 7.6

a. Agriculture &

Allied Activities 1.6 2.5 -1.4 3.0 3.7 2.4 -1.0 3.5 -3.7 3.0 -1.0 3.0 2.0 – 2.7

b. Industry 2.6 4.8 6.3 7.4 7.3 3.5 6.6 5.9 6.9 7.2 6.9 7.0 6.7 – 6.7

c. Services 9.4 8.3 8.1 9.0 9.1 8.0 7.8 8.5 8.4 8.5 8.6 8.8 8.9 – 9.1

2. Gross Domestic Saving

(per cent of GDP at

current market price) – 35.0 33.6 36.0 36.6 – – – – – – – – – –

3. Gross Domestic Capital

Formation (per cent of GDP

at current market price) – 36.6 37.3 37.9 37.7 36.4 34.8 38.0 36.5 37.0 36.0 36.2 36.2 – –

4. Corporate profit after tax

(growth rate in per cent)* – 7.5 10.0 15.0 14.5 3.0 4.5 8.0 9.0 9.0 12.0 15.0 15.0 – 17.5

5. Inflation WPI 8.4 1.6 3.0 5.5 5.8 -1.4 -0.24# 2.5 4.0 5.4 6.8 5.9 7.2 – 6.5

6. Exchange Rate (US$/INR

end period) 51.0 46.5 46.0 44.5 44.5 47.5 48# 47.0 47.0 46.0 46.0 45.4 45.9 – 45.3

7. T-Bill 91 days Yield

(per cent-end period) 7.1 4.6 4.1 5.0 4.9 – – – – – – – – – –

8. 10-year Govt. Securities

Yield (per cent-end period) 7.6 7.0 7.3 7.0 7.5 – – – – – – – – – –

9. Export (growth rate

in per cent)! 5.4 -0.5 -5.0 12.0 14.2 – – – – – – – – – –

10. Import (growth rate

in per cent)! 14.3 -3.5 -15.7 14.0 12.0 – – – – – – – – – –

11. Trade Balance

(US $ billion) -119.4 – – – – -25.8 -23.5 -31.0 -28.1 -19.9 -22.1 -29.3 -20.7 – -28.9

E : Earlier Projection. L : Latest Projection.

– : Not Available. # : Actuals. * : BSE listed companies. !:US$ on BoP basis.

Note : The latest round refers to ninth round for the quarter ended September 2009, while earlier round refers to eighth round for the

quarter ended June 2009.

Source : Survey of Professional Forecasters, Second Quarter 2009-10.


MONETARY POLICY

STATEMENT 2009-10



2009 at 7.1 per cent, (d) improvement in

lead indicators of services in July-September

2009, such as railways freight, cement

production/delivery, sales of steel and

automobiles including commercial vehicles,

(e) significant upturn in the business

confidence as per different business

expectations surveys, including the

Reserve Bank’s Industrial Outlook Survey,

(f) revival in capital flows in the first half of

2009-10, after two consecutive quarters of

net outflows in the second half of 2008-09,

(g) significant recovery in the stock market

(over end March 2009 level), and higher

resource mobilisation through public issues

and private placements in the first five

months of 2009-10 over the corresponding

period of last year, and (h) the improving

overall global economic and financial

conditions.

VII.13 A number of strong downside risks

weigh down the growth prospects: (a) the

deceleration in growth of private

consumption and investment demand, (b)

deficient monsoon and drought like

conditions in several parts of the country

and the flood in a few states affecting both

kharif production as well as rural demand,

(c) decline in sales of corporates in the first

quarter of 2009-10, (d) persistence of

deceleration in non-food credit growth, with

growth in credit card and consumer

durables related credit turning negative,

suggesting possible continuation of the

deceleration in private consumption

demand even in the second quarter of 2009-

10, (e) persistence of decline in exports for

the 12th consecutive month, (f) external

demand dependent services activities

remaining sluggish, such as tourism and

cargo handled at ports, and (g) negative

growth in non-oil imports and weak growth

in capital goods production (notwithstanding

the pick up in August 2009) corroborating the

sluggish demand conditions.

VII.14 The combination of weak recovery

and elevated CPI inflation has already

magnified the complexity of policy

challenges, notwithstanding the subdued

nature of headline WPI inflation so far.

Table 7.4: Projections of Real GDP for India by Various Agencies – 2009-10

(Per cent)

Agency Latest Projection Month of Earlier Projection

Overall Agriculture Industry Services Projection Overall MonthGrowth Growth

(Per cent)

1 2 3 4 5 6 7 8

Economic Advisory Council to PM 6.5 -2.0 8.2 8.2 Oct-09 7.0-7.5 Jan-09

IMF (Calendar year) 5.4 – – – Oct-09 5.4 July-09

ICRIER* 5.8-6.1 Oct-09 6.0 June-09

ADB 6.0 – – – Sep-09 5.0 Mar-09

NCAER 7.2 1.0 6.7 9.4 July-09 6.5-6.9 April-09

OECD 5.9 – – – June-09 4.3 Mar-09

World Bank 5.1 – – – June-09 4.0 Mar-09

Range 5.1-7.2 4.0-7.5

* ICRIER Macro Team.

MONETARY POLICY

STATEMENT 2009-10



Among the alternative plausible sources of

inflation that could determine the near-

term inflation outlook, factors which

support possible firming up of headline

inflation clearly overshadow the factors

which may help in containing the

inflationary pressures. The sources of

comfort for the inflation outlook could be:

(a) persistence of negative output-gap and

weak aggregate demand, (b) stabilisation of

international oil prices over the last few

months, notwithstanding the recent

increase in October 2009 so far, (c) modest

recent deceleration in broad money growth,

despite the accommodative monetary policy

stance of the Reserve Bank, (d) no further

increase in minimum support prices for

agricultural commodities, since that could

worsen the inflation with much greater

certainty than helping in generating positive

supply response, (e) effective use of the high

stock of foodgrains with special focus on

improved distribution to contain the high

food prices, (f) better harvest during rabi

season that could help in bringing down the

prices of certain commodities which have

led the spiral in inflation in essential

commodities so far, and (g) selective import

of certain commodities where the current

price differentials with international

markets could still be significant.

VII.15 Factors that could firm up

inflationary pressures further in the near-

term, particularly in terms of headline WPI

inflation include: (a) fading base effect of

the last year, which in itself alone will

manifest in the form of positive WPI

inflation in the second half of 2009-10,

(b) the rigidity of the CPI inflation at the

double digit level for last few months, (c)

strong upward momentum already seen

in WPI inflation as the index has risen by

5.9 per cent over its end-March 2009 level,

even though the year-on-year inflation

continues to be low at 1.2 per cent, (d) high

inflation in food and essential commodities,

which requires augmentation of supply, but

could be difficult to ensure over the short-

run, and limited import options for specific

commodities, (e) persistent high CPI

inflation, which could lead to wage/cost

push inflation, as wages and prices would

come under increasing pressure of revision

with gradual return of pricing power and

wage bargaining, (f) the risk of further

increase in minimum support prices under

the cost-plus pricing approach, (g) possible

firming up of international commodity

prices with economic recovery and sudden

spurt in demand from EMEs, and more

importantly (h) given the dominance of

supply side factors in the emerging

inflationary pressures, the policy challenges

in anchoring inflation expectations. The

overall economic outlook, thus, is

conditioned by both upside prospects of

recovery with downside risks and emerging

inflationary pressures.


SpeechesEmerging Market Concerns: An Indian Perspective

by Duvvuri Subbarao

Changing Dynamics of Legal Risks in Financial Sector

by Shyamala Gopinath

Learning from Crises

by Usha Thorat

SPEECH

Emerging MarketConcerns: An Indian

Perspective

Duvvuri Subbarao


1. From the perspective of Emerging

Market Economies (EMEs) and particularly

for that of India, I will highlight five

concerns. These are: first, timing of exit

from the accommodative monetary policy

in the context of rising food price-led

inflation but still weak growth; second, the

possibility of another surge in capital flows,

especially if we turn out to be an outlier in

withdrawal of monetary stimulus; third,

monetary transmission mechanism as it is

evolving from the crisis period; fourth,

return to fiscal consolidation and quality of

fiscal adjustment; and finally, the

implications of the efforts towards financial

stability on financial inclusion and growth.

Unique Features of the IndianEconomy

2. Before I turn to these issues, I want to

indicate a few features unique to the Indian

economy. These features, I believe, are

important to appreciate my comments on

emerging market concerns.

3. What are the unique features of the

Indian economy that distinguish it from

other EMEs? First, our growth is driven by

domestic demand – both consumption and

investment. Consumption and saving are

well balanced. In India, the share of private

final consumption expenditure in GDP is

around 55 per cent. Our savings rate is 37.7

per cent and investment rate is 39.1 per cent.

4. Second, we have twin deficits – fiscal

as well as current account deficit. We were

on a path of fiscal consolidation before the

crisis, but got off track because of the

counter cyclical spending necessitated by

the crisis. Unlike major EMEs, which are

running current account surpluses, we have

Emerging MarketConcerns: An IndianPerspective*

Duvvuri Subbarao

* Remarks by Dr. Duvvuri Subbarao, Governor, Reserve

Bank of India at G-30 International Banking Seminar in

Istanbul on October 5, 2009 organised on the occasion of

the IMF-World Bank Annual Meetings 2009.

SPEECH

Emerging MarketConcerns: An IndianPerspective

Duvvuri Subbarao


recorded deficits on the current account.

Although current account deficits have been

modest, the deficit reached a high of 2.6 per

cent of GDP in 2008-09 but is expected to

moderate during 2009-10.

5. Third, given the right balance between

domestic consumption and saving on the

one hand, and infrastructural bottlenecks

in major areas (such as power, roads, urban

infrastructure as also social infrastructure)

on the other, India is essentially a supply-

constrained economy. Just before the crisis,

such supply concerns led to a view that

there might be overheating in the economy.

Generally, weak external demand has led

to some externally induced cyclical

slowdown. However, as the global economy

recovers, supply constraints are again

expected to be binding.

6. Against this backdrop of the unique

features of our economy, let me turn to the

five concerns that I want to raise.

First Concern: Exit fromAccommodative MonetaryPolicy: Growth vs. Inflation

7. While there is broad agreement that we

need to exit from the present excessively

accommodative monetary and fiscal policies,

there is less agreement on when and how we

should exit. There are incipient signs of

recovery. Industrial production has picked up

in the past couple of months, but export

growth remains negative. Business confidence

surveys suggest recovery from the troughs

touched a year ago although the confidence

levels remain below the earlier peaks.

8. Even as recovery remains weak,

consumer price inflation (CPI) is running

in double digits on the back of high food

prices. While the headline wholesale price

inflation remains low (0.84 per cent for the

week ended September 19, 2009) – it was

even negative during June-August 2009 –

CPI inflation has been persistently high for

almost a year. Higher food prices in our case

are partly a result of the structural demand-

supply imbalances. At present, cyclical

factors are also at play. Monsoon in the

current season, which ended on September

30, has been the weakest since 1972.

Agricultural output is expected to suffer and

this could keep upward pressure on food

prices in the coming months. High food

prices are, therefore, a mix of structural and

cyclical factors. While the buffer stock of

foodgrains and better supply management

could mitigate the adverse effects to an

extent, imports are not an easy solution

given the requirement.

9. Although inflation pressures

emanating from higher food prices may

limit the scope for monetary policy action,

there are implications for inflation

expectations. Furthermore, unlike the major

advanced economies, growth remains

positive. Real GDP growth was 6.7 per cent

in 2008-09 and is expected to be 6.0 per cent

(with an upward bias) as per the Reserve

Bank’s July 2009 projections. In view of the

country specific features, we may need to

exit from accommodative monetary policy

earlier than advanced economies. This calls

for careful management of trade-offs:

growth concerns warrant a delayed exit, but

inflation concerns call for an earlier exit.

An early exit on inflation concerns runs the

risk of derailing the fragile growth, while a

delayed exit may engender inflation

expectations.

SPEECH


Perspective

Duvvuri Subbarao


Second Concern: Management ofLarge and Volatile Capital Flows

10. Major central banks – such as the US

Fed, the ECB, the BoE – have flushed their

financial systems with unprecedented

amount of liquidity. Till the first quarter of

2009, this liquidity was finding its way back

to the central banks as excess reserves

because of risk aversion.

11. Risk appetite is now returning. There

are signs of recovery in portfolio

investments to the EMEs. For instance,

portfolio investments by FIIs in the Indian

equity market amounted to US$ 13.6 billion

in the period April 1-September 18, 2009 as

against outflows of US$ 5.2 billion in the

corresponding period of 2008 reflecting a

turnaround of almost US$ 19 billion.

12. Moreover, as noted above, in view of

incipient inflationary pressures, policy rates

in our case may have to be tightened ahead

of those in advanced economies. The

resultant larger interest differential may

attract larger capital inflows. Will capital

inflows be modest or turn into a flood as in

2007? The latter concern is particularly

relevant in view of abundant liquidity in the

major advanced economies. What will the

implications be for exchange rates? In India,

the current account is in modest deficit;

hence large and volatile capital flows can

impose macroeconomic costs.

13. Emerging market central banks have

three options in managing capital flows. The

first option is for the central bank not to

intervene in the forex market and let the

exchange rate bear the burden of

adjustment. Will undue exchange rate

appreciation not further widen the current

account and what will the implications be

for future sustainability? Will exchange rate

appreciation help to contain inflation?

These are the questions to address if this

option is adopted.

14. Second, the central bank can intervene

in the forex market, but refrain from

sterilisation. Such an approach runs the risk

of excessive growth in monetary and credit

aggregates which can lead to higher inflation

as well as credit and investment booms and

create financial fragility.

15. The third option is to sterilise the

interventions. Irrespective of the method

of sterilisation, the financial cost of

sterilisation in terms of national balance

sheet is obviously ultimately borne by the

government even though direct costs may be

borne by separate agencies. Sterilised

intervention can exacerbate fiscal pressures,

but this needs to be assessed against the

benefits of macro-financial stability.

Third Concern: De-cloggingMonetary TransmissionMechanism

16. Following the collapse of Lehman

Brothers, the global economic outlook

deteriorated sharply, and the Indian

economy got impacted by the contagion

through all the channels – the financial

channel, the real channel and the

confidence channel. The Reserve Bank’s

crisis response included, like in the case of

other central banks, both conventional and

unconventional measures.

17. In response to the easing of policy

interest rates and abundant liquidity made

available, market rates eased significantly.

SPEECH


Duvvuri Subbarao


Yields on 10-year central government

securities fell from 8.6 per cent at end-

September 2008 to 5.3 per cent by end-

December 2008. This trend has since

reversed with yields hardening since the

beginning of the current calendar year on

the back of large and abrupt increase in the

government borrowing programme.

18. In contrast, interest rates on bank

deposits and loans have exhibited stickiness.

While the Reserve Bank cut the effective

policy rate by 575 basis points, banks’

Benchmark Prime Lending Rates (BPLRs)

have seen a reduction of only 100-275 basis

points. This stickiness has impeded

monetary transmission and blunted the

intended impact of policy actions. What is

the explanation for the stickiness in the

interest rate structure of banks?

19. There are several factors that cause this

stickiness – the higher rates of interest

offered by the small savings instruments

which discourage banks from reducing

deposit rates, the high cost of deposits

raised by banks during earlier tighter

monetary policy regime which raised their

weighted average costs, and the large

government borrowing programme which

pushed up yields on government securities.

20. These factors, which impeded

monetary transmission, were in play even

before the crisis. A definite task going

forward will be to address the impediments

to monetary transmission.

Fourth Concern: Fiscal Stimulus -Withdrawal and Quality ofAdjustment

21. Like in other economies, fiscal

stimulus measures and weakening of

economic activity have led to substantial

increase in our fiscal deficits. The Central

Government’s fiscal deficit is budgeted to

jump from 2.7 per cent of GDP in 2007-08

to 6.8 per cent in 2009-10; the combined

fiscal deficit of the Centre and the states is

expected to increase from 4.2 per cent of

GDP to 10.2 per cent over the same period.

These deficits are large and need to be rolled

back. What is the scope for adjustment?

What lesson does our past experience offer?

22. As a result of the discipline imposed

by the Fiscal Responsibility and Budget

Management (FRBM) Act, the Centre’s fiscal

deficit came down from 6.2 per cent of GDP

in 2001-02 to 2.7 per cent in 2007-08. Over

the same period, the deficit of the state

governments declined from 4.1 per cent of

GDP to 1.5 per cent. Thus, we saw a large

adjustment over a relatively small period.

This past experience with fiscal adjustment

may raise hopes that we will be able to roll

back the recent fiscal deficits. Such a

simplistic approach may be misleading. A

large part of our fiscal deficit is structural

and not cyclical. Also, at least a part of

fiscal consolidation resulted from high

growth, not the other way round. It is

important to acknowledge this in order to

define the problem and assess the

enormity of the challenge.

23. Three issues are important in this

context. First, this concept of ‘fiscal

adjustment over a cycle’ is inadvisable for

us. Adjustment over a cycle is for mature

and advanced economies. Even there it does

not work - the UK, for instance, was running

its highest fiscal deficit at the peak of the

economic cycle. We will be safest sticking

to a single formula and tying ourselves

SPEECH


Perspective

Duvvuri Subbarao


down to annual, inflexible targets. This is a

blunt but safe way of de-linking fiscal

adjustment from democratic pressures.

Second, we must focus on the quality of

fiscal adjustment, not just chase a numerical

target. The ratio of capital outlay to GDP for

the Central Government has stagnated

between 1 and 2 per cent of GDP since the

early 1990s from around 2-3 per cent in the

preceding decade. Third, we cannot sit back

and hope that tax increase will deliver fiscal

consolidation on a platter. Revenue

expenditure has increased from around 12

per cent of GDP during the period 2000-08

to over 15 per cent now. We need to work

seriously on expenditure compression. This

is going to be politically challenging both at

the Centre and in the States, but it needs to

be done regardless.

Fifth Concern: Financial Stability,Financial Inclusion and Growth

24. The last concern I want to raise relates

to the challenge of financial inclusion.

25. Given the enormity of the crisis,

financial sector regulation is being

tightened under the aegis of international

bodies such as the BCBS and FSB. There are

proposals that would raise the reserve

requirement of banks. New regulations for

liquidity requirements are also going to be

in place. There are also proposals to require

banks to hold government securities. Many

of these measures are necessary. But we

need to recognise that all such proposals

will have the impact of increasing the banks’

funding costs which will translate into

higher lending rates. How will banks react

to such higher costs? Will this lead to an

erosion of banks’ social responsibility

towards the poorer and other needy

segments of the society? In economies such

as India, a large part of population remains

financially excluded. We will need to ensure

that efforts at financial inclusion do not get

negated by the ongoing tightening of the

regulatory regime.

26. In order to safeguard financial

stability, we have traditionally used a

variety of prudential measures such as

specifying exposure norms and pre-

emptive tightening of risk weights and

provisioning requirements. But these

measures are not always costless. For

instance, tightening of risk weights

arguably tempers the flow of credit to

certain sectors, but excessive, premature

or unnecessary tightening could blunt

growth. Similarly, exposure norms offer

protection against concentration risks;

however, such limits could restrict the

availability of credit for important growth

sectors. This is a live issue in our country

in the context of the immense needs of

infrastructure financing. Thus, as in the

case of price stability, central banks face

the challenge of managing the trade-off

between financial stability and growth.

27. It needs to be recognised that after a

crisis, with the benefit of hindsight, all

conservative policies appear justified. But

excessive conservatism in order to be

prepared to ride out a potential crisis could

thwart growth and financial innovation.

The question is what price are we willing

to pay, in other words, what potential

benefits are we willing to give up, in order

to prevent a black swan event? Experience

shows that managing this challenge, that

is to determine how much to tighten and

when, is more a question of good

SPEECH


Duvvuri Subbarao


judgement rather than analytical skill. This

judgement skill is the one that central

banks, especially in developing countries

such as India, need to hone as they

simultaneously pursue the objectives of

growth and financial stability.

Conclusion

Thank you very much for giving me this

platform to speak about the concerns of

emerging economies as we shift from

managing the crisis to managing the

recovery.

SPEECH

Changing Dynamicsof Legal Risks inFinancial Sector

Shyamala Gopinath


It gives me great pleasure to be amidst

you all today to inaugurate this Symposium.

1. At the outset, I may say that this

Symposium on “Changing Dynamics of

Legal Risks in Financial Sector” could not

have been organised at a more appropriate

time than now. The recent global financial

crisis has brought to light various risks. It

has to a great extent blurred the distinction

between operational risks and legal risks.

As they say, each crisis opens up

opportunities for learning and innovation;

it is just the right time for the legal fraternity

to put on their thinking cap and investigate

which of the many risks that culminated in

the crisis may be identified as legal risks and

what legal steps could have been taken that

would have mitigated its effects.

Contextually in the wake of increased

financial integration and globalisation, it is

essential that in-house legal officers also

have an understanding of legal risks from a

cross border point of view. I have no doubt

that a Symposium like this in which heads

of legal departments of various regulators,

banks and financial institutions are

participating where they will have an

opportunity to interact with distinguished

speakers having rich experience in the field,

drawn from within the country and abroad,

will provide a proper direction to identify

and deal with legal risks.

2. As a central banker with three decades

of experience I have had occasions to deal

with diverse operational problems and

difficult issues. I have no hesitation in

saying that inputs received from the legal

department of the Reserve Bank have been

very useful. At times one may feel that the

legal opinion is a bit too rigid and

conservative and fails to recognise the

Changing Dynamicsof Legal Risks inFinancial Sector*

Shyamala Gopinath

* Inaugural address by Smt. Shyamala Gopinath, Deputy

Governor, Reserve Bank of India at International

symposium on “Changing Dynamics of Legal Risks in

Financial Sector”, organised by the RBI as part of its

Platinum Jubilee Celebrations at Kochi on October 31, 2009.

SPEECH


Shyamala Gopinath


dynamics of the sector, but in the end we

all need to appreciate that legal risks have

to be accorded prime consideration and

addressed.

What is Legal Risk?

3. There appears to be no concrete

definition for the expression “legal risk” nor

do I venture to make an attempt at defining

it considering the complexities and

variations in the risks involved. The Basel

II accord covers “legal” risk under

“operational” risk.

4. Legal risk may vary from institution to

institution depending on the manner in

which it conducts its business and the

documentation it follows. The legal risks

primarily arise either due to lack of clarity

of the documentation of the product or the

act of the counterparty. Change in legal

environment due to legislative changes and

Court interpretations/proceedings also

result in legal risk. Legal risk includes risk

of non-enforceability of contract or in-

correct documentation resulting in the

increased probability of loss. Broadly, legal

risks may result in (i) claims against

institution, (ii) fines, penalties, punitive

damages, (iii) unenforceable contracts

resulting from defective documentation,

and (iv) loss of institutional reputation.

5. Documentation forms an important

part of the banking and financial sector. For

many, documentation is a panacea to the

legal risks that may arise in banking

activities. But then it has also been realised

and widely acknowledged that loopholes

exist in these documentations. As a result

of lessons learnt from time to time, the

loopholes in the documentation are

attempted to be plugged by adding further

terms and conditions in existing documents

or by adding further documents resulting in

voluminous and confusing documentation.

In banking there is no end to innovation in

documentation because, for keeping pace

with the changing needs and aspirations of

the customers, banks have been venturing

into various kinds of innovative products.

Identifying the legal risks that lurk behind

modern techno-savvy complex transactions

and market jargon, is no easy task.

6. The starting point while entering into

any financial transaction is the legal capacity

to contract and this becomes complex to

interpret in respect of innovative financial

instruments, since laws or regulators may

not have kept pace with financial innovation.

7. The risk of loss due to non-

enforceability of the contract in a Court of

Law as one of the counterparties lacks the

legal capacity to contract was witnessed in

the case of Hammersmith & Fulham, UK. In

this case, the city councils had entered into

a series of interest rate swaps with banks,

which turned out to produce major losses

for the councils due to increase in British

interest rates. The swaps were later ruled

invalid by British Courts as the city councils

did not have the authority to enter into such

transactions and were found to be ultra

vires. As a result, the loss had to be absorbed

by the counterparty banks.

Lessons of the crisis

8. Some of the key legal risks faced by

entities in the recent financial crisis related

to bankruptcy risks, mis-selling of complex

derivatives, enforceability of contracts/

agreements backing OTC transactions

SPEECH


Shyamala Gopinath


across jurisdictions and the hitherto

untested risks in the securities market –

custodial arrangements, repo transactions,

tripartite agreements, securities lending,

etc. Over the past few decades the rising

complexity of financial markets and

instruments had also engendered a parallel

legal paraphernalia primarily to manage the

counterparty risks. However, this was the

first occasion that this support structure

was put to real test internationally. I would

like to briefly touch upon the key legal

issues and lessons thrown up by the crisis

in operations of different areas of the

financial industry.

9. One of the key issues faced in many

jurisdictions was the heterogeneity of

resolution arrangements where the entity

under bankruptcy proceedings had

operations across many countries. Towards

addressing the difficulties faced by

regulators on this count, international

efforts are underway for developing a

homogenised resolution framework for

entities having cross-border operations. A

tricky issue in this regard is that a common

resolution framework may be difficult to

achieve given the diverse nature and

difficulties in carrying out legislative

changes since each jurisdiction will want to

protect its domestic interests.

10. The crisis also highlighted the issue of

sharing of information among regulators.

Countries have different arrangements for

sharing such information. This becomes

more onerous when it comes to sharing of

information with overseas regulators. As

countries become more globalised the

regulators may have to consider

arrangements to share appropriate and

relevant confidential information of

regulated entities with other regulators

subject to conditions and safeguards within

the individual countries’ political and

economic circumstances.

11. Huge derivatives losses faced by

corporates in many countries has clearly

underlined the need for sound contractual

agreements between the banks and clients.

More than that, it has highlighted the need

for the providers of service, particularly

banking services, to have a more

responsible approach. Banking as a concept

essentially rests on trust and confidence

and no amount of legal remedies can

substitute these.

12. The crisis has also brought to the fore

the importance of sound legal agreements

with all counterparties, particularly brokers

and other intermediaries in forex and

securities markets, which essentially act as

agents. It is essential to ensure that these

intermediaries are regulated in a regime

with specific provisions to ensure

segregation of assets. The same risk applies

to global fund managers where it is a 3-tier

structure with the fund manager further

having a link with the brokers. It is better

to have some guidelines/oversight on the

type of broker relationships that the fund

manager can enter into.

13. It is important to ensure that the

collateral rights are enforceable under the

relevant law and that the agreements

provide for keeping collaterals out of the

bankruptcy provisions – in case of

bankruptcy, the bankruptcy administrator

has the discretion to decide which

obligations to enforce and which ones to

write off after closeout netting – if

collaterals are part of the closeout netting,

SPEECH


Shyamala Gopinath


then there may be a possibility of write-offs

as part of bankruptcy proceedings.

14. The crisis has also underlined the risks

inherent in re-hypothecating assets. Where

assets are re-hypothecated, they are at best

difficult to identify and extract in the event

of bankruptcy. At worst, the assets may never

be located, leaving clients to stand in line

with other creditors to try and get their

assets. Perhaps this is a challenge to the legal

mechanism to protect the interest of the

original holders. This highlights the flaws in

the co-mingled account model also. Assets

held in co-mingled accounts can be difficult

to identify if the prime broker fails, leaving

administrators with the task of identifying

which assets belong to which clients. Some

suggest the use of the tri-party collateral

management model in which a third party

sits between the prime broker and their

hedge fund or other clients holding the

collateral in segregated accounts. However,

concentration of such repos with only few

banks aggravates systemic risk.

15. I would like to cite another instance of

issues regarding re-use of collaterals. In one

case a bank entered into Equity Finance1 and

Standard Securities Lending arrangements

with a number of brokers. The securities

lent to the bank by brokers were generally

obtained as a result of the Equity Finance

arrangements between the brokers and

their clients. However, after the collapse of

one of the brokers there was dispute about

the ownership of securities highlighting the

loopholes in the agreement entered.

Indian experience

16. Though the financial services industry

in India is of a relatively recent origin, there

have been many tricky legal issues that the

industry has faced over the years.

17. I would like to refer to one of the early

instances where the legality of a market

product, ready forward transactions, was

decided by the Supreme Court in a

landmark judgement.

18. Ready-forward (repo) transactions were

quite popular in the market in the eighties.

But immediately after irregularities in

Indian capital markets in early nineties, the

legality of this product was challenged. The

Supreme Court of India2 held that ready

forward contract is severable into two

parts, namely, ready leg and forward leg . It

further held that the ready leg is valid but

the forward leg is not. Therefore, all the

repo transactions were treated and

accounted as outright sale and purchase

transactions. The lending and borrowing

nature of repo transactions has now been

captured in the amendment to the Reserve

Bank of India Act carried out in 2006 by

defining repo and reverse repo transactions.

19. Another issue is related to legal

validity of OTC contracts. Since derivative

transactions may be regarded as contracts

for differences, they could be regarded as

wagering in nature, when cash settled.

However, under section 18A of the

Securities Contracts (Regulation) Act, 1956,

derivatives traded on a recognised stock

exchange and settled on the clearing house

1 Equity Finance is a form of Securities Lending where

the value of the transferred securities is more than the

value of the cash received in exchange.

2 B.O.I Finance Ltd. v. Custodian and others, (1997) 10

SCC 488.

SPEECH


Shyamala Gopinath


of the recognised stock exchange are valid.

The uncertainty with respect to the validity

of OTC derivatives was removed by

amendment to the Reserve Bank of India

Act carried out in 2006 providing for

validity of OTC derivative contracts in

certain cases.

Certain Legal challenges faced bybanks in India

20. During the Financial Sector Assessment

Program jointly undertaken by the

Government of India and Reserve Bank, it

was found that insolvency matters take on

an average ten years for resolution. An

instance of a Court decision posing serious

ramifications to the business of banks was

recently seen when the Gujarat High Court

held that sale of non performing assets by

one bank to another is not a permissible form

of business for banks. Though the matter is

now before the Hon’ble Supreme Court,

considerable time may be lost. Similarly,

amendments made by certain States

according priority to the dues of State over

those of the secured creditors and the recent

decision of the Supreme Court holding that

such State claims would have predominance,

has been highlighted by the banks as posing

a significant legal risk to them. The fact that

even security interests created prior to the

crystallisation of State dues are not getting

priority is a matter of grave concern for the

banking sector. The absence of a single point

database for verification of security interests

created by banks/FIs accentuates the legal

risk in security interest creation.

21. Another area where banks are

increasingly exposed to legal risk is the rising

consumer grievances about the services

rendered by the banks. Many a time, the lack

of awareness among customers about the

niceties of the innovative products offered

by the banks leads to customer grievances

and resultant litigations. In order to tide over

legal risks, some of the banks have been

incorporating suitable clauses in the

agreements which make the terms therein

tilt in their favour. It is not possible to predict

how the Courts would treat these clauses, if

challenged by the customers as

unconscionable. This makes it imperative

that the contracts governing such innovative

products clearly exhibit fairness in the terms

and conditions and are transparent with

adequate disclosures and are not one sided

contracts.

22. Even though outsourcing of certain

activities by banks has helped customer

service, banks have to address the legal risks

that may arise owing to breach of

confidentiality or any fraud that may be

committed by their agents as banks would

be liable for their acts and omissions

including any misrepresentations to the

customers and breach of any law committed

by the service providers.

Legal reforms initiated by RBI

23. The Reserve Bank has been initiating

amendments in law to keep pace with the

dynamic market place.

(i) The enactment of the Payment and

Settlement Systems Act, 2007

providing, inter alia, for settlement

finality and netting is a very big step

in ensuring settlement finality

resulting from multilateral netting. The

settlement that has become final and

irrevocable under this Act will not be

SPEECH


Shyamala Gopinath


affected by the passing of the order of

adjudication or dissolution or winding

up under other laws including

Companies Act, 1956 and Banking

Regulation Act, 1949.

(ii) Amendments to the Reserve Bank of

India Act providing for validity of

certain OTC derivative contracts which

I referred to earlier.

(iii) The amendments to the Negotiable

Instruments Act providing for electronic

cheques and cheque truncation.

(iv) The Information Technology Act providing

for recognition of digital signatures and

consequent amendments to the Indian

Evidence Act, Bankers’ Books Evidence

Act are some of the recent initiatives

undertaken in India.

But there are still issues which are left

to be addressed like cross border insolvency

issues, jurisdictional issues in cross border

transactions etc., which would require a

concerted effort from the international

community. It is advantageous to refer to

the recommendations of the Committee on

Financial Sector Assessment in this regard.

Some of the legal reforms suggested by that

Committee are:

(1) Enactment of the UNCITRAL Model

Law on Cross Border Insolvency with

modifications suitable to India’s needs;

(2) Conferring statutory priority to the

claim of banks and financial

institutions in respect of the financial

assistance given to rehabilitate a sick/

weak company in financial distress;

(3) Extension of such priority of claim

even while disbursing the assets in

liquidation;

(4) National Company Law Tribunal

(NCLT) to be made functional for any

significant improvement in the

restructuring process;

(5) Extension of SARFAESI Act to cover

security interest in Agricultural land

beyond a specified holding (for e.g. 5

Acres);

(6) Insertion of Section 29A in Banking

Regulation Act empowering Reserve

Bank to call for information and returns

from the associate enterprises of

banking companies and inspect the

same, if necessary.

(7) Setting up of the Central Registry

urgently to have a central and reliable

record of all security interests created

by banks and financial institutions and

other entities/individuals in respect of

both immovable and movable property

by a separate legislation in respect of

the Central Registry.

Legal risks for the regulators

24. I am sure that you would acknowledge

that life of Central Bankers and regulators

is not enviable either. Regulators also face

legal risks. In addition to being exposed to

the legal risks arising out of international

contracts entered into as part of their own

operations between banking regulators

inter se and the risks arising out of domestic

contracts such as derivatives entered into

with regulated entities, regulators run the

risk of the regulatory measures taken by

them for disciplining the errant entities

being quashed by the Courts.

25. Our experience is that customers filing

suits/complaints in courts and Consumer

SPEECH


Shyamala Gopinath


fora implead the Reserve Bank of India as a

party to the case for failing to enforce its

circulars. The track record of the Reserve

Bank (and by implication the legal

department) in this regard has been very

good. Right from the 1962 decision of the

Supreme Court in Palai Central Bank case

upto the 2007 decision of the Supreme Court

in the case of Ganesh Bank of Kurundwad,

the action taken by the Reserve Bank has

been upheld.

26. However, the point is that the exercise

of statutory powers by the regulators is not

immune from judicial scrutiny. The

regulator is expected to act strictly within

the four corners of law. The regulator should

ensure that the decision making process is

fair, bonafide and reasonable and the

decision is in accordance with law. Any

dilution of these standards exposes the

regulator to legal risk which has far reaching

consequences on its credibility.

27. Some financial transactions or products

introduced by financial intermediaries may

fall within the domain of more than one

regulator. There is a need to have a clear,

effective and smooth co-ordination among

the regulators to deal with issues relating

to regulatory arbitrage, tax arbitrage, etc. In

India the High Level Co-ordination

Committee comprising Members from RBI,

SEBI, IRDA, etc. provides an effective

platform facilitating coordinated action.

Role of in-house lawyers

28. In the present day, the role of in-house

lawyers has changed considerably. They can

no longer confine to their traditional role

of giving legal advice keeping themselves

aloof from the business requirements of the

institutions. The role of an in-house lawyer

becomes most prominent as they are best

equipped to identify and assess “legal risks”.

Their specialised knowledge and familiarity

with the institutional policies enable them

to perform this function. The in-house

lawyers need to understand the business

processes and the transactional intricacies

to assess legal risk. They are expected to

apprise the management the nature and

extent of “legal risks” and help the

management to take a well informed

commercial decision. To achieve this, in-

house lawyers should not hesitate to obtain

access to all relevant information and

should involve themselves in the decision

making process of the institution in a

proactive way. They should also have

sufficient independence and a separate

reporting line to the top management in the

organisational structure.

Concluding Remarks

29. Perhaps the bottom line in the area of

legal risk management remains on the

choice of counterparty and the

understanding of the legal documents. The

understanding of legal documents should

be crystal clear without any scope of

ambiguous interpretation and match with

the requirements and objectives of the

parties concerned. Due diligence during the

process of preparation of the legal

documents is actually put to rigorous test

only during periods of crisis. At times of

crisis/distress, not only the aggrieved party

looks at the legal recourse for remedy, the

defaulting party also looks at legal

loopholes to get out of the liabilities arising

SPEECH


Shyamala Gopinath


out of the transactions or atleast delay the

settlement process.

30. In the light of various developments in

the fast changing financial markets during the

recent crisis, the importance of Legal Audit

in all financial institutions cannot be

overemphasised. The objective of the legal

audit could be to review the various

agreements with the custodians,

counterparties, service providers, etc. The

coverage of the audit could include all the

agreements, the legal title to the foreign assets,

liabilities under various laws. Thus, legal audit

is a health check of the level of risk that can

arise due to insufficient or inappropriate

documentation or lack of understanding acts

of a foreign land. The legal audit is a means

of identifying legal risks and suggesting course

correction for smoother sails during crises.

31. These are some of the thoughts which

I felt were relevant to this Symposium

organised by the Legal Department of the

Reserve Bank in the Platinum Jubilee year

of the Reserve Bank. I have quickly run

through the articles contributed by the

participants which are included in the

reading material distributed to you and find

these very educative and extremely valuable

and very important points have been raised

and well articulated arguments have been

made. I am sure this Symposium will prove

to be fruitful for all of us.

32. With these words, I formally inaugurate

this Symposium and wish it all success.

SPEECH

Learning fromCrises

Usha Thorat


1. The late John Kenneth Galbraith,

Harvard Economics Professor Emeritus,

attributed the longevity of his book The

Great Crash 1929 – published in 1955 and

never since out of print – to the tendency

of history to threaten a repeat. “Each time

it has been about to pass from bookstores,”

he wrote in a later foreword, “another

speculative episode – another bubble or the

ensuing misfortune – has stirred interest in

the history of this, the great modern case

of boom and collapse, which led on to an

unforgiving depression.” So here we are

again. The financial crisis that has engulfed

credit markets over the recent period has

pushed the old Keynesian economist’s book

back into the Amazon charts.

2. “Bad distribution of income” is the first

of five weaknesses of the US economy that

Galbraith cites in his definitive work on the

stock market collapse. Though Galbraith

says it was 5 per cent, not 3 per cent, of

Americans who received one-third of

personal income in 1929, he says this well-

heeled group played a crucial role in the

crash. “The collapse in securities values

affected in the first instance the wealthy

and the well-to-do. But in the world of 1929

this was a vital group. The members

disposed of a large proportion of the

consumer income; they were the source of

the lion’s share of personal savings and

investment”.

3. History has an eerie way of repeating

itself and memory of the pain of busts,

according to Galbraith, is perhaps the best

regulator.

4. In the latest best seller The Ascent of

Money, Niall Ferguson has also highlighted

the fact that the income of the median

Learning from Crises*

Usha Thorat

* The ‘Institute of Banking and Finance (IBF) Distinguished

Speaker Series’ lecture delivered by Smt. Usha Thorat,

Deputy Governor, Reserve Bank of India at Singapore on

October 12, 2009.

SPEECH

Learning fromCrises

Usha Thorat


household in the US has scarcely changed

since 1980, increasing by just 7 per cent in

the last 18 years while their borrowings

multiplied several times and made what

seemed a sub-prime mortgage crisis to a full

blown global financial crisis.

5. In the current global crisis, no country

has been spared be it big or small, developing

or developed, relatively insulated or more

open. The shock has impacted both the

financial and real sectors although it was

financial sector led. In India, the impact

though significant, has not been to the same

extent as in other parts. This is partly

attributed to the curbs India still has on the

capital account, but mainly to the dominance

of domestic expenditure – consumption and

investment – and high savings rate, leading

to a balanced macro economy, having small

current account deficits. Nevertheless, the

impact has been felt by the domestic credit

equity and forex markets leading to slowing

down in the growth rate and employment

generation. Still, the country is the second

fastest growing economy in the world with

over 6 per cent growth projected for the

current year.

6. The topic of my talk is “Learning from

crises”. As Galbraith recalled it is amazing

how the same mistakes get repeated. Hence

I think we owe it to the system to recollect

and recount lessons from crises. The key

lessons are how to anticipate and take pre-

emptive action and equally important, once

you are in the middle of it, how to respond

effectively, viz., crisis management. Post

crisis, the critical issues are - how do we put

in systems and buffers that can cushion the

impact of economic cycles and booms and

busts that are so typical of market driven

systems.

7. During the journey I have traversed in

the Reserve Bank, I have been witness to

many crisis situations of differing

dimensions, especially since 1991. Delving

into the past I feel veteran enough to share

these experiences and draw lessons.

The BOP crisis of 1991

8. This was a major crisis in the country.

In mid 1991, the foreign exchange reserves

of the country were down to 11 days

imports, even what little reserves that

remained were not unencumbered. While

the crisis was triggered by increase in oil

prices and the Gulf war, the underlying

factors were the macro imbalance in the

form of unmanageable current account and

fiscal deficits. External debt servicing as a

proportion of current receipts increased

from 10.2 per cent in 1980-81 to 35.3 per

cent of current receipts in 1990-91. The

responses included curbing imports

through a system of administrative controls

for large value letters of credit, giving

incentives for exports, pledging of gold

reserves with the Bank of England and the

Bank of Japan, devaluation of the Indian

Rupee, issuing attractive bonds in foreign

currency to Non-Resident Indians,

encouraging return flow of capital, an

amnesty scheme through gold bonds,

borrowing from multilateral institutions,

etc., and so on. The long-term response

included major reforms in trade, industry,

foreign, investment, fiscal and financial

sector paving the way for development of

equity, forex money and government

securities markets. There were fundamental

changes in monetary management

consequent upon stoppage of automatic

monetisation of the government deficit and

SPEECH

Learning fromCrises

Usha Thorat


switch over to an auction based market

borrowing for meeting the fiscal deficits.

9. Many valuable lessons were learnt from

the crisis –

• Exchange rates should not be

overvalued for long periods.

• Providing exchange guarantees by the

central bank or government are best

avoided.

• On the external account , liberalising

equity flows first is a better option

followed by commercial credit and longer

term debt , while limiting the access to

foreign debt by the financial sector.

• Central bank funding of the

government in the primary market

should not be resorted to.

• Excessively high remuneration on

reserve requirements erodes monetary

control.

• Financial sector repression - excessive

interest controls and credit rationing -

is deleterious to growth.

• A strong financial sector requires

prudential regulation and effective

supervision.

• Removing or reducing entry barriers to

facilitate more competition.

• Coordinated action by the Government

and the central bank with a well knit

professional team working together

greatly facilitates the process.

The Securities irregularities of 1992

10. The irregularities reflected speculative

buying in the stock market funded by bank

liquidity through repurchase transactions in

government securities and bonds, facilitated

by a nexus between brokers and banks. In

part this reflected a way of earning higher

yields in an otherwise administered interest

rate structure. Such transactions were done

against bank receipts where there were no

underlying government securities. The

events that led to these irregularities could

be attributed to weaknesses and lack of

transparency in the market infrastructure for

government securities, excess liquidity with

public sector undertakings, nexus between

banks and brokers and inadequate internal

controls that led to bank funds flowing to

the stock markets fuelling abnormal stock

price increase. Poor internal controls were

reflective of low levels of computerisation

and reliance on manual processing.

Consequences resulted when a settlement

failure triggered panic and the irregularities

surfaced in the open. The Reserve Bank of

India had to undertake a series of

investigations to unravel the irregular

transactions and fix responsibility. A Joint

Parliamentary Committee (JPC) constituted

to investigate into these operations required

enormous resources of the management.

11. There were several positive fall outs of

this crisis:

• Acceleration of capital market reforms

and introduction of screen based order

matching systems with commensurate

depository custody clearing and

settlement arrangements that are

continuously upgraded.

• Institution of a delivery versus payment

mechanism for settlement of trades in

government securities initially in the

Reserve Bank of India but later led to

establishment of a central counterparty

SPEECH

Learning fromCrises

Usha Thorat


in the form of CCIL (Clearing

Corporation Of India ) which today

undertakes guaranteed settlement for

government securities , repos in G-Secs.

and forex market trades.

• Dissemination of information on all

individual transactions in the

government securities market on a daily

basis and currently on real time basis.

• Tightening of internal controls in

investment transactions.

• Removal of administered interest rates

–currently only the savings bank

deposit rate is fixed by the Reserve

Bank, while all other deposit rates are

deregulated.

• Strengthening supervision over banks

and other financial institutions and

establishment of the Board for

Financial Supervision (BFS) in 1994

with the primary objective of

undertaking supervision of the

financial sector comprising commercial

banks, financial institutions and non-

banking financial companies.

• Recognition of the possibility of

systemic risk in the absence of proper

assessment of counterparty risk and

well functioning securities markets

with greater transparency.

• Focused attention on the role of the

regulator which ensures adherence to

regulations in letter and spirit and need

for greater accountability.

Imbroglio caused by dealings ofNon-Banking Financial Companiesin 1997

12. Non-Banking Financial Companies

(NBFCs) have been historically subjected

to a relatively lower degree of regulation vis-

à-vis the banks, the higher rates of return

on deposits they could offer enabled them

to attract a large base of small savers and a

potential threat to the stability of the

financial system. Added to these was the

fact that operations of NBFCs were

characterised by several distinctive features

viz., no entry barriers, no requirement for

large investment in fixed assets and

inventories, freedom to open branch offices,

all of which led to their proliferation in an

unbridled manner. A few such companies

which were perceived as well-functioning,

well-managed and financially healthy and

consequently had a large depositor base,

defaulted in repayment of deposits, leading

to the realisation that the extant framework

was inadequate to monitor and regulate

these companies. Though there were no

systemic problems, confidence of the

depositors in the NBFCs as a sector was

eroded and the Reserve Bank faced the risk

of loss of reputation. In a specific instance,

the in-principle approval given by the

Reserve Bank to start a bank was used by

the entity to mobilise huge funds from the

unsuspecting public and payable-at-par

cheques issued by the entity on a leading

commercial bank resulted in a huge

exposure and default to the bank because

of the lag between the timing of payments

and providing funds cover.

The learning points were:

• Recognition of the possibility of

regulatory arbitrage between the

entities regulated by banks and non

banking financial companies and

between the securities regulator and

the bank regulator.

SPEECH

Learning fromCrises

Usha Thorat


• Need for legal powers to regulate the

activities of NBFCs, including framing

of guidelines for compulsory

registration, stringency in conditions

for deposit-taking companies akin to

banks, and applicability of prudential

norms for such companies.

In the recent period, it has been noted

that, even if not accepting deposits, these

companies can contribute to systemic risk

as they access public funds and participate

in various markets (debt, equity and foreign

exchange markets). Hence capital ratios and

a quarterly system of reporting were

introduced for large non-deposit taking

NBFCs in 2007.

Asian Crisis of 1997 – the firstglobal contagion

13. The South-East Asian crisis started with

stock market and currency crashes followed

by financial crisis which spilt over to the

real sector. It changed irrevocably the way

Asian countries look at issues of financial

stability. The Indian market was not

immune and even though there was a

general belief that some correction in rupee

was required, the pressure on rupee in later

part of the year required the Reserve Bank

to intervene to maintain orderly conditions.

Withdrawal of funds by foreign institutional

investors (FIIs) hit the equity and foreign

exchange markets and the sale of foreign

exchange by the Reserve Bank also affected

the money and bond markets. In addition to

intervention, monetary and administrative

measures had to be taken to stabilise

markets. The impact on the domestic

interest rates and liquidity was the cost to

be paid for restoring stability. The

government borrowing programme was

managed through private placement and

subsequent open market operations when

the markets stabilised.

The learning points were:

• Need for complementarity between

macroeconomic stability and financial

stability and exchange rate management

for preserving competitiveness and

confidence in the economy.

• Need for closer supervision and

regulation of banks and other financial

institutions.

• During asset price booms it is

important to ensure that banks’

exposure to capital markets and real

estate is not excessive and to

understand that banks can be subject

to foreign exchange risk even without

any currency mismatches in their

books, when their constituents have

huge unhedged exposures.

• Management of capital account is

important for countries having chronic

CAD and where inflation and interest

rates are persistently over global levels.

• Dollarisation of the domestic market or

internationalisation of the domestic

currency can both require careful

management.

• Financial stability emerged as a specific

objective of policy as the cost of

instability to the real sector is huge

especially on the vulnerable segments

of society.

Urban Co-operative Banks – theWeak Link

14. The tightening of regulation over the

banking and NBFC sectors saw the

SPEECH

Learning fromCrises

Usha Thorat


gravitation of risk to the lightly regulated

Urban Co-operative Banks (UCBs) which

were under dual regulation of the Reserve

Bank and the registrar of cooperative

societies. The stock market crash in 2002

triggered a payments problem and it was

found that the nexus between the broker

and a large UCB (Madhavpura Mercantile Co-

operative Bank) led to huge exposure to the

broker and the bank collapsed. The

systemic implication was that hundreds of

small UCBs had exposure to this bank and

the collapse of these banks would have been

very disruptive though confined to a small

region. The Deposit Insurance and Credit

Guarantee Corporation (DICGC) had to

make a large payout to the collapsed bank

under a restructuring package and averted

the domino effect. But the Madhavpura

Bank collapse led to erosion in public

confidence and there were a series of UCB

failures across the country. The immediate

measures taken were to ban connected

lending, exposure to share-brokers and

inter-UCB deposits. The supervisory

system – both on-site and off-site – was

triggered and strengthened. In 2004, all

new branch and bank expansion was

stopped and a vision document was put out

in 2005 which provided for an MoU with

the state governments to work out a way

for non-disruptive exit of weak UCBs while

simultaneously incentivising the growth of

strong banks. Subsequently various

resolution options have been provided such

as merger with or without support from

DICGC, restructuring of liabilities,

introduction of new capital-like instruments,

and transfer of assets and liabilities. The UCB

sector has seen a reduction in the number

of weak banks from 725 to 496. 102 banks

have gone out of the system through

mergers and liquidation. DICGC has also

strengthened its claim payments system to

ensure that prompt relief is given to small

depositors of failed banks.

The lessons learnt were:

• In dealing with a crisis arising out of

interconnectedness, breathing time

needs to be provided through liquidity

injection.

• Reduce interconnectedness within the

financial system as it leads to a ‘moral

hazard’ problem of ‘too interconnected

to fail’.

• The most lightly regulated entity in the

financial system becomes the weakest

link. The system’s weakest link

becomes a source of reputation risk

and erosion in public confidence.

• Even though under dual regulation, the

bank regulator has to use its powers

more effectively and take steps to

resolve weak banks.

Failure of a fairly significant midsized commercial bank in 2004

15. The Global Trust Bank Ltd, a private

sector bank had reported substantial growth

and was growing too fast. The bank’s

balance sheet was flawed and disclosures

inadequate. Very large capital market

exposures and shortfall in provisioning

were the causes for downfall of the bank.

The common depositor does not have the

wherewithal to study bank balance sheets

before making a deposit, but even the

institutional investors seem to be gullible

investors. It was also realised that even

though insolvent, a bank can carry on

without a run as long as it has adequate

SPEECH

Learning fromCrises

Usha Thorat


liquidity or access to liquidity. Interestingly,

even at the time of moratorium, the bank

had huge inter-bank borrowings and

deposits reflecting the confidence placed by

other banks and institutional investors or

the moral hazard view that banks will not

be allowed to fail. Auditor accountability

came under focus. The problem had to be

dealt with heads on when all avenues and

options for revival by the promoters and

directors failed. Compulsory amalgamation

with a public sector bank was resorted to.

This experience gave us valuable

lessons of how to deal with a bank run.

• The process of resolution should be

swift and decisive and preferably over

the weekend.

• In a computerised system with 24/7

banking, and large retail base, the

preparation for a moratorium has to be

much more meticulous than in

traditional banking.

• Role of media is critical and in any crisis

management media management has

to be given priority. We actually had to

go on media to give out reassurances

about the bank to stop the run.

• Adequate liquidity and currency needs

to be kept ready to stem a run once the

resolution strategy is decided.

• A moratorium is useful to give

breathing time to put a resolution

package in place but hardship requests

can become tedious to handle.

Institutional factors

16. This decade has been one of challenges

in managing capital flows both inflows and

outflows. Both monetary policies and

prudential policies have been used through

a variety of instruments to manage the

macro economic and financial stability

challenges arising out of large capital flows,

external shocks such as 9/11, political

uncertainty, geo political events, and have

called for vigilance and prompt actions.

While evolving policy instruments to

manage these conditions such as the Market

Stabilisation Scheme for sterilising the

impact of inflows are important I would like

to flag a few critical institutional factors

which I think are required to be encouraged

and made part of the automatic trigger

mechanisms in the system. I would like to

turn to these.

17. Problem Recognition – The meaning

of being vigilant is to be able to constantly

scan the horizon and recognise that a

problem is brewing and take pre-emptive

action before the problem becomes

disruptive. The indicators could be asset

values, excess credit growth, large unhedged

exposures, continuing current account

deficits financed by short-term credit,

weakly regulated entities in the system,

opportunities for regulatory arbitrage, large

leveraged positions, prolonged periods of

liquidity excesses or shortages; or the

tendencies of entities to leverage, especially

by exploiting the inter-linkages in the

financial system .

18. Committee Approach – As part of crisis

management, it is necessary to have a

harmonised approach. First it is essential

to have close coordination with the

Government. As in 1991, this was an

important requirement in responding to the

recent crisis. Putting in place an

institutional mechanism and systems that

SPEECH

Learning fromCrises

Usha Thorat


can facilitate continuous dialogue and co-

ordination between those in charge of

monetary policy, debt management, foreign

exchange management, regulation and

supervision of banking entities, supervision

of non-banking entities, securities markets

regulation and the like is a sine-qua-non.

Within each of these segments it is crucial

to be in sync. We have a Financial Markets

Committee (FMC) in the central bank

consisting of senior executives responsible

for monetary policy and operations, debt

management and foreign exchange reserves

management. The FMC meets at least once

every day in the morning and emergent

meetings are also convened when there are

episodes of sharp volatility in equity

markets, or when any of the other markets

are significantly affected. Other regulatory

departments including the department

responsible for payment system also get

involved during such times. The Committee

keeps in touch with the securities regulator

(SEBI), the stock exchanges especially the

clearing and settlement corporation of the

exchanges, the Clearing Corporation of

India Ltd. (CCIL) and the like. We also have

a Crisis Management Group that meets

whenever a crisis is anticipated or occurs.

19. Inter-regulatory Co-ordination –

Financial sector harmonisation among the

securities, insurance, pension fund and

bank regulators is enabled through the High

Level Co-ordination Committee on

Financial Markets (HLCCFM). The HLCCFM

is headed by Governor, Reserve Bank of

India and meets as and when felt required.

The Ministry of Finance provides the

secretariat. Sub-committees / groups

formed among SEBI, IRDA, PFRDA and RBI

meet to discuss and sort out issues relating

to developments in the financial markets

having implications cutting across different

regulators. Institutionalised and formal

approach to decision making in a crisis has

the benefit of building on the experience

of the members.

20. Consultative Approach – we have also

reaped the advantages of using external

experts in our policy making. We have a

Technical Advisory Committee for

Monetary Policy consisting of academicians,

practitioners and experts, which tenders

advice to the Reserve Bank on monetary

policy stance. There is also a Technical

Advisory Committee that consists of

financial sector experts from areas such as

banking, academics, government, stock

exchanges, credit rating agencies and

market representatives. This committee

meets once a quarter to deliberate on

developments in money, foreign exchange

and government-securities markets and

offers advice on policies for regulation,

growth and further reforms in financial

markets, including products, practices and

institutional arrangements.

21. Capacity Building– Equally crucial is

the need to develop people and systems to

deal with scenarios and contingencies,

which can be achieved only through a

sustained process of capacity building.

Giving exposure through participation in

meetings at local and international levels,

allowing officers even at fairly junior levels

to be part of the dialogue process at the top

levels in various co-ordination fora,

enormously helps in nurturing talent. A

consultative and participative approach to

decision making through setting-up of

working groups consisting of a mix of

internal and external people with clearly set

SPEECH

Learning fromCrises

Usha Thorat


tasks and time-lines not only casts

responsibility but also aids developing

expertise. Emphasis in these groups is on

harnessing collective wisdom and balanced

judgement, typical of a college-like

atmosphere for decision-making.

22. Robust Infrastructure – I am referring

to the development of sound market

infrastructure for payments and settlement

for all financial transactions as also market

infrastructure for trading reporting

information dissemination and clearing

settlement. CCPs for clearing and

settlement of equity, government securities,

forex and money markets are in place

following the best practices laid down by

IOSCO/CPSS. The infrastructure for

electronic payments and RTGS are now

taken for granted.

Summing up

23. A lot has been talked about the current

crisis and the response. Most of these talks

are on the website. I would just like to say

that the major learning from this crisis is

that globalisation has meant that no country

is immune from the happenings in global

financial markets. Also, at one level, the

presence of complex and interconnected

financial entities across several jurisdictions

with regulators at the national level has

posed huge challenges in ensuring that

there is no regulatory arbitrage and that

there is coordination amongst regulators.

Even within a jurisdiction, it is recognised

that all regulators have to deal with systemic

risk and there is need for inter regulatory

dialogue and vigilance.

24. At the macro level, Asian countries and

Latin American countries have learnt lessons

from their own past currency and financial

crises and have built-up reserves and have

strengthened their financial systems apart

from consciously developing their financial

markets. But they have been careful to ensure

that their banks are not involved excessively

in toxic assets or innovative transactions.

Even so, the countries have had to face the

consequences of falling global trade and GDP

and unemployment and slowing credit

growth. Macro economic imbalances

continue though they have reduced. Savings

is increasing in the western world and

consumption is increasing in the East.

25. Ultimately, we all have to be concerned

about the real sector and recognise that

financial sector development is not a goal

by itself but is intended to enable growth,

not just of the rich, but more importantly

inclusive growth cutting across all segments

of the society and regions. As regulators and

central banks, it is our duty to ensure this.


ArticlesIndia's Foreign Trade: 2009-10 (April-August)

South-West Monsoon 2009 : A Review

(June 1 to September 30, 2009)

Composition and Ownership Pattern of Deposits

with Scheduled Commercial Banks: March 2008

International Banking Statistics of India –

March 31, 2009

International Trade in Banking Services, 2007-08


ARTICLE

India's ForeignTrade: 2009-10(April-August)

This article reviews India’s merchandise

trade performance during April-August 2009

on the basis of data released by the

Directorate General of Commercial

Intelligence and Statistics (DGCI&S);

disaggregated commodity-wise details for

2008-09 (April-March) are also analysed.

Highlights

• India’s merchandise exports during

August 2009 at US$ 14.3 billion

recorded a decline of 19.4 per cent as

against a rise of 40.2 per cent registered

in August 2008. This is the eleventh

successive month that exports have

shown a decline since October 2008.

However, the rate of decline in exports

witnessed in August 2009 was the

lowest during 2009-10 so far (April-

August 2009), thereby exhibiting some

signs of revival in exports.

• During April-August 2009, exports at

US$ 64.1 billion showed a decline of

31.0 per cent as against a high growth of

52.3 per cent during the corresponding

period of 2008.

• Imports during August 2009 at US$ 22.7

billion showed a decline of 32.4 per cent

as against a substantial growth of 64.5

per cent in August 2008, due to decline

in both oil and non-oil imports. This is

the ninth successive month that imports

have shown a decline since December

2008. The decline in imports during

August 2009 was lower than that in July

2009 (decline of 37.1 per cent).

• During April-August 2009, imports at

US$ 102.3 billion recorded a decline of

33.4 per cent as against a growth of 52.1

per cent a year ago.

India's Foreign Trade:2009-10 (April-August)*

* Prepared in the Division of International Trade,Department of Economic Analysis and Policy. Theprevious issue of the article was published in RBI Bulletin,October 2009.

ARTICLE



• Petroleum, oil and lubricants (POL)

imports during April-August 2009 at

US$ 28.3 billion showed a sharp decline

of 47.4 per cent as against an increase

of 86.6 per cent during April-August

2008, mainly due to substantial fall in

international crude oil prices over the

year. The average price of Indian basket

of crude oil during April-August 2009

stood at US$ 62.7 per barrel (ranged

between US$ 50.4 – US$ 71.8 per

barrel), which was lower by 47.9 per

cent than US$ 120.4 per barrel (ranged

between US$ 106.0 – US$ 132.2 per

barrel) during April-August 2008.

• Non-POL imports during April-August

2009 at US$ 74.0 billion showed a decline

of 25.9 per cent as against a growth of

38.4 per cent a year ago, reflecting a

slowdown in domestic economic activity.

• Trade deficit during April-August 2009

amounted to US$ 38.2 billion, a decline

of US$ 22.6 billion (37.1 per cent) over

US$ 60.7 billion in April-August 2008,

mainly due to larger decline in oil

imports.

India’s Merchandise Trade during2009-10 (April-August)

Exports

India’s merchandise exports during

August 2009 at US$ 14.3 billion recorded a

decline of 19.4 per cent, as against a high

growth of 40.2 per cent registered in August

2008 (Statement 1). This is the eleventh

successive month that exports have shown

a decline since October 2008. The rate of

decline in exports, which reached the

maximum at 33.2 per cent in April 2009,

showed improvement during May-June 2009

as the rate of decline in exports showed

reduction. But subsequently in July 2009,

exports showed larger decline than in the

previous month (June 2009). However,

export performance considerably improved

in August 2009, as the decline in exports in

this month was much smaller than that in

all the previous months in 2009-10, i.e., April-

July 2009. As such, the rate of decline in

exports witnessed during August 2009 was

the lowest during 2009-10 so far (April-August

2009), thereby exhibiting some signs of

revival in exports (Chart 1). The decline in

exports was 33.2 per cent in April 2009, 29.2

per cent in May 2009, 27.7 per cent in June

2009, 28.4 per cent in July 2009 and 19.4 per

cent in August 2009. Cumulatively, exports

during the first five months of 2009-10 (April-

August 2009) stood at US$ 64.1 billion,

posting a decline of 31.0 per cent as against

a high growth of 52.3 per cent during April-

August 2008 (Table 1 and Statement 2).

Table 1: India's Merchandise Trade: April-August

(US $ billion)

Items 2008-09 R 2009-10 P

April-August

1 2 3

Exports 93.0 64.1(52.3) (-31.0)

Oil Exports 16.0 .. (50.8)

Non-Oil Exports 77.0 .. (52.6)

Imports 153.7 102.3(52.1) (-33.4)

Oil Imports 53.7 28.3 (86.6) (-47.4)

Non-Oil Imports 99.9 74.0 (38.4) (-25.9)

Trade Balance -60.7 -38.2Oil Trade Balance -37.8 ..Non-Oil Trade Balance -23.0 ..

R : Revised. P : Provisional. .. Not available.Note : Figures in parentheses show percentage change

over the corresponding period of the previous year.Source : Compiled from Ministry of Commerce and

Industry and DGCI&S data.


ARTICLE


The latest commodity-wise exports data

released by DGCI&S for 2008-09 revealed

that manufactured goods continued to

maintain the largest share at 67.2 per cent,

followed by petroleum products (14.7 per

cent) and primary products (13.9 per cent).

Moreover, the share of manufactured goods

has increased along with decrease in shares

of petroleum products and primary

products (Table 2).

During 2008-09, exports of major

commodity groups slowed down. However,

engineering goods exhibited a marginally

higher growth and gems and jewellery

showed substantially accelerated growth.

Exports of agricultural and allied products,

ores and minerals and petroleum products

declined, while those of leather and

manufactures, chemicals and related

products, and textiles and textile products

showed deceleration in growth during the

period (Statement 3).

Exports of primary products during

2008-09 declined by 8.1 per cent as against

a growth of 40.0 per cent a year ago, due to

decline in its major components. Within

primary products, agricultural and allied

products exports at US$ 17.5 billion showed

a decline of 4.9 per cent as against a high

growth of 45.3 per cent during previous

year. Slowdown in agricultural and allied

products exports was mainly due to decline

in exports of rice, cotton, marine products,

Table 2: India's Exports of Principal Commodities

(Percentage Shares)

Commodity Group 2006-07 2007-08 2008-09

April-March

1 2 3 4

I. Primary Products 15.6 16.9 13.9

Agriculture and

Allied Products 10.0 11.3 9.6

Ores and Minerals 5.5 5.6 4.3

II. Manufactured Goods 67.2 63.2 67.2

Leather and Manufactures 2.4 2.2 1.9

Chemicals and Related

Products 13.7 13.0 12.4

Engineering Goods 23.4 22.9 25.9

Textiles and Textile

Products 13.7 11.9 11.0

Gems and Jewellery 12.6 12.1 15.2

III. Petroleum Products 14.7 17.4 14.7

IV. Others 2.5 2.5 4.2

Total Exports 100.0 100.0 100.0

Source: Compiled from DGCI&S data.

ARTICLE



sugar and molasses and deceleration in

export growth of tea, coffee, spices and oil

meal. Ores and minerals exports declined

by 14.5 per cent during the period (30.2 per

cent growth a year ago), mainly due to

decline in iron ore.

Exports of manufactured goods during

2008-09 at US$ 122.8 billion exhibited

deceleration in growth to 19.3 per cent from

21.3 per cent a year ago, due to deceleration/

decline in its major components. Within

manufactured goods, exports of engineering

goods, which is the largest item in India’s

exports, at US$ 47.3 billion showed

marginally higher growth at 26.5 per cent

on the top of 26.4 per cent growth a year

ago. Growth in engineering goods exports

was contributed largely by its largest

component, viz., transport equipments, as

also iron and steel and electronic goods. The

share of engineering goods in total exports

has gone up remarkably during 2008-09 to

25.9 per cent from 22.9 per cent, as a result

of high growth maintained by engineering

goods in contrast with slowdown in most

of the other major commodity groups.

Chemicals and related products exports

during 2008-09 at US$ 22.6 billion showed

moderation in growth to 6.8 per cent from

22.3 per cent during 2007-08. The slowdown

in the exports of chemicals and related

products was primarily due to deceleration

in growth of its largest component, viz.,

‘basic chemicals, pharmaceuticals and

cosmetics’ as also in other major

components, and the decline in plastic and

linoleum.

Exports of textiles and textile products

during 2008-09 at US$ 20.0 billion showed

a sharp moderation in growth to 3.0 per cent

from 11.8 per cent a year ago. Among major

components of textiles and textile

products, cotton yarn, fabrics and made-ups

declined and manmade yarn, fabrics and

made-ups exhibited a deceleration in

growth. However, readymade garments

witnessed a higher growth.

Gems and jewellery exports during

2008-09 at US$ 27.7 billion recorded an

accelerated growth at 40.8 per cent (growth

of 23.2 per cent a year ago). Gems and

jewellery became the second largest item in

India’s exports during 2008-09 with a higher

share of 15.2 per cent than 12.1 per cent in

2007-08.

Exports of petroleum products at US$

26.8 billion during 2008-09 registered a

decline of 5.4 per cent as against a high

growth of 52.2 per cent a year ago. This was

the result of overall decline in world oil

prices during August 2008-March 2009

(Chart 3), as also fall in the volume of

petroleum products exports. The volume of

these exports declined by 6.9 per cent

during the period as against the growth of

21.0 per cent a year back, as a result of

reduction in demand for petroleum

products from India’s major markets

consequent upon a slowdown in world

industrial activity.

Destination-wise, during 2008-09,

among the regions, developing countries

and OECD countries were the major markets

for India’s exports with these groups

accounting for 37.6 per cent and 37.4 per

cent shares, respectively (Table 3). Another

major contributor was OPEC with 21.2 per

cent share. During 2008-09 the share of

OPEC increased significantly to 21.2 per

cent from 16.6 per cent in 2007-08, while


ARTICLE


the shares of both developing countries and

OECD countries declined. Country-wise, the

UAE became the single largest destination

for India in 2008-09, with a share of 13.1

per cent in India’s total exports (9.6 per cent

in 2007-08) thereby replacing the US which

remained India’s largest export market for

a number of years. The UAE was followed

by the US (11.4 per cent), China (5.1 per

cent), Singapore (4.5 per cent), Hong Kong

(3.6 per cent) and the UK (3.6 per cent).

Direction of India’s exports during 2008-09

indicated that the exports to Asia and

Oceania, Asian developing countries and

African developing countries declined;

exports growth to the EU, North America,

Eastern Europe and Latin American

developing countries decelerated, while

exports to OPEC showed accelerated growth

(Statement 4). Thus the trends in 2008-09

show the shift in geographical focus as

regards destination of India’s exports in an

aftermath of global economic crisis.

Imports

Imports during August 2009 at US$ 22.7

billion showed a decline of 32.4 per cent as

against a high growth of 64.5 per cent

recorded in August 2008. This was due to

decline in both POL and non-POL imports.

However, the decline in POL imports

continued to be much sharper than that in

non-POL imports (Statement 1 and Chart 1).

The fall in imports started since December

2008. The rate of decline in imports

progressively deteriorated thereafter, and

reached its maximum in May 2009 (39.2 per

cent decline). It improved considerably in

June 2009 to 29.3 per cent, but again

deteriorated in July 2009 to 37.1 per cent.

The decline in imports during August 2009

was lower than that in July 2009. During

April-August 2009 imports at US$ 102.3

billion registered a decline of 33.4 per cent

(52.1 per cent growth a year ago) [Table 1

and Statement 2].

POL imports at US$ 28.3 billion during

April-August 2009 showed a substantial

decline of 47.4 per cent, as against a high

growth of 86.6 per cent a year ago, primarily

due to sharp reduction in international

crude oil prices over the period. The average

price of Indian basket of crude oil during

April-August 2009 stood at US$ 62.7 per

barrel (ranged between US$ 50.4 – 71.8 per

barrel), which was lower by 47.9 per cent

than US$ 120.4 per barrel (ranged between

US$ 106.0 – 132.2 per barrel) during April-

August 2008 (Table 4). Non-POL imports at

US$ 74.0 billion recorded a decrease of 25.9

per cent during April-August 2009 as against

Table 3: India's Exports to Principal Regions

(Percentage Shares)

Region/Country 2006-07 2007-08 2008-09

April-March

1 2 3 4

I. OECD Countries 42.0 39.5 37.4

EU 21.2 21.2 21.3

North America 15.8 13.5 12.1

US 14.9 12.7 11.4

Asia and Oceania 3.4 3.2 2.5

Other OECD Countries 1.6 1.6 1.4

II. OPEC 16.6 16.6 21.2

III. Eastern Europe 1.2 1.1 1.1

IV. Developing Countries 39.9 42.5 37.6

Asia 29.8 31.6 28.1

SAARC 5.1 5.9 4.6

Other Asian

Developing Countries 24.6 25.7 23.5

Africa 6.9 7.5 6.3

Latin America 3.3 3.4 3.1

V. Others / Unspecified 0.4 0.4 2.7

Total Exports 100.0 100.0 100.0


ARTICLE



deceleration in import growth of capital

goods (0.6 per cent growth as compared with

a growth of 49.0 per cent a year ago), gold

and silver (4.6 per cent growth in

comparison with 22.0 per cent growth

during 2007-08), iron and steel and

chemicals and the decline in imports of

metalliferrous ores and metal scrap.

However, imports of pearls, precious and

semi-precious stones, fertilisers and coal,

coke and briquettes exhibited substantially

higher growth during the year. During 2008-

09 the shares of chemicals, coal, coke and

briquettes, fertilisers and pearls, precious

and semi-precious stones in total imports

went up, while those of petroleum, crude

and products (single largest component of

imports), capital goods, gold and silver,

metalliferrous ores and metal scrap and

iron and steel came down during the year

(Table 5).

a growth of 38.4 per cent in April-August

2008 due to reduction in domestic demand

as a result of moderation in economic

growth.

The commodity-wise imports data for

2008-09 indicated that POL imports at US$

91.3 billion showed a deceleration in growth

to 14.6 per cent from 39.9 per cent a year

ago, mainly due to sharp reduction in

international crude oil prices during August

2008-March 2009, as also due to slowdown

in the growth of volume of POL imports,

which moderated to 9.4 per cent from 10.1

per cent a year ago (Statement 5).

Non-POL imports during 2008-09 at US$

200.2 billion witnessed moderation in

growth to 16.5 per cent from 33.4 per cent

during the previous year. Slowdown in non-

POL imports was mainly due to sharp

Table 5: Imports of Principal Commodities

(Percentage Shares)

Commodity/Group 2006-07 2007-08 2008-09

April-March

1 2 3 4

1. Petroleum, crude

and products 30.7 31.7 31.3

2. Capital Goods 25.3 27.9 24.2

3. Gold and Silver 7.9 7.1 6.4

4. Organic and inorganic

chemicals 4.2 3.9 4.2

5. Coal, coke and

briquettes, etc. 2.5 2.6 3.4

6. Fertilisers 1.7 2.2 4.7

7. Metalliferrous ores,

metal scrap, etc. 4.5 3.1 2.7

8. Iron and Steel 3.5 3.5 3.2

9. Pearls, precious and

semi-precious stones 4.0 3.2 5.0

10. Others 15.8 14.8 14.9

Total Imports 100.0 100.0 100.0


Table 4: Trends in Crude Oil Prices

(US $/barrel)

Period Dubai Brent WTI* Indian

Basket**

1 2 3 4 5

2000-01 25.9 28.1 30.3 26.8

2001-02 21.8 23.2 24.1 22.4

2002-03 25.9 27.6 29.2 26.6

2003-04 26.9 29.0 31.4 27.8

2004-05 36.4 42.2 45.0 39.2

2005-06 53.4 58.0 59.9 55.7

2006-07 60.9 64.4 64.7 62.4

2007-08 77.3 82.4 82.3 79.5

2008-09 82.1 84.7 85.8 82.7

August 2008 113.2 113.9 116.6 113.5

August 2009 71.3 72.5 71.1 71.8

* West Texas Intermediate.

** The composition of Indian basket of crude representsaverage of Oman and Dubai for sour grades and Brent(dated) for sweet grade in the ratio of 63.5:36.5 w.e.f. April1, 2009.

Sources: International Monetary Fund, International FinancialStatistics; World Bank’s Commodity Price Pink Sheetfor September 2009; Ministry of Petroleum andNatural Gas, Government of India.


ARTICLE


Source-wise, during 2008-09, developing

countries had the highest share in India’s

imports (32.9 per cent), followed by OPEC

(32.6 per cent) and OECD countries (31.8 per

cent) [Table 6]. This was in contrast with

2007-08 when OECD countries had the

highest share in India’s imports. Country-

wise, China continued to be the single

largest source of imports with the share of

10.8 per cent in total imports, followed by

the UAE (7.1 per cent), Saudi Arabia (6.7 per

cent), the US (6.2 per cent), Iran (4.2 per

cent) and Germany (4.0 per cent). Direction

of India’s imports during 2008-09 indicated

that imports from North America and Latin

American developing countries declined

and growth of imports from the EU, Asia and

Oceania, OPEC, Asian and African

developing countries decelerated, while

imports from Eastern Europe witnessed

turnaround (Statement 6).

Trade Deficit

The trade deficit during April-August

2009 stood at US$ 38.2 billion, which was

lower by US$ 22.6 billion (37.1 per cent) than

US$ 60.7 billion a year ago, due to relatively

larger decline in imports than exports during

the period (Statement 2 and Chart 1). Trade

deficit on oil account during 2008-09 stood

at US$ 64.5 billion, which was higher by US$

13.2 billion than US$ 51.3 billion a year ago.

Trade deficit on non-oil account during this

period stood at US$ 44.4 billion, which was

higher by US$ 7.1 billion than US$ 37.3

billion a year back.

Global Trade

World merchandise exports, which

started declining since November 2008 as

an outcome of global economic crisis,

subsequently witnessed much larger rates

of decline. However, according to the latest

monthly data from International Monetary

Fund’s (IMF) International Financial

Statistics (IFS), in June 2009 the decline in

world exports was the lowest (26.9 per

cent) in 2009 so far (January-June 2009).

The trend showed that world exports and

exports of advanced economies and

emerging and developing economies

moved in tandem with each other in 2008

and their rates of decline have exhibited

convergence during 2009 so far (Chart 2).

Cumulatively, world merchandise exports

during January-June 2009, in dollar terms,

showed a decline of 29.5 per cent as

Table 6: Shares of Groups/Countries inIndia’s Imports

(Percentage Shares)

Region/Country 2006-07 2007-08 2008-09

April-March

1 2 3 4

I. OECD Countries 35.2 35.4 31.8

EU 16.1 15.3 14.3

France 2.3 2.5 1.6

Germany 4.1 3.9 4.0

UK 2.2 2.0 2.0

North America 7.3 9.1 7.1

US 6.3 8.4 6.2

Asia and Oceania 6.4 5.8 5.6

Other OECD Countries 5.5 5.2 4.8

II. OPEC 30.4 30.7 32.6

III. Eastern Europe 2.1 1.5 2.3

IV. Developing Countries 31.9 31.5 32.9

Asia 25.5 25.5 26.6

SAARC 0.8 0.8 0.6

Other Asian

Developing Countries 24.7 24.7 26.0

of which :

People’s Rep of China 9.4 10.8 10.8

Africa 3.5 3.7 4.3

Latin America 2.8 2.3 2.0

V. Others / Unspecified 0.5 0.8 0.4

Total Imports 100.0 100.0 100.0


ARTICLE



against a growth of 25.9 per cent a year ago

(Table 7). During the same period, exports

of advanced economies declined by 31.1

per cent in contrast with a growth of 21.6

per cent a year back, while the exports of

emerging and developing economies

declined by 27.6 per cent as against a

growth of 34.1 per cent during January-

June 2008.

World Commodity Prices

The world commodity prices which

started declining since October 2008 saw

substantially higher rates of decline during

subsequent months. However, according to

the latest available data, the rate of decline

in prices moderated in August 2009 (Chart

3). In fact, the decline in prices witnessed

in August 2009 was the lowest in 2009 so

far (January-August 2009). According to

IMF’s IFS, world commodity prices declined

by 33.4 per cent in August 2009. The prices

Chart 3

of metals, energy and food showed decline

of 21.5 per cent, 40.4 per cent and 16.1 per

cent, respectively, in August 2009.

Table 7: Growth in Exports - Global Scenario

(Per cent)

Region/Country 2007 2008 2008 2009

January-December January-June

1 2 3 4 5

World 14.1 16.2 25.9 -29.5

Advanced Economies 13.5 11.0 21.6 -31.1

US 12.0 11.9 18.0 -23.8

France 12.8 10.0 22.5 -32.0

Germany 18.0 10.6 23.6 -33.4

Japan 7.8 12.3 23.2 -37.9

Emerging and Developing

Economies 15.1 25.6 34.1 -27.6

Singapore 10.1 13.0 23.8 -31.7

China 25.6 17.3 21.8 -21.7

India 23.3 20.0 39.8 * -25.6 *

Indonesia 14.7 24.4 27.8 -28.3

Korea 14.1 13.6 20.4 -22.7

Malaysia 9.6 19.1 24.2 -31.2

Thailand 17.0 12.9 25.0 -23.4

* : Pertains to January-August over corresponding period of

previous year.

Sources: 1. IMF (www.imfstatistics.org)

2. DGCI&S for India.


ARTICLE


Statement 1 : India's Foreign Trade - August 2009

Year Exports Imports Trade Balance

Total Oil Non-Oil Total Oil Non-Oil Total Oil Non-Oil

1 2 3 4 5 6 7 8 9 10

Rupees crore

2007-08 51,600 8,039 43,561 83,136 25,318 57,818 -31,536 -17,279 -14,257(3.0) (-3.6) (4.3) (16.6) (-1.9) (27.0)

2008-09 R 76,103 13,854 62,249 143,890 49,460 94,430 -67,787 -35,606 -32,181(47.5) (72.3) (42.9) (73.1) (95.4) (63.3)

2009-10 P 69,066 .. .. 109,533 30,359 79,174 -40,467(-9.2) (-23.9) (-38.6) (-16.2)

US dollar million

2007-08 12,641 1,969 10,671 20,366 6,202 14,164 -7,725 -4,233 -3,492(17.4) (9.9) (18.9) (32.9) (11.9) (44.8)

2008-09 R 17,724 3,227 14,498 33,512 11,519 21,992 -15,787 -8,293 -7,495(40.2) (63.8) (35.9) (64.5) (85.7) (55.3)

2009-10 P 14,289 .. .. 22,661 6,281 16,380 -8,372(-19.4) (-32.4) (-45.5) (-25.5)

P : Provisional. R- Revised. .. Not available.Note : Figures in brackets relate to percentage variation over the corresponding previous period.Source : DGCI&S.

ARTICLE



Statement 2 : India’s Foreign Trade

Year Exports Imports Trade Balance

Total Oil Non-Oil Total Oil Non-Oil Total Oil Non-Oil

1 2 3 4 5 6 7 8 9 10

April-March

Rupees crore

2006-07 571,779 84,520 487,259 840,506 258,572 581,935 -268,727 -174,052 -94,675(25.3) (64.0) (20.3) (27.3) (32.8) (24.9)

2007-08 R 655,864 114,192 541,672 1,012,312 320,655 691,657 -356,448 -206,463 -149,985(14.7) (35.1) (11.2) (20.4) (24.0) (18.9)

2008-09 P 839,978 123,398 716,580 1,340,588 419,878 920,709 -500,610 -296,480 -204,129(28.1) (8.1) (32.3) (32.4) (30.9) (33.1)

US dollar million

2006-07 126,414 18,635 107,780 185,735 56,945 128,790 -59,321 -38,311 -21,010(22.6) (60.1) (17.9) (24.5) (29.5) (22.4) (28.7)

2007-08 R 162,904 28,363 134,541 251,439 79,645 171,795 -88,535 -51,281 -37,254(28.9) (52.2) (24.8) (35.4) (39.9) (33.4) (49.2)

2008-09 P 182,631 26,830 155,801 291,475 91,291 200,183 -108,844 -64462 -44383(12.1) (-5.4) (15.8) (15.9) (14.6) (16.5) (22.9)

April-August

Rupees crore

2007-08 250,048 43,442 206,606 413,817 118,275 295,541 -163,768 -74,833 -88,935(7.8) (13.1) (6.7) (23.9) (5.6) (33.2)

2008-09 R 391,841 67,604 324,237 648,041 227,028 421,013 -256,200 -159,423 -96,777(56.7) (55.6) (56.9) (56.6) (91.9) (42.5)

2009-10 P 311,715 .. .. 497,108 137,316 359,792 -185,393 .. ..(-20.4) (-23.3) (-39.5) (-14.5)

US dollar million

2007-08 61,037 10,599 50,438 101,031 28,798 72,233 -39,993 -18,199 -21,795(20.8) (27.0) (19.6) (38.9) (20.4) (47.9)

2008-09 R 92,959 15,981 76,978 153,691 53,742 99,949 -60,732 -37,761 -22,971(52.3) (50.8) (52.6) (52.1) (86.6) (38.4)

2009-10 P 64,129 .. .. 102,300 28,275 74,025 -38,171 .. ..(-31.0) (-33.4) (-47.4) (-25.9)

P - Provisional. R - Revised. .. Not available.Note : Figures in brackets relate to percentage variation over the corresponding period of the previous year.Source : DGCI&S.


ARTICLE


Commodity/Group

2006-07 2007-08 2008-09 P (3)/(2) (4)/(3)

1 2 3 4 5 6

I. Primary Products 19685.9 27551.9 25333.4 40.0 -8.115.6 16.9 13.9

A. Agricultural & Allied Products 12683.4 18432.1 17533.6 45.3 -4.9of which: 10.0 11.3 9.61. Tea 435.3 505.3 584.4 16.1 15.72. Coffee 435.1 465.0 490.5 6.9 5.53. Rice 1554.9 2919.6 2428.2 87.8 -16.84. Wheat 7.8 0.1 0.3 -99.2 432.95. Cotton Raw incl. Waste 1349.8 2202.0 623.1 63.1 -71.76. Tobacco 372.4 479.8 751.8 28.8 56.77. Cashew incl. CNSL 553.9 555.1 637.2 0.2 14.88. Spices 697.9 1071.7 1378.1 53.6 28.69. Oil Meal 1216.4 2022.0 2232.8 66.2 10.410. Marine Products 1768.2 1720.5 1535.9 -2.7 -10.711. Sugar & Mollases 720.6 1406.5 985.2 95.2 -30.0

B. Ores & Minerals 7002.5 9119.8 7799.8 30.2 -14.5of which: 5.5 5.6 4.31. Iron Ore 3902.0 5812.0 4723.6 49.0 -18.72. Processed Minerals 1311.8 1247.7 1359.7 -4.9 9.0

II. Manufactured Goods 84920.4 102978.7 122812.4 21.3 19.3 of which: 67.2 63.2 67.2

A. Leather & Manufactures 3016.7 3502.5 3555.1 16.1 1.5B. Chemicals & Related Products 17335.4 21193.8 22641.3 22.3 6.8

1. Basic Chemicals, Pharmaceuticals & Cosmetics 10958.8 13952.4 15548.7 27.3 11.42. Plastic & Linoleum 3252.6 3418.6 2987.9 5.1 -12.63. Rubber, Glass, Paints & Enamels, etc., 2372.8 2886.3 2991.8 21.6 3.74. Residual Chemicals & Allied Products 751.2 936.5 1112.8 24.7 18.8

C. Engineering Goods 29567.1 37365.2 47264.2 26.4 26.5of which:

1. Manufactures of metals 5081.2 7051.3 7550.8 38.8 7.12. Machinery & Instruments 6722.8 9128.1 10953.0 35.8 20.03. Transport equipments 4949.9 7024.7 11142.1 41.9 58.64. Iron & steel 5238.6 5446.5 5822.5 4.0 6.95. Electronic goods 2854.0 3361.1 6789.6 17.8 102.0

D. Textiles and Textile Products 17373.2 19425.7 20017.6 11.8 3.01. Cotton Yarn, Fabrics, Made-ups, etc. 4218.7 4653.3 4118.5 10.3 -11.52. Natural Silk Yarn, Fabrics Madeups, etc.

(incl.silk waste) 441.9 385.8 362.9 -12.7 -5.93. Manmade Yarn, Fabrics, Made-ups, etc. 2204.4 2896.9 3025.7 31.4 4.44. Manmade Staple Fibre 196.4 278.6 254.8 41.9 -8.55. Woolen Yarn, Fabrics, Madeups, etc. 85.2 92.8 99.3 8.9 7.06. Readymade Garments 8892.3 9687.1 10934.4 8.9 12.97. Jute & Jute Manufactures 260.4 327.7 299.1 25.8 -8.78. Coir & Coir Manufactures 145.9 160.2 148.0 9.8 -7.69. Carpets 928.0 943.3 774.9 1.7 -17.9

(a) Carpet Handmade 898.7 925.4 762.1 3.0 -17.6(b) Carpet Millmade 0.0 0.0 0.0 .- .-(c) Silk Carpets 29.3 17.9 12.8 -38.8 -28.7

E. Gems & Jewellery 15977.0 19678.7 27705.0 23.2 40.8F. Handicrafts 438.0 508.2 299.1 16.0 -41.2

III. Petroleum Products 18634.6 28363.1 26829.6 52.2 -5.414.7 17.4 14.7

IV. Others 3173.2 4010.5 7655.1 26.4 90.9

2.5 2.5 4.2

Total Exports 126414.1 162904.2 182630.5 28.9 12.1

P : Provisional.Note : Figures in brackets relate to percentage to total exports for the period.Source : DGCI&S.

Statement 3 : India’s Exports of Principal Commodities

(US$ million)

April-March Percentage Variation

ARTICLE



Statement 4: Direction of India’s Foreign Trade- Exports

Group/Country

2006-07 2007-08 2008-09 P (3)/(2) (4)/(3)

1 2 3 4 5 6

I. O E C D Countries 53056.9 64272.0 68277.4 21.1 6.2A. E U 26805.9 34490.2 38952.9 28.7 12.9

of which:

1. Belgium 3474.4 4208.3 4414.9 21.1 4.92. France 2100.8 2596.6 2995.3 23.6 15.43. Germany 3979.5 5116.4 6343.9 28.6 24.04. Italy 3582.9 3911.5 3776.2 9.2 -3.55. Netherland 2670.2 5225.6 6279.9 95.7 20.26. U K 5618.0 6698.2 6594.6 19.2 -1.5

B. North America 19976.5 21977.3 22176.2 10.0 0.91. Canada 1110.4 1265.3 1357.9 13.9 7.32. U S A 18866.1 20712.0 20818.4 9.8 0.5

C. Asia and Oceania 4290.8 5162.3 4612.7 20.3 -10.6of which:

1. Australia 924.8 1150.0 1426.0 24.4 24.02. Japan 2862.7 3853.8 3000.8 34.6 -22.1

D. Other O E C D Countries 1983.6 2642.2 2535.5 33.2 -4.0of which:

1. Switzerland 466.5 615.0 765.7 31.8 24.5II. O P E C 20953.1 26989.6 38806.3 28.8 43.8

of which:

1. Indonesia 2028.1 2159.1 2517.3 6.5 16.62. Iran 1450.8 1948.5 2509.5 34.3 28.83. Iraq 203.5 271.1 430.8 33.2 58.94. Kuwait 614.3 681.8 788.4 11.0 15.65. Saudi Arabia 2588.2 3706.5 4987.9 43.2 34.66. U A E 12032.1 15626.9 23921.1 29.9 53.1

III. Eastern Europe 1554.1 1836.7 2010.5 18.2 9.5 of which:

1. Russia 902.9 939.7 1078.2 4.1 14.7IV. Developing Countries 50417.2 69171.0 68620.8 37.2 -0.8

of which:

A. Asia 37611.5 51477.2 51388.1 36.9 -0.2a) S A A R C 6469.5 9617.2 8438.3 48.7 -12.3

1. Afghanistan 181.7 248.9 395.3 36.9 58.82. Bangladesh 1627.9 2916.8 2460.6 79.2 -15.63. Bhutan 57.5 86.6 110.7 50.7 27.84. Maldives 68.7 89.6 128.3 30.3 43.35. Nepal 928.5 1506.1 1555.8 62.2 3.36. Pakistan 1349.6 1944.2 1417.8 44.1 -27.17 Sri Lanka 2255.6 2825.2 2369.7 25.3 -16.1

b. Other Asian Developing Countries 31142.0 41859.9 42949.8 34.4 2.6of which:

1. People’s Rep of China 8293.9 10828.8 9275.5 30.6 -14.32. Hong Kong 4680.6 6305.2 6661.7 34.7 5.73. South Korea 2514.7 2851.8 3990.5 13.4 39.94. Malaysia 1304.3 2567.6 3430.8 96.9 33.65. Singapore 6068.9 7367.5 8207.0 21.4 11.46. Thailand 1444.3 1807.9 1978.2 25.2 9.4

B. Africa 8679.5 12230.6 11560.5 40.9 -5.5of which:

1. Benin 151.5 275.3 203.7 81.7 -26.02. Egypt Arab Republic 761.0 1396.2 1631.4 83.5 16.83. Kenya 1315.5 1578.7 1335.1 20.0 -15.44. South Africa 2246.5 2657.4 1966.2 18.3 -26.05. Sudan 403.7 407.8 481.9 1.0 18.26. Tanzania 288.8 587.3 1028.3 103.3 75.17. Zambia 108.4 132.2 106.5 22.0 -19.4

C. Latin American Countries 4126.2 5463.2 5672.2 32.4 3.8V. Others 190.8 270.2 497.3 41.6 84.0VI. Unspecified 242.0 364.6 4418.4 50.6 1112.0

Total Exports 126414.1 162904.2 182630.5 28.9 12.1

P : Provisional. Source: DGCI & S.

(US$ million)

April-March Percentage Variation


ARTICLE


Statement 5 : India's Imports of Principal Commodities

(US$ million)

Percentage VariationCommodity/Group

2006-07 2007-08 2008-09 P (3)/(2) (4)/(3)

1 2 3 4 5 6

I. Bulk Imports 84,235.8 1,12,744.7 1,35,681.7 33.8 20.345.4 44.8 46.6

A. Petroleum, Petroleum Products 56,945.3 79,644.5 91,291.2 39.9 14.6 & Related Material 30.7 31.7 31.3

B. Bulk Consumption Goods 4,294.1 4,600.3 4,887.2 7.1 6.21. Wheat 1,292.9 660.1 0.0 -48.9 –2. Cereals & Cereal Preparations 32.1 45.1 46.9 40.7 3.93. Edible Oil 2,108.3 2,558.6 3,438.5 21.4 34.44. Pulses 860.1 1,335.0 1,275.1 55.2 -4.55. Sugar 0.8 1.5 126.8 89.4 –

C. Other Bulk Items 22,996.4 28,499.9 39,503.3 23.9 38.61. Fertilisers 3,144.1 5,406.0 13,577.4 71.9 151.2

a) Crude 361.1 467.3 1,060.4 29.4 126.9b) Sulphur & Unroasted Iron Pyrites 109.3 362.0 625.0 231.1 72.7c) Manufactured 2,673.6 4,576.6 11,891.9 71.2 159.8

2. Non-Ferrous Metals 2,604.9 3,505.2 5,240.8 34.6 49.53. Paper, Paperboard & Mgfd. incl. Newsprint 1,206.8 1,424.8 1,765.9 18.1 23.94. Crude Rubber, incl. Synthetic & Reclaimed 630.8 785.7 859.6 24.6 9.45. Pulp & Waste Paper 639.3 778.0 799.1 21.7 2.76. Metalliferrous Ores & Metal Scrap 8,345.8 7,911.7 7,896.9 -5.2 -0.27. Iron & Steel 6,424.7 8,688.6 9,363.7 35.2 7.8

II. Non-Bulk Imports 1,01,499.4 1,38,694.5 1,55,792.8 36.6 12.354.6 55.2 53.4

A. Capital Goods 47,069.1 70,110.4 70,542.6 49.0 0.61. Manufactures of Metals 1,603.6 2,662.7 3,197.8 66.0 20.12. Machine Tools 1,481.3 2,208.0 2,235.3 49.1 1.23. Machinery except Electrical & Electronics 13,850.4 19,860.4 20,914.5 43.4 5.34. Electrical Machinery except Electronics 1,959.8 2,870.5 3,623.1 46.5 26.25. Electronic Goods incl. Computer Software 16,939.5 21,103.6 24,421.7 24.6 15.76. Transport Equipments 9,438.6 20,111.6 13,022.9 113.1 -35.27. Project Goods 1,795.9 1,293.5 3,127.4 -28.0 141.8

B. Mainly Export Related Items 17,871.7 20,768.3 29,716.9 16.2 43.11. Pearls, Precious & Semi-Precious Stones 7,487.5 7,971.6 14,439.1 6.5 81.12. Chemicals, Organic & Inorganic 7,830.6 9,896.6 12,157.7 26.4 22.83. Textile Yarn, Fabric, etc. 2,151.2 2,474.1 2,539.3 15.0 2.64. Cashew Nuts, raw 402.4 425.9 580.8 5.8 36.4

C. Others 36,558.5 47,815.8 55,533.4 30.8 16.1 of which :

1. Gold & Silver 14,646.0 17,866.9 18,682.6 22.0 4.62. Artificial Resins & Plastic Materials 2,584.8 3,685.1 3,846.4 42.6 4.43. Professional Instruments etc. except electrical 2,341.0 3,899.6 4,373.2 66.6 12.14. Coal, Coke & Briquittes etc. 4,576.8 6,423.7 9,991.9 40.4 55.55. Medicinal & Pharmaceutical Products 1,296.4 1,671.7 1,880.1 28.9 12.56. Chemical Materials & Products 1,321.6 1,625.3 2,079.9 23.0 28.07. Non-Metallic Mineral Manufactures 780.0 1,046.6 1,156.2 34.2 10.5

Total Imports 1,85,735.2 2,51,439.2 2,91,474.6 35.4 15.9

Memo Items:

Non-Oil Imports 1,28,789.9 1,71,794.6 2,00,183.4 33.4 16.5Non-Oil Imports excl. Gold & Silver 1,14,143.9 1,53,927.7 1,81,500.7 34.9 17.9Mainly Industrial Inputs* 1,04,835.1 1,40,851.2 1,60,348.3 34.4 13.8

P : Provisional.* : Non oil imports net of gold and silver, bulk consumption goods, manufactured fertilisers and professional instruments.Note : Figures in brackets relate to percentage to total imports for the period.Source : DGCI & S.

April-March

ARTICLE



Statement 6: Direction of India’s Foreign Trade-Imports

(US$ million)

Percentage VariationGroup / Country

2006-07 2007-08 2008-09 P (3)/(2) (4)/(3)

1 2 3 4 5 6

I. O E C D Countries 65,439.3 89,048.7 92,749.8 36.1 4.2A. E U 29,832.3 38,413.7 41,652.7 28.8 8.4

of which:

1. Belgium 4,141.8 4,358.0 5,441.4 5.2 24.92. France 4,212.0 6,253.2 4,588.1 48.5 -26.63. Germany 7,546.3 9,869.7 11,694.3 30.8 18.54. Italy 2,674.4 3,898.2 4,308.9 45.8 10.55. Netherland 1,156.4 1,919.6 1,875.7 66.0 -2.36. U K 4174.5 4,953.1 5,792.2 18.7 16.9

B. North America 13,513.5 22,991.5 20,614.3 70.1 -10.31. Canada 1,777.4 1,972.2 2,451.4 11.0 24.32. U S A 11,736.1 21,019.3 18,162.9 79.1 -13.6

C. Asia and Oceania 11,869.4 14,496.3 16,453.6 22.1 13.5of which:

1. Australia 7,008.0 7,836.9 8,423.1 11.8 7.52. Japan 4,595.6 6,323.2 7,606.6 37.6 20.3

D. Other O E C D Countries 10,224.1 13,147.3 14,029.3 28.6 6.7of which:

1. Switzerland 9,123.4 9,828.6 11,447.2 7.7 16.5II. O P E C 56,374.8 77,309.9 95,026.7 37.1 22.9

of which:

1. Indonesia 4,169.1 4,823.7 6,674.3 15.7 38.42. Iran 7,627.8 10,915.3 12,133.7 43.1 11.23. Iraq 5,526.0 6,829.2 7,454.3 23.6 9.24. Kuwait 5,992.1 7,689.9 9,392.6 28.3 22.15. Saudi Arabia 13,383.9 19,401.1 19,493.0 45.0 0.56. U A E 8,657.5 13,470.5 20,604.7 55.6 53.0

III.Eastern Europe 3,922.6 3,813.5 6,588.9 -2.8 72.8of which:

1 Russia 2,409.5 2,468.5 4,290.8 2.4 73.8IV. Developing Countries 59,189.4 79,260.7 95,774.3 33.9 20.8

of which:

A. Asia 47,363.9 64,141.6 77,581.3 35.4 21.0a) S A A R C 1,507.3 2111.4 1,791.4 40.1 -15.2

1. Afghanistan 34.5 109.2 128.8 216.6 17.92. Bangladesh 228.5 257.0 308.4 12.5 20.03. Bhutan 141.4 194.4 149.6 37.4 -23.14. Maldives 3.1 4.1 3.9 35.7 -6.05. Nepal 306.0 627.7 488.4 105.2 -22.26. Pakistan 323.3 287.8 362.4 -11.0 25.97 Sri Lanka 470.6 631.1 349.9 34.1 -44.6

b) Other Asian Developing Countries 45,856.5 62,030.2 75,790.0 35.3 22.2of which:

1. People’s Rep of China 17,460.6 27,102.4 31,333.9 55.2 15.62. Hong Kong 2,483.8 2,699.2 6,410.5 8.7 137.53. South Korea 4,806.0 6,037.6 8,591.3 25.6 42.34. Malaysia 5,294.8 6,004.9 7,020.8 13.4 16.95. Singapore 5,489.5 8,117.6 7,431.5 47.9 -8.56. Thailand 1,745.6 2,301.0 2,656.0 31.8 15.4

B. Africa 6,557.9 9,338.4 12,500.9 42.4 33.9of which:

1. Benin 80.8 72.0 106.8 -10.9 48.32. Egypt Arab Republic 1,743.0 1,982.8 2,123.1 13.8 7.13. Kenya 56.5 86.5 81.4 53.2 -5.94. South Africa 2,471.7 3,613.1 5,440.4 46.2 50.65. Sudan 89.3 431.5 400.0 383.0 -7.36. Tanzania 98.1 164.5 199.4 67.7 21.27. Zambia 86.2 74.8 215.5 -13.3 188.1

C. Latin American Countries 5,267.7 5,780.7 5,692.1 9.7 -1.5V. Others 129.1 229.8 64.4 78.0 -72.0VI. Unspecified 680.0 1,776.5 1,270.4 161.3 -28.5

Total Imports 1,85,735.2 2,51,439.2 2,91,474.6 35.4 15.9

P : Provisional.Note : The figures for 2006-07, which include country-wise distribution of petroleum imports, are not strictly comparable

with the data for previous years.Source : DGCI & S.

April-March

ARTICLE

South-West

Monsoon 2009 :

A Review


* Prepared in the Division of Rural Economics, Departmentof Economic Analysis and Policy, Reserve Bank of India.

South-West Monsoon 2009 :A Review*(June 1 to September 30, 2009)

Introduction

The Indian subcontinent is

predominantly characterised by a tropical

monsoon climate. There are two monsoon

seasons viz., South-West or the summer

monsoon covering the period from June-

September and North-East or the winter

monsoon from October to December. The

summer monsoon accounts for about 70-80

per cent of the annual rainfall in the

country. The spatial and temporal

distribution of rainfall during the South-

West monsoon is crucial for the success or

failure of the Kharif crops that are

essentially sown in July-August. The

performance of South-West monsoon had

remained close to normal during the four

The performance of the South-Westmonsoon 2009, with a shortfall of 23 percent in precipitation, is the weakest since1972. Although Indian agriculture ismore capable today to withstand droughtconditions than in 1972, kharifagricultural production would getadversely affected, particularly for paddyand oilseeds, in view of lower yields andacreage consequent on lower precipitationin the current year. The agriculturalsector, however, is expected to derive supportfrom the rabi crops, the prospects for whichremain promising on account of delayedwithdrawal of South-West monsoon, thestrong and large ‘allied sector’ and thevarious Government policies supportingrural sector. The progress of the North-Eastmonsoon too will have a bearing on overallagricultural output for 2009-10.

ARTICLE

South-West

Monsoon 2009 :

A Review


years from 2005 to 2008, thus, contributing

positively to the overall foodgrains

production. However, the 2009 South-West

(SW) monsoon recorded a deficiency of 27

per cent resulting in drought in several

states. This article provides a detailed review

of the performance of South-West Monsoon

2009.

South-West Monsoon 2009:Highlights

• The long term mean date for the onset

of South-West monsoon over Kerala is

June 1 with a standard deviation of

about one week. During the year 2009,

the South-West monsoon arrived over

Kerala on May 23, 2009, one week ahead

of the normal date.

• Monsoon generally covers the whole

country by July 15. During the current

season, after setting in on May 23, 2009,

there was hiatus in the advance of the

monsoon till third week of June. After

that, the monsoon advanced rapidly

and covered the entire country by 3rd

July.

• For the country as a whole, the rainfall

for the season (June – September 2009)

was 77 per cent of its Long Period

Average (LPA), i.e., 23 per cent below

normal. The LPA of South-West

monsoon rainfall averaged over the

country as a whole was about 689.9 mm

as against normal of 892.5 mm.

• Seasonal rainfall was close to normal for

the Southern Peninsula (96 per cent of

its LPA), while it remained largely

deficient in other regions, viz., 64 per

cent of its LPA over North-West India,

80 per cent of its LPA over Central India

and 73 per cent of its LPA over North-

East India.

• Monthly rainfall was close to normal for

July (96 per cent of LPA) while it

remained deficient during June (53 per

cent of LPA), August (73 per cent of LPA)

and September (79 per cent of LPA).

• Out of 526 meteorological districts for

which data were available, 215 districts

(41 per cent) of the meteorological

districts received excess/normal rainfall

and the remaining 311 districts (59 per

cent) received deficient/scanty rainfall

during the season.

• At 23 per cent deficiency, the 2009

South-West monsoon season rainfall

over the country as a whole was the

lowest recorded rainfall in the current

decade. Drought was declared by 12

States in about 300 districts. In 2002 (a

drought year) the shortfall in South-

West monsoon rainfall was 19 per cent

and there was 13 per cent shortfall in

2004.

• The uneven temporal rainfall

distribution caused flood situation in

many states, viz., Karnataka, Assam,

Meghalaya, Arunachal Pradesh, West

Bengal, Orissa, Bihar, Jharkhand, Uttar

Pradesh, Gujarat, Maharashtra, Madhya

Pradesh, Kerela and Andhra Pradesh.

• The withdrawal of monsoon from west

Rajasthan was delayed and it

commenced only on 25th September

compared to its normal date of 1st

September (a delay of more than 3

weeks). Subsequently, it withdrew from

most parts of the northwestern states

and from the northern parts of Gujarat

on September 28, 2009.

ARTICLE

South-West

Monsoon 2009 :

A Review


Forecast of South-West Monsoon

India Meteorological Department (IMD)

has been adopting a two-stage forecast

strategy for the South-West monsoon rainfall

since 2003. The first forecast for South-West

monsoon rainfall comes out in the month of

April using the data up to March. It also issues

updated forecasts using the data up to May

in the month of June, which also includes

forecast for the July rainfall over the country

as a whole and seasonal rainfall over the four

broad homogeneous regions of India.

IMD in its first stage Long Range Forecast

issued on April 17, 2009 had indicated that

the rainfall during the South-West Monsoon

season (June-September) 2009 for the country

as a whole was likely to be 96 per cent of the

Long Period Average (LPA) with a model error

+/-5 per cent. Subsequently, in the update

issued on June 24, 2009, the forecast for the

country as a whole was revised to a lower value

of 93 per cent of LPA with a model error of +/

- 4 per cent. However, the forecast turned out

to be incorrect as the actual area-weighted

rainfall for the country as a whole was 77 per

cent of LPA, well below the lower limit of

forecast value (Table 1). On a temporal basis,

only the rainfall forecast for July came out to

be correct. On a spatial basis, the actual rainfall

in South Peninsula was closest to the forecast.

In the rest three regions, actual rainfall

remained very much less than the lower

forecast limits.

Cumulative Rainfall during South-West Monsoon 2009

The season ended with the area-

weighted rainfall for the country as a whole

at 77 per cent of the LPA, less than even the

lower bound of the IMD’s long range

forecast. The shortfall in rainfall during the

current year marks the lowest since 1972.

Spatial Distribution

The spatial distribution of rainfall

during South-West monsoon 2009 remained

uneven. Of the 36 meteorological sub-

divisions, cumulative rainfall was excess/

normal in 13 sub-divisions (32 sub-divisions

during last year) and deficient/scanty/no

rain in 23 sub-divisions (4 sub-divisions

during last year) (Chart 1, Table 2 and

Year IMD’s Actual KharifForecast Rainfall foodgrains

(% of LPA) (% of LPA) production(% change)

1 2 3 4

1997 92 102 -2.41998 99 106 0.51999 111 96 2.52000 99 92 -3.22001 98 92 9.82002* 101 81 -22.22003 96 102 34.12004 100 87 -11.72005 98 99 6.32006 92 99 0.62007 93 105 1.62008 99 98 -2.82009* 93 77 NA

* : Drought year. NA: Not Available.Source: India Meteorological Department (IMD),

Ministry of Agriculture, Government of India.

Table 1: South-West Monsoon Rainfall

and Kharif Production

ARTICLE

South-West

Monsoon 2009 :

A Review


Among the four broad homogeneous

regions1 , the South-West monsoon rainfall

was normal over Southern Peninsular Region.

It was deficient over North-West India,

Central India and North-East India (Table 3).

Districtwise, out of 526 meteorological

districts for which data were available, 41 per

cent of the meteorological districts received

excess/normal rainfall and the remaining 59

per cent received deficient/scanty rainfall

during the season (Statement II). The

temporal rainfall distribution caused flood

situation in the states of Karnataka, Assam,

Meghalaya, Arunachal Pradesh, West Bengal,

Orissa, Bihar, Jharkhand, Uttar Pradesh,

Gujarat, Maharashtra, Madhya Pradesh,

Kerela and Andhra Pradesh.

Temporal Distribution

The temporal distribution of monsoon

rainfall over the country as a whole reveals

that the cumulative rainfall remained below

the LPA throughout the season. The rainfall

during July at 96 per cent of LPA was,

however, within the normal limits of +/- 19

per cent and was higher than corresponding

month last year. Monsoon rainfall over the

Table 2: Distribution of Sub-divisionsAccording to Category of Rainfall

Category Sub-divisionsof Rainfall

1 2

Excess Saurashtra and Kutch, North InteriorKarnataka and South Interior Karnataka.

Normal Andaman and Nicobar Islands, GangeticWest Bengal, Orissa , Konkan and Goa,Madhya Maharashtra, Rayalaseema,Tamilnadu and Puducherry, CoastalKarnataka, Kerala and Lakshadweep.

Deficient Arunachal Pradesh, Assam and Meghalaya,Nagaland, Manipur, Mizoram and Tripura,Sub-Himalayan West Bengal and Sikkim,Jharkhand, Bihar, East Uttar Pradesh, WestUttar Pradesh, Uttarakhand, Haryana,Chandigarh and Delhi, Punjab, HimachalPradesh, Jammu and Kashmir, WestRajasthan, East Rajasthan, West MadhyaPradesh, East Madhya Pradesh, GujaratRegion, Daman, Dadra and Nagar Haveli,Marathwada, Vidarbha , Chhattisgarh,Coastal Andhra Pradesh and Telangana.

Note : Excess: + 20 per cent or more; Normal: + 19per cent to –19 per cent; Deficient: -20 percent to – 59 per cent; Scanty: –60 per cent to –99 per cent; No Rain: -100 per cent (All withrespect to the Long Period Average).

Source : India Meteorological Department.

Statement I). Excess rainfall in some sub-

divisions resulted in floods while large

deficiency resulted in drought in several

districts.

Region Normal (mm) Actual (mm) Percentage Departure

2008 2009 2008 2009

1 2 3 4 5 6

All-India 892.5 873.2 689.9 -2 -23North-West India 611.7 651.7 392.1 7 -36Central India 995.1 956.9 795.4 -4 -20South Peninsula 722.5 692.5 692.9 -4 -4North-East India 1427.3 1346.0 1037.7 -6 -27

Source: India Meteorological Department.

Table 3: Region-wise Rainfall during the South-West Monsoon 2009

1 The four broad homogeneous regions are: 1) North-West India (Uttar Pradesh, Rajasthan, Haryana, Chandigarh andDelhi, Punjab, Uttaranchal, Himachal Pradesh and Jammu and Kashmir); 2) Central India (Madhya Pradesh, Chhattisgarh,Maharashtra, Orissa, Gujarat and Goa); 3) South Peninsula (Andhra Pradesh, Karnataka, Tamil Nadu and Puducherry,Kerala, Lakshadweep and Andaman and Nicobar Islands); and 4) North-East India (Bihar, Jharkhand, West Bengal,Sikkim, Assam, Arunachal Pradesh, Meghalaya, Nagaland, Manipur, Mizoram, Tripura).

ARTICLE

South-West

Monsoon 2009 :

A Review


country as a whole was 53 per cent of LPA

during June, 73 per cent of LPA during

August and 79 per cent of LPA during

September (Chart 2 and Table 4).

Production Weighted Rainfall Index

The foodgrains production weighted

index (PRN) is constructed by the Reserve

Bank based on the weighted average of

actual rainfall received by the States where

weights are taken as the average share of

food grains production by a particular State

in the overall foodgrains production2 . As per

this index, the rainfall during South-West

monsoon 2009 was 27 per cent deficient,

which is higher than that of the deficiency

shown by IMD data, thus indicating a

relatively higher deficiency in the foodgrains

producing states. The foodgrains weighted

rainfall index was 4 per cent above normal

during last year (Chart 3).

Drought 2009

With more than 73 per cent of annual

rainfall in India being received during the

South-West monsoon season, a major shortfall

in SW monsoon generally culminates into a

drought. Drought connotes a situation of water

shortage for human, cattle and agriculture

consumption resulting in economic losses,

primarily in agriculture sector. Drought is

classified as Meteorological, Hydrological and

Agricultural3. Unlike the Hydrological and

Agricultural droughts, the Meteorological

Table 4: Month-wise Rainfall duringS-W Monsoon

Month Per cent Departure from Normal

2008 2009

1 2 3

June 24 -47

July -17 -4

August -3 -27

September -1 -21


2 A PRN of 100 indicates normal rainfall, where normal represents average of last 10 years’ weighted rainfall.3 Meteorological Drought connotes rainfall reduction below 19 per cent of normal rainfall; Hydrological drought refersto large depletion of surface water leading to drying up of lakes, rivers and reservoirs; Agricultural drought refers to amore severe situation whereby inadequate moisture leads to acute crop stress and decline in crop productivity. As perIMD, shortfall of 11 per cent to 25 per cent in south-west rainfall is considered as “mild drought”, a deficiency of 26 percent to 50 per cent is regarded as “moderate” drought and above 50 per cent shortfall in south-west monsoon precipitationis treated as “severe drought”.

ARTICLE

South-West

Monsoon 2009 :

A Review


drought may not necessarily have any serious

impact if the departure from normal is not

significant and the rainfall is sufficient

enough to sustain the soil moisture. Available

data indicate that on an average 16 per cent

of the country’s total area is drought prone

and about 50 million people in the country

are annually exposed to the adverse impact

of drought. The possibility of drought

occurrence in India varies from once in 2

years in Western Rajasthan to once in 15

years in Assam.

In the post independence period, the

country has experienced about 10 to 11

droughts, of which, 5 were of relatively large

scale with significant declines in agricultural

output – 1965, 1972, 1979, 1987 and 2002

(Table 5). While the droughts of 1965 and

1979 were ‘late season droughts’ (rainfall

deficiency mostly in September), droughts

in 1972, 1987 and 2002 were ‘early season

droughts’ with rainfall deficiency being

maximum during the month of July. In the

current year, the rainfall deficiency has been

the maximum in the month of June.

As regards the impact of drought on

GDP, while in the 1960s and 1970s, droughts

that resulted in a decline in foodgrains

production generally culminated into

negative GDP growth, e.g., 1965-66, 1972-73

and 1979-80. The 1990s, however, revealed

a different picture where by Indian economy

continued to register positive growth

despite decline in agriculture. This is

attributed to the decline in the share of

agriculture in national income from 57 per

cent in 1961 and 35 per cent in 1987-88 to

22 per cent in 2002-03 and further to 17 per

cent in 2008-09. Even within the

manufacturing sector, the share of agro-

based industries has come down from 44 per

cent in 1961 to 13.4 per cent in 2002 and

further to 12.8 per cent in 2007. Besides,

agriculture today is substantially diversified

with more than 60 per cent of the income

coming from allied activities. Kharif crops

that are grown in the South-West monsoon

season contribute 20 per cent to the overall

agricultural GDP. Besides, Government has

Table 5: Droughts in Independent India,Monsoon and Agriculture GDP

Drought years South-West Agricultural Overall

Monsoon GDP GDP

shortfall growth growth

(in per cent) (per cent) (per cent)

2009 23 – –

2004 13 0.0 7.5

2002 19 -7.2 3.8

1987 19 -1.6 3.5

1986 13 -0.4 4.3

1982 15 -0.3 2.9

1979 19 -12.8 -5.2

1974 12 -1.5 1.2

1972 24 -5.0 -0.3

1966 13 -1.4 1.0

1965 18 -11.0 -3.7

1951 19 1.5 2.3

Source: IMD, RBI, Ministry of Agriculture.

ARTICLE

South-West

Monsoon 2009 :

A Review


also been taking more proactive initiatives

towards supplementing rural incomes in

drought stricken years. While assessing the

impact of drought on Indian agricultural

output, the above factors need to be taken

into account.

During the current season, around 300

districts have been declared as drought hit,

partially or wholly in 12 States. In view of

drought conditions, the GoI had formulated

a Comprehensive Drought Management

Plan as early as in July 2009. It has also

initiated several timely measures to

compensate for the likely decline in Kharif

production. These include: provision of

supplemental irrigation facilities via the

diesel subsidy in states with more than 50

per cent deficiency in rainfall, planned

efforts to increase Rabi production through

ensuring availability of seeds, fertilisers and

other inputs to farmers, issuing several

policies/advisories with regard to crop

substitution, water conservation techniques,

providing the flexibility to states in the use

of funds under various central schemes and

lastly providing the assurance as well as

actually going in for import of foodgrains

and open market release of stocks. As per

Government advisories, several districts in

the eastern region have taken up short

duration Boro rice cultivation that would

compensate for shortfall in paddy. The

shortfall in groundnut sowing is being partly

offset by Toria and Taramira that could be

sown even in late kharif season.

Reservoir Status

In India, the Central Water Commission

monitors the total live water storage in the

81 major reservoirs having full reservoir

level (FRL) of 151.77 billion cubic metres

(BCM), which accounts for around 67 per

cent of the total reservoir capacity of the

country. As on October 1, 2009 water stock

in these 81 major reservoirs was 60 per cent

of the FRL, lower than 75 per cent during


year and the average of 67 per cent during

the last 10 years (Table 6).

Progress of Sowing

The deficient South-West monsoon has

impacted the kharif sowing, which is about

5.3 per cent below that of the last year.

Latest sowing position indicates that sowing

of all crops during the current kharif season

as on October 30, 2009 was 92 per cent of

the normal level (Table 7). Sowing of most

pulses and cotton are higher than last year

levels, while the sowing of coarse cereals

and jute remained the same as last year,

though paddy sowing has been substantially

affected (15.5 per cent below last year’s

level). Other crops whose sowing has been

Table 6: Reservoir Status

Status As On 1.10.2005 1.10.2006 1.10.2007 1.10.2008 1.10.2009

1 2 3 4 5 6

Total Live Storage (BCM) 108.06 120.45 124.80 113.74 90.48

Percentage to Live Capacity at FRL 81 91 82 75 60

Source: Central Water Commission.

ARTICLE

South-West

Monsoon 2009 :

A Review


affected somewhat include oilseeds and

sugarcane. Considering that Kharif paddy is

an important crop accounting for about 86 per

cent of total rice production and 36 per cent

Table 7: Summary of Progress of Kharif Crops (Area coverage)

(Area in Million Hectares)

Crop Normal Area CoverageArea (as on October 30, 2009)

2008 2009 Variation Percentage

1 2 3 4 5 6

Rice 39.2 38.9 32.9 -6.1 -15.5

Coarse Cereals 23.0 20.7 20.7 0.1 0.3

of which:

Bajra 9.7 8.5 8.5 0.0 0.2

Jowar 3.9 2.9 3.1 0.2 6.6

Maize 6.8 7.1 7.1 0.1 0.9

Total Pulses 11.2 9.6 10.1 0.5 5.6

Total Oilseeds 16.9 18.4 17.5 -1.0 -5.2

of which:

Groundnut 5.4 5.3 4.4 -0.9 -16.6

Soyabean 7.8 9.6 9.6 0.0 -0.2

Sugarcane 4.4 4.4 4.3 -0.1 -2.9

Cotton 8.7 8.5 9.6 1.1 13.4

Jute 0.8 0.7 0.7 0.0 -2.0

All Crops 104.2 101.2 95.8 -5.4 -5.3


of total foodgrains production in India, the

shortfall in its sowing could be expected to

depress the overall foodgrains production

during 2009-10.

ARTICLE

South-West

Monsoon 2009 :

A Review


Statement I : Basic Rainfall Data (Cumulative)

Sub-Divisions June 1 to September 30 , 2009 June 1 to September 30 , 2008

Actual Normal % deviation from Actual Normal % deviation from(mm) (mm) Normal (mm) (mm) Normal

1 2 3 4 5 6 7 8 9

1. Andaman & Nicobar Islands 1671.8 1755.2 N N 1752.0 1755.2 0 N

2. Arunachal Pradesh 1323.9 1834.9 -28 D 1658.4 1834.9 -10 N

3. Assam & Meghalaya 1320.9 1885.3 -30 D 1601.2 1885.3 -15 N

4. Nagaland, Manipur, 822.5 1240.9 -34 D 983.8 1240.9 -21 DMizoram & Tripura

5. Sub-Himalayan West 1529.5 1955.4 -22 D 2098.0 1955.4 7 N

Bengal and Sikkim

6. Gangetic West Bengal 973.7 1136.3 -14 N 1288.8 1136.3 13 N

7. Orissa 1167.3 1164.9 0 N 1418.7 1164.9 22 E

8. Jharkhand 799.6 1092.5 -27 D 1075.1 1092.5 -2 N

9. Bihar 736.3 1039.2 -29 D 1104.4 1039.2 6 N

10. East Uttar Pradesh 563.1 913.6 -38 D 1062.8 913.6 16 N

11. West Uttar Pradesh 442.6 772.8 -43 D 864.0 772.8 12 N

12. Uttarakhand 864.9 1223.1 -29 D 1198.8 1223.1 -2 N

13. Haryana, Chandigarh & Delhi 290.7 470.0 -38 D 538.3 470.0 15 N

14. Punjab 323.6 501.8 -36 D 600.2 501.8 20 E

15. Himachal Pradesh 494.2 773.7 -36 D 738.5 773.7 -5 N

16. Jammu & Kashmir 337.6 513.6 -34 D 524.8 513.6 2 N

17. West Rajasthan 155.4 262.8 -41 D 287.7 262.8 9 N

18. East Rajasthan 436.8 623.6 -30 D 607.1 623.6 -3 N

19. West Madhya Pradesh 657.0 904.3 -27 D 709.6 904.3 -22 D

20. East Madhya Pradesh 738.2 1097.4 -33 D 948.9 1097.4 -14 N

21. Gujarat Region, Daman, 613.4 933.6 -34 D 918.3 933.6 -2 N

Dadra & Nagar Haveli

22. Saurashtra & Kutch 612.8 485.7 26 E 558.5 485.7 15 N

23. Konkan and Goa 2316.4 2802.1 -17 N 2982.9 2802.1 6 N

24. Madhya Maharashtra 683.6 700.1 -2 N 755.3 700.1 8 N

25. Marathwada 529.7 704.3 -25 D 587.5 704.3 -17 N

26. Vidarbha 661.9 976.2 -32 D 782.7 976.2 -20 D

27. Chhattisgarh 796.3 1205.8 -34 D 1061.0 1205.8 -12 N

28. Coastal Andhra Pradesh 429.6 575.2 -25 D 599.0 575.2 4 N

29. Telangana 497.9 767.3 -35 D 797.5 767.2 4 N

30. Rayalaseema 390.1 380.9 2 N 387.6 380.9 2 N

31. Tamil Nadu & Puducherry 314.8 315.6 0 N 324.4 315.6 3 N

32. Coastal Karnataka 3469.1 3173.9 9 N 2663.3 3173.9 -16 N

33. North Interior Karnataka 601.3 490.9 22 E 430.6 490.9 -12 N

34. South Interior Karnataka 855.3 659.3 30 E 720.8 659.3 9 N

35. Kerala 1959.4 2143.0 -9 N 1678.5 2143.0 -22 D

36. Lakshadweep 1026.4 985.2 4 N 933.9 985.2 -5 N

E : Excess, i.e.,+20% or more 3 2

N : Normal, i.e.,+19% to -19% 10 30

D : Deficient, i.e.,-20% to -59% 23 4

S : Scanty, i.e.,-60% to -99% 0 0

NR: No Rain, i.e. -100% 0 0

TOTAL 36 36


ARTICLE

South-West

Monsoon 2009 :

A Review


S. State/UT E N D S NR ND TotalNo.

1 2 3 4 5 6 7 8 9

1. A & N Island (UT) 0 1 1 0 0 0 2

2. Arunachal Pradesh 2 3 5 2 0 1 13

3. Assam 1 12 7 1 0 1 22

4. Meghalaya 1 1 0 0 0 1 3

5. Nagaland 0 0 2 2 0 0 4

6. Manipur 0 0 1 1 0 1 3

7. Mizoram 0 0 1 0 0 1 2

8. Tripura 0 2 1 0 0 0 3

9. Sikkim 0 0 1 0 0 0 1

10. West Bengal 1 10 6 0 0 0 17

11. Orissa 8 17 5 0 0 0 30

12. Jharkhand 0 7 4 3 0 1 15

13. Bihar 0 10 20 2 0 0 32

14. Uttar Pradesh 1 10 38 15 0 0 64

15. Uttarakhand 1 3 5 3 0 0 12

16. Haryana 0 4 11 4 0 0 19

17. Chandigarh (UT) 0 1 0 0 0 0 1

18. Delhi 0 0 1 0 0 0 1

19. Punjab 1 3 8 4 0 0 16

20. Himachal Pradesh 2 3 6 1 0 0 12

21. Jammu & Kashmir 0 2 7 1 0 1 11

22. Rajasthan 0 5 27 0 0 0 32

23. Madhya Pradesh 0 11 32 2 0 0 45

24. Chhattisgarh 0 3 13 0 0 0 16

25. Gujarat 4 5 16 0 0 0 25

26. DNH & Daman (UTD) 0 1 0 0 0 0 1

27. Diu (UT) 1 0 1 0 0 0 1

28. Goa 0 1 0 0 0 0 1

29. Maharashtra 2 14 17 0 0 0 33

30. Andhra Pradesh 0 8 15 0 0 0 23

31. Tamilnadu 4 13 13 2 0 0 30

32. Puducherry 0 0 1 0 0 0 1

33. Karnataka 17 9 1 0 0 0 27

34. Kerala 0 9 5 0 0 0 14

35. Lakshadweep (UT) 0 1 0 0 0 0 1

Total 46 169 270 41 0 7 533

Statement II : Statewise Distribution of No. of Districts with Excess, Normal, Deficient,Scanty and No Rainfall during South-West Monsoon 2009

E: Excess. N: Normal. D: Deficient. S: Scanty. NR: No Rain. ND: No Data.Source: India Meteorological Department.

ARTICLE

Composition andOwnership Pattern

of Deposits withScheduled Commercial

Banks: March 2008


* Prepared in the Banking Statistics Division of theDepartment of Statistics and Information Management.

Composition andOwnership Pattern ofDeposits with ScheduledCommercial Banks:March 2008*

This article presents an analysis ofcomposition and ownership pattern ofoutstanding deposits with ScheduledCommercial Banks (including RegionalRural Banks) as at the end of March2008. The data on ownership of depositsare collected from a sample of branchesof Scheduled Commercial Banks, underthe reporting system of the annual BasicStatistical Return (BSR)-4. The BSR-4 return captures data on outstandingdeposits as on March 31, according totype of deposits (viz., Current, Savingsand Term deposits) classified by broadinstitutional sectors, (viz., 'Household','Government', 'Private Corporate (Non-Financial)', 'Financial' and 'Foreign'sectors) of the economy, which own thedeposits. The ownership pattern ofestimated deposits is analysed accordingto the Population groups, States/UnionTerritories and Bank groups. The articlealso provides comparative position ofcomposition and ownership pattern ofbank deposits in March 2007.

The major highlights are:

• The current, savings and term deposits

accounted for 13.5 per cent, 23.7 per cent

and 62.8 per cent, respectively in total

deposits in March 2008. The share of

current deposits in total deposits, as on

March 31, 2008, registered 1.1 percentage

points increase over the position a year

ago, with corresponding decrease in the

share of savings deposits. The share of

term deposits remained almost same (at

62.7 per cent) in both the years.

ARTICLE

Composition andOwnership Patternof Deposits withScheduled CommercialBanks: March 2008


• ‘Household’ sector with 58.1 per cent

share in total deposits was the largest

holder of outstanding deposits as on

March 31, 2008; its share was 57.4 per

cent a year ago. As at end March 2008,

the share of ‘Private Corporate (Non-

Financial)’ sector in total deposits

recorded a rise, while those of

‘Government’, ‘Financial’ and ‘Foreign’

sectors depicted a decline, compared to

the position as at end March 2007.

• Term deposits contributed 63.1 per cent

to incremental deposits during 2007-08

(72.1 per cent in 2006-07), while 18.3

per cent of incremental deposits were

accounted for by current deposits (9.4

per cent in 2006-07).

• The share of current deposits in total

deposits recorded an increase in case

of ‘Private Corporate (Non-Financial)’

and ‘Financial’ sectors while it

registered a decline in case of

‘Household’ sector. On the other hand,

the relative share of term deposits in

total deposits increased in the case of

‘Private Corporate (Non-Financial)’ and

‘Household’ sectors, and declined in

the case of ‘Government’, ‘ Financial’

and ‘Foreign’ sectors.

• The share of term deposits in total

deposits of metropolitan areas stood at

69.8 per cent as on March 31, 2008

marginally lower compared to 70.7 per

cent in the preceding year. Saving

deposits accounted for 44.9 per cent

and 39.7 per cent of the total deposits

of rural and semi-urban areas, while

their share was 14.8 per cent in

metropolitan areas.

Introduction

The sample survey on composition and

ownership pattern of bank deposits with

Scheduled Commercial Banks (SCBs),

including Regional Rural Banks (RRBs), is

conducted by the Reserve Bank of India

under the system of Basic Statistical Returns

(BSR) through the BSR-4 return on an annual

basis and the results are published in the

Reserve Bank of India Bulletin. The results

of the survey as on March 31, 2008 are

discussed in this article@. The survey

schedule was designed to capture branch

level data on ownership of deposits,

classified according to broad institutional

sectors and sub-sectors for each type of

deposits, viz., current, savings and term,

including inter-bank deposits. Out of 74,326

branches of SCBs as on March 31, 2008 a

sample of 13,512 branches was selected as

per the sampling design explained below.

Of the 13,512 bank branches selected, valid

filled-in schedules were received from

13,046 branches resulting in a response rate

of 96.6 per cent.

Stratified sampling design was used

for selection of branches of banks for this

survey. The branch-wise data on

outstanding aggregate deposits as on March

31, 2008, based on quarterly BSR-7 return,

formed the base for construction of the

frame. All the branches of the SCBs in the

country were first stratified into basic

strata based on State/Union Territory,

population group of the centre where bank

branch was located, and bank group. The

@ The previous article on ‘Composition and OwnershipPattern of Deposits with Scheduled Commercial Banks:March 2007’ was published in October 2008 issue of theReserve Bank of India Bulletin.

ARTICLE



Banks: March 2008


population groups are (i) rural, (ii) semi-

urban, (iii) urban and (iv) metropolitan.

Five bank groups, viz., (i) State Bank of

India and its Associates; (ii) Nationalised

Banks; (iii) Regional Rural Banks, (iv) Other

Indian Scheduled Commercial Banks or

Indian Private Sector Banks and (v) Foreign

Banks, were considered for the purpose.

Thereafter, each stratum was sub-stratified

into 3 size classes of deposits (up to Rs. 25

crore, Rs. 25 crore to Rs. 100 crore and Rs.

100 crore and above). Thus, 1083 ultimate

strata were formed. All branches having

deposits of Rs. 100 crore and above were

included in the sample. A sample of 15 per

cent branches was selected from each of

the ‘Rs. 25 crore to Rs. 100 crore’ strata,

using Simple Random Sampling (SRS)

technique. Similarly, 10 per cent of the

branches were selected from ‘up to Rs. 25

crore’ strata. The minimum sample size

for each stratum was fixed as 3 and if a

stratum had fewer than 3 branches, then

all the branches of such stratum were

included in the sample. Accordingly, the

selected sample consisted of 13,512

branches of 171 SCBs. The aggregate

deposits of the branches selected

amounted to Rs. 20,32,148 crore, forming

62.9 per cent of aggregate deposits of

Scheduled Commercial Banks as on

March 31, 2008.

Results#

The article presents the results of the

survey encompassing various classificatory

characteristics of deposits with Scheduled

Commercial Banks. Section I presents a brief

review of the trends and pattern of

ownership of deposits over long period from

March 1999 to March 2008. Detailed

analysis of the results relating to the survey

as on March 31, 2008 is provided in

subsequent sections. Section II outlines, at

the aggregate level, the composition by type

of deposit account and ownership pattern

of deposits by broad institutional sectors.

Section III analyses ownership pattern of

deposits by type of account and institutional

sectors. Section IV discusses ownership

pattern of deposits according to population

groups and States/Union territories, as also

for major metropolitan centres. Section V

covers ownership pattern according to bank-

groups, viz., State Bank of India (SBI) and

its Associates, Nationalised Banks, Regional

Rural Banks (RRBs), Foreign Banks and Other

Scheduled Commercial Banks or Indian

Private Sector Banks (OSCBs). Three

categories of deposit accounts covered in the

survey are current, savings and term

deposits and are inclusive of inter-bank

deposits. The broad sectors covered in the

survey are ‘Household’, ‘Government’,

‘Private Corporate (Non-Financial)’,

‘Financial’ and ‘Foreign’ sectors.

I Trends in Composition andOwnership Pattern of Deposits

Chart 1 presents shares of different

types of deposits, viz., current, savings and

term deposits over the 10 year period 1999-

2008. Term deposits accounted for over two-

fifths of total deposits outstanding with

SCBs, while the share of savings deposits

was around one-fourth during the decade

1999-2008.

# As total outstanding deposits as discussed in this articleare estimated based on a sample of 13,046 branches, thefigures may thus not be strictly comparable with data ondeposits from other sources.

ARTICLE



The trend in ownership pattern of

deposits, according to major sectors is

depicted in Chart 2. The household sector

remained the largest holder of bank

deposits, though its share showed a steady

decline over the recent years; its share

which averaged to 66.4 per cent during 1999-

2003, declined to 58.6 per cent (average)

during 2004-2008. During the same sub-

periods of 1999-2008, the share (average) of

‘Private Corporate (Non-financial)’ sector

more than doubled from 4.7 per cent to 10.2

per cent. The shares of ‘Government’ and

‘Financial’ sectors in total deposits also

witnessed an increase during 2004-2008

compared to the position during 1999-2003.

On the other hand, the share of ‘Foreign’

sector has recorded a decline.

II. Ownership Pattern of Deposits:Aggregate Level

II.1 Composition of Deposits by Typeof Account

The composition of aggregate deposits

by type of account, viz., current, savings and

ARTICLE



Banks: March 2008


term deposits during 2007-08, indicated an

increase in the share of current deposits by

1.1 percentage points and a decline of equal

magnitude in the share of savings deposits

(Chart 3). The current deposits and savings

deposits accounted for 13.5 per cent and 23.7

per cent of total deposits as on March 31, 2008.

Term deposits accounted for 62.8 per cent of

total deposits in March 2008 which was at the

same level as a year ago (62.7 per cent).

The total outstanding deposits with

SCBs, including inter-bank deposits, as on

March 31,2008, at Rs 33,18,641 crore

recorded 22.9 per cent increase over the

outstanding deposits (Rs. 26,99,901 crore),

as on March 31, 2007 (Statement 1); the

growth rate for the previous year (March 31,

2007) was higher at 24.9 per cent. During

the year 2007-08, growth in current deposits

at 33.8 per cent was substantially higher

than the previous year’s growth (17.8 per

cent). On the other hand growth in term

deposits decelerated to 23.0 per cent during

2007-08 from 29.8 per cent during 2006-07.

savings deposits registered a little lower

growth (17.1 per cent) than the previous

year’s growth at 17.5 per cent (Table 1).

II.2 Ownership Pattern By InstitutionalSectors

The classification of bank deposits by

institutional sectors as on March 31, 2007

and 2008 is presented in Statement 1.

During 2007-08, the ‘Private Corporate (Non-

Financial)’ sector recorded an increase in its

share in total deposits to 13.0 per cent from

11.2 per cent while the share of ‘Financial’

sector declined marginally from 10.5 per

cent to 10.3 per cent. The ‘Government’

sector deposits constituted 13.5 per cent of

total deposits with SCBs in March 2008,

which was 1.0 percentage point lower than

that in the previous year (14.5 per cent). The

share of ‘Household’ sector, the largest

shareholder of the deposits with the SCBs

increased to 58.1 per cent as on March 31,

2008 from 57.4 per cent in 2007 (Chart 4).

Table 1: Growth rates in Deposits accordingto type of account

(Per cent)

Account type 2005-06 2006-07 2007-08

Current deposits 27.5 17.8 33.8

Savings deposits 20.9 17.5 17.1

Term deposits 19.7 29.8 23.0

Total deposits 21.0 24.9 22.9

ARTICLE



The share of deposits of ‘Foreign’ sector as

at end March 2008 stood at 5.1 per cent,

compared to 6.4 per cent a year ago.

III. Ownership Pattern by Type ofDeposit Accounts andInstitutional Sectors

The ownership pattern according to

major sectors and type of deposits as on

March 31, 2007 and 2008, is depicted in

Charts 5A and 5B. The ‘Household’ sector,

which was the largest holder of total

deposits outstanding with SCBs, also held

the largest share across the three types of

deposits, viz., current, savings and term

deposits. As regards current deposits, the

share of ‘Household’ sector in total current

deposits declined to 40.7 per cent in March

2008 from 47.9 per cent a year ago. The

‘Private Corporate(Non-Financial)’ and

‘Financial’ sectors, recorded 2.0 percentage

points and 4.9 percentage points increase

in their share of current deposits, during

2007-08, which stood at 24.8 per cent and

16.3 per cent as on March 31, 2008. The

share of ‘Government’ sector deposits in

outstanding current deposits was 14.8 per

cent both as at end-March 2007 and 2008,

while the share of ‘Foreign’ sector deposits

in current deposits increased marginally to

3.4 per cent from 3.0 per cent.

‘Household’ sector accounted for the

bulk of savings deposits in March 2008 with

the largest share of 85.4 per cent, which was

marginally lower than 86.2 per cent a year

ago. The share of ‘Government’ sector in

savings deposits improved marginally by 0.7

percentage points during 2007-08 and stood

at 8.0 per cent as on March 31, 2008. The

‘Private Corporate (Non-financial)’ and

‘Financial’ sectors had negligible shares in

savings deposits both in 2007 and 2008,

while the ‘Foreign’ sector accounted for

about 5.7 per cent share.

As regards term deposits, share of the

largest constituent, viz., the ‘Household’

sector increased by 3.6 percentage points

during 2007-08 to 51.5 per cent. The share

of ‘Private Corporate (Non-Financial)’ sector

in term deposits improved by 2.0 percentage

points during the year under review. The

shares of ‘Government’ and ‘Foreign’ sectors

registered a decline to 15.3 per cent from

ARTICLE



Banks: March 2008


17.2 per cent and to 5.2 per cent from 7.5

per cent, respectively. The ‘Financial’ sector

held 12.7 per cent of term deposits in March

2008, as against a share of 14.2 per cent in

March 2007.

The percentage shares of the deposits

in incremental deposits of the major sectors

are presented in Table 2. During 2007-08

about two-thirds (63.1 per cent) of the

incremental deposits were contributed by

term deposits, as compared to 72.1 per cent

in 2006-07. The share of current deposits

in incremental deposits at 18.3 per cent in

2007-08 was almost double of 9.4 per cent

share observed in 2006-07, while the share

of savings deposits in incremental deposits

was at about the same level (18.5 per cent)

in both the years.

The share of term deposits in

incremental deposits in the case of

‘Government’ and ‘Financial’ sectors was

46.7 per cent and 41.7 per cent, respectively,

while for the ‘Private Corporate (Non-

Financial)’ and ‘Household’ sectors, 72.8 per

cent and 69.6 per cent of the incremental

deposits were in case of term deposits. As

regards the ‘Foreign’ sector, term deposits

witnessed a decline during 2007-08.The

contribution of current deposits to

incremental deposits was in the 27.0 per

cent to 29.1 per cent range for ‘Government’

and ‘Private Corporate (Non-Financial)’

sectors. It was high (57.7 per cent) for the

‘Financial’ sector, but low (5.8 per cent)

for the ‘Household’ sector. Savings

deposits accounted for about one-fourth of

the incremental deposits for the

‘Household’ sector.

IV. Ownership Pattern of DepositsAccording to Population Groups/States and Union Territories/Metropolitan Centres

IV.1 Population Groups1

The ownership of deposits classified by

population groups is presented in Statement

2. The metropolitan areas accounted for the

largest share (57.3 per cent) in total deposits

as on March 31, 2008, compared to 56.4 per

cent share as at end March 2007. The deposits

Table 2: The contribution of the three types of deposits in incremental deposits of the selected sectors

(Per cent)

Sectors Contribution in incremental deposits

2006-07 2007-08

Current Savings Term Total Current Savings Term Total

1 2 3 4 5 6 7 8 9

Government 11.9 15.5 72.6 100.0 29.1 24.2 46.7 100.0

Private corporate(Non-financial) 15.1 0.4 84.6 100.0 27.0 0.2 72.8 100.0

Financial -4.1 -3.2 107.3 100.0 57.7 0.6 41.7 100.0

Household 11.0 29.6 59.4 100.0 5.8 24.5 69.6 100.0

Foreign 0.1 29.9 70.0 100.0 -88.8 -131.5 320.3 100.0

Total 9.4 18.5 72.1 100.0 18.3 18.6 63.1 100.0

1 The population group classification of banked centres is based on 2001 population census for the surveys beginning2006, while for the earlier surveys the classification was based on 1991 population census. This may be taken intoconsideration while comparing population-group wise data for earlier surveys with those of the current survey.

ARTICLE



of rural and semi-urban areas accounted for

9.1 per cent and 13.0 per cent, respectively

as on March 31, 2008 and these shares were

lower than those observed for March 2007.

The share of deposits in March 2008 in

urban areas remained almost at the same

level as a year ago. Chart 6 provides

information on distributional pattern of

aggregate deposits according to population

groups for 2007 and 2008.

The ‘Household’ sector accounted for

the largest share in total deposits in each of

the population groups. The share of

‘Household sector’ was 86.4 per cent in rural

areas, 77.9 per cent in semi-urban areas, 67.2

per cent in urban areas and 45.8 per cent in

metropolitan areas as on March 31, 2008

(Statement 2). This sector’s shares have

shown improvement over the position a

year ago for semi-urban, urban and

metropolitan population groups, while for

the rural areas its share has declined by 0.8

percentage points. ‘Individuals (including

Hindu Undivided Families-HUFs)’ were the

major constituent of the ‘Household’ sector

in all the population groups Individuals

(including HUFs) held 74.6 per cent of the

deposits in rural areas though their share

declined by 3.9 per cent during 2007-08.

Among the ‘Individuals (including HUFs)’,

‘Farmers’ held 27.6 per cent of total deposits

in the rural areas and 11.4 per cent of total

deposits in semi-urban areas. The

corresponding shares were higher at 33.6

per cent and 13.2 per cent as on March

31,2007 and consequently the share of

‘Farmers’ in total deposits declined from 6.4

per cent to 5.3 per cent during 2007-08.

Shares of ‘Businessmen, Traders,

Professionals and Self-employed Persons’

group in the rural, semi-urban and urban

areas were in the range of 9.7 per cent to

11.4 per cent, while the same in the

metropolitan areas was lower at 6.3 per cent.

The share of ‘Wage and Salary Earners’

under the category of ‘Individuals (including

HUFs)’ of the ‘Household’ sector was in the

range of 8.0 per cent and 9.3 per cent in

areas other than metropolitan areas, where

it was lower at 5.1 per cent.

Deposits from the ‘Government’ sector

constituted 8.2 per cent and 8.4 per cent of

the total deposits in rural and semi-urban

areas, respectively as on March 31, 2008.

The share of deposits held by the

‘Government’ sector in the urban and

metropolitan areas stood higher at 16.0 per

cent and 14.6 per cent of total deposits,

respectively. Population group-wise shares

of bank deposits of ‘Private Corporate (Non-

Financial)’ and ‘Financial’ sectors exhibited

a composition similar to that obtained for

the deposits of ‘Government’ sector.

The share of ‘Foreign’ sector deposits,

comprising deposits of non-residents and

foreign embassies, etc., in total deposits,

across population groups, was the highest

ARTICLE



Banks: March 2008


in semi-urban areas (8.2 per cent), followed

by urban areas (5.3 per cent), metropolitan

areas (4.6 per cent) and rural areas (2.1 per

cent). Deposits from ‘Non Residents’ was

the major constituent of ‘Foreign’ sector

deposits and maintained same order among

population groups as for the total ‘Foreign’

sector deposits.

Distributional pattern of total deposits

by their type and population groups, as on

March 31, 2008 remained similar to that a

year ago, with metropolitan centres

accounting for the highest share and rural

centres accounting for the lowest share in

all types of deposits (Chart 7). In respect of

current deposits, the metropolitan centres

accounted for a share at 65.2 per cent, while

the shares of urban and semi-urban centres

were lower at 20.8 per cent and 10.1 per

cent, respectively. Metropolitan centres

held a share of 35.9 per cent in savings

deposits in 2008. The shares in savings

deposits of urban, semi-urban and rural

centres were 25.1 per cent, 21.9 per cent

and 17.2 per cent, respectively in March

2008. In the case of term deposits,

metropolitan centres held the highest

share of 63.7 per cent, followed distantly

by urban (18.8 per cent), semi-urban (10.3

per cent) and rural (7.3 per cent) centres.

The distribution of deposits according

to type and population groups indicated that

across all population groups, term deposits

accounted for the largest share in total

deposits in March 2008 with 69.8 per cent

share in metropolitan centres, and between

49.3 per cent and 57.5 per cent in other

centres (Chart 8). The share of current

deposits as at end March 2008 increased

across all population groups, except for the

urban population group. The share of

savings deposits in March 2008 was

observed to be lower than that a year ago

across all population groups. The share was

the highest at 44.9 per cent in rural centres,

followed by 39.7 per cent in semi-urban

centres. In metropolitan centres, the share

of term deposits declined to 69.8 per cent

as at end March 2008 from 70.7 per cent a

year ago while in urban centres it increased

to 57.5 per cent from 55.0 per cent a year

ago. In rural centres, the share of term

deposits witnessed a 1.2 percentage increase

and stood at 49.3 per cent in March 2008.

IV.2 States / Union Territories

The ownership pattern of deposits for

end March 2008 classified according to

States/Union Territories is presented in

Statement 3. In all the major States and

Union Territories, except Maharashtra and

Delhi, the bank deposits have been

primarily mobilised from the ‘Household’

sector, which accounted for over one-half

of the total deposits. This is brought out by

the fact that in 29 States/UTs, share of

‘Household’ sector deposits in total deposits

was higher than the all-India share of

ARTICLE



‘Household’ sector deposits in total deposits

(58.1 per cent). Further, in 8 of these States/

UTs, viz, Punjab, Rajasthan, Haryana, Jammu

& Kashmir, Uttar Pradesh, Dadra & Nagar

Haveli, Mizoram and Jharkhand the

contribution of ‘Household’ sector deposits

to total deposits in respective states was

above 75 per cent. These states accounted for

16.2 of total deposits and 22.1 per cent of

‘Household’ sector deposits. 19 States/UTs

had ‘Household’ sector deposits between

60.0 per cent and 75.0 per cent of their

respective total deposits, and 5 States/UTs

reported ‘Household’ sector deposits

between 50.0 per cent and 60.0 per cent. At

the other end of the spectrum, Maharashtra

and Delhi had 37.8 per cent and 45.9 per cent

of their total deposits from the ‘Household’

sector and they collectively accounted for

27.7 per cent of ‘Household’ sector deposits

and 39.8 per cent total deposits in 2008.

In 13 States/UTs, the share of the

deposits of ‘Government’ sector in the total

deposits as on March 31, 2008 was less than

the all-India level share (13.5 per cent). The

remaining 22 States/UTs, with combined

share of 37.0 per cent of total deposits,

accounted for 58.9 per cent of ‘Government’

sector’s deposits. Deposits of this sector had

considerable contribution (more than 25 per

cent) in the total deposits in 7 States/Union

Territories viz., Andaman & Nicobar

Islands, Delhi, Chhatisgarh, Chandigarh,

Uttarakhand, Manipur and Lakshadweep.

The share of ‘Foreign’ sector deposits

in total deposits was below 5 per cent in

respect of 25 States/UTs. The ‘Foreign’ sector

deposits accounted for 28.5 per cent, 24.0

per cent and 21.7 per cent of deposits in

respect of Kerala, Daman & Diu and Goa,

respectively. However, the ‘Foreign’ sector

deposits were concentrated in the States of

Maharashtra, Kerala, Delhi, Gujarat, Tamil

Nadu, K arnataka and Punjab, which

collectively accounted for 83.6 per cent of

total ‘Foreign’ sector deposits.

The share of ‘Private Corporate (Non-

Financial)’ sector in total deposits in

Maharashtra, Delhi and Karnataka was

higher than the all-India level (13.0 per cent).

About three-fourths (75.9 per cent) of ‘Private

Corporate (Non-Financial)’ sector deposits

were concentrated in these three states.

ARTICLE



Banks: March 2008


IV.3 Major Metropolitan Centres

Deposits in Mumbai, Delhi, Kolkata

and Chennai, the four major metropolitan

centers, are analysed in this section. The

ownership pattern of deposits of the four

major metropolitan centers, viz., Mumbai,

Delhi, Kolkata and Chennai, is presented in

Statement 4. The ‘Household’ sector owned

the highest share of deposits in each of the

centre. The share was observed to be the

highest in Chennai (58.9 per cent) and the

lowest in Mumbai (30.4 per cent). The next

highest shares of deposits were owned by

‘Private Corporate (Non-Financial)’ and

‘Government’ sectors in the four major

metropolitan centers taken together. The

highest share of ‘Government’ sector was

recorded in Delhi (25.0 per cent), followed

by Kolkata (21.2 per cent), Chennai (10.5 per

cent) and Mumbai (8.4 per cent). The share

of ‘Private Corporate (Non-Financial)’ sector

was the highest in Mumbai (27.7 per cent),

followed by Delhi and Chennai (about 19.0

per cent each) and Kolkata (11.7 per cent).

The ‘Foreign’ sector accounted for 6.2 per

cent and 5.3 per cent of total deposits in

Chennai and Mumbai, respectively while its

share was lower (3.1 per cent to 3.5 per cent)

in other two major metropolitan centers and

4.7 per cent in the four major metropolitan

centres taken together.

V. Ownership Pattern of DepositsAccording to Bank Groups

V.1 Composition of Deposits by Typeof Account and Bank-groups

The composition of deposits according

to bank-groups is presented in Statement

5. At the aggregate level, the relative shares

of different bank groups depicted very

marginal changes as on March 31, 2008, as

compared with the position a year ago

(Chart 9). The Nationalised Banks accounted

for the largest share at 47.7 per cent of total

deposits as on March 31, 2008, followed by

SBI and its Associates (22.6 per cent), OSCBs

(21.0 per cent) and Foreign Banks (5.7 per

cent) (Chart 9).

The distribution of deposits according

to type for SBI and its Associates and

Nationalised Banks revealed more or less

identical pattern, i.e., the share of term

deposits at about 59.0 per cent to 66.0 per

cent, share of savings deposits at about 24.0

per cent to 28.0 per cent and current deposits

at about 10.0 per cent to 13.0 per cent. RRBs

had 53.9 per cent of their deposits in savings

deposits and 40.8 per cent of their deposits

in term deposits. In respect of OSCBs, term

deposits accounted for the largest share of

66.6 per cent of total deposits (Charts 10A

and 10B), while in the case of Foreign Banks,

they contributed 50.1 per cent to total

deposits. Current deposits formed a

substantial share (36.2 per cent) of total

deposits with Foreign Banks and on the

other hand, such deposits for RRBs

ARTICLE



constituted only 5.3 per cent of total

deposits.

V.2 Ownership of Deposits byInstitutional Sectors and Bank-groups

The ownership pattern of deposits

according to bank groups as on March 31,

2008 is presented in Statement 6. The

‘Household’ sector accounted for the

highest share in total deposits in all bank

groups, except Foreign Banks, in whose case

‘Private Corporate (Non-Financial)’ sector

deposits had the largest share (48.9 per

cent). The share of the ‘Household’ sector

in total deposits was at 61.5 per cent for SBI

and its Associates, 65.2 per cent for

Nationalised Banks and 43.0 per cent for

OSCBs while it was the highest at 85.9 per

cent for RRBs.

‘Individuals (including HUFs)’ was the

major constituent of the ‘Household’ sector,

in all the bank groups, though its share

ranged from 18.6 per cent in the case of

ARTICLE



Banks: March 2008


Foreign Banks to as high as 80.7 per cent

for RRBs, and about one-half each in the

cases of SBI and its Associates and

Nationalised banks.

The share of the ‘Government’ sector

deposits was the highest at about 17.3 in

respect of deposits with both SBI and its

Associates and Nationalised Banks. This

sector’s share for RRBs was at 13.0 per cent

and for OSCBs at 4.2 per cent. ‘Central and

State Governments’ and ‘Public Sector

Corporations and Companies’ contributed

12.7 per cent to deposits with SBI and its

Associates, as against 9.4 per cent share at

all SCB level.

‘Government’ sector deposits with

RRBs were largely contributed by ‘State

Governments’ (5.5 per cent) and ‘Local

Authorities’ (5.4 per cent). ‘Government’

sector held 3.1 per cent of the total deposits

with OSCBs and these were held with

almost equal shares by ‘Central and State

Governments’ and ‘Public Sector

Corporations and Companies’.

The share of ‘Private Corporate (Non-

Financial)’ sector in the total deposits was

the highest for Foreign Banks (48.9 per cent),

followed by OSCBs (29.0 per cent). The

corresponding shares in total deposits with

SBI and its Associates and Nationalised Banks

were relatively low at 6.5 per cent and 5.5

per cent, respectively as on March 31, 2008.

The share of deposits from ‘Foreign’

sector was the highest in the case of

Foreign banks (11.7 per cent of total

deposits), followed by SBI and its

Associates (6.7 per cent), OSCBs (4.7 per

cent) and Nationalised Banks (3.9 per cent).

This sector had a negligible share of 0.3 per

cent for RRBs. All bank groups derived

major part of ‘Foreign’ sector deposits from

‘Non-Residents’.

ARTICLE



Statement 1 : Ownership of Deposits with Scheduled Commercial Banks byType of Deposits and Sector - As on March 31, 2007 and 2008

I. Government Sector 49,663 66,281 49,049 62,861 2,91,961 3,18,663 3,90,673 4,47,805 16,618 13,811 26,702 57,131

(14.8) (14.8) (7.3) (8.0) (17.2) (15.3) (14.5) (13.5) (14.6) (12.0) (6.8) (9.2)

1. Central & State 20,918 30,529 25,966 34,138 83,206 1,13,888 1,30,091 1,78,555 9,611 8,172 30,682 48,464

Governments (6.2) (6.8) (3.9) (4.3) (4.9) (5.5) (4.8) (5.4) (8.5) (7.1) (7.9) (7.8)

i) Central 9,393 13,004 2,661 4,473 51,669 60,019 63,723 77,496 3,611 1,812 8,349 13,773

Government (2.8) (2.9) (0.4) (0.6) (3.1) (2.9) (2.4) (2.3) (3.2) (1.6) (2.1) (2.2)

ii) State 11,525 17,525 23,305 29,665 31,537 53,869 66,368 1,01,059 6,000 6,359 22,332 34,692

Governments (3.4) (3.9) (3.5) (3.8) (1.9) (2.6) (2.5) (3.0) (5.3) (5.5) (5.7) (5.6)

2. Local Authorities 6,051 7,967 13,616 16,908 48,711 44,971 68,377 69,846 1,916 3,292 -3,740 1,469

(1.8) (1.8) (2.0) (2.2) (2.9) (2.2) (2.5) (2.1) (1.7) (2.9) (-1.0) (0.2)

3. Quasi Government 10,750 9,800 3,979 4,890 53,701 53,287 68,431 67,977 -951 911 -414 -453

Bodies (3.2) (2.2) (0.6) (0.6) (3.2) (2.6) (2.5) (2.0) (-0.8) (0.8) (-0.1) (-0.1)

Of which:

State Electricity 4,124 2,364 435 798 6,783 9,962 11,341 13,123 -1,760 363 3,179 1,782

Boards (1.2) (0.5) (0.1) (0.1) (0.4) (0.5) (0.4) (0.4) (-1.6) (0.3) (0.8) (0.3)

4. Public Sector 11,943 17,985 5,488 6,924 1,06,343 1,06,517 1,23,774 1,31,426 6,042 1,436 174 7,652

Corporations and (3.6) (4.0) (0.8) (0.9) (6.3) (5.1) (4.6) (4.0) (5.3) (1.2) (–) (1.2)

Companies

i) Non - Departmental 3,681 5,801 751 699 59,246 40,261 63,677 46,761 2,120 -51 -18,985 -16,917

Commercial (1.1) (1.3) (0.1) (0.1) (3.5) (1.9) (2.4) (1.4) (1.9) (–) (-4.9) (-2.7)

Undertakings

ii) Others 8,262 12,184 4,738 6,225 47,098 66,256 60,097 84,665 3,922 1,488 19,159 24,568

(2.5) (2.7) (0.7) (0.8) (2.8) (3.2) (2.2) (2.6) (3.5) (1.3) (4.9) (4.0)

II. Private Corporate Sector 76,647 1,11,357 3,245 3,487 2,23,591 3,17,365 3,03,482 4,32,209 34,710 242 93,774 1,28,727

(Non - Financial) (22.8) (24.8) (0.5) (0.4) (13.2) (15.2) (11.2) (13.0) (30.6) (0.2) (24.0) (20.8)

1. Non- Financial 61,242 77,295 917 886 1,85,668 2,51,110 2,47,826 3,29,291 16,053 -30 65,442 81,465

Companies (18.2) (17.2) (0.1) (0.1) (11.0) (12.1) (9.2) (9.9) (14.1) (–) (16.8) (13.2)

2. Non-Credit 842 375 607 411 2,623 2,101 4,071 2,887 -467 -195 -522 -1,184

Co -operative (0.3) (0.1) (0.1) (0.1) (0.2) (0.1) (0.2) (0.1) (-0.4) (-0.2) (-0.1) (-0.2)

Institutions

3. Others 14,563 33,687 1,722 2,190 35,300 64,154 51,585 1,00,031 19,124 468 28,854 48,446

(4.3) (7.5) (0.3) (0.3) (2.1) (3.1) (1.9) (3.0) (16.8) (0.4) (7.4) (7.8)

III. Financial Sector 38,367 73,223 3,684 4,041 2,40,413 2,65,648 2,82,465 3,42,912 34,856 357 25,234 60,447

(11.4) (16.3) (0.5) (0.5) (14.2) (12.7) (10.5) (10.3) (30.7) (0.3) (6.5) (9.8)

1. Banks 18,732 19,889 1,693 2,042 91,849 97,178 1,12,274 1,19,110 1,157 348 5,329 6,835

(5.6) (4.4) (0.3) (0.3) (5.4) (4.7) (4.2) (3.6) (1.0) (0.3) (1.4) (1.1)

i) Indian Commercial 13,822 12,383 1,389 1,572 59,838 65,158 75,048 79,114 -1,438 184 5,320 4,065

Banks (4.1) (2.8) (0.2) (0.2) (3.5) (3.1) (2.8) (2.4) (-1.3) (0.2) (1.4) (0.7)

ii) Foreign Resident 1,614 1,359 5 2 8,779 4,081 10,398 5,441 -256 -3 -4,698 -4,956

Banks (Offices of (0.5) (0.3) (–) (–) (0.5) (0.2) (0.4) (0.2) (-0.2) (–) (-1.2) (-0.8)

Foreign Banks in

India)

(Rs. crore)

Sector Current Savings Term Total Variations

2007 2008 2007 2008 2007 2008 2007 2008 Current Savings Term Total

1 2 3 4 5 6 7 8 9 10 11 12 13

ARTICLE



Banks: March 2008


Statement 1 : Ownership of Deposits with Scheduled Commercial Banks byType of Deposits and Sector - As on March 31, 2007 and 2008 (Contd.)

(Rs. crore)



1 2 3 4 5 6 7 8 9 10 11 12 13

iii) Co-operative Banks 3,296 6,147 300 467 23,232 27,940 26,828 34,555 2,851 168 4,708 7,726

& Credit societies (1.0) (1.4) (–) (0.1) (1.4) (1.3) (1.0) (1.0) (2.5) (0.1) (1.2) (1.2)

a. Co-operative 3,043 5,679 99 141 22,539 26,639 25,682 32,459 2,636 42 4,099 6,777

Banks (0.9) (1.3) (–) (–) (1.3) (1.3) (1.0) (1.0) (2.3) (–) (1.1) (1.1)

b. Credit Societies 253 468 201 326 693 1,301 1,147 2,096 215 126 608 949

(0.1) (0.1) (–) (–) (–) (0.1) (–) (0.1) (0.2) (0.1) (0.2) (0.2)

2. Other Financial 11,560 26,248 1,109 1,209 1,05,426 1,03,107 1,18,095 1,30,564 14,687 101 -2,319 12,469

Institutions (3.4) (5.8) (0.2) (0.2) (6.2) (4.9) (4.4) (3.9) (12.9) (0.1) (-0.6) (2.0)

i) Financial Companies 549 574 72 58 2,837 2,560 3,458 3,192 25 -14 -278 -267

(0.2) (0.1) (–) (–) (0.2) (0.1) (0.1) (0.1) (–) (–) (-0.1) (–)

a. Housing Finance 387 293 62 46 1,093 1,045 1,541 1,385 -93 -16 -48 -157

Companies (0.1) (0.1) (–) (–) (0.1) (0.1) (0.1) (–) (-0.1) (–) (–) (–)

b. Auto Finance 163 281 10 12 1,744 1,515 1,917 1,807 118 2 -229 -110

Companies (–) (0.1) (–) (–) (0.1) (0.1) (0.1) (0.1) (0.1) (–) (-0.1) (–)

ii) Mutual Funds 1,645 1,473 16 23 59,157 45,702 60,818 47,198 -173 7 -13,454 -13,620

(including Private (0.5) (0.3) (–) (–) (3.5) (2.2) (2.3) (1.4) (-0.2) (–) (-3.4) (-2.2)

Sector Mutual Funds)

a. Mutual Funds in 640 332 – – 19,399 21,760 20,040 22,092 -309 – 2,361 2,052

Private Sector (0.2) (0.1) (1.1) (1.0) (0.7) (0.7) (-0.3) (0.6) (0.3)

b. Other Mutual 1,005 1,141 16 23 39,757 23,942 40,778 25,106 136 7 -15,815 -15,673

Funds (0.3) (0.3) (–) (–) (2.3) (1.1) (1.5) (0.8) (0.1) (–) (-4.1) (-2.5)

iii) Unit Trust of India 2,009 18,637 16 85 4,028 3,414 6,054 22,136 16,628 68 -614 16,083

(0.6) (4.1) (–) (–) (0.2) (0.2) (0.2) (0.7) (14.6) (0.1) (-0.2) (2.6)

iv) Insurance 5,739 4,269 29 22 16,853 18,671 22,621 22,962 -1,470 -7 1,818 341

Corporations (1.7) (1.0) (–) (–) (1.0) (0.9) (0.8) (0.7) (-1.3) (–) (0.5) (0.1)

and Companies

(Life and General)

v) Term Lending 249 176 21 51 2,918 3,409 3,189 3,636 -74 29 491 447

Institutions (0.1) (–) (–) (–) (0.2) (0.2) (0.1) (0.1) (-0.1) (–) (0.1) (0.1)

vi) Provident Fund 1,368 1,119 955 972 19,632 29,351 21,955 31,441 -249 17 9,718 9,486

Institutions (0.4) (0.2) (0.1) (0.1) (1.2) (1.4) (0.8) (0.9) (-0.2) (–) (2.5) (1.5)

3. Other Financial 8,075 27,086 882 790 43,139 65,363 52,095 93,238 19,011 -92 22,224 41,143

Companies@ (2.4) (6.0) (0.1) (0.1) (2.5) (3.1) (1.9) (2.8) (16.7) (-0.1) (5.7) (6.6)

i) Financial Services 2,137 14,400 52 33 11,356 13,114 13,545 27,547 12,262 -19 1,758 14,002

Companies (0.6) (3.2) (–) (–) (0.7) (0.6) (0.5) (0.8) (10.8) (–) (0.5) (2.3)

ii) Other Financial 4,002 6,820 72 79 13,536 30,415 17,610 37,314 2,818 7 16,879 19,704

Companies (1.2) (1.5) (–) (–) (0.8) (1.5) (0.7) (1.1) (2.5) (–) (4.3) (3.2)

iii) Others 1,936 5,866 759 679 18,247 21,833 20,941 28,378 3,930 -80 3,586 7,437

(0.6) (1.3) (0.1) (0.1) (1.1) (1.0) (0.8) (0.9) (3.5) (-0.1) (0.9) (1.2)

ARTICLE



Statement 1 : Ownership of Deposits with Scheduled Commercial Banks byType of Deposits and Sector - As on March 31, 2007 and 2008 (Concld.)

(Rs. crore)



1 2 3 4 5 6 7 8 9 10 11 12 13

IV. Household Sector 1,60,883 1,83,013 5,78,107 6,70,895 8,10,726 10,74,109 15,49,716 19,28,017 22,130 92,789 2,63,383 3,78,301

(47.9) (40.7) (86.2) (85.4) (47.9) (51.5) (57.4) (58.1) (19.5) (80.7) (67.5) (61.1)

1. Individuals (including 73,220 82,796 5,15,938 5,98,620 6,12,681 8,13,963 12,01,839 14,95,379 9,576 82,682 2,01,282 2,93,540

Hindu Undivided (21.8) (18.4) (76.9) (76.2) (36.2) (39.1) (44.5) (45.1) (8.4) (72.0) (51.6) (47.4)

Families)

i) Farmers 2,716 3,569 85,316 82,609 84,410 91,012 1,72,442 1,77,189 853 -2,707 6,602 4,747

(0.8) (0.8) (12.7) (10.5) (5.0) (4.4) (6.4) (5.3) (0.8) (-2.4) (1.7) (0.8)

ii) Businessmen, 38,796 39,971 69,206 87,928 1,01,167 1,35,647 2,09,170 2,63,546 1,174 18,722 34,480 54,376

Traders, Professionals (11.6) (8.9) (10.3) (11.2) (6.0) (6.5) (7.7) (7.9) (1.0) (16.3) (8.8) (8.8)

and Self - Employed

Persons

iii) Wage and Salary 4,240 3,886 95,582 1,07,263 78,211 1,07,046 1,78,033 2,18,196 -354 11,681 28,835 40,162

Earners (1.3) (0.9) (14.2) (13.7) (4.6) (5.1) (6.6) (6.6) (-0.3) (10.2) (7.4) (6.5)

iv) Shroffs, Money 999 1,028 4,161 4,580 5,309 10,644 10,469 16,252 29 419 5,335 5,784

Lenders, Stock (0.3) (0.2) (0.6) (0.6) (0.3) (0.5) (0.4) (0.5) (–) (0.4) (1.4) (0.9)

Brokers, Dealers

in Bullion etc.

v) Other Individuals 26,468 34,341 2,61,673 3,16,240 3,43,584 4,69,614 6,31,725 8,20,196 7,873 54,567 1,26,031 1,88,471

(7.9) (7.6) (39.0) (40.2) (20.3) (22.5) (23.4) (24.7) (6.9) (47.5) (32.3) (30.5)

2. Trusts, Associations, 10,229 12,904 11,717 12,056 49,718 56,017 71,663 80,977 2,676 339 6,299 9,314

Clubs etc. (3.0) (2.9) (1.7) (1.5) (2.9) (2.7) (2.7) (2.4) (2.4) (0.3) (1.6) (1.5)

3. Proprietary and 47,556 54,575 4,311 5,082 39,521 50,648 91,388 1,10,305 7,019 771 11,127 18,917

Partnership (14.2) (12.1) (0.6) (0.6) (2.3) (2.4) (3.4) (3.3) (6.2) (0.7) (2.9) (3.1)

concerns etc.

4. Educational 2,865 3,175 7,980 8,951 15,306 16,469 26112 28,595 310 971 1,163 2,444

Institutions (0.9) (0.7) (1.2) (1.1) (0.9) (0.8) (1.0) (0.9) (0.3) (0.8) (0.3) (0.4)

5. Religious Institutions 475 355 2,003 2,161 7,024 5,958 9,502 8,474 -119 158 -1,066 -1,028

(0.1) (0.1) (0.3) (0.3) (0.4) (0.3) (0.4) (0.3) (-0.1) (0.1) (-0.3) (-0.2)

6. Others (not elsewhere 26,539 29,207 36,157 44,025 86,476 1,31,054 1,49,172 2,04,287 2,668 7,868 44,578 55,114

classified) (7.9) (6.5) (5.4) (5.6) (5.1) (6.3) (5.5) (6.2) (2.4) (6.8) (11.4) (8.9)

V. Foreign Sector 10,147 15,355 36,765 44,479 1,26,653 1,07,865 1,73,565 1,67,699 5,208 7,714 -18,788 -5,866

(3.0) (3.4) (5.5) (5.7) (7.5) (5.2) (6.4) (5.1) (4.6) (6.7) (-4.8) (-0.9)

1. Foreign Consulates, 497 1,049 328 334 752 2,624 1,578 4,007 552 6 1,872 2,430

Embassies, Trade (0.1) (0.2) (–) (–) (–) (0.1) (0.1) (0.1) (0.5) (–) (0.5) (0.4)

Missions, Information

Services etc.

2. Non-Residents 2,623 1,931 33,156 40,447 1,13,640 97,087 1,49,418 1,39,465 -692 7,291 -16,552 -9,953

(0.8) (0.4) (4.9) (5.1) (6.7) (4.7) (5.5) (4.2) (-0.6) (6.3) (-4.2) (-1.6)

3. Others 7,027 12,375 3,281 3,698 12,261 8,153 22,569 24,226 5,347 417 -4,107 1,657

(2.1) (2.8) (0.5) (0.5) (0.7) (0.4) (0.8) (0.7) (4.7) (0.4) (-1.1) (0.3)

Total 3,35,707 4,49,228 6,70,851 7,85,764 16,93,343 20,83,649 26,99,901 33,18,641 1,13,521 1,14,913 3,90,305 6,18,740

(100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0)

— : Nil or Negligible.

Note : Figures in brackets indicate percentages to total.

ARTICLE



Banks: March 2008


Statement 2 : Population Group-wise Ownership of Deposits of ScheduledCommercial Banks – As on March 31, 2008

I. Government Sector 24,722 8.2 36,183 8.4 1,09,124 16.0 2,77,774 14.6 4,47,805 13.5

1. Central & State 9,427 3.1 17,407 4.0 43,256 6.3 1,08,466 5.7 1,78,555 5.4

Governments

i) Central Government 1,458 0.5 4,605 1.1 11,219 1.6 60,214 3.2 77,496 2.3

ii) State Governments 7,969 2.6 12,802 3.0 32,037 4.7 48,252 2.5 1,01,059 3.0

2. Local Authorities 6,496 2.2 8,117 1.9 16,170 2.4 39,063 2.1 69,846 2.1

3. Quasi-Government Bodies 3,837 1.3 2,882 0.7 19,936 2.9 41,323 2.2 67,977 2.0

of which: State

Electricity Boards 171 0.1 494 0.1 5,337 0.8 7,122 0.4 13,123 0.4

4. Public Sector Corporations 4,963 1.6 7,777 1.8 29,763 4.4 88,923 4.7 1,31,426 4.0

and Companies

i) Non-Departmental 1,818 0.6 2,503 0.6 8,460 1.2 33,981 1.8 46,761 1.4

Commercial

undertakings

ii) Others 3,145 1.0 5,274 1.2 21,303 3.1 54,942 2.9 84,665 2.6

II. Private Corporate Sector 2,491 0.8 9,538 2.2 32,521 4.8 3,87,659 20.4 4,32,209 13.0

(Non-Financial)

1. Non-Financial Companies 1,343 0.4 5,000 1.2 21,122 3.1 3,01,826 15.9 3,29,291 9.9

2. Non-Credit Co-operative 84 – 150 – 757 0.1 1,896 0.1 2,887 0.1

Institutions

3. Others 1,064 0.4 4,388 1.0 10,642 1.6 83,936 4.4 1,00,031 3.0

III. Financial Sector 4,998 1.7 14,521 3.4 46,066 6.7 2,77,326 14.6 3,42,912 10.3

1. Banks 3,704 1.2 9,330 2.2 30,432 4.5 75,644 4.0 1,19,110 3.6

i) Indian Commercial 2,274 0.8 5,343 1.2 16,862 2.5 54,635 2.9 79,114 2.4

Banks

ii) Foreign Resident – – 6 – 197 – 5,238 0.3 5,441 0.2

Banks (Offices of

foreign banks in India)

iii) Co-operative Banks 1,430 0.5 3,982 0.9 13,372 2.0 15,770 0.8 34,555 1.0

& Credit Societies

a. Co-operative Banks 1,238 0.4 3,575 0.8 12,759 1.9 14,887 0.8 32,459 1.0

b. Credit Societies 192 0.1 407 0.1 614 0.1 884 – 2,096 0.1

2. Other Financial 464 0.2 2,963 0.7 10,838 1.6 1,16,299 6.1 1,30,564 3.9

Institutions

i) Financial Companies 149 – 44 – 330 – 2,669 0.1 3,192 0.1

a. Housing Finance 109 – 24 – 294 – 958 0.1 1,385 –

Companies

b. Auto Finance 40 – 20 – 36 – 1,712 0.1 1,807 0.1

Companies

ii) Total of Mutual Funds – – 99 – 131 – 46,967 2.5 47,198 1.4

(including - Private

sector Mutual Funds

a. Mutual Funds in – – 1 – 24 – 22,067 1.2 22,092 0.7

Private Sector

b. Other Mutual Funds – – 99 – 107 – 24,900 1.3 25,106 0.8

(Rs. crore)

Sector Rural Semi-Urban Urban Metropolitan Total

Amount Per cent Amount Per cent Amount Per cent Amount Per cent Amount Per cent

1 2 3 4 5 6 7 8 9 10 11

ARTICLE



Statement 2 : Population Group-wise Ownership of Deposits of ScheduledCommercial Banks – As on March 31, 2008 (Concld.)

(Rs. crore)

Sector Rural Semi-urban Urban Metropolitan Total

Amount Per cent Amount Per cent Amount Per cent Amount Per cent Amount Per cent

1 2 3 4 5 6 7 8 9 10 11

@ : Includes (a) ‘Financial Service Companies’ which undertake issue management, portfolio management etc., (b) ‘Other Financial Companies’

which are engaged in leasing hire purchase, loan companies, etc., and (c) ‘Others’ indicating non-profit institutions serving business

like FICCI, CII, ASSOCHAM, etc.

– : Nil or Negligible.

iii) Unit Trust of India 80 – 1,378 0.3 5,007 0.7 15,671 0.8 22,136 0.7

iv) Insurance Corporations 158 0.1 1,057 0.2 1,429 0.2 20,318 1.1 22,962 0.7

and Companies

v) Term Lending 9 – 11 – 177 – 3,439 0.2 3,636 0.1

Institutions

vi) Provident Fund 68 – 374 0.1 3,764 0.6 27,235 1.4 31,441 0.9

Institutions

3. Other Financial Companies 831 0.3 2,228 0.5 4,797 0.7 85,383 4.5 93,238 2.8

i) Financial Services 101 – 194 – 769 0.1 26,482 1.4 27,547 0.8

Companies

ii) Other Financial 50 – 552 0.1 1,624 0.2 35,088 1.8 37,314 1.1

Companies

iii) Others 679 0.2 1,482 0.3 2,404 0.4 23,812 1.3 28,378 0.9

IV. Household Sector 2,59,952 86.4 3,36,983 77.9 4,59,104 67.2 8,71,978 45.8 19,28,017 58.1

1. Individuals (including 2,24,577 74.6 2,87,905 66.5 3,67,350 53.8 6,15,547 32.4 14,95,379 45.1

Hindu Undivided Families)

i) Farmers 83,050 27.6 49,463 11.4 24,789 3.6 19,888 1.0 1,77,189 5.3

ii) Businessmen, Traders, 34,420 11.4 42,935 9.9 66,439 9.7 1,19,752 6.3 2,63,546 7.9

Professionals and

Self-Employed Persons

iii) Wage and Salary Earners 28,120 9.3 37,620 8.7 54,596 8.0 97,860 5.1 2,18,196 6.6

iv) Shroffs, Money 942 0.3 2,356 0.5 3,559 0.5 9,395 0.5 16,252 0.5

Lenders, Stock Brokers,

Dealers in Bullion etc.

v) Other Individuals 78,045 25.9 1,55,531 35.9 2,17,967 31.9 3,68,652 19.4 8,20,196 24.7

2. Trusts, Associations, 3,147 1.0 8,489 2.0 16,092 2.4 53,249 2.8 80,977 2.4

Clubs etc.

3. Proprietary and 4,629 1.5 11,424 2.6 25,018 3.7 69,234 3.6 1,10,305 3.3

Partnership Concerns

4. Educational Institutions 3,336 1.1 5,076 1.2 8,331 1.2 11,853 0.6 28,595 0.9

5. Religious Institutions 792 0.3 2,391 0.6 3,196 0.5 2,094 0.1 8,474 0.3

6. Others (Not elsewhere 23,471 7.8 21,698 5.0 39,117 5.7 1,20,000 6.3 2,04,287 6.2

Classified)

V. Foreign Sector 8,806 2.9 35,591 8.2 36,081 5.3 87,221 4.6 1,67,699 5.1

1. Foreign Consulates, 360 0.1 158 – 29 – 3,460 0.2 4,007 0.1

Embassies, Trade

2. Non-Residents 7,383 2.5 32,652 7.5 31,388 4.6 68,042 3.6 1,39,465 4.2

3. Others 1,063 0.4 2,781 0.6 4,664 0.7 15,719 0.8 24,226 0.7

Total 3,00,969 100.0 4,32,816 100.0 6,82,897 100.0 19,01,958 100.0 33,18,641 100.0

ARTICLE



Banks: March 2008


Statement 3 : Ownership Pattern of Deposits of Scheduled Commercial Banks Classifiedby States & Union Territories - As on March 31, 2008

(Rs. crore)

Region / Government Foreign Private Financial Sector Household TotalState / Sector Sector Corporate Banks Other Other SectorUnion Sector Financial FinancialTerritory (Non - Institutions Companies

Financial)

1 2 3 4 5 6 7 8 9

Northern 1,36,848 32,929 92,866 9,732 10,053 19,716 4,45,980 7,48,123Region (18.3) (4.4) (12.4) (1.3) (1.3) (2.6) (59.6) (100.0)

Haryana 6,809 1,348 5,312 1,155 719 209 58,710 74,262(9.2) (1.8) (7.2) (1.6) (1.0) (0.3) (79.1) (100.0)

Himachal 2,882 399 87 2,328 167 115 14,615 20,592Pradesh (14.0) (1.9) (0.4) (11.3) (0.8) (0.6) (71.0) (100.0)

Jammu & 3,343 437 29 715 901 54 20,243 25,722Kashmir (13.0) (1.7) (0.1) (2.8) (3.5) (0.2) (78.7) (100.0)

Punjab 3,957 10,581 1,615 1,140 622 462 81,994 1,00,372(3.9) (10.5) (1.6) (1.1) (0.6) (0.5) (81.7) (100.0)

Rajasthan 5,643 2,776 3,217 1,212 648 330 59,668 73,493(7.7) (3.8) (4.4) (1.6) (0.9) (0.4) (81.2) (100.0)

Chandigarh 6,873 1,515 1,428 545 89 103 13,683 24,235(28.4) (6.3) (5.9) (2.2) (0.4) (0.4) (56.5) (100.0)

Delhi 1,07,341 15,872 81,178 2,638 6,907 18,443 1,97,068 4,29,446(25.0) (3.7) (18.9) (0.6) (1.6) (4.3) (45.9) (100.0)

North- 11,329 137 1,343 2,301 1,434 379 34,950 51,872eastern (21.8) (0.3) (2.6) (4.4) (2.8) (0.7) (67.4) (100.0)Region

Arunachal 440 20 105 140 30 61 2,150 2,947Pradesh (14.9) (0.7) (3.6) (4.7) (1.0) (2.1) (73.0) (100.0)

Assam 7,063 112 872 1,018 1,266 277 21,632 32,240(21.9) (0.3) (2.7) (3.2) (3.9) (0.9) (67.1) (100.0)

Manipur 753 1 2 128 6 – 1,068 1,958(38.5) (0.1) (0.1) (6.5) (0.3) (54.5) (100.0)

Meghalaya 1,070 2 48 474 18 9 3,664 5,285(20.3) (–) (0.9) (9.0) (0.3) (0.2) (69.3) (100.0)

Mizoram 308 1 5 35 18 4 1,162 1,534(20.1) (0.1) (0.3) (2.3) (1.2) (0.3) (75.7) (100.0)

Nagaland 663 – 85 120 44 10 1,809 2,731(24.3) (3.1) (4.4) (1.6) (0.3) (66.3) (100.0)

Tripura 1,031 – 225 386 52 18 3,465 5,178(19.9) (4.4) (7.5) (1.0) (0.4) (66.9) (100.0)

Eastern 67,289 5,660 19,567 8,690 4,281 8,607 2,48,539 3,62,634Region (18.6) (1.6) (5.4) (2.4) (1.2) (2.4) (68.5) (100.0)

Bihar 13,024 749 743 2,460 286 327 51,267 68,855(18.9) (1.1) (1.1) (3.6) (0.4) (0.5) (74.5) (100.0)

Jharkhand 7,579 274 1,153 1,607 263 312 33,609 44,798(16.9) (0.6) (2.6) (3.6) (0.6) (0.7) (75.0) (100.0)

Orissa 13,306 558 3,970 1,741 559 372 34,967 55,472(24.0) (1.0) (7.2) (3.1) (1.0) (0.7) (63.0) (100.0)

Sikkim 463 5 70 90 53 29 1,454 2,164(21.4) (0.2) (3.2) (4.2) (2.4) (1.3) (67.2) (100.0)

West Bengal 32,634 4,074 13,624 2,769 3,101 7,568 1,26,443 1,90,213(17.2) (2.1) (7.2) (1.5) (1.6) (4.0) (66.5) (100.0)

ARTICLE



Statement 3 : Ownership Pattern of Deposits of Scheduled Commercial Banks Classifiedby States & Union Territories - As on March 31, 2008 (Concld.)

(Rs. crore)

Region / Government Foreign Private Financial Sector Household TotalState / Sector Sector Corporate Banks Other Other SectorUnion Sector Financial FinancialTerritory (Non - Institutions Companies

Financial)

1 2 3 4 5 6 7 8 9

Andaman & 283 1 8 23 20 – 798 1,133Nicobar (25.0) (0.1) (0.7) (2.0) (1.8) (70.5) (100.0)

Central 61,532 4,932 14,608 17,772 2,324 2,274 2,69,221 3,72,663Region (16.5) (1.3) (3.9) (4.8) (0.6) (0.6) (72.2) (100.0)

Chhattisgarh 8,996 74 1,109 2,471 615 47 19,644 32,956(27.3) (0.2) (3.4) (7.5) (1.9) (0.1) (59.6) (100.0)

Madhya 13,125 846 6,460 4,619 513 406 59,574 85,544Pradesh (15.3) (1.0) (7.6) (5.4) (0.6) (0.5) (69.6) (100.0)

Uttar 25,954 3,594 6,568 8,311 1,125 1,676 1,70,304 2,17,532Pradesh (11.9) (1.7) (3.0) (3.8) (0.5) (0.8) (78.3) (100.0)

Uttarakhand 13,457 417 471 2,371 71 145 19,699 36,632(36.7) (1.1) (1.3) (6.5) (0.2) (0.4) (53.8) (100.0)

Western 89,703 62,584 2,28,414 68,018 1,04,384 54,553 4,63,096 10,70,752Region (8.4) (5.8) (21.3) (6.4) (9.7) (5.1) (43.2) (100.0)

Goa 1,335 4,116 1,455 85 307 48 11,664 19,010(7.0) (21.7) (7.7) (0.4) (1.6) (0.3) (61.4) (100.0)

Gujarat 8,967 13,303 12,444 4,518 2,715 2,785 1,12,478 1,57,209(5.7) (8.5) (7.9) (2.9) (1.7) (1.8) (71.5) (100.0)

Maharashtra 79,265 44,900 2,14,421 63,402 1,01,357 51,712 3,37,739 8,92,796(8.9) (5.0) (24.0) (7.1) (11.4) (5.8) (37.8) (100.0)

Dadra & 81 2 48 9 – 1 494 636Nagar Haveli (12.7) (0.4) (7.6) (1.4) (0.2) (77.7) (100.0)

Daman & Diu 55 264 46 4 5 8 720 1,101(5.0) (24.0) (4.2) (0.3) (0.4) (0.7) (65.4) (100.0)

Southern 81,104 61,457 75,411 12,597 8,088 7,708 4,66,231 7,12,596Region (11.4) (8.6) (10.6) (1.8) (1.1) (1.1) (65.4) (100.0)

Andhra 31,538 5,479 16,910 2,056 2,512 1,893 1,18,301 1,78,691Pradesh (17.6) (3.1) (9.5) (1.2) (1.4) (1.1) (66.2) (100.0)

Karnataka 23,955 11,138 32,236 4,514 1,673 2,158 1,39,058 2,14,732(11.2) (5.2) (15.0) (2.1) (0.8) (1.0) (64.8) (100.0)

Kerala 6,867 31,805 2,588 2,825 1,328 515 65,560 1,11,488(6.2) (28.5) (2.3) (2.5) (1.2) (0.5) (58.8) (100.0)

Tamil Nadu 17,654 12,562 23,454 3,131 2,511 3,119 1,40,135 2,02,566(8.7) (6.2) (11.6) (1.5) (1.2) (1.5) (69.2) (100.0)

Lakshadweep 244 1 2 28 – – 78 354(69.1) (0.2) (0.7) (7.9) (22.1) (100.0)

Puducherry 845 472 219 43 65 23 3,098 4,765(17.7) (9.9) (4.6) (0.9) (1.4) (0.5) (65.0) (100.0)

Total 4,47,805 1,67,699 4,32,209 1,19,110 1,30,564 93,238 19,28,017 33,18,641(13.5) (5.1) (13.0) (3.6) (3.9) (2.8) (58.1) (100.0)

– : Nil or Negligible.Note : Figures in Brackets Indicate Percentage to Total.

ARTICLE



Banks: March 2008


Statement 4: Pattern of Ownership of Deposits in Selected Metropolitan Areas - As on March 31, 2008

(Rs. crore)

Centre Government Foreign Private Financial Sector Household Total

Sector Sector Corporate Banks Other Other Sector

Sector Financial Financial

(Non - Institutions Companies

Financial)

1 2 3 4 5 6 7 8 9

Chennai 10,100 5,991 18,371 1,480 1,677 2,056 56,788 96,463

(10.5) (6.2) (19.0) (1.5) (1.7) (2.1) (58.9) (100.0)

Mumbai 60,954 38,525 201,235 55,604 99,005 51,274 221,138 727,734

(8.4) (5.3) (27.7) (7.6) (13.6) (7.0) (30.4) (100.0)

Delhi 1,05,844 15,866 81,054 2,378 6,906 18,441 1,93,198 4,23,688

(25.0) (3.7) (19.1) (0.6) (1.6) (4.4) (45.6) (100.0)

Kolkata 22,479 3,312 12,374 958 1,502 7,166 58,397 1,06,188

(21.2) (3.1) (11.7) (0.9) (1.4) (6.7) (55.0) (100.0)

Total 1,99,377 63,694 3,13,033 60,420 1,09,090 78,937 5,29,521 13,54,072

(14.7) (4.7) (23.1) (4.5) (8.1) (5.8) (39.1) (100.0)

Note : Figures in Brackets Indicate Percentages to Total.

ARTICLE



Statement 5: Composition of Deposits According to Bank Group and Type - of Deposits -As on March 31, 2008

(Rs. crore)

Bank group Current Savings Term Total

Amount Per cent Amount Per cent Amount Per cent Amount Per cent

1 2 3 4 5 6 7 8 9

State Bank of India and 99,653 13.3 2,10,336 28.0 4,41,264 58.7 7,51,254 100.0

its Associates

Nationalised Banks 1,60,626 10.1 3,79,518 24.0 10,44,338 65.9 15,84,483 100.0

Regional Rural Banks 5,079 5.3 51,846 53.9 39,181 40.8 96,106 100.0

Other Indian Scheduled 1,14,761 16.5 1,17,966 16.9 4,63,292 66.6 6,96,019 100.0

Commercial Banks

Foreign Banks 69,109 36.2 26,098 13.7 95,572 50.1 1,90,780 100.0

All Scheduled

Commercial Banks 4,49,228 13.5 7,85,764 23.7 20,83,649 62.8 33,18,641 100.0

ARTICLE



Banks: March 2008


Statement 6: Pattern of Ownership of Deposits with Scheduled Commercial BanksClassified by Bank Groups - As on March 31, 2008

(Rs. crore)

Sector State Bank of Nationalised Regional Other Scheduled Foreign All ScheduledIndia and Banks Rural Commercial Banks Commercial

its Asscociates Banks Banks Banks

Amount Per cent Amount Per cent Amount Per cent Amount Per cent Amount Per cent Amount Per cent

1 2 3 4 5 6 7 8 9 10 11 12 13

I. Government Sector 1,29,911 17.3 2,76,170 17.4 12,465 13.0 29,099 4.2 160 0.1 4,47,805 13.5

1. Central & State 53,812 7.2 1,07,271 6.8 5,652 5.9 11,820 1.7 1 – 1,78,555 5.4

Governments

i) Central Government 25,372 3.4 47,579 3.0 338 0.4 4,207 0.6 – – 77,496 2.3

ii) State Governments 28,440 3.8 59,692 3.8 5,314 5.5 7,614 1.1 – – 1,01,059 3.0

2. Local Authorities 18,996 2.5 43,684 2.8 5,214 5.4 1,951 0.3 – – 69,846 2.1

3. Quasi Government Bodies 15,982 2.1 46,064 2.9 778 0.8 5,137 0.7 16 – 67,977 2.0

Of which:

State Electricity Boards 2,335 0.3 8,584 0.5 31 – 2,172 0.3 – – 13,123 0.4

4. Public Sector Corporations 41,120 5.5 79,151 5.0 821 0.9 10,191 1.5 143 0.1 1,31,426 4.0

and Companies

i) Non - Departmental 12,841 1.7 29,646 1.9 98 0.1 4,035 0.6 141 0.1 46,761 1.4

Commercial Undertakings

ii) Others 28,279 3.8 49,505 3.1 723 0.8 6,156 0.9 2 – 84,665 2.6

II. Private Corporate Sector 48,823 6.5 87,904 5.5 92 0.1 2,02,003 29.0 93,386 48.9 4,32,209 13.0

(Non - Financial)

1. Non- Financial Companies 30,954 4.1 49,112 3.1 27 – 1,59,241 22.9 89,957 47.2 3,29,291 9.9

2. Non-Credit Co -operative 606 0.1 1,765 0.1 59 0.1 450 0.1 7 – 2,887 0.1

Institutions

3. Others 17,262 2.3 37,027 2.3 6 – 42,312 6.1 3,422 1.8 1,00,031 3.0

III. Financial Sector 60,153 8.0 1,25,014 7.9 681 0.7 1,33,187 19.1 23,877 12.5 3,42,912 10.3

1. Banks 24,599 3.3 45,693 2.9 590 0.6 39,046 5.6 9,181 4.8 1,19,110 3.6

i) Indian Commercial 19,269 2.6 26,591 1.7 346 0.4 26,029 3.7 6,878 3.6 79,114 2.4

Banks

ii) Foreign Resident Banks 786 0.1 1,032 0.1 – – 1,554 0.2 2,068 1.1 5,441 0.2

(Offices of Foreign

Banks in India )

iii) Co-operative Banks 4,544 0.6 18,069 1.1 244 0.3 11,463 1.6 235 0.1 34,555 1.0

& Credit societies

a. Co-operative Banks 3,892 0.5 17,083 1.1 132 0.1 11,117 1.6 234 0.1 32,459 1.0

b. Credit Societies 652 0.1 986 0.1 112 0.1 346 – – – 2,096 0.1

2. Other Financial Institutions 18,408 2.5 64,486 4.1 41 – 42,529 6.1 5,100 2.7 1,30,564 3.9

i) Financial Companies 766 0.1 1,231 0.1 – – 1,009 0.1 186 0.1 3,192 0.1

a. Housing Finance 429 0.1 636 – – 236 – 84 – 1,385 –

Companies

b. Auto Finance 337 – 596 – – – 773 0.1 101 0.1 1,807 0.1

Companies

ii) Total of Mutual Funds 5,136 0.7 32,413 2.0 – – 5,545 0.8 4,103 2.2 47,198 1.4

(including Private Sector

Mutual Funds)

a. Mutual Funds in 2 – 20,258 1.3 – – 745 0.1 1,087 0.6 22,092 0.7

Private Sector

b. Other Mutual Funds 5,135 0.7 12,155 0.8 – – 4,800 0.7 3,016 1.6 25,106 0.8

ARTICLE



Statement 6: Pattern of Ownership of Deposits with Scheduled Commercial BanksClassified by Bank Groups - As on March 31, 2008 (Concld.)

(Rs. crore)

Sector State Bank of Nationalised Regional Other Sch. Foreign All ScheduledIndia and Banks Rural Commercial Banks Commercial

its Asscociates Banks Banks Banks

Amount Per cent Amount Per cent Amount Per cent Amount Per cent Amount Per cent Amount Per cent

1 2 3 4 5 6 7 8 9 10 11 12 13

iii) Unit Trust of India 1,083 0.1 2,482 0.2 – – 18,558 2.7 13 – 22,136 0.7

iv) Insurance Corporations 2,402 0.3 12,211 0.8 – – 7,569 1.1 780 0.4 22,962 0.7

and Companies

(Life and General)

v) Term Lending Institutions 350 – 1,168 0.1 40 – 2,076 0.3 1 – 3,636 0.1

vi) Provident Fund 8,670 1.2 14,981 0.9 – – 7,772 1.1 18 – 31,441 0.9

Institutions

3. Other Financial Companies@ 17,146 2.3 14,835 0.9 50 0.1 51,611 7.4 9,596 5.0 93,238 2.8

i) Financial Services 271 – 3,962 0.3 6 – 17,043 2.4 6,265 3.3 27,547 0.8

Companies

ii) Other Financial 2,051 0.3 4,018 0.3 9 – 28,357 4.1 2,880 1.5 37,314 1.1

Companies

iii) Others 14,825 2.0 6,855 0.4 35 – 6,211 0.9 451 0.2 28,378 0.9

IV. Household Sector 4,61,791 61.5 10,33,241 65.2 82,595 85.9 2,99,352 43.0 51,038 26.8 19,28,017 58.1

1. Individuals (including 3,65,866 48.7 8,06,100 50.9 77,588 80.7 2,10,404 30.2 35,420 18.6 14,95,379 45.1

Hindu Undivided Families)

i) Farmers 39,098 5.2 91,481 5.8 41,148 42.8 5,433 0.8 30 – 1,77,189 5.3

ii) Businessmen, Traders, 49,459 6.6 1,52,566 9.6 16,503 17.2 40,415 5.8 4,603 2.4 2,63,546 7.9

Professional and

Self - Employed Persons

iii) Wage and Salary Earners 68,528 9.1 1,07,116 6.8 7,543 7.8 29,496 4.2 5,512 2.9 2,18,196 6.6

iv) Shroffs, Money Lenders 3,438 0.5 8,929 0.6 816 0.8 3,054 0.4 15 – 16,252 0.5

Stock Brokers, Dealers

in Bullion etc.

v) Other Individuals 2,05,344 27.3 4,46,009 28.1 11,578 12.0 1,32,006 19.0 25,259 13.2 8,20,196 24.7

2. Trusts, Associations, 11,343 1.5 26,783 1.7 660 0.7 35,210 5.1 6,983 3.7 80,977 2.4

Clubs etc.

3. Proprietary and Partnership 22,138 2.9 54,327 3.4 738 0.8 27,884 4.0 5,217 2.7 1,10,305 3.3

concerns etc.

4. Educational Institutions 8,003 1.1 16,440 1.0 1,298 1.4 2,830 0.4 25 – 28,595 0.9

5. Religious Institutions 1,421 0.2 5,306 0.3 273 0.3 1,410 0.2 62 – 8,474 0.3

6. Others(not elsewhere 53,019 7.1 1,24,285 7.8 2,038 2.1 21,615 3.1 3,330 1.7 2,04,287 6.2

classified)

V. Foreign Sector 50,576 6.7 62,153 3.9 273 0.3 32,378 4.7 22,318 11.7 1,67,699 5.1

1. Foreign Consulates, 1,824 0.2 1,302 0.1 48 – 11 – 823 0.4 4,007 0.1

Embassies, - Trade Missions,

Information Services etc.

2. Non-Residents 41,042 5.5 55,356 3.5 187 0.2 30,084 4.3 12,796 6.7 1,39,465 4.2

3. Others 7,710 1.0 5,496 0.3 38 – 2,283 0.3 8,699 4.6 24,226 0.7

Total 7,51,254 100.0 15,84,483 100.0 96,106 100.0 6,96,019 100.0 1,90,780 100.0 33,18,641 100.0

@ Includes (a) ‘Financial Service Companies’ which undertake issue management, portfolio management etc., (b) ‘Other Financial Companies’ which

are engaged in leasing hire purchase, loan companies, etc., and (c) ‘Others’ indicating non-profit institutions serving business like FICCI, CII,

ASSOCHAM, etc.

“–” = Nil or Negligible.

ARTICLE

International BankingStatistics of India –

March 31, 2009


Highlights

International Liabilities

• The international liabilities of banks in

India in rupee terms, end-March 2009

declined by 1.1 per cent over the

* Prepared in the Banking Statistics Division of theDepartment of Statistics and Information Management.The previous article on the subject as at end of December2008 was published in September 2009 issue of thebulletin.

International BankingStatistics of India –March 31, 2009*

The article presents analysis ofinternational liabilities and assets ofbanks in India, classified underLocational Banking Statistics (LBS) andconsolidated international/foreign claimsunder Consolidated Banking Statistics(CBS), collected as per the reportingsystem of the Bank for InternationalSettlements (BIS), for the quarter endedMarch 2009. These data are comparedwith those as at the end of the previousquarters and a year ago. The analysis ofinternational liabilities/assets, based onLBS, has been undertaken byinstrument, country and sector ofcustomer/borrower, currency and countryof incorporation of reporting bank; andthe consolidated international claims,based on CBS, according to country andsector of borrower and residual maturity.Further, a broad comparison ofinternational/foreign claims of BISreporting banks vis-à-vis Indian Bankshas also been covered. Besides, the articledetails international/foreign claimsderived from on- balance sheet items, viz.,loans and deposits, holdings of securitiesas well as off- balance sheet items, viz.,derivatives, guarantees and creditcommitments on ultimate risk basis.

ARTICLE

International BankingStatistics of India –March 31, 2009


position a year ago and by 1.7 per cent

over the previous quarter.

• A declining trend in the ADRs / GDRs,

equities of banks held by the non-

residents and other own issues of

international debt securities since March

2008 resulted in the decline in the

international liabilities over the previous

year position.

• For the quarter end-March 2009, currency

composition of the international

liabilities revealed that the Indian Rupee

continued to be dominating currency,

although its share in the international

liabilities was lower than the

corresponding period a year ago.

• The share of the international liabilities

towards the non-bank sector was lower

at 71.8 per cent than 73.0 per cent a year

ago.

International Assets

• At end-March 2009, the annual growth

of international assets (in Rupees) of

banks in India was at 3.0 per cent and

the growth over the previous quarter

was 1.2 per cent.

• The annual rise in the international

assets was on account of the

components NOSTRO balances,

investment in equities abroad and

investment in foreign government

securities while the increase over the

previous quarter can be attributed

primarily to the NOSTRO balances.

• For the quarter, the share of the non-bank

sector in the international assets declined

to 60.2 per cent from 62.9 per cent in the

previous quarter. The corresponding share

was 70.3 per cent a year ago.

• At end-March 2009, almost all (99.0 per

cent) assets denominated in Indian

Rupee were towards non-bank sector.

Consolidated Banking Statistics

• The annual growth in consolidated

international claims (in Rupees) of

banks based on immediate risk, at end-

March 2009, was 32.6 per cent compared

to 13.6 per cent registered a year ago.

• Consolidated international claims of

Indian banks on immediate risk basis, at

end-March 2009, continued to be of short-

term nature (less than one year) and

accounted for 62.4 per cent of total claims

compared to 69.2 per cent a year ago.

I. Introduction

International Banking Statistics (IBS) is

defined as banks’ on-balance sheet liabilities

and assets vis-à-vis non-residents in any

currency or unit of account along with such

liabilities and assets vis-à-vis residents in

foreign currencies or units of account. IBS

comprises Locational Banking Statistics (LBS)

and Consolidated Banking Statistics (CBS).

The LBS are designed to provide

comprehensive and consistent quarterly data

on international banking business conducted

in the Bank for International Settlements

(BIS) reporting area. The purpose of CBS is

to provide comprehensive and consistent

quarterly data on banks’ financial claims on

other countries, on immediate borrower

basis for providing a measure of country

transfer risk and on an ultimate risk basis

for assessing country risk exposures of

national banking system. LBS provides the

assets and liabilities by instrument/

components, currency, sector, country of

residence of counter-party / transacting unit,

ARTICLE


March 31, 2009


and nationality of reporting banks, while CBS

provides data on international/ foreign claims

as per residual maturity and sector of borrower

along with the exposures by country of

immediate borrower and on the reallocation

of claims (i.e. risk transfers) to the country of

ultimate risk. The BIS reporting system of IBS

was revised since March 2005, inter alia,

covering the claims of domestic reporting

banks arising from derivatives, guarantees and

credit commitments.

Other than India, central banks from 42

other countries report aggregate LBS to BIS

while central banks from 30 countries report

aggregate CBS under the BIS reporting system

of IBS. The data are published as a part of

the BIS Quarterly Review. This article

presents a brief analysis of the LBS as well as

CBS for India for the quarter ending March

2009. It also presents data on comparative

position of CBS of India vis-à-vis other

countries based on data published by BIS1 .

II. Data Coverage andMethodology2

The analysis is based on the data as on

March 31, 2009 reported by 86 banks. These

banks are authorised to conduct business in

foreign exchange through their branches,

designated as authorised dealers. These

banks include 57 Indian banks and 29 foreign

banks (incorporated in 22 countries). Out of

the 57 Indian banks, 27 are public sector banks

(including IDBI Ltd.), 20 are private sector

banks and 10 are co-operative banks. The

banks received data from their branches,

which in turn are consolidated at bank level

and submitted to the Reserve Bank. The

details such as asset or liability category, actual

currency (24 major currencies and domestic

currency), country of transacting unit, sector

of the transacting unit, country of ultimate

risk, sector of ultimate risk, etc., are reported.

III. Comparison of External DebtStatistics and InternationalLiabilities

The international liabilities of banks

covered in IBS (as per BIS definition) and

external debt accounted for by banking sector

in India are not strictly comparable, since

certain items of liabilities, like, American

Depositary Receipts (ADRs), Global

Depositary Receipts (GDRs), equity of banks

held by non-residents, included in IBS, are

not part of the external debt statistics. It may

be construed that broadly international

liabilities of banking sector in India (under

IBS reporting) are the sum of external debt

statistics (for banking sector in India),

liabilities of banks in foreign currency

towards residents (EEFC, RFC, Intra-bank FC

Deposits), equities of banks held by NRIs,

non-debt credit flows on account of ADRs/

GDRs, capital supplied by head offices of

foreign banks in India, and Rupee and ACU

Dollar balance in VOSTRO accounts.

Table 1 presents a classification of the

international liabilities into items included

and not included under external debt

statistics, as at end March 2009 covered

under IBS, in US dollar terms.

1A brief outline of the BIS reporting system of IBS

comprising LBS and CBS, purpose of IBS, BIS reporting areafor IBS, the distinction / relation between IBS vis-à-visexternal debt of India has been provided in the Annex tothe article published in September 2009 issue on thesubject.

2 The methodology of compilation of LBS/CBS andexplanation to various terms used in IBS has been providedin the Annex to the article published in September 2009issue on the subject.

ARTICLE



IV Results

IV.1 Locational Banking Statistics

The LBS provides component/

instrument-wise, country-wise (residence of

transacting unit and the country of

incorporation of reporting bank), sector-

wise, major currency-wise classification of

liabilities and assets of banks in India. Data

presented in this section are based on data

reported by branches of banks, which are

conducting business in India, viz. the

branches of Indian banks and branches of

foreign banks in India.

Table 1: International Liabilities of Banks in India

Categories /Items Amount Outstanding as at end

March 2008 December 2008 March 2009

I. Items included under External Debt Statistics + 70,711 62,904 61,005

1. Foreign Currency Non-Resident Bank [FCNR(B)] Schemes 15,040 13,418 14,350

2. Non-Resident External (NRE) Rupee A/Cs 27,742 24,410 24,544

3. Foreign Currency Borrowings (includes Inter-bank

borrowings and external commercial borrowings of

banks) other than through ADRs, GDRs, Bonds, etc. 19,256 18,105 14,866

4. Bonds 1,989 1,651 1,350

5. Floating Rate Notes (FRNs) — — —

6. Foreign Institutional Investors’ (FII) A/Cs 3,562 1,846 1,816

7. Other Own issues of Intl. Debt Securities 284 0 0

8. Non-Resident Ordinary(NRO) Rupee Deposits 2,838 3,475 4,078

II. Items not included under External Debt Statistics 27 45 23

1. Embassy A/Cs 24 45 23

2. ESCROW A/Cs 3 0 0

III. Non-Debt Liabilities (not included in External Debt due

to definitional aspects) 23,013 13,593 11,147

1. American Depository Receipts(ADRs) and Global

Depository Receipts (GDRs) 6,259 2,935 2,042

2. Equities of banks held by NRIs 11,367 5,351 3,733

3. Capital of foreign banks/branches in India and

certain other items in transition 5,388 5,306 5,373

IV. FC Liabilities to Residents (not included in External

Debt due to definitional aspects) + 3,288 3,789 3,649

1. Exchange Earners’ Foreign Currency (EEFC) A/Cs 2,501 3,102 3,138

2. Resident Foreign Currency (RFC) Deposits 354 223 187

3. Inter-Bank Foreign Currency Deposits and other

Foreign Currency Deposits of Residents 433 464 325

V. Other Items of International Liabilities (not included

in External Debt due to definitional aspects) 370 401 397

1. Balances in VOSTRO A/Cs of non-resident banks and

exchange houses (including term deposits) 370 401 397

VI. Total International Liabilities (I+II+III+IV+V) 97,422 80,736 76,224

+: Data as reported under IBS do not cover all branches and are not comparable with data reported by all bank branches under

a different set of data.

Notes: 1. All figures are inclusive of accrued interest.

2. The FEDAI revaluation rate for Rupee-US Dollar exchange as at end-March 2008, December 2008, and March 2009

were Rs. 40.1200, Rs. 48.7100 and Rs. 50.7200 per US Dollar, respectively .

3. Data have been revised for previous quarters

(US $ million)

ARTICLE


March 31, 2009


IV.1.A International Liabilities andAssets –Aggregate Level

As at end-March 2009, the international

assets increased by Rs. 6,645 crore (3.0 per

cent) over the position a year ago while the

increase over the previous quarter was of

Rs.2,826 crore (1.2 per cent) (Statement I).

The international liabilities, however,

recorded a decline of Rs. 4,249 crore (1.1 per

cent) over the position a year ago and a

decline of Rs.6,655 (1.7 per cent) over the

previous quarter. The gap between the

international assets and liabilities was lower

(Chart 1) than the previous quarter.

IV. 1. B Components and Composition ofInternational Liabilities

As at end-March 2009, despite

substantial increase in the FCNR(B)

deposits, NRO and NRE deposits, VOSTRO

balances and capital/ remittable profits of

foreign banks in India, over the previous

year position, the declining trend in the

value of ADRs / GDRs, equities of banks held

by the non-residents and other own issues of

international debt securities (Statement I)

since March 2008 resulted in the decline in

the overall international liabilities over the

year ago position.

Major components of the international

liabilities of banks in India are presented in

Chart 2 and Chart 3. For the quarter under

reference, the percentage share of the major

component ‘Deposits and Loans’ in the total

international liabilities increased to 83.6 per

cent from 74.0 per cent a year ago, with a

corresponding decline in the share of the

major component ‘Other International

Liabilities’ to 14.6 per cent from 23.6 per cent

during the period.

ARTICLE



During the year, FCNR(B), NRE and NRO

deposits have contributed primarily to the

increase in the share of the ‘Loans and

Deposits’.

IV.1.C Components and Composition ofInternational Assets

As at end-March 2009, the annual

growth in the international assets (Chart 4

and Chart 5) was on account of the

components NOSTRO balances, investment

in equities abroad and investment in foreign

government securities while the increase

over the previous quarter can be attributed

primarily to increase in NOSTRO balances

during the period.

The composition of the international

assets in terms of the shares by the three

major components (viz. ‘Loans and

Deposits’, ‘Holdings of Debt Securities’ and

‘Other International Assets’) in the total

international assets remained more or less

same since March 2008 [Statement I]. The

share of the component NOSTRO balances

has been increasing since June 2008 and as

at end-March 2009, the share to the total

international assets soared to 29.0 per cent

from 20.5 per cent a year ago. The

component ‘foreign currency loans to

residents’ continued to be the dominating

component of the international assets.

IV. 1. D Composition of Liabilities andAssets by Sector and Currency

As at end-March 2009, the share of the

international liabilities towards the non-

bank sector was marginally lower at 71.8

per cent than 73.0 per cent a year ago

(Statement II, Chart 6). As regards the

ARTICLE


March 31, 2009


currency composition of the international

liabilities, the Indian Rupee continued to be

the dominating currency, although, its share

in the international liabilities was lower

than the corresponding share a year ago.

The sector and currency-wise

composition of total international liabilities

at end-March 2009 showed that as high as

85.3 per cent and 83.3 per cent of liabilities

denominated in Indian Rupees and Pound

Sterling, respectively, are towards non-bank

sector. The share of the liabilities

denominated in Euro towards non-bank

sector increased to 76.5 per cent as at end-

March 2009 from 70.7 per cent a year ago.

The share of non-bank sector in the

international assets, at end-March 2009,

declined to 60.2 per cent (Statement II) from

62.9 per cent in the previous quarter. The

corresponding share was at 70.3 per cent a

year ago. In terms of the currency

composition of international assets for all

sectors, the US Dollar continued to be the

major currency with a share of 82.8 per cent,

distantly followed by Euro (6.1 per cent).

The international assets denominated in

Indian Rupee had a share of 3.3 per cent in

the total international assets (Chart 7,

Statement II).

Sector and currency-wise composition of

total assets showed that as at end-March

2009, almost all (99.0 per cent) the assets

denominated in Indian Rupee are towards

non-bank sector. For the assets

denominated in US Dollar and Euro, the

share of the non-bank sector declined as

compared to the corresponding shares in the

previous quarters.

IV.1.E Composition by Country ofResidence of Transacting Units

Statement III presents the classification

of liabilities and assets according to country

of residence of transacting unit

denominated in domestic as well foreign

currencies. As at end-March 2009, the

international liabilities towards transacting

units (bank and non-bank sectors) from the

US had the highest share of 28.4 per cent,

followed by a share of 13.0 per cent towards

the UK. The share towards transacting units

in India increased to 6.8 per cent from 4.3

per cent a year ago.

The country-wise breakup of major

components of the international liabilities

(Statement IV) revealed that at end-March

2009, overall decline in the (foreign

currency) borrowings over the previous

quarter may be attributed to the

corresponding decline against transacting

units of the US, the UK, France as well as

India.

For the quarter under reference, of the

total international assets of banks, 66.8 per

cent were concentrated in the two countries,

viz., India (43.8 per cent) and the US (23.0

ARTICLE



per cent) (Chart 9, Statement III). Among the

major components of the international

assets, the steep rise in the NOSTRO balances

at end-March 2009, over the previous quarter,

was primarily towards the banks from the

UK, Germany and France (Statement V).

Table 2: International Liabilities and Assets of Banks in India(branches of Indian and Foreign Banks in India)

(in Rs. crore)

Items Amount Outstanding # as at end


International Liabilities Rs. US $ Rs. US $ Rs. US $Crore+ million Crore+ million Crore+ million

Liabilities to residents and non-residents 187,008 46,612 197,074 40,459 186,171 36,706denominated in foreign currencies (47.8) (47.8) (50.1) (50.1) (48.2) (48.2)

Liabilities to non-residents 203,849 50,810 196,189 40,277 200,437 39,518denominated in Indian Rupees (52.2) (52.2) (49.9) (49.9) (51.8) (51.8)

Total International Liabilities + 390,857 97,422 393,263 80,736 386,608 76,224(100.0) (100.0) (100.0) (100.0) (100.0) (100.0)

International AssetsForeign Currency(FC) Assets(includes FC loans to residents and non-residents,Outstanding Export Bills, FC lending to banks inIndia, FC deposits with banks in India, OverseasFC Assets, Remittable profits of foreign branches 215,356 53,678 217,958 44,746 221,676 43,706of Indian banks, etc.) (96.7) (96.7) (96.2) (96.2) (96.7) (96.7)

Assets in Indian Rupees with Non-residents (includes Rupee loans to non- 7,355 1,833 8,572 1,760 7,680 1,514residents out of non-resident deposits) (3.3) (3.3) (3.8) (3.8) (3.3) (3.3)

Total International Assets 222,711 55,511 226,530 46,506 229,356 45,220(100.0) (100.0) (100.0) (100.0) (100.0) (100.0)

+ : 1 crore= 10 million. The FEDAI revaluation rate for Rupee-US Dollar exchange as at end-March 2008, December 2008and March 2009 were Rs 40.1200, Rs. 48.7100 and Rs.50.7200 per US Dollar, respectively .

# : Data pertain to only reporting branches. As such, these data provide broad dimensions of international assets andliabilities,

Notes: 1. All figures are inclusive of accrued interest.2. Figures in brackets represent percentages to total international assets3. Sum of the components may not tally with total due to rounding off .4. Data have been revised for previous quarters.

ARTICLE


March 31, 2009


IV. 1. F Composition by Country ofIncorporation of Reporting Bank

The classification of international

liabilities of banks according to their

country of incorporation is presented in

Statement VI. Among the banks

incorporated in countries other than India,

at end-March 2009, the US had the highest

share in international liabilities at 8.1 per

cent while those from Hong Kong and the

UK had shares 6.8 per cent and 5.4 per cent,

respectively. The banks incorporated in

India accounted for the highest share at 70.9

per cent against a share of 76.5 per cent a

year ago.

The share of the banks incorporated in

India in the international assets declined to

70.6 per cent for the quarter, from 74.8 per

cent registered a year ago. The share of the

banks incorporated in the UK registered an

increasing trend since March 2008

while the share of the banks incorporated

in the US declined during the period

(Statement VI).

IV. 2 Consolidated Banking Statistics(CBS)

The CBS provides country-wise

(immediate country risk exposure), residual-

maturity-wise and sector-wise classification

of international claims (on-balance-sheet) of

banks on countries other than India. It also

provides consolidated country risk exposure

on an ultimate risk basis and international

claims arising out of derivatives, guarantees

and credit commitments.

There are four reports comprising the

consolidated banking statistics on

immediate risk basis. The first report is sum

of the consolidated banking statistics for

(i) domestic banks, (ii) inside (reporting)

area foreign banks and (iii) outside

(reporting) area foreign banks and the

remaining three reports recount the above

three components (i), (ii) and (iii), separately.

The data presented in this section and

Statement VII is based on data reported by

all banks functioning in India as well as

foreign branches of Indian banks i.e. based

on the first combined report and no separate

discussion is done on other three reports.

IV. 2. A Overall Exposure/Claims onImmediate Risk Basis

Consolidated international claims of

banks, based on immediate risk basis, on

countries other than India at end-March

2009, recorded an increase of Rs. 33,547

crore (28.9 per cent) to Rs.2,24,665 crore

over the previous quarter and an increase

of Rs. 55,184 crore (32.6 per cent) over the

position a year ago (Statement VII).

IV. 2. B Composition by Country ofResidence of Transacting Unit –Immediate Risk

Consolidated international claims of

banks, classified according to country of

immediate risk, revealed that at end-March

2009, reporting banks’ claims on the USA

accounted for the largest share (24.8 per

cent), followed by the UK (13.2 per cent),

Hong Kong (8.5 per cent) and Singapore (7.0

per cent) (Chart 10 and Table 3).

IV. 2. C Composition by Sector -Immediate Risk Basis

Sectoral classification of consolidated

international claims of banks on other

countries, on immediate country risk basis

is presented in Statement VII. At end-March

ARTICLE



Country Amount Outstanding as at end


Rs. Crore+ US $ million Rs. Crore+ US $ million Rs. Crore+ US $ million

Total Consolidated International 169,481 42,244 191,118 39,236 224,665 44,295

Claims (excluding claims on India)

of which:

United States of America # 35,374 8,817 43,986 9,030 55,734 10,989

(20.9) (20.9) (23.0) (23.0) (24.8) (24.8)

United Kingdom@ 21,899 5,458 25,246 5,183 29,753 5,866

(12.9) (12.9) (13.2) (13.2) (13.2) (13.2)

Singapore 11,918 2,971 14,454 2,967 15,762 3,108

(7.0) (7.0) (7.6) (7.6) (7.0) (7.0)

Hong Kong 9,792 2,441 14,779 3,034 19,031 3,752

(5.8) (5.8) (7.7) (7.7) (8.5) (8.5)

United Arab Emirates 7,990 1,992 9,660 1,983 11,309 2,230

(4.7) (4.7) (5.1) (5.1) (5.0) (5.0)

Germany 10,607 2,644 9,565 1,964 9,869 1,946

(6.3) (6.3) (5.0) (5.0) (4.4) (4.4)

+ : 1 crore= 10 million. The FEDAI revaluation rate for Rupee-US Dollar exchange as at end-March 2008, December 2008, and

March 2009 wereRs. 40.1200, Rs 48.7100 and Rs. 50.7200 per US Dollar, respectively .

@ : excluding Guernsey, Isle of Man and Jersey, # : includes Miday Island and Wake Islands.

Note: 1. Figures in brackets represent percentages to the total international claims.

2. Data have been revised for previous quarters.

Table 3: Consolidated International Claims of Indian Banks on Countries otherthan India on Immediate Country Risk Basis

2009, the share of the banking sector in the

international claims increased to 45.5 per

cent from 36.8 per cent a year ago. A

corresponding decline was observed in the

share towards the non-bank private sector.

The sectoral classification of the

consolidated international claims of banks

against the UK and Hong Kong depicted a

shift in the sectoral composition during the

period March 2008 to March 2009. For the

international claims against these countries,

the share of the banking sector increased

during the period. The share of the banking

sector in the consolidated international

claims against the US climbed up to 49.6 per

cent from 29.9 per cent in the previous

quarter. The share was at 30.2 per cent a

year ago.

IV. 2. D Composition by ResidualMaturity- Immediate risk basis

As evidenced by the data as at end-

March 2009, the reporting banks continued

to prefer short-term lending/investments

ARTICLE


March 31, 2009


over the long term portfolio. However, the

share of the long-term claims to the total

international claims was higher at 35.5 per

cent against 29.6 per cent a year ago,

although it was marginally lower than 37.7

per cent for the previous quarter. The details

of consolidated international claims of

banks according to residual maturity and

country of immediate risk are provided in

Statement VII.

IV. 2. E Exposure/Claims on UltimateRisk Basis

Consolidated foreign claims of domestic

banks (international claims of Indian banks

plus local claims in local currency of foreign

offices of Indian banks) on ultimate risk

basis, as at end-March 2009, has seen a rise

to Rs. 202,279 crore (22.5 per cent) from Rs.

165,181 crore a year ago (Table 4).

Consolidated foreign claims of Indian banks,

(Rs. crore)

Total Foreign Claims Contingent Claims/Exposures Arising from Guarantees

Country of Consolidated Claims as at end Country of Consolidated Claims as at end

Ultimate Risk March December March Ultimate Risk March December March

2008 2008 2009 2008 2008 2009

Total 165,181 180,585 202,279 Total 26,818 45,920 45,600

of which: of which:

United States of 31,951 37,941 48,357 United States of 3,982 8,884 7,185

America # (19.3) (21.0) (23.9) America # (14.8) (19.3) (15.8)

United Kingdom @ 18,170 17,537 21,181 China 2,041 5,156 6,275

(11.0) (9.7) (10.5) (7.6) (11.2) (13.8)

Singapore 12,340 14,725 14,557 United Arab 1,718 3,270 3,577

(7.5) (8.2) (7.2) Emirates (6.4) (7.1) (7.8)

Canada 8,984 11,239 11,982 Germany 2,559 3,433 2,946

(5.4) (6.2) (5.9) (5.2) (7.5) (6.5)

Hong Kong 8,341 8,098 10,509 United Kingdom @ 1,387 3,619 2,837

(5.0) (4.5) (5.2) (5.8) (7.9) (6.2)

Contingent Claims/Exposures Arising from Derivatives Contingent Claims/Exposures Arising from Credit Commitments

Country of Consolidated Claim as at end Country of Consolidated Claim as at end

Ultimate Risk March December March Ultimate Risk March December March

2008 2008 2009 2008 2008 2009

Total 21,311 19,001 18,728 Total 7,333 6,737 5,731

of which: of which:

United Kingdom @ 4,830 4,887 5,414 United States of 2,975 4,113 3,278

(22.7) (25.7) (28.9) America # (40.6) (61.1) (57.2)

United States of 3,452 3,491 3,101 Singspore 369 458 549

America # (16.2) (18.4) (16.6) (5.0) (6.8) (9.6)

France 2,269 2,284 1,940 Hongkong 160 428 540

(10.6) (12.0) (10.4) (2.2) (6.8) (9.4)

Germany 2,316 1,135 1,103 Egypt — — 237

(10.9) (6.0) (5.9) (4.1)

Switzerland 1,623 1,217 896 United Arab 230 93 76

(7.6) (6.4) (4.8) Emirates (3.1) (1.4) (1.3)

@ : excluding Guernsey, Isle of Man and Jersey. # : includes Miday Island and Wake Islands.

Note: Figures in brackets represent percentages to total.

Table 4: Consolidated Foreign Claims and Contingent Claims/Exposures arising from Derivatives,Guarantees and Credit Commitments of Domestic Banks on Ultimate Risk Basis

ARTICLE



for the quarter, against the top five countries

in terms of their share in the consolidated

foreign claims, witnessed an increase over

the levels as at end-March 2008.

The consolidated claims/exposure of

Indian banks, on countries other than India,

arising out of derivatives, as at end-March

2009, declined to Rs. 18,728 crore from Rs.

21,311 crore a year ago. The claims, arising

out of guarantees, as at end-March 2009

registered a substantial increase over the

level a year ago. For the reference quarter,

the consolidated claims of India, on

countries other than India, arising out of

credit commitments has witnessed a decline

over the position of the previous quarter as

well as a year ago.

IV. 2. F Comparison of CBS of theCountries Reporting Data to BIS vis-à-vis CBS of India

A comparative position of CBS of India

and the CBS of BIS reporting countries as

at end-March 2009 and end-March 2008 has

been presented in various tables (Table 5,

Table 5: International Claims of BIS Reporting Banks vis-à-visIndian Banks - by Maturity and Sector

(US $ billion)

Maturity/sector Claims of BIS Reporting Claims of BIS Reporting Claims of Indian Banks on countries

Countries on all Other Countries Countries on India other than India #

March 2008 March 2009 March 2008 March 2009 March 2008 March 2009

(a) Total Foreign 36,908.1 29,832.0 228.7 218.7 47.9 48.6

Claims (b+c) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0)

(b) Local Claims in 11,781.3 10,093.7 83.2 77.6 5.7 4.3

Local Currencies (31.9) (33.8) (36.4) (35.5) (11.9) (8.9)

(c) Total International 25,126.7 19,738.3 145.5 141.1 42.2 44.3

Claim (68.1) (66.2) (63.6) (64.5) (88.1) (91.1)

of which:

Maturity Short Term * 13,642.6 9,760.5 79.7 72.0 29.2 27.7

(54.3) (49.4) (54.8) (51.0) (69.2) (62.5)

Long Term ** 7,617.9 7,082.2 43.8 53.8 12.5 15.7

(30.3) (35.9) (30.1) (38.1) (29.6) (35.5)

Sector $ Bank 11,833.8 8,592.5 48.5 45.0 15.6 20.2

(47.1) (43.5) (33.3) (31.9) (37.0) (45.6)

Non-Bank 2,529.7 2,295.2 7.8 6.6 0.2 0.1

Public (10.1) (11.6) (5.3) (4.7) (0.5) (0.3)

Non-Bank 10,500.9 8,630.1 85.5 85.4 26.5 24.0

Private (41.8) (43.7) (58.7) (60.5) (62.8) (54.2)

# : Claims of Indian Banks’ branches/offices operating in India and abroad, on countries other than India; these data are taken from

the data supplied to the BIS.

* : Claims with a residual maturity of up to and including one year

** : Claims with a maturity of over one year (excluding unallocated maturity)

$ : Excluding unallocated sector

Note : Figures in brackets represent percentages to total international claims.

Source : BIS International Consolidated Banking Statistics (www.bis.org) updated till April 25, 2007

ARTICLE


March 31, 2009


6, 7 and 8) covering three aspects, viz.,

(i) consolidated international/foreign

claims of banks in the BIS reporting

countries on all other countries,

(ii) consolidated international/foreign

claims of banks in the BIS reporting

Table 6: International Claims of BIS Reporting Banks on all other Countries - by Country of Incorporation

(US $ billion)

Country of Incorporation International Claims on all other Countries

March 2008 March 2009

Total International Claims 19,869.3 15,463.4

of which :

Germany 3,915.7 2,763.9(19.7) (17.9)

France 2,511.0 1,850.3(12.6) (12.0)

United Kingdom 2,120.8 1,638.2(10.7) (10.6)

Japan 2,067.6 1,834.6(10.4) (11.9)

Swtzerland 1,500.3 969.0(7.6) (6.3)

Netherlands 1,318.6 868.9(6.6) (5.6)

United States 1,069.5 1,644.4(5.4) (10.6)

India # 42.2 44.3(0.2) (0.3)

# : Claims of Indian Banks’ branches/offices operating in India and abroad, on countries other than India; these data are taken from thedata supplied to the BIS.

Note : Figures in brackets represent percentages to total international claims.Source : BIS International Consolidated Banking Statistics (www.bis.org)

Table7: Consolidated Foreign Claims of BIS Reporting Banks on India & other Countries andIndian Banks’ claim on other Countries: Ultimate Risk Basis

(US $ billion)

Claims Claims of BIS Reporting Claims of BIS Reporting Claims of Indian Banks on

Countries’ Banks on all Countries’ countries other Countries including India## Banks on India than India #

March 2008 March 2009 March 2008 March 2009 March 2008 March 2009

(a) Total Foreign Claims 30,543.3 24,734.7 207.6 191.3 41.2 40.0

of which :

Banks 8,879.9 6,166.3 48.4 39.6 19.3 20.0

(29.1) (24.9) (23.3) (20.7) (46.8) (50.0)

Sector Non-Bank Public 4,371.2 4,081.8 16.7 18.6 0.4 0.3

(14.3) (16.5) (8.0) (9.7) (1.0) (0.8)

Non-Bank Private 17,091.8 14,270.8 142.1 132.9 21.5 19.6

(56.0) (57.7) (68.4) (69.5) (52.2) (49.0)

(b) Other Exposures

Derivatives 4,744.6 6,366.5 16.3 24.4 5.3 3.7

Guarantees 8,254.0 7,632.9 21.1 26.0 6.7 9.0

Credit Commitments 4,970.6 3,932.5 16.0 17.0 1.8 1.1

# : Claims of Indian Banks’ branches/offices operating in India and abroad, on countries other than India; these data are taken from

the data supplied to the BIS.

## : Out of thirty countries submitting CBS on immediate risk basis, twenty four countries submitted CBS on ultimate risk basis to

the BIS.

Note : Figures in brackets represent percentages to total foreign claims.

Source : BIS International Consolidated Banking Statistics (www.bis.org)

ARTICLE



countries on India and (iii) international/

foreign claims of Indian Banks on

countries other than India. The data

published by the BIS relate to the

consolidated total international/foreign

claims of all BIS reporting countries on

other countries. Further, the claims of

India denote claims of Indian Banks’

branches/offices, operating in India and

abroad, on countries other than India.

Table 8: International Claims of BIS Reporting Banks on India - by Country of Incorporation

(US $ billion)

Country of Incorporation International Claims on India

March 2008 March 2009

Total International Claims 121.7 113.5

of which:

United States 24.9 31.1(20.5) (27.4)

United Kingdom 19.7 18.9(16.2) (16.7)

Germany 14.8 13.9(12.2) (12.2)

Japan 12.7 10.0(10.4) (8.8)

Netherlands 12.7 8.6(10.4) (7.6)

France 8.6 7.6(7.1) (6.7)

Belgium 5.2 3.1(4.3) (2.7)

Note : 1. The data on international claims on India of banks incorporated in Canada and Ireland are masked by the BIS.2. Figures in brackets represent percentages to total international claims.

Source : BIS International Consolidated Banking Statistics (www.bis.org)

ARTICLE


March 31, 2009


Statement I: International Liabilities/Assets of Banks Classified According to Type(Based on LBS Statements)

(Rs. crore)

Liability/Asset Category International Liabilities

Amount Outstanding as at end of

Q1:2008 Q2:2008 Q3:2008 Q4:2008 Q1:2009

1. Deposits and Loans 289,362 304,586 313,589 318,994 323,205

(74.0) (77.3) (79.0) (81.1) (83.6)

(a) Foreign Currency Non-resident Bank 60,340 62,730 64,868 65,357 72,783

[FCNR(B)] scheme (15.4) (15.9) (16.4) (16.6) (18.8)

(b) Resident Foreign Currency (RFC) A/Cs 1,421 1,197 1,010 1,084 947

(0.4) (0.3) (0.3) (0.3) (0.2)

(c) Exchange Earners Foreign 10,036 10,897 11,170 15,112 15,914

Currency (EEFC) A/Cs (2.6) (2.8) (2.8) (3.8) (4.1)

(d) Other foreign currency deposits (including 1,736 1,712 2,166 2,261 1,648

Inter-bank Foreign Currency deposits) (0.4) (0.4) (0.5) (0.6) (0.4)

(e) Foreign Currency Borrowing (Inter-bank 77,257 90,791 94,155 88,189 75,398

borrowing in India and from abroad, (19.8) (23.1) (23.7) (22.4) (19.5)

external commercial borrowings of banks)

(f) VOSTRO balances and balances in 1,485 1,867 2,066 1,954 2,012

exchange houses and in term deposits (0.4) (0.5) (0.5) (0.5) (0.5)

(g) Non-Resident External Rupee(NRE)A 111,301 114,316 116,368 118,899 124,488

ccounts (28.5) (29.0) (29.3) (30.2) (32.2)

(h) Non-Resident Ordinary (NRO) 11,387 10,339 10,926 16,929 20,686

Rupee Accounts (2.9) (2.6) (2.8) (4.3) (5.4)

(i) Embassy accounts 95 227 239 218 116

(0.0) (0.1) (0.1) (0.1) (0.0)

(j) Foreign Institutional Investors’ (FII) 14,290 10,505 10,619 8,991 9,211

Accounts (3.7) (2.7) (2.7) (2.3) (2.4)

(k) ESCROW A/Cs 13 4 2 1 1

(0.0) (0.0) (0.0) (0.0) (0.0)

2. Own Issues of International Securities 9,166 9,369 10,127 8,058 6,864

(2.3) (2.4) (2.6) (2.0) (1.8)

(a) Bonds 7,980 8,322 9,231 8,040 6,849

(2.0) (2.1) (2.3) (2.0) (1.8)

(b) Floating Rate Notes (FRNs) 48 35 25 19 14

(0.0) (0.0) (0.0) (0.0) (0.0)

(c) Other Own Issues of International 1,138 1,013 872 0 0

Debt Securities (0.3) (0.3) (0.2) (0.0) (0.0)

3. Other International Liabilities 92,329 79,877 73,001 66,210 56,540

(23.6) (20.3) (18.4) (16.8) (14.6)

(a) ADRs/GDRs 25,111 19,861 17,673 14,298 10,357

(6.4) (5.0) (4.5) (3.6) (2.7)

(b) Equities of banks held by non-residents 45,603 34,388 29,648 26,066 18,932

(11.7) (8.7) (7.5) (6.6) (4.9)

(c) Capital/remittable profits of foreign 21,615 25,628 25,681 25,846 27,251

banks in India and other unclassified (5.5) (6.5) (6.5) (6.6) (7.0)

international liabilities

Total International Liabilities + 390,857 393,832 396,717 393,263 386,608

(100.0) (100.0) (100.0) (100.0) (100.0)

ARTICLE



Statement I: International Liabilities/Assets of Banks Classified According to Type(Based on LBS Statements) (Concld.)

(Rs. crore)

1. Loans and Deposits 212126 198278 211606 217310 219547

(95.2) (95.1) (95.6) (95.9) (95.7)

(a) Loans to Non-residents (includes Rupee 8,565 8,321 8,324 8,387 8,341

loans and Foreign Currency (FC) (3.8) (4.0) (3.8) (3.7) (3.6)

loans out of non-resident deposits)

(b) FC Loans to Residents (incl. loans out 108,440 106,393 116,257 105,582 99,973

of FCNR(B) deposits, PCFCs, FC lending (48.7) (51.0) (52.5) (46.6) (43.6)

to & FC Deposits with banks in India, etc.,

(c) Outstanding Export Bills drawn on 49,011 45,951 47,872 44,041 44,564

non-residents by residents (22.0) (22.0) (21.6) (19.4) (19.4)

(d) Foreign Currency /TTs, etc., in hand 358 361 571 159 172

(0.2) (0.2) (0.3) (0.1) (0.1)

(e) NOSTRO balances including balances in 45,752 37,252 38,581 59,140 66,496

Term Deposits with non-resident banks (20.5) (17.9) (17.4) (26.1) (29.0)

(includes FCNR funds held abroad)

2. Holdings of Debt Securities 334 287 152 84 76

(0.1) (0.1) (0.1) (0.0) (0.0)

(a) Investment in Foreign Government 41 74 70 61 54

Securities (including Treasury Bills) (0.0) (0.0) (0.0) (0.0) (0.0)

(b) Investment in Other Debt Securities 293 213 81 23 22

(0.1) (0.1) (0.0) (0.0) (0.0)

3. Other International Assets 10,250 9,951 9,489 9,137 9,733

(4.6) (4.8) (4.3) (4.0) (4.2)

(a) Investments in Equities Abroad 1,432 1,480 1,579 1,585 1,556

(0.6) (0.7) (0.7) (0.7) (0.7)

(b) Capital supplied to and receivable profits 8,818 8,471 7,910 7,552 8,177

from foreign branches of Indian banks (4.0) (4.1) (3.6) (3.3) (3.6)

and other unclassified intl. assets

Total International Assets + 222,711 208,516 221,246 226,530 229,356

(100.0) (100.0) (100.0) (100.0) (100.0)

+ : In view of the incomplete data coverage from all the branches, the data reported under the LBS are not strictly

comparable with those capturing data from all the branches

‘-’ : nil/negligible

Notes: 1. Figures in brackets represent percentages to total international liabilities/assets.

2. Totals may not tally due to rounding off .


4. Q1, Q2, Q3 and Q4 denote quarters ended March, June, September and December, respectively.

Liability/Asset Category International Assets

Amount Outstanding as at end of

Q1:2008 Q2:2008 Q3:2008 Q4:2008 Q1:2009

ARTICLE


March 31, 2009


Statement II: Currency and Sector - wise Breakup of International Liabilities/Assets of Banks(Based on LBS Statements)

(Rs. crore)

Currency International Liabilities

All Sector Non-Bank Sector

Q1: 2008 Q2: 2008 Q3: 2008 Q4: 2008 Q1: 2009 Q1: 2008 Q2: 2008 Q3: 2008 Q4: 2008 Q1: 2009

Swiss Franc 413 491 567 594 792 59 28 21 59 34

(0.1) (0.1) (0.1) (0.2) (0.2) (0.0) (0.0) (0.0) (0.0) (0.0)

Euro 15,304 16,423 16,399 16,802 16,695 10,826 12,574 12,425 11,944 12,774

(3.9) (4.2) (4.1) (4.3) (4.3) (3.8) (4.6) (4.6) (4.4) (4.6)

Pound Sterling 18,641 26,124 26,445 21,831 22,584 15,677 17,211 16,934 17,681 18,819

(4.8) (6.6) (6.7) (5.6) (5.8) (5.5) (6.3) (6.3) (6.5) (6.8)

Indian Rupee 2,03,850 1,95,065 1,93,803 1,96,188 200,437 1,79,761 1,68,373 1,66,437 1,67,458 1,70,943

(52.2) (49.5) (48.9) (49.9) (51.8) (63.0) (61.9) (61.5) (61.4) (61.6)

Japanese Yen 18,035 15,162 15,473 17,451 12,541 1,874 1,401 1,213 1,178 651

(4.6) (3.8) (3.9) (4.4) (3.2) (0.7) (0.5) (0.4) (0.4) (0.2)

Other Foreign 2,288 3,367 4,181 4,341 5,451 658 1,041 1,073 983 1,337|

Currencies (0.6) (0.9) (1.1) (1.1) (1.4) (0.2) (0.4) (0.4) (0.4) (0.5)

US Dollar 1,32,328 1,37,201 1,39,850 1,36,056 128,109 76,447 71,365 72,714 73,307 73,005

(33.9) (34.8) (35.3) (34.6) (33.1) (26.8) (26.2) (26.8) (26.9) (26.3)

Total 3,90,857 3,93,832 3,96,717 3,93,263 386,608 2,85,303 2,71,993 2,70,817 2,72,609 2,77,562

(100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0)

International Assets

Swiss Franc 2,466 1,861 1,693 1,555 1,212 1,836 1,387 1,368 1,043 889

(1.1) (0.9) (0.8) (0.7) (0.5) (1.2) (0.9) (0.8) (0.7) (0.6)

EURO 13,972 13,218 14,891 13,650 13,999 9,915 9,715 9,755 8,776 6,634

(6.3) (6.3) (6.7) (6.0) (6.1) (6.3) (6.4) (6.0) (6.2) (4.8)

Pound Sterling 6,018 6,082 5,258 5,690 5,712 2,216 1,784 1,442 1,147 1,349

(2.7) (2.9) (2.4) (2.5) (2.5) (1.5) (1.3) (0.9) (0.8) (1.0)

Indian Rupee 7,354 7,541 8,894 8,572 7,680 7,300 7,518 8,812 8,529 7,606

(3.3) (3.6) (4.0) (3.8) (3.3) (4.7) (5.0) (5.5) (6.0) (5.5)

Japanese Yen 4,180 3,091 3,179 3,049 4,156 2,895 1,969 1,818 1,753 2,999

(1.9) (1.5) (1.4) (1.3) (1.8) (1.9) (1.3) (1.1) (1.2) (2.2)

Other Foreign 7,976 6,691 6,826 7,167 6,737 1,222 945 1,130 839 1,110

Currencies (3.6) (3.2) (3.1) (3.2) (2.9) (0.8) (0.6) (0.7) (0.6) (0.8)

US Dollar 1,80,743 1,70,032 1,80,504 1,86,848 189,860 1,30,926 1,27,366 1,36,969 1,20,292 1,17,424

(81.2) (81.5) (81.6) (82.5) (82.8) (83.7) (84.4) (84.9) (84.5) (85.1)

Total 2,22,711 2,08,516 2,21,246 2,26,530 229,356 1,56,458 1,50,683 1,61,294 1,42,378 1,38,011

(100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0)

@ : excluding Guernsey, Isle of Man and Jersey #: includes Miday Island and Wake Islands ‘-’ : nil/negligible

Note: 1. Figures in brackets represent percentages to total in the respective group (column).

2. Totals may not tally due to rounding off.



ARTICLE



Statement III: International Liabilities/Assets of Banks Classified According to Country ofResidence of Transacting Units (Based on LBS Statements) - Amount outstanding as at end

(Rs. crore)

Country International Liabilities

All Currencies Foreign Currencies

Q1: 2008 Q2: 2008 Q3: 2008 Q4: 2008 Q1: 2009 Q1: 2008 Q2: 2008 Q3: 2008 Q4: 2008 Q1: 2009

Total 3,90,857 3,93,832 3,96,717 3,93,263 3,86,608 1,87,008 1,98,767 2,02,914 1,97,074 1,86,171

Of Which (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0)

Bahrain 7,451 8,027 8,423 8,059 9,260 5,602 6,024 6,093 5,874 6,446

(1.9) (2.0) (2.1) (2.0) (2.4) (3.0) (3.0) (3.0) (3.0) (3.5)

China 4,161 4,567 5,152 5,076 5,697 3,967 4,431 4,799 4,874 5,533

(1.1) (1.2) (1.3) (1.3) (1.5) (2.1) (2.2) (2.4) (2.5) (3.0)

France 5,769 6,581 7,831 6,452 6,116 3,335 3,901 5,167 4,007 2,609

(1.5) (1.7) (2.0) (1.6) (1.6) (1.8) (2.0) (2.5) (2.0) (1.4)

Germany 14,296 15,225 15,227 15,221 16,819 9,421 10,491 10,725 10,622 11,665

(includes ECB) (3.7) (3.9) (3.8) (3.9) (4.4) (5.0) (5.3) (5.3) (5.4) (6.3)

Hong Kong 9,738 10,264 12,638 14,153 11,682 5,145 5,714 6,328 7,933 5,245

(2.5) (2.6) (3.2) (3.6) (3.0) (2.8) (2.9) (3.1) (4.0) (2.8)

India 16,929 21,583 22,282 26,711 24,725 16,929 21,583 22,282 26,711 24,725

(4.3) (5.5) (5.6) (6.8) (6.4) (9.1) (10.9) (11.0) (13.6) (13.3)

Kuwait 6,708 6,966 6,609 6,348 7,213 1,525 1,708 1,537 1,745 1,868

(1.7) (1.8) (1.7) (1.6) (1.9) (0.8) (0.9) (0.8) (0.9) (1.0)

Mauritius 21,040 15,336 15,507 11,565 9,970 1,560 1,453 1,855 1,745 2,143

(5.4) (3.9) (3.9) (2.9) (2.6) (0.8) (0.7) (0.9) (0.9) (1.2)

Netherlands 11,641 12,250 11,315 9,989 6,851 6,330 7,196 6,440 4,925 2,651

(3.0) (3.1) (2.9) (2.5) (1.8) (3.4) (3.6) (3.2) (2.5) (1.4)

No Specific 24,881 23,846 23,764 15,329 12,626 2,243 2,413 1,893 1,629 1,550

Country(country (6.4) (6.1) (6.0) (3.9) (3.3) (1.2) (1.2) (0.9) (0.8) (0.8)

Unknown)

Saudi Arabia 9,481 9,640 9,668 11,930 11,853 1,550 1,626 1,676 1,660 1,694

(2.4) (2.4) (2.4) (3.0) (3.1) (0.8) (0.8) (0.8) (0.8) (0.9)

Singapore 18,911 18,815 19,032 19,789 19,753 12,721 12,871 13,536 13,865 13,932

(4.8) (4.8) (4.8) (5.0) (5.1) (6.8) (6.5) (6.7) (7.0) (7.5)

United Arab 24,664 27,374 26,229 31,018 29,417 4,270 4,485 5,238 5,503 6,406

Emirates (6.3) (7.0) (6.6) (7.9) (7.6) (2.3) (2.3) (2.6) (2.8) (3.4)

United Kingdom@ 56,417 64,851 67,195 57,665 50,419 38,287 44,827 46,593 36,350 33,409

(14.4) (16.5) (16.9) (14.7) (13.0) (20.5) (22.6) (23.0) (18.4) (17.9)

United States# 1,07,453 97,205 94,012 1,02,571 1,09,933 53,595 48,913 46,998 48,174 45,955

(27.5) (24.7) (23.7) (26.1) (28.4) (28.7) (24.6) (23.2) (24.4) (24.7)

ARTICLE


March 31, 2009


Statement III: International Liabilities/Assets of Banks Classified According to Country ofResidence of Transacting Units (Based on LBS Statements) - Amount outstanding as at end (Concld.)

(Rs. crore)

Country International Assets

All Currencies Foreign Currencies

Q1: 2008 Q2: 2008 Q3: 2008 Q4: 2008 Q1: 2009 Q1: 2008 Q2: 2008 Q3: 2008 Q4: 2008 Q1: 2009

Total 2,22,711 2,08,516 2,21,246 2,26,530 2,29,356 2,15,356 2,00,975 2,12,352 2,17,958 2,21,676

of Which (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0)

Bahrain 1,141 1,091 890 1,123 1,508 1,047 996 797 1,035 1,423

(0.5) (0.5) (0.4) (0.5) (0.7) (0.5) (0.5) (0.4) (0.5) (0.6)

Belgium 1,765 1,798 1,705 1,871 2,013 1,759 1,788 1,684 1,864 2,005

(0.8) (0.9) (0.8) (0.8) (0.9) (0.8) (0.9) (0.8) (0.9) (0.9)

Canada 1,825 1,429 1,481 1,432 1,974 1,585 1,267 1,312 1,256 1,806

(0.8) (0.7) (0.7) (0.6) (0.9) (0.7) (0.6) (0.6) (0.6) (0.8)

China 1,347 1,464 1,410 1,444 1,476 1,333 1,445 1,396 1,433 1,463

(0.6) (0.7) (0.6) (0.6) (0.6) (0.6) (0.7) (0.7) (0.7) (0.7)

France 1,548 1,190 1,662 1,640 3,168 1,530 1,166 1,531 1,627 3,119

(0.7) (0.6) (0.8) (0.7) (1.4) (0.7) (0.6) (0.7) (0.7) (1.4)

Germany 4,160 3,261 5,157 4,517 5,779 4,074 3,170 5,024 4,442 5,675

(includes ECB) (1.9) (1.6) (2.3) (2.0) (2.5) (1.9) (1.6) (2.4) (2.0) (2.6)

Hong Kong 6,784 7,305 7,057 14,915 16,176 6,720 7,228 6,971 14,841 16,107

(3.0) (3.5) (3.2) (6.6) (7.1) (3.1) (3.6) (3.3) (6.8) (7.3)

India 1,08,614 1,06,894 1,16,711 1,06,062 1,00,480 1,08,614 1,06,894 1,16,711 1,06,062 1,00,480

(48.8) (51.3) (52.8) (46.8) (43.8) (50.4) (53.2) (55.0) (48.7) (45.3)

Italy 1,577 1,426 1,355 1,234 1,397 1,568 1,412 1,339 1,224 1,389

(0.7) (0.7) (0.6) (0.5) (0.6) (0.7) (0.7) (0.6) (0.6) (0.6)

Japan 1,837 1,634 1,773 1,862 2,793 1,805 1,599 1,744 1,834 2,766

(0.8) (0.8) (0.8) (0.8) (1.2) (0.8) (0.8) (0.8) (0.8) (1.2)

Netherlands 867 728 806 651 1,111 860 718 798 644 1,104

(0.4) (0.3) (0.4) (0.3) (0.5) (0.4) (0.4) (0.4) (0.3) (0.5)

Singapore 5,689 4,785 4,647 4,179 3,800 5,421 4,469 4,221 3,861 3,517

(2.6) (2.3) (2.1) (1.8) (1.7) (2.5) (2.2) (2.0) (1.8) (1.6)

United Arab 6,458 5,733 5,306 5,024 5,225 5,641 4,918 4,246 4,219 4,440

Emirates (2.9) (2.7) (2.4) (2.2) (2.3) (2.6) (2.4) (2.0) (1.9) (2.0)

United Kingdom@ 12,399 10,988 8,693 11,190 14,430 11,854 10,295 8,027 10,536 13,806

(5.6) (5.3) (3.9) (4.9) (6.3) (5.5) (5.1) (3.8) (4.8) (6.2)

United States# 46,615 41,412 45,689 52,053 52,685 43,267 37,984 41,469 48,521 48,781

(20.9) (19.9) (20.7) (23.0) (23.0) (20.1) (18.9) (19.5) (22.3) (22.0)

@ : Excluding Guernsey, Isle of Man And Jersey #: Includes Miday Island and Wake Islands ‘-’ : Nil/Negligible

Note: 1. Figures in Brackets Represent Percentages to Total un the Respective Group (Column).

2. Totals May not Tally Due to Rounding off .

3. “No specific country” means the country information has not been provided by the reporting bank branches.



ARTICLE



Country Major Q1: 2008 Q2: 2008 Q3: 2008 Q4: 2008 Q1: 2009

Components

Australia FCNR(B) 286 (0.5) 284 (0.5) 331 (0.5) 289 (0.4) 552 (0.8)

Borrowings 50 (0.1) 238 (0.3) 294 (0.3) 144 (0.2) 443 (0.6)

NRE Deposits 658 (0.6) 813 (0.7) 890 (0.8) 710 (0.6) 781 (0.6)

Total 1,527 (0.4) 1,823 (0.5) 1,955 (0.5) 1,637 (0.4) 2,294 (0.6)

Bahrain FCNR(B) 4,742 (7.9) 5,194 (8.3) 5,526 (8.5) 5,579 (8.5) 6,273 (8.6)

Borrowings 853 (1.1) 820 (0.9) 556 (0.6) 220 (0.2) 100 (0.1)

NRE Deposits 1,663 (1.5) 1,830 (1.6) 2,116 (1.8) 1,721 (1.4) 2,241 (1.8)

Total 7,451 (1.9) 8,027 (2.0) 8,423 (2.1) 8,059 (2.0) 9,260 (2.4)

Belgium FCNR(B) 90 (0.1) 86 (0.1) 67 (0.1) 89 (0.1) 105 (0.1)

Borrowings 1,872 (2.4) 1,795 (2.0) 1,831 (1.9) 3,036 (3.4) 1,179 (1.6)

NRE Deposits 105 (0.1) 117 (0.1) 100 (0.1) 168 (0.1) 246 (0.2)

Total 2,346 (0.6) 2,264 (0.6) 2,271 (0.6) 3,588 (0.9) 1,822 (0.5)

Canada FCNR(B) 1,019 (1.7) 1,039 (1.7) 1,025 (1.6) 974 (1.5) 950 (1.3)

Borrowings 586 (0.8) 557 (0.6) 471 (0.5) 441 (0.5) 306 (0.4)

NRE Deposits 1,546 (1.4) 1,600 (1.4) 1,724 (1.5) 1,171 (1.0) 1,753 (1.4)

Total 4,416 (1.1) 4,440 (1.1) 4,523 (1.1) 4,079 (1.0) 4,847 (1.3)

China FCNR(B) 3,966 (6.6) 4,429 (7.1) 4,766 (7.3) 4,874 (7.5) 5,506 (7.6)

Borrowings — — — — 25 (0.0)

NRE Deposits 141 (0.1) 109 (0.1) 221 (0.2) 113 (0.1) 120 (0.1)

Total 4,161 (1.1) 4,567 (1.2) 5,152 (1.3) 5,076 (1.3) 5,697 (1.5)

France FCNR(B) 170 (0.3) 137 (0.2) 168 (0.3) 203 (0.3) 265 (0.4)

Borrowings 2,601 (3.4) 3,263 (3.6) 4,354 (4.6) 3,340 (3.8) 2,078 (2.8)

NRE Deposits 490 (0.4) 444 (0.4) 431 (0.4) 344 (0.3) 416 (0.3)

Total 5,769 (1.5) 6,581 (1.7) 7,831 (2.0) 6,452 (1.6) 6,116 (1.6)

Germany FCNR(B) 5,509 (9.1) 6,652 (10.6) 6,741 (10.4) 7,000 (10.7) 7,651 (10.5)

(Includes ECB) Borrowings 3,526 (4.6) 3,502 (3.9) 3,605 (3.8) 3,283 (3.7) 3,675 (4.9)

NRE Deposits 1,019 (0.9) 1,055 (0.9) 949 (0.8) 1,055 (0.9) 1,865 (1.5)

Total 14,296 (3.7) 15,225 (3.9) 15,227 (3.8) 15,221 (3.9) 16,819 (4.4)

Hong Kong FCNR(B) 954 (1.6) 966 (1.5) 807 (1.2) 904 (1.4) 886 (1.2)

Borrowings 1,355 (1.8) 1,832 (2.0) 2,320 (2.5) 3,817 (4.3) 2,683 (3.6)

NRE Deposits 1,037 (0.9) 901 (0.8) 1,187 (1.0) 1,203 (1.0) 1,315 (1.1)

Total 9,738 (2.5) 10,264 (2.6) 12,638 (3.2) 14,153 (3.6) 11,682 (3.0)

India FCNR(B) — — — — — — — — — —

Borrowings 4,908 (6.4) 8,594 (9.5) 8,773 (9.3) 8,944 (10.1) 7,486 (9.9)

NRE Deposits — — — — — — — — — —

Total 16,929 (4.3) 21,583 (5.5) 22,282 (5.6) 26,711 (6.8) 24,725 (6.4)

Japan FCNR(B) 288 (0.5) 175 (0.3) 172 (0.3) 370 (0.6) 259 (0.4)

Borrowings 1,385 (1.8) 1,783 (2.0) 1,412 (1.5) 1,521 (1.7) 1,419 (1.9)

NRE Deposits 699 (0.6) 758 (0.7) 570 (0.5) 587 (0.5) 671 (0.5)

Total 4,784 (1.2) 5,518 (1.4) 4,357 (1.1) 4,481 (1.1) 4,361 (1.1)

Kenya FCNR(B) 958 (1.6) 923 (1.5) 1,101 (1.7) 916 (1.4) 848 (1.2)

Borrowings 37 (0.0) 178 (0.2) 71 (0.1) 43 (0.0) 56 (0.1)

NRE Deposits 1,217 (1.1) 1,027 (0.9) 1,079 (0.9) 950 (0.8) 1,167 (0.9)

Total 2,257 (0.6) 2,187 (0.6) 2,317 (0.6) 1,999 (0.5) 2,387 (0.6)

Kuwait FCNR(B) 1,504 (2.5) 1,664 (2.7) 1,508 (2.3) 1,692 (2.6) 1,712 (2.4)

Borrowings 2 (0.0) 21 (0.0) 4 (0.0) 2 (0.0) 109 (0.1)

NRE Deposits 4,808 (4.3) 4,943 (4.3) 4,709 (4.0) 4,101 (3.4) 4,588 (3.7)

Total 6,708 (1.7) 6,966 (1.8) 6,609 (1.7) 6,348 (1.6) 7,213 (1.9)

Mauritius FCNR(B) 34 (0.1) 15 (0.0) 17 (0.0) 15 (0.0) 35 (0.0)

Borrowings 1,498 (1.9) 1,435 (1.6) 1,711 (1.8) 1,624 (1.8) 2,028 (2.7)

NRE Deposits 174 (0.2) 35 (0.0) 32 (0.0) 31 (0.0) 237 (0.2)

Total 21,040 (5.4) 15,336 (3.9) 15,507 (3.9) 11,565 (2.9) 9,970 (2.6)

Statement IV: Country - wise Breakup of Major Component of International Liabilities of Banks(Based on LBS Statements)

(Rs. crore)

ARTICLE


March 31, 2009


Statement IV: Country - wise Breakup of Major Component of International Liabilities of Banks(Based on LBS Statements) (Concld.)


Components

Netherlands FCNR(B) 286 (0.5) 258 (0.4) 243 (0.4) 175 (0.3) 175 (0.2)Borrowings 5,885 (7.6) 6,778 (7.5) 5,950 (6.3) 4,496 (5.1) 2,319 (3.1)NRE Deposits 367 (0.3) 163 (0.1) 204 (0.2) 164 (0.1) 269 (0.2)Total 11,641 (3.0) 12,250 (3.1) 11,315 (2.9) 9,989 (2.5) 6,851 (1.8)

No Specific Country FCNR(B) 1,613 (2.7) 1,744 (2.8) 1,312 (2.0) 1,291 (2.0) 1,230 (1.7)(country Unknown) Borrowings 42 (0.1) 52 (0.1) — — —

NRE Deposits 12,209 (11.0) 12,984 (11.4) 12,215 (10.5) 5,519 (4.6) 6,005 (4.8)Total 24,881 (6.4) 23,846 (6.1) 23,764 (6.0) 15,329 (3.9) 12,626 (3.3)

Oman FCNR(B) 614 (1.0) 675 (1.1) 608 (0.9) 638 (1.0) 658 (0.9)Borrowings 133 (0.2) 72 (0.1) 31 (0.0) 15 (0.0) 26 (0.0)NRE Deposits 2,736 (2.5) 2,899 (2.5) 2,998 (2.6) 3,999 (3.4) 3,783 (3.0)Total 3,747 (1.0) 3,866 (1.0) 3,946 (1.0) 5,059 (1.3) 4,927 (1.3)

Qatar FCNR(B) 517 (0.9) 481 (0.8) 405 (0.6) 377 (0.6) 362 (0.5)Borrowings 1 (0.0) 16 (0.0) 1 (0.0) — —NRE Deposits 1,954 (1.8) 2,143 (1.9) 2,568 (2.2) 2,267 (1.9) 2,572 (2.1)Total 2,617 (0.7) 2,841 (0.7) 3,208 (0.8) 2,979 (0.8) 3,588 (0.9)

Saudi Arabia FCNR(B) 1,537 (2.5) 1,612 (2.6) 1,648 (2.5) 1,638 (2.5) 1,573 (2.2)Borrowings 4 (0.0) 3 (0.0) 17 (0.0) 3 (0.0) 103 (0.1)NRE Deposits 7,474 (6.7) 7,653 (6.7) 7,621 (6.5) 9,555 (8.0) 9,376 (7.5)Total 9,481 (2.4) 9,640 (2.4) 9,668 (2.4) 11,930 (3.0) 11,853 (3.1)

Singapore FCNR(B) 513 (0.9) 568 (0.9) 620 (1.0) 626 (1.0) 739 (1.0)Borrowings 9,754 (12.6) 9,312 (10.3) 9,942 (10.6) 11,821 (13.4) 12,085 (16.0)NRE Deposits 1,967 (1.8) 2,626 (2.3) 2,330 (2.0) 2,199 (1.8) 2,398 (1.9)Total 18,911 (4.8) 18,815 (4.8) 19,032 (4.8) 19,789 (5.0) 19,753 (5.1)

Spain FCNR(B) 379 (0.6) 458 (0.7) 451 (0.7) 325 (0.5) 470 (0.6)Borrowings 5 (0.0) 8 (0.0) 13 (0.0) 6 (0.0) —NRE Deposits 238 (0.2) 377 (0.3) 788 (0.7) 691 (0.6) 827 (0.7)Total 2,732 (0.7) 2765 (0.7) 2,166 (0.5) 1836 (0.5) 1,509 (0.4)

Switzerland FCNR(B) 164 (0.3) 128 (0.2) 112 (0.2) 145 (0.2) 350 (0.5)(Includes BIS) Borrowings 322 (0.4) 439 (0.5) 534 (0.6) 523 (0.6) 724 (1.0)

NRE Deposits 340 (0.3) 383 (0.3) 366 (0.3) 396 (0.3) 420 (0.3)Total 1,518 (0.4) 1,355 (0.3) 1,709 (0.4) 1,570 (0.4) 2,230 (0.6)

United Arab FCNR(B) 4,133 (6.8) 4,007 (6.4) 4,915 (7.6) 5,358 (8.2) 5,853 (8.0)Emirates Borrowings 63 (0.1) 341 (0.4) 191 (0.2) 2 (0.0) 397 (0.5)

NRE Deposits 17,896 (16.1) 20,532 (18.0) 18,402 (15.8) 22,007 (18.5) 18,799 (15.1)Total 24,664 (6.3) 27,374 (7.0) 26,229 (6.6) 31,018 (7.9) 29,417 (7.6)

United Kingdom@ FCNR(B) 15,226 (25.2) 14,999 (23.9) 14,379 (22.2) 14,766 (22.6) 16,396 (22.5)Borrowings 18,453 (23.9) 26,972 (29.7) 30,151 (32.0) 19,663 (22.3) 15,739 (20.9)NRE Deposits 9,010 (8.1) 8,283 (7.2) 11,076 (9.5) 12,920 (10.9) 8,691 (7.0)Total 56,417 (14.4) 64,851 (16.5) 67,195 (16.9) 57,665 (14.7) 50,419 (13.0)

United States# FCNR(B) 9,990 (16.6) 10,412 (16.6) 11,284 (17.4) 10,733 (16.4) 14,494 (19.9)Borrowings 21,080 (27.3) 20,022 (22.1) 18,695 (19.9) 21,742 (24.7) 18,587 (24.7)NRE Deposits 35,251 (31.7) 34,567 (30.2) 35,028 (30.1) 38,221 (32.1) 45,797 (36.8)Total 1,07,453 (27.5) 97,205 (24.7) 94,012 (23.7) 1,02,571 (26.1) 1,09,933 (28.4)

Total FCNR(B) 60,340 (100.0) 62,730 (100.0) 64,868 (100.0) 65,357 (100.0) 72,783 (100.0)

Borrowings 77,257 (100.0) 90,791 (100.0) 94,155 (100.0) 88,189 (100.0) 75,398 (100.0)

NRE Deposits 1,11,301 (100.0) 1,14,316 (100.0) 1,16,368 (100.0) 1,18,899 (100.0) 1,24,488 (100.0)

Total 3,90,857 (100.0) 3,93,832 (100.0) 3,96,717 (100.0) 3,93,263 (100.0) 3,86,608 (100.0)

@ : excluding Guernsey, Isle of Man and Jersey. #: includes Miday Island and Wake Islands. ‘—’ : nil/negligible.Notes: 1. Figures in brackets represent percentages to total.

2. Totals may not tally due to rounding off .3. Data have been revised for previous quarters.4. Q1, Q2, Q3 and Q4 denote quarters ended March, June, September and December, respectively.

(Rs. crore)

ARTICLE



Statement V: Country - wise Breakup of Major Component of International Assets of Banks(Based on LBS Statements)


Components

Bahrain Export Bill 65 (0.1) 160 (0.3) 80 (0.2) 55 (0.1) 191 (0.4)

NOSTRO 580 (1.3) 465 (1.2) 397 (1.0) 668 (1.1) 923 (1.4)

Total 1,141 (0.5) 1,091 (0.5) 890 (0.4) 1,123 (0.5) 1,508 (0.7)

Belgium Export Bill 936 (1.9) 961 (2.1) 993 (2.1) 1,268 (2.9) 1,228 (2.8)

NOSTRO 342 (0.7) 536 (1.4) 419 (1.1) 332 (0.6) 518 (0.8)

Total 1,765 (0.8) 1,798 (0.9) 1,705 (0.8) 1,871 (0.8) 2,013 (0.9)

Canada Export Bill 378 (0.8) 339 (0.7) 402 (0.8) 382 (0.9) 315 (0.7)

NOSTRO 755 (1.7) 468 (1.3) 423 (1.1) 537 (0.9) 514 (0.8)

Total 1,825 (0.8) 1,429 (0.7) 1,481 (0.7) 1,432 (0.6) 1,974 (0.9)

China Export Bill 1,149 (2.3) 1,244 (2.7) 1,098 (2.3) 761 (1.7) 749 (1.7)

NOSTRO — — — — —

Total 1,347 (0.6) 1,464 (0.7) 1,410 (0.6) 1,444 (0.6) 1,476 (0.6)

France Export Bill 1,032 (2.1) 926 (2.0) 1,046 (2.2) 1,010 (2.3) 874 (2.0)

NOSTRO 339 (0.7) 95 (0.3) 445 (1.2) 472 (0.8) 2,128 (3.2)

Total 1,548 (0.7) 1,190 (0.6) 1,662 (0.8) 1,640 (0.7) 3,168 (1.4)

Germany Export Bill 1,657 (3.4) 1,384 (3.0) 1,373 (2.9) 1,269 (2.9) 1,360 (3.1)

(includes ECB) NOSTRO 1,828 (4.0) 1,103 (3.0) 2,695 (7.0) 2,614 (4.4) 3,757 (5.6)

Total 4,160 (1.9) 3,261 (1.6) 5,157 (2.3) 4,517 (2.0) 5779 (2.5)

Hong Kong Export Bill 2,927 (6.0) 3,127 (6.8) 3,010 (6.3) 3,478 (7.9) 4,392 (9.9)

NOSTRO 2,706 (5.9) 3,067 (8.2) 2,872 (7.4) 10,262 (17.4) 10,545 (15.9)

Total 6,784 (3.0) 7,305 (3.5) 7,057 (3.2) 14,915 (6.6) 16,176 (7.1)

India Export Bill — — — — —

NOSTRO — — — — —

Total 1,08,614 (48.8) 1,06,894 (51.3) 1,16,711 (52.8) 1,06,062 (46.8) 1,00,480 (43.8)

Italy Export Bill 1,464 (3.0) 1,294 (2.8) 1,248 (2.6) 1,128 (2.6) 1,291 (2.9)

NOSTRO 103 (0.2) 85 (0.2) 64 (0.2) 68 (0.1) 69 (0.1)

Total 1,577 (0.7) 1,426 (0.7) 1,355 (0.6) 1,234 (0.5) 1,397 (0.6)

Japan Export Bill 516 (1.1) 395 (0.9) 310 (0.6) 443 (1.0) 1,547 (3.5)

NOSTRO 841 (1.8) 871 (2.3) 1,061 (2.8) 1,087 (1.8) 941 (1.4)

Total 1,837 (0.8) 1,634 (0.8) 1,773 (0.8) 1,862 (0.8) 2,793 (1.2)

Netherlands Export Bill 625 (1.3) 651 (1.4) 694 (1.4) 581 (1.3) 573 (1.3)

NOSTRO 235 (0.5) 62 (0.2) 98 (0.3) 52 (0.1) 524 (0.8)

Total 867 (0.4) 728 (0.3) 806 (0.4) 651 (0.3) 1,111 (0.5)

(Rs. crore)

ARTICLE


March 31, 2009


No Specific Export Bill 383 (0.8) 667 (1.5) 511 (1.1) 330 (0.7) 315 (0.7)

Country (country NOSTRO 167 (0.4) 107 (0.3) — — —

Unknown) Total 1,814 (0.8) 1,648 (0.8) 1,333 (0.6) 1,127 (0.5) 962 (0.4)

Singapore Export Bill 1,431 (2.9) 1,243 (2.7) 1,401 (2.9) 1,118 (2.5) 1,080 (2.4)

NOSTRO 2,746 (6.0) 2,052 (5.5) 1,796 (4.7) 1,672 (2.8) 1,682 (2.5)

Total 5,689 (2.6) 4,785 (2.3) 4,647 (2.1) 4,179 (1.8) 3,800 (1.7)

Sri Lanka Export Bill 604 (1.2) 521 (1.1) 584 (1.2) 348 (0.8) 225 (0.5)

NOSTRO 190 (0.4) 59 (0.2) 46 (0.1) 76 (0.1) 58 (0.1)

Total 1,124 (0.5) 990 (0.5) 1,047 (0.5) 885 (0.4) 799 (0.3)

Switzerland Export Bill 421 (0.9) 327 (0.7) 374 (0.8) 349 (0.8) 390 (0.9)

(Includes BIS) NOSTRO 648 (1.4) 439 (1.2) 317 (0.8) 563 (1.0) 396 (0.6)

Total 1,102 (0.5) 796 (0.4) 720 (0.3) 939 (0.4) 811 (0.4)

United Arab Export Bill 4,535 (9.3) 4,057 (8.8) 3,667 (7.7) 3,412 (7.7) 3,403 (7.6)

Emirates NOSTRO 262 (0.6) 64 (0.2) 83 (0.2) 109 (0.2) 410 (0.6)

Total 6,458 (2.9) 5,733 (2.7) 5,306 (2.4) 5,024 (2.2) 5,225 (2.3)

United Kingdom@ Export Bill 2,900 (5.9) 3,158 (6.9) 2,434 (5.1) 2,002 (4.5) 2,171 (4.9)

NOSTRO 7,105 (15.5) 5,472 (14.7) 4,049 (10.5) 6,938 (11.7) 9,469 (14.2)

Total 12,399 (5.6) 10,988 (5.3) 8,693 (3.9) 11,190 (4.9) 14,430 (6.3)

United States # Export Bill 17,459 (35.6) 16,289 (35.4) 19,618 (41.0) 16,637 (37.8) 16,395 (36.8)

NOSTRO 24,788 (54.2) 20,673 (55.5) 22,244 (57.7) 31,691 (53.6) 32,360 (48.7)

Total 46,615 (20.9) 41,412 (19.9) 45,689 (20.7) 52,053 (23.0) 52,685 (23.0)

Total Export Bill 49,011 (100.0) 45,951 (100.0) 47,872 (100.0) 44,041 (100.0) 44,564(100.0)

NOSTRO 45,752 (100.0) 37,252 (100.0) 38,581 (100.0) 59,140 (100.0) 66,496(100.0)

Total 2,22,711 (100.0) 2,08,516 (100.0) 2,21,246 (100.0) 2,26,530 (100.0) 2,29,356(100.0)

@ : excluding Guernsey, Isle of Man and Jersey. #: includes Miday Island and Wake Islands. ‘—’ : nil/negligible.

Notes: 1. Figures in brackets represent percentages to total.

2. Totals may not tally due to rounding off .




Components

Statement V: Country - wise Breakup of Major Component of International Assets of Banks(Based on LBS Statements) (Concld.)

(Rs. crore)

ARTICLE



Statement VI: International Liabilities/Assets of Banks Classified According to Country ofIncorporation of Banks (Based on LBS Statements) - Amount Outstanding as at end

(Rs. crore)

Country International Liabilities

Total: All Sectors Position vis-a-vis Banks

Q1: 2008 Q2: 2008 Q3: 2008 Q4: 2008 Q1: 2009 Q1: 2008 Q2: 2008 Q3: 2008 Q4: 2008 Q1: 2009

Bahrain 257 215 322 301 341 19 19 68 59 59

(0.1) (0.1) (0.1) (0.1) (0.1) (0.0) (0.0) (0.1) (0.0) (0.1)

Bangladesh 58 60 64 52 74 54 57 62 49 71

(0.0) (0.0) (0.0) (0.0) (0.0) (0.1) (0.0) (0.0) (0.0) (0.1)

Belgium 687 693 993 1,023 887 651 651 948 968 816

(0.2) (0.2) (0.3) (0.3) (0.2) (0.6) (0.5) (0.8) (0.8) (0.7)

Canada 2,591 3,151 3,535 3,835 3,485 2,488 2,991 3,427 3,609 3,350

(0.7) (0.8) (0.9) (1.0) (0.9) (2.4) (2.5) (2.7) (3.0) (3.1)

France 4,330 4,642 5,546 4,821 5,653 3,242 3,647 4,437 3,831 4,419

(1.1) (1.2) (1.4) (1.2) (1.5) (3.1) (3.0) (3.5) (3.2) (4.1)

Germany 11,100 8,751 8,492 9,461 9,963 3,816 3,764 3,637 3,541 3,341

(Includes ECB) (2.8) (2.2) (2.1) (2.4) (2.6) (3.6) (3.1) (2.9) (2.9) (3.1)

Hong Kong 25,257 23,817 28,620 26,822 26,357 8,917 8,421 11,734 10,920 9,106

(6.5) (6.0) (7.2) (6.8) (6.8) (8.4) (6.9) (9.3) (9.1) (8.4)

India 2,99,095 2,93,028 2,86,876 2,81,267 2,74,230 57,755 62,638 61,065 57,534 49,977

(76.5) (74.4) (72.3) (71.5) (70.9) (54.7) (51.4) (48.5) (47.7) (45.8)

Japan 1,212 1,809 1,399 1,368 1,417 1,144 1,719 1,324 1,311 1,340

(0.3) (0.5) (0.4) (0.3) (0.4) (1.1) (1.4) (1.1) (1.1) (1.2)

Mauritius 129 120 110 83 104 106 94 83 71 74

(0.0) (0.0) (0.0) (0.0) (0.0) (0.1) (0.1) (0.1) (0.1) (0.1)

Netherlands 11,573 12,582 11,286 10,691 7,082 10,295 11,263 10,008 8,499 5,432

(3.0) (3.2) (2.8) (2.7) (1.8) (9.8) (9.2) (7.9) (7.0) (5.0)

Oman 219 407 206 201 218 48 55 33 20 42

(0.1) (0.1) (0.1) (0.1) (0.1) (0.0) (0.0) (0.0) (0.0) (0.0)

Singapore 2,404 3,064 3,870 3,989 3,650 2,386 3,051 3,857 3,976 3,638

(0.6) (0.8) (1.0) (1.0) (0.9) (2.3) (2.5) (3.1) (3.3) (3.3)

South Korea 202 296 213 202 228 199 258 206 195 203

(0.1) (0.1) (0.1) (0.1) (0.1) (0.2) (0.2) (0.2) (0.2) (0.2)

Sri Lanka 83 81 90 101 83 49 47 52 46 55

(0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.1)

Switzerland — — — — 259 — — — — 259

(Includes BIS) — — — — (0.1) — — — — (0.2)

Taiwan, China 123 84 110 110 110 123 79 110 110 110

(0.0) (0.0) (0.0) (0.0) (0.0) (0.1) (0.1) (0.1) (0.1) (0.1)

Thailand 115 119 127 139 141 36 36 36 36 36

(0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0)

United Arab 412 413 416 412 399 108 91 86 88 82

Emirates (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1)

United Kingdom@ 11,923 17,388 20,290 20,986 20,718 6,361 10,808 12,724 12,050 11,510

(3.1) (4.4) (5.1) (5.3) (5.4) (6.0) (8.9) (10.1) (10.0) (10.6)

United States# 19,015 23,113 24,078 27,327 31,134 7,684 12,150 11,931 13,667 15,052

(4.9) (5.9) (6.1) (6.9) (8.1) (7.3) (10.0) (9.5) (11.3) (13.8)

Total 3,90,857 3,93,832 3,96,717 3,93,263 3,86,608 1,05,554 1,21,839 1,25,901 1,20,653 1,09,046

(100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0)

ARTICLE


March 31, 2009


Statement VI: International Liabilities/Assets of Banks Classified According to Country ofIncorporation of Banks (Based on LBS Statements) - Amount Outstanding as at end

(Rs. crore)

Country International Assets

Total: All Sectors Position vis-a-vis Banks

Q1: 2008 Q2: 2008 Q3: 2008 Q4: 2008 Q1: 2009 Q1: 2008 Q2: 2008 Q3: 2008 Q4: 2008 Q1: 2009

Bahrain 309 344 230 327 379 28 14 15 23 70

(0.1) (0.2) (0.1) (0.1) (0.2) (0.0) (0.0) (0.0) (0.0) (0.1)

Bangladesh 20 12 16 10 35 12 9 12 8 28

(0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0)

Belgium 472 524 763 810 666 59 78 164 186 167

(0.2) (0.3) (0.3) (0.4) (0.3) (0.1) (0.1) (0.3) (0.2) (0.2)

Canada 2,640 2,492 3,154 1,391 1,159 76 14 49 32 52

(1.2) (1.2) (1.4) (0.6) (0.5) (0.1) (0.0) (0.1) (0.0) (0.1)

France 1,038 816 1,257 948 2,366 284 97 340 228 1,626

(0.5) (0.4) (0.6) (0.4) (1.0) (0.4) (0.2) (0.6) (0.3) (1.8)

Germany 2,746 2,356 1,967 1,472 1,570 1,060 791 242 332 295

(includes ECB) (1.2) (1.1) (0.9) (0.6) (0.7) (1.6) (1.4) (0.4) (0.4) (0.3)

Hong Kong 8,408 7,354 6,590 11,196 12,863 2,522 1,162 7 5,735 7,123

(3.8) (3.5) (3.0) (4.9) (5.6) (3.8) (2.0) (0.0) (6.8) (7.8)

India 166,558 150,564 157,586 160,197 162,004 52,321 43,785 47,812 60,357 63,963

(74.8) (72.2) (71.2) (70.7) (70.6) (79.0) (76.0) (79.8) (71.7) (70.0)

Japan 570 1,273 1,572 1,573 1,113 202 322 367 358 438

(0.3) (0.6) (0.7) (0.7) (0.5) (0.3) (0.6) (0.6) (0.4) (0.5)

Mauritius 22 20 15 10 9 2 2 1 1 6

(0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0)

Netherlands 8,236 7,903 8,888 6,935 5,881 319 217 111 116 134

(3.7) (3.8) (4.0) (3.1) (2.6) (0.5) (0.4) (0.2) (0.1) (0.1)

Oman 2 0 3 29 27 2 — 2 4 1

(0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0)

Singapore 4,367 4,807 5,698 4,893 5,919 2,661 2,940 3,497 2,974 3,626

(2.0) (2.3) (2.6) (2.2) (2.6) (4.0) (5.1) (5.8) (3.5) (4.0)

South Korea 52 77 38 68 160 10 42 23 58 123

(0.0) (0.0) (0.0) (0.0) (0.1) (0.0) (0.1) (0.0) (0.1) (0.1)

Sri Lanka 10 10 13 69 68 4 3 7 7 4

(0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0)

Taiwan, China 7 8 5 2 17 1 4 — 1 14

(0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0)

Thailand 11 11 7 11 12 11 9 7 11 12

(0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0)

United Arab 60 89 138 49 34 18 31 42 28 21

Emirates (0.0) (0.0) (0.1) (0.0) (0.0) (0.0) (0.1) (0.1) (0.0) (0.0)

United Kingdom@ 12,511 16,419 21,829 21,638 21,824 3,341 4,904 6,219 7,828 7,709

(5.6) (7.9) (9.9) (9.6) (9.5) (5.0) (8.5) (10.4) (9.3) (8.4)

United States# 14,671 13,438 11,477 14,904 13,247 3,319 3,181 1,033 5,862 5,934

(6.6) (6.4) (5.2) (6.6) (5.8) (5.0) (5.5) (1.7) (7.0) (6.5)

Total 222,711 208,516 221,246 226,530 229,356 66,252 57,607 59,952 84,152 91,345

(100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0)

@ : excluding Guernsey, Isle of Man and Jersey #: includes Miday Island and Wake Islands ‘–’ : nil/negligible

Note: 1. Figures in brackets represent percentages to total in the respective group (column).

2. Totals may not tally due to rounding off.



ARTICLE



Statement VII: Residual Maturity and Sector-wise Classification of Consolidated InternationalClaims of Banks (Based on CBS Statements) - Amount Outstanding as at

end of Period on Immediate Country Risk Basis

(Rs. crore)

Country of Transacting Period Total Residual Maturity Sector

Units International Short- Long- Un- Bank Non-Bank Non-BankClaims Term Term allocated Public Private

Total Intl. Claims Mar-2008 169481 117279 50232 1970 62394 748 106339Jun-2008 171730 113983 55549 2199 65021 828 105881Sep-2008 177560 112092 62370 3098 64497 1509 111554Dec-2008 191118 116029 72088 3000 75135 732 115251Mar-2009 224665 140290 79828 4548 102223 656 121786

Australia Mar-2008 2042 982 1060 — 1582 1 460Jun-2008 2081 957 1124 — 1485 2 594Sep-2008 2251 729 1506 17 1593 2 656Dec-2008 1999 531 1469 — 1470 — 529Mar-2009 1917 764 1154 — 1384 1 532

Austria Mar-2008 1123 1043 80 — 1041 — 82Jun-2008 921 794 126 — 861 — 60Sep-2008 1035 827 209 — 911 — 124Dec-2008 900 704 197 — 856 — 45Mar-2009 612 437 176 — 564 — 48

Bahamas Mar-2008 898 799 99 — — — 898Jun-2008 886 865 20 — 64 — 822Sep-2008 832 812 20 — 127 — 705Dec-2008 726 717 9 — 49 — 677Mar-2009 999 835 164 — 195 — 804

Bahrain Mar-2008 2094 849 1245 — 1654 — 440Jun-2008 2780 1325 1455 — 2530 — 250Sep-2008 3318 1519 1799 — 2958 — 360Dec-2008 3302 1557 1745 — 2995 — 307Mar-2009 3561 1969 1592 — 3021 — 539

Belgium Mar-2008 3886 3675 210 — 1286 — 2599Jun-2008 3361 3331 29 — 1060 — 2300Sep-2008 3649 3180 469 — 454 — 3195Dec-2008 3433 3013 419 — 463 — 2970Mar-2009 3835 3208 627 — 1137 — 2697

Canada Mar-2008 4019 1361 2172 486 1741 2 2276Jun-2008 5388 2221 2565 602 2547 1 2840Sep-2008 5772 1805 3220 747 2586 76 3110Dec-2008 5636 1443 3205 989 3124 1 2511Mar-2009 6348 1547 3325 1476 3823 2 2523

Cayman Islands Mar-2008 773 47 726 — 47 69 657Jun-2008 1148 902 246 — 83 — 1066Sep-2008 1495 1042 452 — 92 — 1403Dec-2008 1660 1083 577 — 90 — 1570Mar-2009 2230 1164 1066 — 161 — 2070

China Mar-2008 1026 962 65 — — — 1026Jun-2008 1312 1133 179 — — — 1311Sep-2008 1390 1149 241 — 122 — 1268Dec-2008 1419 1275 144 — — — 1419Mar-2009 1418 1278 140 — 1 — 1417

Cyprus Mar-2008 2864 1713 1151 — 232 — 2632Jun-2008 2444 1417 1027 — 185 — 2259Sep-2008 1862 924 939 — 298 — 1564Dec-2008 2565 1038 1527 — 1027 — 1539Mar-2009 2513 1104 1409 — 985 — 1528

ARTICLE


March 31, 2009



end of Period on Immediate Country Risk Basis (Contd.)(Rs. crore)

Country of Transacting Period Total Residual Maturity SectorUnits International Short- Long- Un- Bank Non-Bank Non-Bank

Claims Term Term allocated Public Private

Denmark Mar-2008 1660 1347 313 — 1430 — 229Jun-2008 1516 1186 330 — 1400 — 116Sep-2008 1373 1042 331 — 1263 — 111Dec-2008 1305 866 439 — 1112 — 193Mar-2009 1461 1014 447 — 1271 — 190

France Mar-2008 2969 2074 895 — 1535 — 1434Jun-2008 3456 2377 1079 — 2004 — 1452Sep-2008 4519 3079 1440 — 2451 554 1514Dec-2008 4126 2675 1451 — 2742 — 1383Mar-2009 4393 2949 1444 — 3134 — 1259

Germany (Includes ECB) Mar-2008 10607 8572 1600 435 5266 43 5299Jun-2008 10300 8481 1492 327 5157 144 4998Sep-2008 9742 7778 1888 76 4348 459 4935Dec-2008 9565 7838 1727 — 4756 80 4730Mar-2009 9869 8380 1488 — 5295 107 4467

Hong Kong Mar-2008 9792 9092 700 — 5444 — 4347Jun-2008 9978 8614 1364 — 5299 — 4679Sep-2008 10056 8868 1188 — 5664 — 4392Dec-2008 14779 13364 1414 — 9605 — 5174Mar-2009 19031 17018 2013 — 13857 — 5174

Indonesia Mar-2008 1057 592 465 — 17 — 1039Jun-2008 1343 899 444 — 19 — 1325Sep-2008 1258 826 432 — 50 — 1209Dec-2008 1416 887 529 — 22 — 1393Mar-2009 1645 914 730 — 119 — 1525

Ireland Mar-2008 814 451 363 — 294 — 520Jun-2008 811 405 406 — 353 — 457Sep-2008 1328 644 684 — 616 — 713Dec-2008 1253 491 762 — 775 — 478Mar-2009 1135 340 795 — 730 — 405

Israel Mar-2008 479 478 1 — — — 479Jun-2008 604 552 52 — — — 604Sep-2008 522 470 52 — — — 522Dec-2008 873 858 15 — — — 873Mar-2009 875 823 52 — — — 875

Italy Mar-2008 2768 1866 902 — 1359 — 1409Jun-2008 2541 1510 1031 — 1157 — 1384Sep-2008 2351 1363 988 — 1140 — 1211Dec-2008 2240 1294 946 — 1140 — 1100Mar-2009 2857 1961 896 — 1599 — 1258

Japan Mar-2008 1232 1107 125 — 647 41 544Jun-2008 1675 1339 336 — 1077 3 596Sep-2008 1900 1594 305 — 1217 2 681Dec-2008 2139 1720 419 — 1702 — 437Mar-2009 2233 1629 604 — 1573 1 660

Jersey Mar-2008 2 1 2 — — — 2Jun-2008 2 0 2 — — — 2Sep-2008 173 116 57 — 173 — 0Dec-2008 230 171 60 — 230 — —Mar-2009 913 153 760 — 153 — 760

ARTICLE




end of Period on Immediate Country Risk Basis (Contd.)

(Rs. crore)



Luxembourg Mar-2008 6111 3954 2157 — 1919 — 4192Jun-2008 5641 3706 1934 1 1742 — 3899Sep-2008 5451 3488 1963 — 1564 — 3886Dec-2008 4383 2891 1492 — 1340 — 3043Mar-2009 4391 2380 2011 — 1153 — 3238

Maldives Mar-2008 597 596 1 — — — 597Jun-2008 675 674 1 — — — 675Sep-2008 835 834 1 — — — 835Dec-2008 1476 1476 1 — — — 1476Mar-2009 3990 3989 1 — — — 3990

Malta Mar-2008 1 1 — — — — 1Jun-2008 1 1 — — — — 1Sep-2008 6 6 — — — — 6Dec-2008 6 6 — — — — 6Mar-2009 814 452 362 — — — 814

Mauritius Mar-2008 740 230 510 — 82 — 658Jun-2008 933 294 639 — 67 — 866Sep-2008 1068 377 690 — 313 — 754Dec-2008 1022 192 831 — 278 — 745Mar-2009 2079 401 1676 2 339 — 1740

Netherlands Mar-2008 5266 2261 3004 — 1264 — 4002Jun-2008 5244 2162 3082 — 1188 — 4056Sep-2008 5409 1856 3554 — 781 33 4595Dec-2008 5073 1518 3555 — 989 32 4053Mar-2009 6092 1845 4247 — 1133 — 4959

No Specific Country Mar-2008 2350 1386 964 — 298 — 2052(Country Unknown) Jun-2008 2121 1273 848 — 139 — 1982

Sep-2008 2043 1233 810 — 140 — 1903Dec-2008 1430 481 949 — 447 — 983Mar-2009 1543 535 1008 — 487 — 1056

Norway Mar-2008 961 203 758 — 247 — 713Jun-2008 882 111 771 — 193 — 689Sep-2008 888 55 833 — 239 — 649Dec-2008 908 83 825 — 267 — 641Mar-2009 957 120 837 — 300 — 657

Russia Mar-2008 6011 3950 1962 99 3353 — 2658Jun-2008 5573 3569 1897 106 3162 — 2411Sep-2008 6460 3896 2447 117 3800 — 2660Dec-2008 6170 3763 2285 122 3428 — 2742Mar-2009 5340 3031 2182 127 2780 — 2560

Saudi Arabia Mar-2008 586 347 239 — 11 1 574Jun-2008 660 372 288 — 7 1 652Sep-2008 781 525 256 — 11 1 769Dec-2008 904 491 414 — 136 — 768Mar-2009 790 439 350 — 91 — 698

Singapore Mar-2008 11918 6194 5724 — 4165 — 7753Jun-2008 11714 6134 5580 — 4210 1 7503Sep-2008 12303 6148 6156 — 4158 — 8145Dec-2008 14454 6861 7261 332 4656 — 9799Mar-2009 15762 7620 7837 306 4408 — 11354

ARTICLE


March 31, 2009


Statement VII: Residual Maturity and Sector-wise Classification of Consolidated InternationalClaims of Banks (Based on CBS Statements) - Amount outstanding as at

end of Period on Immediate Country Risk Basis (Concld.)

(Rs. crore)



South Africa Mar-2008 789 417 372 — 259 — 530Jun-2008 568 273 296 — 174 — 394Sep-2008 609 316 293 — 275 — 334Dec-2008 779 309 471 — 283 — 496Mar-2009 652 415 237 — 321 — 331

South Korea Mar-2008 963 513 450 — 705 — 258Jun-2008 945 500 444 — 701 — 244Sep-2008 672 255 417 — 353 — 319Dec-2008 730 230 499 — 429 — 301Mar-2009 817 371 446 — 544 — 273

Spain Mar-2008 921 843 79 — 18 — 903Jun-2008 830 744 86 — — — 830Sep-2008 794 755 39 — — — 794Dec-2008 821 714 107 — — — 821Mar-2009 1358 1306 52 — 670 — 689

Sri Lanka Mar-2008 2434 2007 427 — 1025 192 1217Jun-2008 2456 2021 434 1 989 331 1136Sep-2008 2240 1825 414 — 652 181 1407Dec-2008 2281 1916 318 47 596 328 1357Mar-2009 2305 1859 350 96 499 396 1410

Switzerland (Includes BIS) Mar-2008 1746 1432 314 — 761 — 984Jun-2008 1718 1302 416 — 604 3 1112Sep-2008 1313 911 403 — 684 2 628Dec-2008 1597 812 785 — 850 — 746Mar-2009 1672 827 845 — 819 — 853

United Arab Emirates Mar-2008 7990 5405 2585 — 1177 — 6812Jun-2008 7977 4967 3010 — 1047 — 6930Sep-2008 8082 4977 3105 — 1316 1 6765Dec-2008 9660 5296 4364 — 984 — 8675Mar-2009 11309 6447 4862 — 2319 — 8989

United Kingdom @ Mar-2008 21899 13161 7819 920 10211 17 11672Jun-2008 22662 12184 9331 1147 10084 13 12565Sep-2008 23109 11313 9851 1945 10623 14 12472Dec-2008 25246 11481 12255 1510 12518 6 12722Mar-2009 29753 14713 12529 2511 16291 38 13423

United States # Mar-2008 35374 27741 7618 16 10680 323 24371Jun-2008 37447 27502 9930 14 12970 292 24185Sep-2008 39294 27703 11410 181 10857 153 28283Dec-2008 43986 28502 15484 — 13159 268 30560Mar-2009 55734 37993 17711 31 27629 94 28011

@ : Excluding Guernsey, Isle of Man and Jersey. # : Includes Midway Island and Wake Islands.

‘—’ : Nil/Negligible.

Notes : 1. Totals may not tally due to rounding off.2. Residual maturity “Unallocated” comprises maturity not applicable (e.g., for equities) and maturity

information not available.3. “No Specific Country” means the Country Information has not been provided by the reporting bank branches.4. Data have been revised for previous quarters.

ARTICLE

International Tradein Banking Services,

2007-08


* Prepared in the Balance of Payments StatisticsDivision, Department of Statistics and InformationManagement. The previous article on the subject for theperiod 2006-07 was published in January 2009 issue ofthe Bulletin.

International Trade inBanking Services, 2007-08*

The survey on International Trade inBanking Services for 2007-08 wasconducted in continuation of earliersurvey for 2006-07 to obtain the data oninternational trade in banking services.In this survey 121 overseas branches of 12Indian banks and 273 branches of 27foreign banks operating in India werecovered. The international trade inbanking services is captured based on theexplicit and implicit fees or commissioncharged to the customers for financialauxiliary services rendered by the banks.The services covered in the survey are (i)deposit account management services, (ii)credit related services, (iii) financialleasing services, (iv) trade finance relatedservices, (v) payment and moneytransmission services, (vi) fundmanagement services, (vii) financialconsultancy and advisory services, (viii)underwriting services, (ix) clearing andsettlement services, and (x) derivative,stock, securities and foreign exchangetrading services. Results of the surveyrevealed that Indian banks abroadgenerated major share of fee income byrendering credit related services, whereasforeign banks in India generated majorshare of fee income by renderingderivative, stock, securities, foreignexchange trading services.

Introduction

In the context of ongoing negotiations

for liberalising the financial services sector

under the World Trade Organisation (WTO)

as a part of General Agreement on Trade in

Services (GATS), data on International Trade

ARTICLE

International Tradein Banking Services,2007-08


countries as at end March 2008, banks

furnished data for 121 Indian overseas

branches operating in 27 countries on

International Trade in banking services.

Similarly out of 280** foreign bank

branches operating in India as at end March

2008, the survey covered 273 branches of

foreign banks. Bank of Baroda had the

largest overseas presence with 42 branches

in 12 countries, followed by State Bank of

India (33 branches in 18 countries) and Bank

of India (22 branches in 8 countries). The

United Kingdom was having the highest

number of Indian banks’ branches (23),

followed by Hong Kong (12), Singapore (9),

Fiji (9), United Arab Emirates (9), Mauritius

(8), and Sri Lanka (7).

Employment

The details of number of branches and

number of employees of Indian banks

operating abroad and foreign banks

operating in India are given in Table 1. The

foreign banks operating in India employed

99.6 per cent of their employees locally

while the Indian banks operating abroad

employed 74.5 per cent of employees from

in Banking Services becomes important. In

order to make available the basic information

on trade in banking services in India and for

the creation of a consistent and comparable

database with international standards for

policy decisions, first survey on International

Trade in Banking Services was launched in

January 2008 for the year 2006-07. This article

is based on the survey launched in

September 2008 and covers data for 2007-08.

The main objective of the survey is to collect

disaggregated information relating to various

banking services rendered by the overseas

branches of Indian banks as well as the

banking services rendered by the foreign bank

branches operating in India. Methodology

adopted for conduct of the survey and

coverage are presented in Annex-I. A copy of

the survey schedule is given in Annex – II.

The article is organised into six sections.

The distribution of branches of Indian banks

abroad and foreign banks in India is presented

in Section I. Section II examines the business

growth of Indian banks abroad and foreign

banks in India. The trend in profitability of

Indian banks and foreign banks is discussed

in Section III. Section IV examines the trade

in banking services of Indian banks abroad

and foreign banks in India. Section V presents

a disaggregated activity-wise analysis. A

summary of conclusions drawn based on this

survey is presented in Section VI.

Section I

Distribution of branches of Indianbanks operating abroad

Out of total 129* branches/offices of

Indian banks operating abroad in 29

* Table 1.5 of Statistical Table Relating to Banks inIndia 2007-08

** Table 1.1 of Statistical Table Relating to Banks in India2007-08

Item Indian Banks Foreign Banks

operating abroad operating in India

1 2 3

Number of Branches 121 273

Number of Employees 4647 30159

of which;

Local 3461 30062

Indians 1023 NA

Others 163 97

NA : Not Applicable.

Table 1: Details of Employees as atend-March 2008

ARTICLE


2007-08


local sources, 22.0 per cent from India and

remaining 3.5 per cent from other countries.

Section II

Indian banks’ growth in overseasbusiness

The growth of assets / liabilities of Indian

banks’ branches operating abroad was 9.1 per

cent during 2007-08 as against 55.8 per cent

in the previous year (Table 2). The credit

extended and deposits mobilised by the

Indian banks’ branches abroad increased by

36.8 per cent and 9.9 per cent, respectively

during 2007-08 compared to 48.8 per cent and

51.3 per cent, respectively in the previous

year. Thus, there was distinctive slow down

in the banking activity of the overseas

branches of the Indian banks in 2007-08 as

compared to the previous year.

The share of credit extended in total

assets of Indian banks branches operating

overseas increased by 57.6 per cent as at end

March 2008 over the corresponding period

of the previous year whereas the share of

deposits mobilised in total liabilities of

Indian banks increased marginally for the

same period. The shares of total business

(credit extended and deposits mobilised) in

total assets/liabilities of Indian banks, which

was at 86.5 per cent as at March end 2007

increased to 98.7 per cent as at March end

2008.

Foreign Banks’ share in Indian BankingBusiness

The share of foreign banks in Indian

banking business in terms of credit

extended, deposits mobilised and total

assets/liabilities are presented in Table 3.

The share of foreign banks’ assets in total

assets of Scheduled Commercial Banks

(SCBs) increased to 8.4 per cent in 2007-08

from 7.9 per cent in 2006-07 whereas their

share of credit in total credit of SCBs

increased marginally at 6.5 per cent

compared to 6.3 per cent in the


The share of foreign banks’ income in total

income of SCBs increased from 8.8 per cent

to 9.5 per cent during the period under

review, due to increase in share of interest

income (from 7.6 per cent to 7.9 per cent)

as well non-interest income (from 15.1 per

cent to 17.5 per cent).

The total assets / liabilities of foreign

banks operating in India grew by 33.4 per

cent during 2007-08. The deposit growth

was higher at 29.6 per cent than the growth

of credit at 24.5 per cent in 2007-08.

Table 2: Balance Sheet Items of Indian Banks' Branches Operating Abroad

(Rs. crore)

As at end-March

2006 2007 2008 Growth Growth

Item Amount Per cent Amount Per cent Amount Per cent (%) in (%) in

to total to total to total 2006-07 2007-08Assets Assets Assets

1 2 3 4 5 6 7 8 9

Credit extended 78657 47.9 117069 45.7 160185 57.6 48.8 36.8

Deposits mobilized 69078 42.0 104526 40.8 114826 41.1 51.3 9.9

Total Assets/Liabilities 164310 256018 279300 55.8 9.1

ARTICLE



Section III

Income and Expenditure

The total income of Indian banks’

branches operating abroad amounting to Rs.

16,048 crore, registered a growth of 14.7 per

cent in 2007-08 (Table 4) as against 44.5 per

cent growth in the income of foreign banks

operating in India. The growth of interest

income was lower in both Indian banks and

foreign banks implying that during 2007-08

the non-interest income increased at a

higher rate than interest income. In absolute

terms, the non-interest income was only

Rs.651 crore for Indian banks’ branches

operating overseas compared to Rs. 10,356

crore for foreign banks’ branches in India

in 2007-08.

Table 4: Income and Expenditure

(Rs. crore)

Indian Banks' branches Operating Abroad Foreign Banks' branches operating in India

Item 2006-07 2007-08 Growth (%) 2006-07 2007-08 Growth (%)

1 2 3 4 5 6 7

Income 13987 16048 14.7 24175 34934 44.5

of which;

Interest Income 13674 15397 12.6 17672 24578 39.1

Expenditure 11265 13264 17.8 17401 24689 41.9

of which;

Interest Expenditure 10909 12552 15.1 7424 10769 45.1

Table 3: Foreign Banks' Share in Indian Banking Business

(Rs. crore)

All Scheduled Foreign Banks covered Foreign banks’ shareCommercial Banks* in the survey in Indian banking

Business (%)

2006-07 2007-08 2006-07 2007-08 2006-07 2007-08

1 2 3 4 5 6 7

No. of Reporting Banks 82 79 25 27 2 5 2 7

Assets/Liabilities 3459946 4326469 272824 364019 7.9 8.4(33.4)

Credit 1981235 2477037 124512 160646 6.3 6.5(24.5)

Deposits 2696934 3320052 147347 191015 5.5 5.8(29.6)

Total Income 274714 368884 24175 349345 8.8 9.5

of which;

Interest received 231673 309568 17672 24578 7.6 7.9

Total Expenditure 208733 285212 17401 24689 8.3 8.7

of which;

Interest paid 142418 207999 7424 10769 5.2 5.2

Net Interest Margin 2.85 2.60 4.38 4.33 – –

* Source: Statistical Tables relating to banks in India – : Not applicable.Figures in the bracket indicate annual growth in the respective items.

ARTICLE


2007-08


Further, the interest expenses of Indian

banks’ overseas branches was higher at

Rs.12,552 crore compared to Rs. 10,769 crore

of foreign banks operating in India during

the same period.

The profitability ratios, viz., income to

total assets, net profit to total income and

net profit to total assets of the foreign

banks operating in India improved during

2007-08 as compared to the previous year

(Table 5). In contrast, net profit to total

income of Indian banks operating abroad

declined from 19.5 per cent in 2006-07 to

17.3 per cent in 2007-08 whereas the income

to total assets and net profit to total assets

changed marginally.

Table 5: Profitability Ratios

(Per cent)

Profitability Ratio Indian Banks' Branches Operating Abroad Foreign Banks' Branches Operating in India

2006-07 2007-08 2006-07 2007-08

1 2 3 4 5

Income to Total Assets 5.5 5.7 8.9 9.5

Net Profits to Total Income 19.5 17.3 28.0 29.3

Net Profits to Total Assets 1.1 1.0 2.5 2.8

Country-wise Profitability of IndianBanks’ Branches Operating Abroad

Country-wise return, i.e., net profit on

total assets of Indian banks operating abroad

is presented in Chart 1.

The return on assets of Indian banks

operating in Sri Lanka was the highest at 2.4

per cent in 2007-08, followed by Singapore

(1.8 per cent) and Oman (1.7 per cent). It was

observed that return on assets of Indian

banks’ overseas branches improved in

2007-08 over the preceding year in case of

Sri Lanka, Bahrain, Belgium, France and Hong

Kong and declined in case of Japan,

Mauritius, Thailand, the UK and the US.

ARTICLE



Section IV

Trade in Banking Services – IndianBanks’ Branches Operating Abroad

The trade in banking services extended

was captured based on explicit and implicit

fees or commission charged to the

customers for various services rendered by

the Indian banks’ branches operating

abroad. In this survey the financial services

produced by the banks were classified into

eleven major groups. These services include

deposit account management services,

credit related services, financial leasing

services, trade finance related services,

payment and money transmission services,

fund management services, financial

consultancy and advisory services,

underwriting services, clearing and

settlement services, “derivative, stock,

securities, foreign exchange trading

services” and other financial services.

Further details are explained in Annex-I.

Activity-wise Trade in BankingServices – Indian Banks’ OverseasBranches

The activity-wise fee income generated

through rendering banking services by the

Indian banks’ branches abroad is presented

in Table 6. It is observed that the fee income

generated by rendering trade in banking

services by the Indian banks’ branches

operating abroad increased significantly by

83.5 per cent from Rs. 1,890 crore in 2006-07

to Rs. 3,468 crore in 2007-08. Among various

banking services, fee income generated by

rendering services like credit related services,

clearing and settlement services and

financial consultancy and advisory services

recorded a significant growth in 2007-08 over

2006-07. There was a decline in the income

generated by way of payment and

transmission services (38.9 per cent), fund

management services (99.9 per cent) and

underwriting services (99.0 per cent) during

2007-08 compared to the previous year.

Table 6: Composition of Trade in Banking Services - Activity-wise

(Rs. Lakhs)

Name of Banking Services 2006-07 2007-08 Growth (%)

1 2 3 4

Deposit Account Management Services 5291 6935 31.1

Credit Related Services 82751 189744 129.3

Financial Leasing Services 0 0 0.0

Trade Finance Related Services 40986 48969 19.5

Payment and Money Transmission Services 33308 20353 -38.9

Fund Management Services 6635 8 -99.9

Financial Consultancy and Advisory Services 2365 17349 633.5

Underwriting Services 529 5 -99.0

Clearing and Settlement Services 55 2000 3550.0

Derivative, Stock, Securities, Foreign Exchangetrading Services 15817 27375 73.1

Other Financial Services 1295 34091 2533.1

Total 189032 346829 83.5

ARTICLE


2007-08


Further, credit related services, trade

finance related services, derivative, stock,

securities, foreign exchange trading services

and payment & money transmission

services were the major banking services

rendered by the Indian banks operating

abroad. The respective shares were 54.7 per

cent, 14.2 per cent, 7.9 per cent and 5.9 per

cent, respectively in 2007-08 (see Table 9).

The Indian banks operating abroad had

hardly generated any income through fund

management and underwriting services.

None of overseas branches of Indian banks

generated any fee income from financial

leasing services in 2007-08.

Trade in Banking Services by IndianBanks operating Abroad – Residentsand Non-Residents

The fee income of the Indian banks

operating abroad by rendering banking

services to residents increased from Rs. 578

crore in 2006-07 to Rs. 1189 crore in 2007-08

which was almost one third of total fee based

income (Table 7). The fee income generated

by rendering the banking services to residents

grew at a faster rate than to non-residents.

Further, the share of fee income derived

from residents increased in 2007-08 (34.3

per cent) as compared to the previous year

(30.6 per cent), while the share of fee income

from non-residents decreased correspondingly

(Chart 2). The fee income from non-residents

(in India) constituted 25.8 per cent of total

fee income in 2007-08 as compared to 35.9

per cent in the previous year. The fee income

generated from extending banking services

to non-residents of other countries accounted

for 39.9 per cent to total fee based income

and had improved over last year (by

33.5 per cent).

Country-wise Trade in BankingServices - Indian Banks’ BranchesOperating Abroad

The country-wise trade in banking

services by the Indian banks’ branches

operating abroad is presented in Table 8. the

UK, Singapore, Bahrain, Hong Kong, Sri

Lanka, the US, the UAE and Belgium were

the major countries not only accounting for

the major share (76.7 per cent) in trade in

banking services of the Indian banks but had

also seen significant growth in trade in

banking services in 2007-08 over 2006-07.

Among 37 countries, Singapore had the

largest share of 25.8 per cent in total fee

income generated from trade in banking

services, followed by the UK (17.4 per cent),

Table 7: Trade in Banking Services (Fee Income) byIndian Banks abroad-Residents and Non-Residents

(Rs. crore)

Item 2006-07 2007-08 Growth(%)

1 2 3 4

Residents 578 1189 105.7

Non-Residents, 1312 2279 73.7of which

In India 679 895 31.8

In Other Countries 633 1384 118.6

Total Trade inBanking Services 1890 3468 83.5(Fee Income)

ARTICLE



Bahrain (11.8 per cent) and Sri Lanka (8.6 per

cent) in 2007-08.

Further, as stated earlier, deposit account

management services, credit related services,

trade finance related services, payment &

money transmission services and

“derivative, stock, securities, foreign

exchange trading services” were the major

trade in banking services rendered by the

Indian banks in these countries. Singapore

was the only country where Indian banks had

also rendered funds management services.

Section V

Comparison of Trade in BankingServices – Indian Banks’ BranchesOperating Abroad vis-à-vis ForeignBanks’ Branches Operating in India

A comparative analysis between the

Indian banks’ branches operating abroad

and foreign banks’ branches operating in

India revealed that the Indian banks were

lagging behind in generating income by

rendering trade in banking services. The

total fee income generated by the foreign

banks operating in India was Rs. 8,974 crore

whereas Indian banks operating abroad

generated only Rs. 3,468 crore in 2007-08

(Chart 3).

Comparison of Trade in BankingServices - Activity-wise

Indian banks operating abroad

generated major share of fee income by

rendering service activity viz., credit

related services, whereas in the case of

foreign banks operating in India

‘derivative, stock, securities, foreign

exchange trading services’ occupied the

major share of total trade in banking

services. The other major components of

Table 8: Trade in Banking Services - Country-wise

(Rs. Lakhs)

Trade in Banking Services Total

Country DAM CRS TFR PMT DER All Services

2006-07 2007-08 2006-07 2007-08 2006-07 2007-08 2006-07 2007-08 2006-07 2007-08 2006-07 2007-08

1 2 3 4 5 6 7 8 9 10 11 12 13

UK 573 489 23875 45853 7509 10090 22469 2017 907 2043 55863 60492

Singapore 1029 131 30056 62507 6029 12981 822 470 3599 3965 48169 89755

Bahrain 11 61 13085 23619 307 433 67 56 2054 4941 17890 41029

Hong Kong 148 311 7598 6962 5281 4340 817 1691 2425 6040 16270 19344

Sri Lanka 39 868 133 19891 2427 409 119 22 134 0 2858 21462

USA 9 143 1250 6550 4323 4554 3022 5074 379 1188 8983 17510

Japan 29 30 959 733 1422 1507 437 338 2526 0 5380 4634

UAE 1495 2213 89 1160 1870 3361 444 267 1359 1598 5257 8599

France 0 0 487 993 2478 1275 708 396 238 0 4065 2767

Germany 0 0 320 327 2031 1412 1063 943 120 0 3534 2682

Belgium 28 167 731 4293 1963 2618 614 956 61 0 3396 8034

Other

Countries 1929 3011 4168 30079 5345 16079 2726 9664 2016 9643 17366 97908

Total 5291 6934 82751 189744 40986 48969 33308 20353 15818 27375 189032 346829

DAM : Deposit Account Management Services. CRS : Credit Related Services.TFR : Trade Finance Related Services. PMT : Payment & Money Transmission Services.DER : Derivative, Stock, Securities, Foreign Exchange Trading services.

ARTICLE


2007-08


fee income for both Indian banks operating

abroad and foreign banks operating in India

were trade finance related services and

financial consultancy and advisory services.

The share of credit related services in total

fee income, in case of Indian banks,

increased significantly to 54.7 per cent in

2007-08 from 43.8 per cent in 2006-07

(Table 9). In case of foreign banks operating

in India, the share of trade finance related

services increased from 10.2 per cent to 16.5

per cent during the same period. Further, it

was observed from the data that both Indian

banks operating abroad as well as foreign

banks operating in India had not derived any

fee income by rendering financial leasing

services during the period under study, i.e.,

2006-07 and 2007-08.

Table 9: Composition of Trade in Banking Services

(Per cent)

Name of Banking Services Indian Banks' Foreign BanksBranches Operating Abroad Branches Operating in India

2006-07 2007-08 2006-07 2007-08

1 2 3 4 5

Deposit Account Management Services 2.8 2.0 3.0 5.0

Credit Related Services 43.8 54.7 7.6 6.7

Financial Leasing Services 0.0 0.0 0.0 0.0

Trade Finance Related Services 21.7 14.1 10.2 16.5

Payment and Money Transmission Services 17.6 5.9 23.3 5.0

Fund Management Services 3.5 0.0 3.4 4.9

Financial Consultancy and Advisory Services 1.3 5.0 12.5 8.8

Underwriting Services 0.3 0.0 1.0 0.6

Clearing and Settlement Services - 0.6 5.4 1.0

Derivative, Stock, Securities, ForeignExchange trading Services 8.4 7.9 28.5 34.1

Other Financial Services 0.7 9.8 5.2 17.4

All activities 100.0 100.0 100.0 100.0

- : negligible.

ARTICLE



Comparison of Trade in BankingServices - Residents and non-Residents

The composition of residents and non-

residents in total trade in banking services

of Indian banks operating abroad and

foreign banks operating in India is

presented in Table 10. A notable contrast of

generation of fee income from residents and

non-residents was observed between Indian

banks operating abroad and foreign banks

operating in India.

Indian banks generated major share of

fee income by rendering banking services

to non-residents at 65.7 percent while

foreign banks generated major share of fee

income from residents. Foreign banks

operating in India generated 95 per cent of

fee income by rendering banking services

to residents in 2007-08.

The income generated by catering

financial services to residents grew at a

faster rate as compared to the non-residents

for foreign banks operating in India as well

as Indian banks operating abroad (Chart 4).

It was observed that fee income generated

from banking services attended to non-

residents by foreign banks operating in

India recorded a decline.

Comparison of Accrual of Amounts toIndia and Abroad by Rendering Tradein Banking Services

Table 11 presents the amount accrued

to India as well as to other countries due to

fee based income generated through trade

in banking services.

The amount accrued to India by Indian

banks’ operations in various countries was

at Rs. 3,289 crore in 2007-08 whereas the

amount accrued to other countries

(excluding India) by foreign origin banks’

operating in India was much higher at Rs.

8,974 crore during the corresponding

period. The amount accrued to India was

greater than the amount accrued to foreign

Table 10: Composition of fee income generated from Trade in Banking Services

(Per cent)

Indian Banks 2006-07 2007-08 Foreign Banks 2006-07 2007-08

1 2 3 4 5 6

Residents 30.6 34.3 Residents 91.1 95.1

Non-Residents 69.4 65.7 Non-Residents 8.9 4.9of which;

To India 35.9 25.8

To other countries 33.5 39.9

ARTICLE


2007-08


countries like Singapore, Bahrain,

Bangladesh, etc., during 2007-08, whereas

the amount accrued to other countries was

greater than amount accrued to India in case

of the US, the UK, Hong Kong, Germany, etc.

Further, it was observed that the fee

income generated by 47 branches of Hong

Kong originated banks operating in India was

Rs. 2,015 crore whereas that by 12 branches

of Indian banks operating in Hong Kong was

Table 11: Accrual of Amounts to India and to Abroad

(Rs. Lakhs)

Country Foreign Banks' Branches Operating in India Indian Banks' Branches Operating Abroad

Accruals to Abroad Accruals to India

Number of Number ofBranches 2006-07 2007-08 Branches 2006-07 2007-08

1 2 3 4 5 6 7

Afghanistan NA NA NA 1 4.4 226.3

Australia NA NA NA 1 61.7 911.6

Bahamas NA NA NA 2 805.8 915.9

Bahrain 2 322.3 291.2 4 17889.7 41028.8

Bangladesh 3 262 372.6 4 597.6 15505.6

Belgium 1 694.7 768 3 3396.5 8034.3

Canada 5 939.8 1791.5 NA NA NA

Cayman Islands NA NA NA 1 72.4 22433.4

China NA NA NA 2 255 359.8

Fiji NA NA NA 9 1131.3 1454.9

France 16 9291.8 16132.1 2 4065.2 2766.9

Germany 10 34035.2 38802.3 1 3534.3 2681.9

Hong Kong 47 142201 201518.4 12 15546.6 19344

Israel NA NA NA 1 NA –

Japan 5 7538.3 5433.8 4 5380.3 4634.1

Kenya NA NA NA 4 487.6 571.8

Maldives NA NA NA 1 3825.8 7180.8

Mauritius 3 80.5 29.7 8 525.3 1729.7

Netherlands 28 15958.1 66156.5 NA NA NA

Oman 2 22478.8 3.1 1 403.4 256.5

Seychelles NA NA NA 1 140.9 272.1

Singapore 2 5130.3 3645.7 9 48168.7 89755.5

South Africa NA NA NA 3 651.7 617.1

South Korea 2 360.8 129.4 1 NA –

Sri Lanka 1 NA 26951.6 7 2857.7 21462.3

Taiwan 1 105.3 134 NA NA NA

Thailand 1 26.6 – 1 225.9 212

UAE 4 76.9 84155.4 9 5257.5 8598.9

UK 95 85533.4 176308 23 18933.7 60491.8

USA 45 283276.4 274741.6 6 8316.8 17510

All Countries 273 608312.1 897364.8 121 142535.7 328956.27

NA Bank/ Branch is not operating. – Nil.

ARTICLE



merely Rs. 193 crore in 2007-08. There were

95 branches of UK origin banks operating in

India with fee income of Rs.1, 763 crore as

compared with only Rs. 605 crore emanating

from 23 branches of Indian origin banks

operating in the UK. As against 45 branches

of US based banks operating in India with a

fee income of Rs. 2,747 crore, Indian banks

operating in the US through 6 branches could

generate Rs. 175 crore in 2007-08.

Section VI

Conclusions

A survey on international trade in

banking services was conducted among

foreign banks operating in India and Indian

banks having presence abroad. In all, 12

Indian banks operating abroad and 27

foreign banks operating in India had

responded to the survey. The coverage of

foreign banks operating in India in terms

of total assets, credit extended and deposits

received was around 99.9 per cent, 99.7 per

cent and 99.9 per cent, respectively.

The UK was having the highest number

of Indian banks’ branches (23 of 5 Indian

banks), followed by Hong Kong (12), Singapore

(9), Fiji (9), the UAE (9) Mauritius (8), and Sri

Lanka (7). The foreign banks operating in India

employed 99.6 per cent of their employees

from locally available sources while Indian

banks operating abroad recruited 74.5 per cent

of employees from local sources.

Further, the fee income generated by the

Indian banks operating abroad increased

significantly by 83.5 per cent from Rs. 1,890

crore in 2006-07 to Rs. 3,468 crore in 2007-

08, of which 82.6 per cent of fee income was

by rendering banking services like credit

related services, trade finance related

services, derivative, stock, securities, foreign

exchange trading services and payment &

money transmission services.

A comparative analysis between the

Indian banks operating abroad and foreign

banks operating in India revealed that during

2007-08, the total fee income generated by

the foreign banks operating in India by

rendering banking services was significantly

higher at Rs. 8,974 crore than that of Indian

banks operating abroad which generated only

Rs. 3,468 crore of fee income. Indian banks

generated a major share of fee income by

rendering banking services to non-residents

while foreign banks generated major share

of fee income from residents. Foreign banks

operating in India generated 95 per cent of

fee income by rendering banking services to

residents during 2007-08.

The UK, Singapore, Bahrain, Hong Kong,

Sri Lanka, Bangladesh were the major

countries having witnessed not only the

significant share in trade in banking services

by the Indian banks but also had seen

significant growth in trade in banking

services in 2007-08 over 2006-07.

The amount accrued to India by Indian

origin banks’ branches operations in various

countries was at Rs. 3,289 crore during

2007-08 whereas the amount accrued to rest

of the world by foreign origin banks’

operations in India was significantly higher

at Rs. 8,973 crore during the same period.

The fee income generated by 47 branches

of Hong Kong origin banks operating in

India was Rs. 2,015 crore in 2007-08

compared to the fee income at Rs. 193 crore

of 12 branches of Indian origin banks

operating in Hong Kong.

ARTICLE


2007-08


Financial services, particularly banking

services, play an important role in promoting

global, regional and bilateral economic

integration. Banking services include,

acceptance of deposits and lending (the core

banking services), and the other financial

services (Para banking services) like payment

services, securities trading, asset

management, financial advice, settlement

and clearing service, etc. With the

improvements in economic integration of

financial markets and activities, the

international trade in banking services has

significantly increased.

The GATS framework envisages that the

delivery of any commercial services can be

through four different modes viz. Mode 1 –

Cross Border Service, Mode 2 – Consumption

abroad, Mode 3 – Commercial presence and

Mode 4 – movement of natural persons. In

Mode 3, the bank has a commercial presence

in the territory of the service importing

country and the service is delivered therein.

The commercial presence can be through

various investment vehicles like representative

offices, branches, subsidiaries, associates and

correspondents.

Banking services covered in this survey

include financial auxiliary services such as

(i) deposit account management services, (ii)

credit related services, (iii) financial leasing

services, (iv) trade finance related services,

(v) payment and money transmission

services, (vi) fund management services, (vii)

financial consultancy and advisory services,

(viii) underwriting services, (ix) clearing and

settlement services, and (x) derivative, stock,

securities and foreign exchange trading

services. While carrying out the banking

business, banks cater to the financial services

needs of the residents of the country of

operation as well as non-residents of that

country. Keeping this in view, the survey also

collected the information with bifurcation of

financial services rendered to residents and

non-residents, separately.

Details of Services Covered are:

• Deposit Account Management services

include fees and commissions charged to

or received from the deposit account

holders, for maintaining deposit

accounts such as fee for cheque book, fee

for internet banking, commission on

draft and other instrument provided,

penalty for not maintaining minimum

balance, etc. and any other fees charged

to deposit account holders.

• Credit related services include fees

received for credit-related or lending

related services like credit processing

fees, late payment or default charges and

early redemption charges. Charges for

facility and management fees, fees for

renegotiating debt terms, mortgage fees,

etc. also to be reported here.

• Financial Leasing services include fees

or commission received for arranging or

entering into financial lease contracts.

This also includes fees received directly

or deducted from the proceedings.

• Trade Finance related services include

commission or fees charged for arranging

trade finance like buyers’ and suppliers’

credit, fees for establishing/originating,

maintaining or arranging standby letters

of credit, letter of indemnity, lines of

Annex - IMethodology

ARTICLE



credit, fees for factoring services, bankers

acceptance, issuing financial guaranty,

commitment fees, handling charges for

trade bills.

• Payment and Money Transmission

services include fees or charges for

electronic fund transfer services like

SWIFT, TT, wire transfer, etc. ATM

network Services, annual credit /debit

card fees, Interchange charges, fees for

point of services, etc. also have to be

reported here. Further, Charges on the

customer for making remittances abroad

or receiving remittances from abroad

have to be reported here.

• Fund Management services include fee or

income received for managing or

administering financial portfolios, all

forms of collective investment

management, pension fund management,

custodial, depository and trust services.

Commission or fees for safe custody of

shares/equities, transaction fee for

custodian account, communication cost or

any other fees/charges related to custodian

account should also be reported.

• Financial Consultancy and Advisory

services include fees for advisory,

intermediation and other auxiliary

financial services including credit

reference and analysis, portfolio research

and advice, advice on mergers and

acquisitions and on corporate

restructuring and strategy. Arrangement/

management fees for Pvt. Placement of

share/ equities are also to be included.

• Underwriting services include

underwriting fees, earning from buying

and reselling an entire or substantial

portion of newly issued securities.

• Clearing and Settlement services

include settlement and clearance

services for financial assets, including

securities, derivative products, and other

negotiable instruments.

• Derivative, Stock, Securities, Foreign

Exchange trading services include

commissions, margin fees, etc. received

for carrying out financial derivative

transactions, placement services, and

redemption fees. Earnings received on

banks’ own account as well as on behalf

of customers for carrying out foreign

exchange trading has to be reported

under this item. Explicit brokerage fees

and commissions for foreign exchange

brokerage services are also to be reported.

Earnings received on banks’ own account

for carrying out trading in derivative,

stock, securities etc. should not be

reported.

A technical Group on Statistics for

International Trade in Banking Services (TG-

SITBS) was set up by the Reserve Bank of

India including members from Ministry of

Finance, Ministry of Commerce and various

departments (Department of Economics

Analysis and Policy, Department of Banking

Operations & Development and Department

of Statistics and Information Management)

of the Bank.

The TG-SITBS, after examining the different

data sources available in the Reserve Bank,

recommended collection of activity-wise

international trade in services through annual

surveys and suggested that initially the data may

Annex - IMethodology (Contd.)

ARTICLE


2007-08


Annex - IMethodology (Concld.)

be collected on banking services from foreign

banks operating in India and Indian banks

having operations abroad. The TG-SITBS also

recommended that a suitable questionnaire with

explanatory notes should be prepared/framed

in consultation with the banks and suggested

for conducting annual survey for the financial

year 2006-07 by June 2007. Accordingly, a survey

schedule was prepared after detailed discussions

with the major foreign banks operating in India

and Indian banks functioning abroad.

The first survey on ‘International Trade

in Banking Services’ was launched by the

Bank in January 2008 and the findings based

on the survey published in the monthly

bulletin of January 2009.

Coverage

The questionnaire was forwarded to (i)

all Indian banks having business abroad and

(ii) all foreign bank branches operating in

India. In all 12 Indian banks operating abroad

and 27 foreign banks operating in India

responded to the survey. 4 Indian banks

opened their overseas representative offices

furnished Nil return. Based on the response,

the coverage of foreign banks in India in

terms of total assets, credit extended and

deposits received was around 99.9 per cent,

99.7 per cent and 99.9 per cent, respectively.

Coverage of the survey as at end-March 2008

(Rs. crore)

Item Foreign Banks Foreign Banks Coverage

operating in covered in (%)

India* the Survey

Number of

Reporting Banks 28 27

Total assets 364099 364019 99.9

Credit extended 161133 160646 99.7

Deposits received 191114 191015 99.9

* Source: Statistical Tables Relating to Banks in India.

ARTICLE



Annual Survey on International Trade in Banking Services 2007-08(To be reported by Foreign Banks in India)

PART I : General Information

1. Name of the Reporting Bank :

2. Address of the reporting Bank :

3. Percentage Share in JV /Subsidiary/Associate(This column is intented only for those banks submittingthe data on Joint Venture /Subsidiary/ Associates )

4. Information on Branches /JV/Subsidiary/associate :

Number of branches Total number of employees

Indian Foreign

6. Information on outstanding Credit and Deposits (based on the operations of the branches inIndia):

(Amount in Rs ‘Thousands)

As at the end of Credit Deposits

Resident Non-Resident Resident Non-Resident

June ‘07

September ‘07

December ‘07

March’08

Annex - II

Reserve Bank of IndiaDepartment of Statistics and Information Management

#N/A

#N/A

#N/A

#N/A

5. Information on outstanding Assets and Liabilities : (based on the operations of the branchesin India):


As at the end of Asset Liability (including Share Capital)

Within India Abroad Within India Abroad

June ‘07

September ‘07

December ‘07

March’08

ARTICLE


2007-08


7. Information on total Income and Expenditure : (based on the operations of the branches inIndia):

(Amount in Rs’Thousand)

During the financial year Total Income Total Expenditure

2007-08

8. Information on Interest Income (based on the operations of the branches in India):


During the Period Interest received from Interest Expended to

Resident Non-Resident Resident Non-Resident

April-Jun’07

July-Sept’07

Oct-Dece’07

Jan-Mar’08

B. Credit related services


During the Period Resident Entities Non-Resident

April-Jun’07

July-Sept’07

Oct-Dece’07

Jan-Mar’08

PART II: Information on Trade in Banking Services

9. Information on explicit fees and earnings [Please read the instructions before filing thisinformation]

A. Deposit Account management services



April-Jun’07

July-Sept’07

Oct-Dece’07

Jan-Mar’08

Annex - II (Contd.)

ARTICLE



Annex - I (Contd.)

C. Financial Leasing services



April-Jun’07

July-Sept’07

Oct-Dece’07

Jan-Mar’08

E. Payment and Money Transmission Services



April-Jun’07

July-Sept’07

Oct-Dece’07

Jan-Mar’08

F. Fund Management Services



April-Jun’07

July-Sept’07

Oct-Dece’07

Jan-Mar’08

D. Trade finance related services



April-Jun’07

July-Sept’07

Oct-Dece’07

Jan-Mar’08

Annex - II (Contd.)

ARTICLE


2007-08


J. Derivative, Stock, Securities, Foreign Exchange trading services



April-Jun’07

July-Sept’07

Oct-Dece’07

Jan-Mar’08

Annex - II (Contd.)

G. Financial Consultancy and Advisory services



April-Jun’07

July-Sept’07

Oct-Dece’07

Jan-Mar’08

I. Clearing and settlement services



April-Jun’07

July-Sept’07

Oct-Dece’07

Jan-Mar’08

H. Underwriting services



April-Jun’07

July-Sept’07

Oct-Dece’07

Jan-Mar’08

ARTICLE



Annex - II(Contd.)

Part III: Comments if any in order to enhance the transparency on the methodology used forestimation on the data items provided in Part II

K. Other Financial Services



April-Jun’07

July-Sept’07

Oct-Dece’07

Jan-Mar’08

ARTICLE


2007-08


Reserve Bank of IndiaDepartment of Statistics and Information Management

PART I : General Information

1. Reporting Bank’s Name:

2. Address of the reporting Bank :

3. Country of Operations for which the information is filled in :

4. Base Currency in which financial account

reported to corporate office:

5. Percentage Share in JV/Subsidiary/Associate

(This column is intented only for those banks submitting the data on Joint Venture /Subsidiary/Associate )

Annex - II (Contd.)

#N/A

#N/A

#N/A

#N/A

#N/A

#N/A

7. Information on outstanding Assets (Based on the country wise Balance sheet)

(Amount in ‘Thousands of Base Currency)

Outstanding Position Resident Non Residentat the end of In India Other Countries

June ‘07

September ‘07

December ‘07

March ‘08

6. Information on Branches /JV/Subsidiary/Associate :

No. of Branches Total No. of Employees

Local Indian Others

Annual Survey on International Trade in Banking Services 2007-08(To be reported by Indian Banks relating to their

offices/branches of overseas operations)

ARTICLE



Annex - II (Contd.)

8. Information on outstanding Liabilities (Based on the country wise Balance sheet)


Outstanding Position Resident Non Residentat the end of India Other Countries

June ‘07

September ‘07

December ‘07

March ‘08

9. Information on outstanding Credit extended (Based on the operations of the bank in eachcountry)



June ‘07

September ‘07

December ‘07

March ‘08

10. Information on outstanding Deposit received (Based on the operations of the bank ineach country):



June ‘07

September ‘07

December ‘07

March ‘08

11. Information on total Income and Expenditure (Based on the country wise Balance sheet)


Period Total Income Total Expenditure

2007-08

ARTICLE


2007-08


12. Information on Interest income received (Based on the country wise Balance sheet):


Period Resident Non Resident

India Other Countries

April-June ‘07

July-September ‘07

October-December ‘07

January-March ‘08

Annex - II (Contd.)

13. Information on Interest paid (Based on the country wise Balance sheet)




April-June ‘07



January-March ‘08

Part II : Information on Trade in Banking Services

14. Information on Explicit fees and Income [Please read the instructions before filing thisinformation]

A. Deposit Account management services




April-June ‘07



January-March ‘08

ARTICLE



B. Credit related services




April-June ‘07



January-March ‘08

Annex - II (Contd.)

D. Trade finance related services




April-June ‘07



January-March ‘08

E. Payment and Money Transmission Services




April-June ‘07



January-March ‘08

C. Financial Leasing services




April-June ‘07



January-March ‘08

ARTICLE


2007-08


F. Fund Management Services




April-June ‘07



January-March ‘08

G. Financial Consultancy and Advisory services




April-June ‘07



January-March ‘08

H. Underwriting services




April-June ‘07



January-March ‘08

I. Clearing and settlement services




April-June ‘07



January-March ‘08

Annex - II (Contd.)

ARTICLE



J. Derivative, Stock, Securities, Foreign Exchange trading services




April-June ‘07



January-March ‘08

Annex - II (Concld.)

Part III. Comments if any, in order to enhance the transparency on the methodology used forestimation on the data items provided in Part II

K. Other Financial Services




April-June ‘07



January-March ‘08

Other ItemsPress Releases

Regulatory and Other Measures

Foreign Exchange Developments


OTHER

ITEMS

Press Releases


RBI Efforts to improve BankingReach in Sikkim

October 1, 2009

Banks will open additional currency

chests in the State of Sikkim within the next

nine months so as to cover all the district

headquarters in the State. Banks and the

State administration will also work in close

coordination to enhance credit flow in

Sikkim. Further, the functioning of State

Level Bankers Committee (SLBC) will be

strengthened with high level participation

from the State Government side. The

commercial banks and the State Cooperative

Bank of Sikkim have agreed to open new

branches in most of the unbanked blocks

in the State with banks using IT enabled

banking services through Banking

Correspondents in the remaining blocks to

extend banking services to promote

financial inclusion.

These were the major decisions taken

after Dr. D.Subbarao, Governor, Reserve Bank

of India met Shri Pawan Chamling, the

Hon’ble Chief Minister of Sikkim, other senior

State officials and senior bankers in the State.

The Chief Minister, in his meeting with the

Governor had expressed the need for opening

of at least one currency chest in every district

headquarter, one branch in all unbanked

blocks and enhancing credit flow in the State.

Certificate of Registration of M/s.Bharat Finance CorporationPrivate Limited - Cancelled

October 7, 2009

The Reserve Bank of India has on August

31, 2009 cancelled the certificate of

registration granted to M/s. Bharat Finance

Press ReleasesOctober 2009

OTHER

ITEMS

Press Releases


Corporation Private Limited, having its

registered office at 20/1, Asaf Ali Road, New

Delhi-110002 for carrying on the business of

a non-banking financial institution. Following

cancellation of the registration certificate the

company cannot transact the business of a

non-banking financial institution.

Certificate of Registration of M/s.San Components Limited –Cancelled

October 7, 2009

The Reserve Bank of India has on August

31, 2009 cancelled the certificate of

registration granted to M/s. San Components

Limited having its registered office at 1598,

Main Bazar, Paharganj, New Delhi-110055 for

carrying on the business of a non-banking

financial institution as the company has

voluntarily exited from the business of a non-

banking financial institution. Following

cancellation of the registration certificate the

company cannot transact the business of a

non-banking financial institution.

Certificate of Registration ofK.N.R. Finance & InvestmentsPrivate Limited - Cancelled

October 7, 2009

The Reserve Bank of India has on

September 14, 2009 cancelled the certificate

of registration granted to K.N.R. Finance &

Investments Private Limited, having its

registered office at No.3, First Floor, Sri Vishnu

Complex, B.M. Road, Channarayapatna-

573116 for carrying on the business of a non-

banking financial institution. Following

cancellation of the registration certificate

the company cannot transact the business

of a non-banking financial institution.

Investment by FIIs under PIS :Everonn Systems India Ltd.

October 7, 2009

The Reserve Bank of India has today

notified that the aggregate share holdings in

Everonn Systems India Ltd. by Foreign

Institutional Investors (FIIs) under Portfolio

Investment Scheme (PIS) have reached the

trigger limit of their paid up capital. Therefore,

further purchases of equity shares in the

primary/secondary market of this company

would be allowed only after obtaining prior

approval of the Reserve Bank of India.

RBI provides XBRL enabled filingof Online Returns

October 14, 2009

The Reserve Bank of India has

implemented Online Returns Filing System

(ORFS) for banks to submit information

electronically. Keeping in line with the

emerging global standards in the area of

financial reporting, the Reserve Bank has

adopted eXtensible Business Reporting

Language (XBRL) taxonomies for reporting

the regulatory returns (RCA2) developed as

per Basel II guidelines.

In addition to the facility to submit the

ORFS/XBRL returns through hyperlinks for

banks, the ORFS page has also the

taxonomies with useful information on the

current developments in the area of XBRL

for banks and other stakeholders. At

present, banks can file returns in electronic

form as well through the Reserve Bank of

India’s secured website and now they will

also be able to file the returns through XBRL

enabled return filing system. The returns

can be filed online through a link provided

OTHER

ITEMS

Press Releases


under the ‘For Bankers’ link on the Reserve

Bank’s website (www.rbi.org.in). From the

‘For Bankers’ link, a new page called “Online

Reporting” has been made available.

The Reserve Bank of India is in the

process of adopting taxonomies for several

other returns, including annual and

quarterly financial statements.

Certificate of Registration -Cancelled

October 15, 2009

The Reserve Bank of India has cancelled

the certificates of registration granted to the

following companies, having their registered

offices at the address shown against them,

for carrying on the business of a non-banking

financial institution. Following cancellation

of the registration certificate the companies

cannot transact the business of a non-

banking financial institution.

Certificate of Registration -Cancelled

October 22, 2009

The Reserve Bank of India has cancelled

the certificates of registration granted to the

following companies, having their registered

offices at the address shown against them,

for carrying on the business of a non-banking

financial institution. Following cancellation

of the registration certificate the companies

cannot transact the business of a non-

banking financial institution.

Reserve Bank cancels the Licenceof The Surat Mahila NagrikSahakari Bank Ltd., Surat (Gujarat)

October 22, 2009

In view of the fact that The Surat Mahila

Nagrik Sahakari Bank Ltd., Surat had ceased

to be solvent, the affairs of the bank were

being conducted in a manner detrimental to

the interests of the depositors and the

depositors were being inconvenienced by

continued uncertainty, the Reserve Bank of

India delivered the order cancelling its

licence to the bank after the close of business

Company’s Address of Registration Date of

name Registered No. & Date cancellation

office

M/s. Peekod Delhi Rohtak B-14.01890 dated August 31, 2009

Finance Road, Opp Tehsil, September 4, 2000

Company Bahadurgarh-124507.

Private (Haryana)

Limited

M/s. Swarn 737, 2nd Floor, B-14.02255 dated August 31, 2009

Finvest Shibsahay Building, July 24, 2002

Private Church Mission

Limited Road, Fatehpuri,

Delhi-110006.

M/s. Utkarsh 4/3550, Gali No. 10, B-14.02070 dated September 3, 2009

Finvest Sidharth Gali, November 14, 2000

Private Vishvas Nagar,

Limited Shahdra,

Delhi-110032.

M/s. Vatika G-56, Ashok Vihar, 14.02122 dated September 3, 2009

Portfolio Phase-I, November 25, 2000

Private New Delhi-110052.

Limited

Company’s Address of Registration Date of

name Registered No. & Date cancellation

office

M/s. Leasement 2nd Floor, 157 Kapil 14.01382 dated September 2, 2009

Investo (India) Vihar, Main Road, November 30, 1998

Limited Pitampura,

Delhi-110034.

M/s. Khemsons 57D, Khizrbad, 14.01259 dated August 31, 2009

Global Limited Near New Friends September 22, 1998

Colony,

New Delhi-110065.

M/s. Rex 307, Ajiesh House, B-14.00714 dated August 31, 2009

Financial 16/3 Abdul Aziz April 30, 1998

Services Private Road, WEA Karol

Limited Bagh,

New Delhi-110005.

OTHER

ITEMS

Press Releases


on October 20,2009. The Registrar of Co-

operative Societies, Gujarat has also been

requested to issue an order for winding up

the bank and appoint a liquidator for the

bank. It may be highlighted that on

liquidation, every depositor is entitled to

repayment of his/her deposits up to a

monetary ceiling of Rs.1,00,000/- (Rupees one

lakh only) from the Deposit Insurance and

Credit Guarantee Corporation (DICGC) under

usual items and conditions.

Consequent to the cancellation of its

licence, The Surat Mahila Nagrik Sahakari

Bank Ltd., Surat, Gujarat is prohibited from

carrying on ‘banking business’ as defined

in Section 5 (b) of the Banking Regulation

Act,1949 (AACS) including acceptance and

repayment of deposits.

For any clarifications, depositors may

approach Shri C.N.Modi, Assistant General

Manager, Urban Banks Department, Reserve

Bank of India, Ahmedabad. His contact

details are as below:

Postal Address: Urban Banks

Department ,Reserve Bank of India,

Ahmedabad Regional Office, La Gajjar

Chambers, Ashram Road, Ahmedabad-

380009; Telephone Number; (079) 26589338;

Fax Number (079) 26584853; Email.

Reserve Bank Cancels the Licenceof Suvidha Mahila Nagrik SahakariBank Maryadit, Hoshangabad(M.P.)

October 26, 2009

In view of the fact that Suvidha Mahila

Nagrik Sahakari Bank Maryadit, Hoshangabad

(M.P.), had ceased to be solvent, all efforts

to revive it in close consultation with the

Government of Madhya Pradesh had failed

and the depositors were being

inconvenienced by continued uncertainty,

the Reserve Bank of India delivered the

order canceling its licence to the bank after

the close of business on October 21, 2009.

The Registrar of Co-operative Societies,

Madhya Pradesh State has also been

requested to issue an order for winding up

the bank and appoint a liquidator for the

bank. It may be highlighted that on

liquidation, every depositor is entitled to

repayment of his/her deposits up to a

monetary ceiling of Rs. 1,00,000/- (Rupees

one lakh only) from the Deposit Insurance

and Credit Guarantee Corporation (DICGC)

under usual terms and conditions.

Consequent to the cancellation of its

licence, Suvidha Mahila Nagrik Sahakari

Bank Maryadit, Hoshangabad (M.P.), is

prohibited from carrying on ‘banking

business’ as defined in Section 5(b) of the

Banking Regulation Act, 1949 (AACS)

including acceptance and repayment of

deposits.

For any clarifications, depositors may

approach Shri. D.K. Baxi, Deputy General

Manager, Urban Banks Department, Reserve

Bank of India, Bhopal. His contact details

are as below:

Postal Address: Urban Banks Department,

Reserve Bank of India, P.B. No. 32,

Hoshangabad Road, Bhopal – 462 016.

Telephone Number : (0755) 2555072 / 2762485

Fax Number: (0755) 2554515.

OTHER

ITEMS

Press Releases


Freedom to domestic ScheduledCommercial Banks to openbranches in Tier 3 to Tier 6 centresand rural, semi-urban and urbancentres in North Eastern Statesand Sikkim recommended

October 27, 2009

A Group constituted by Reserve Bank of

India has recommended that domestic

scheduled commercial banks (other than

RRBs) may be given freedom to open

branches in Tier 3 to Tier 6 centres (centres

with population upto 49,999), without the

prior permission of Reserve Bank of India,

subject to reporting.

The Group has also recommended that

domestic scheduled commercial banks

(other than RRBs) may be given general

permission to open branches in rural, semi-

urban and urban centres in the North

Eastern States and Sikkim.

The Group further recommended that

banks would continue to approach Reserve

Bank of India for prior permission for

opening of branches in Tier 1 and Tier 2

centres (centres with population of 50,000

and above as per 2001 Census). The

number of branches which would be

authorised by RBI based on such

applications may depend, inter alia, upon

various aspects including a requirement

that banks may plan their annual branch

expansion in such a manner that at least

one-third of total number of branches

opened in a financial year are in

underbanked districts and financially

excluded districts of underbanked States as

also upon a critical assessment of the steps

taken by the bank towards achieving the

goal of financial inclusion such as the rate

of credit growth in rural branches, growth

in number of deposit accounts in rural areas

and growth in credit accounts for less than

Rs.25,000/- etc.,

The Group has also recommended that

the branch authorisation policy in respect

of foreign banks may remain unchanged

until review of the roadmap for foreign

banks.

The Group is also of the view that the

way forward for ensuring banking

penetration and financial inclusion would be

to have an appropriate combination of the

physical ‘brick and mortar’ branch model and

the branchless models such as Offsite ATMs/

Point of Sale terminals, Business

Correspondent model, mobile banking etc.,

and it should be basically left to the banks

themselves to decide as to which model

would be suitable for delivery of banking

services in a particular area, depending upon

the special needs of that area.

Recent relaxation

As regards Off-site ATMs, banks have

been granted general permission to install

Off-site ATMs with effect from June 12, 2009,

subject to reporting, without having the need

to take permission from the Reserve Bank

in each case. However, this is subject to any

direction which the Reserve Bank may issue,

including for closure/shifting of any such Off-

site ATMs, wherever so considered necessary

by the Reserve Bank.


OTHER

ITEMS

Regulatoryand

OtherMeasures

Regulatoryand Other MeasuresOctober 2009

RBI/2009-10/178 RPCD.CO RRB No. 29/

03.05.33/2009-10 dated October 6, 2009

RRBs - Priority Sector Lending –Categorisation of activities underservice under the MSMED Act, 2006

In terms of paragraphs 2.1.1 and 2.1.2

of Section I of the guidelines on lending to

priority sector enclosed to circular

RPCD.No.RRB.BC.20/ 03.05.33/2007-08 dated

August 22, 2007, credit to small enterprises

includes loans granted to micro and small

(manufacturing and service) enterprises,

provided investment in plant and

machinery [original cost excluding land and

building and the items specified by the

Ministry of Small Scale Industries vide its

notification no. S.O. 1722 (E) dated October

5, 2006] does not exceed Rs. 5 crore in

respect of manufacturing enterprises and

investment in equipment (original cost

excluding land and building and furniture,

fittings and other items not directly related

to the service rendered or as may be notified

under the MSMED Act, 2006) does not

exceed Rs. 2 crore in respect of service

enterprises. Further, in terms of paragraphs

3.1 and 3.2, Retail Trade forms a separate

category under priority sector.

2. The Government of India, vide

communication No. 5(6)/2/2009-MSME POL

dated June 12, 2009, has indicated the

categorisation of activities under services

under the Micro Small and Medium

Enterprises Development (MSMED) Act, 2006.

On examination, it has been decided to

include loans granted by Regional Rural Banks

(RRBs) in respect of following activities under

Micro and Small (Service) Enterprises within

the priority sector, provided such enterprises

satisfy the definition of Micro and Small


OTHER

ITEMS

RegulatoryandOtherMeasures

(Service) Enterprises in respect of investment

in equipment (original cost excluding land and

building and furniture, fittings and other

items not directly related to the service

rendered or as may be notified under the

MSMED Act, 2006) (i.e. not exceeding Rs. 10

lakh and Rs. 2 crore respectively). (a)

Consultancy Services including Management

Services; (b) Composite Broker Services in Risk

and Insurance Management; (c)Third Party

Administration (TPA) Services for Medical

Insurance Claims of Policy Holders; (d)Seed

Grading Services; (e)Training-cum-Incubator

Centre; (f) Educational Institutions; (g)

Training Institutes; (h) Retail Trade; (i) Practice

of Law, i.e. legal services; (j) Trading in medical

instruments (brand new); (k) Placement and

Management Consultancy Services; and (l)

Advertising agency and Training centres.

3. Accordingly, there will be no separate

category for “Retail Trade” under priority

sector. Loans granted by RRBs for Retail Trade

[i.e. advances granted to retail traders dealing

in essential commodities (fair price shops),

consumer co-operative stores; and advances

granted to private retail traders with credit

limits not exceeding Rs. 20 lakh] would hence

forth be part of the Small (Service) Enterprise.

4. Please acknowledge receipt to our

Regional Office concerned.

RBI/2009-10/181 RPCD.CO.RF.BC.No.31/

07.38.01/2009-10 dated Oct 12, 2009

All State and Central Co-operative Banks

StCBs/DCCBs – Payment ofInterest on Savings Bank Accounton a Daily Basis

Please refer to paragraph 3 (iii) of our

directive RPCD.No.RF.Dir.BC.53/D.1-87/88

dated November 2, 1987, in terms of which

interest in the case of savings deposits shall

be calculated on the minimum balance to

the credit of the deposit account during the

period from the 10th to the last day of each

calendar month.

2. On a review, it has been decided that the

interest on balances in savings bank accounts

would be calculated on a daily product basis

with effect from April 01, 2010. All State and

Central Co-operative Banks are advised to

work out modalities to effect a smooth

transition to the revised procedure.

RBI/2009-10/183 RPCD.SP.BC.No.30 /

09.16.01/ 2009 -10 dated October 12, 2009

The Chairman/Managing Director

All Scheduled Commercial Banks

(Excluding RRBs)

Swarna Jayanti Shahari Rozgar Yojana(SJSRY) Revised Guidelines - 2009

Please refer to our Master Circular

RPCD.SP.BC.No 3/09.16.01/2009-10 dated July

1, 2009, issuing instructions/directives to

banks with regard to operationalisation of the

Swarna Jayanti Shahari Rozgar Yojana (SJSRY).

2. On a review, the Ministry of Housing

& Urban Poverty Alleviation has

comprehensively revised the SJSRY Scheme.

The revised guidelines will come in to effect

immediately.

3. However, as regards mechanism of

administering the subsidy under the revised

scheme and new reporting formats, we have

sought clarifications from the Ministry of

Housing & Urban Poverty Alleviation and,

as a result, clarifications/instructions in this

regard would be communicated as soon as

received from the Government of India.


OTHER

ITEMS

Regulatoryand

OtherMeasures

4. In the meantime, please take appropriate

action as envisaged for banks in the said

documents and issue necessary instructions

to your branches / controlling offices for

successful implementation of the scheme.

5. Kindly acknowledge receipt.

RBI / 2009-10/186 RPCD.No.PLFS.BC. 33/

05.04.02/2009-10 dated October 22, 2009

The Chairman/Managing Director

All Public Sector Banks

2 per cent interest subventionscheme continued/1 per centadditional incentive subvention forshort-term crop loans in 2009-10

As you are aware, the Hon’ble Finance

Minister, in his Budget Speech (paragraph

27) for 2009-10 had announced as follows:

“I propose to continue the interest

subvention scheme for short term crop loans

to farmers for loans upto Rs.3 lakh per farmer

at the interest rate of 7 per cent per annum”.

2. In pursuance of this announcement,

Government will provide interest

subvention of 2 per cent per annum to Public

Sector Banks in respect of short-term

production credit up to Rs.3 lakh provided

to farmers. This amount of subvention will

be calculated on the crop loan amount from

the date of its disbursement/drawal up to

the date of repayment or up to the date

beyond which the outstanding loan

becomes overdue i.e. March 31, 2010 for

Kharif and June 30, 2010 for Rabi,

respectively, whichever is earlier, subject to

a maximum period of one year. This

subvention will be available to Public Sector

Banks on the condition that they make

available short-term credit at ground level

at 7 per cent per annum.

3. Banks are advised to immediately submit

their estimates of short-term production

credit to farmers up to Rs.3.00 lakh for Kharif

and Rabi 2009-10 (separately) to enable us to

provide Government with an estimate of the

likely amount of subvention. Please note that

the estimates should be realistic in nature.

4. It is also advised as under:

i) In order to enable the Government to

provide subvention, banks are required

to submit their claims on a half-yearly

basis as at September 30, 2009 and

March 31, 2010 , and for the quarter

ending June 30, 2010 (for Rabi), within

one month from the respective dates.

ii) The claims for the half-year ending March

31, 2010 and quarter ending June 30, 2010

(for Rabi) should be accompanied by a

Statutory Auditor’s certificate certifying

that the claims for subvention for the

entire year ended March 31, 2010 and

quarter ending June 30, 2010 (as the case

may be) as true and correct. Final

settlement of the claims will be done only

on receipt of this certificate.

iii) Claims may be submitted to the Chief

General Manager-in- Charge, Rural

Planning and Credit Department,

Reserve Bank of India, Central Office,

Shahid Bhagat Singh Road, Fort, Mumbai

– 400 001.

5. Further, the Hon’ble Finance Minister,

in his Budget Speech (paragraph 27) for

2009-10 had announced as follows:

“I am also happy to announce that, for this

year, the Government shall pay


OTHER

ITEMS


an additional subvention of 1 per cent as

an incentive to those farmers who repay

their short term crop loans on schedule.

Thus, the interest rate for these farmers will

come down to 6 per cent per annum.”

6. In pursuance of this announcement,

Government will provide additional interest

subvention of 1 per cent per annum to Public

Sector Banks in respect of those prompt

paying farmers who repay their short-term

production credit within one year of

disbursement of such loans. This

subvention will be available to such farmers

on the short-term production credit availed

by them during the year for a maximum

amount of Rs.3 lakh and the amount of

subvention will be calculated from the date

of disbursement/drawal up to the date of

repayment subject to a maximum period

of up to one year per farmer account. This

subvention will be available to Public Sector

Banks on the condition that the effective

interest rate charged to the prompt paying

farmers is 6 per cent per annum up to Rs. 3

lakh. This process is being adopted to

incentivise the prompt payers as well as the

lending institutions so that the line of credit

remains declogged, thus increasing the

availability of institutional credit to farmers

throughout the year.

7. It is therefore advised as under:

i) In order to enable the Government to

provide subvention, banks may credit

the additional 1 per cent subvention to

the farmers account only after their

prompt repayment as stated earlier and

seek reimbursement subsequently.

The banks may submit their one-time

consolidated claims for the entire year,

incorporating the claims pertaining to

both Kharif and Rabi disbursements for

the year 2009-10, latest by July 31,

2010.

ii) The claims should be accompanied by a

Statutory Auditor’s certificate certifying

that the claims for subvention for the

entire year ended March 31, 2010, as

true and correct.

iii) Claims may be submitted to the Chief

General Manager-in- Charge, Rural

Planning and Credit Department,

Reserve Bank of India, Central Office,

Shahid Bhagat Singh Road, Fort,

Mumbai – 400 001.

8. In case of RRBs and co-operatives, a

separate circular will be issued by NABARD

RBI/2009-10/191 UBD.BPD.No.16 / 09.22.010/

2009-10 dated October 26 , 2009

Chief Executive Officer Primary (Urban)

Cooperative Banks

UCBs - Finance for Housing Projects– Disclosure of Information onMortgage of Property

Finance for Housing Projects –incorporating clause in the terms andconditions to disclose in pamphlets /brochures / advertisements –information regarding mortgage ofproperty to the bank

Please refer to para 9 and Annex 1 of

our circular UBD.PCB.MC.No. 2 / 09.22.010

/ 2009-10 dated July 1, 2009 (Master circular

on Housing Finance) regarding precautions

to be taken by banks while extending

finance for housing schemes.


OTHER

ITEMS

Regulatoryand

OtherMeasures

2. In a case which came up before the

Hon’ble High Court of Judicature at Bombay,

the Hon’ble Court observed that the bank

granting finance to housing/ development

projects should insist on disclosure of the

charge / or any other liability on the plot, in

the brochure, pamphlets etc., which may be

published by developer/ owner inviting

public at large to purchase flats and

properties. The Court also added that this

obviously would be part of the terms and

conditions on which the loan may be

sanctioned by the bank.

3. Keeping in view the above observations,

while granting finance for eligible housing

schemes, Urban Cooperative Banks are

advised to stipulate as part of terms and

conditions that:

i. The builder / developer / company,

disclosed / would disclose in the

pamphlets / brochures etc., the name(s)

of the bank(s) to which the property is

mortgaged.

ii. The builder / developer / company

would append the information relating

to mortgage while publishing

advertisement of a particular scheme in

newspapers / magazines etc.

iii. The builder / developer / company

would indicate in their pamphlets/

brochures that they would provide No

Objection Certificate (NOC)/ permission

of the mortgagee bank for sale of flats /

property if required.

4. Banks are also advised to ensure

compliance of the above terms and

conditions and funds should not be released

unless the builder / developer / company

fulfils the above requirements.

RBI/2009-10/193 Ref. MPD. No.1437/

02.01.005/2009-10 dated October 27, 2009

Kartika 4, 1931 (S)

All Scheduled Banks [excluding Regional

Rural Banks (RRBs)]

Export Credit Refinance Facility

Please refer to our circular No.MPD.310/

07.01.279/2008-09 dated November 15, 2008

whereby the eligible limit of export credit

refinance (ECR) facility was enhanced from

the level of 15 per cent of the outstanding

rupee export credit eligible for refinance as

at the end of the second preceding fortnight

to 50 per cent.

2. As indicated in the Second Quarter Re-

view of Monetary Policy 2009-10, it has been

decided to reduce the eligible limit of ECR

facility from the level of 50 per cent of the

outstanding rupee export credit eligible for

refinance as at the end of the second preced-

ing fortnight to 15 per cent with immediate

effect.

3. Part A of the reporting format appear-

ing in Annex III of the Master Circular

No.MPD.4627/07.01.279/2009-10 dated July

1, 2009 is accordingly modified and enclosed.

Annex III

Reporting Formats

Form DAD 389

Name of the Bank

____________________

Statement showing the Export Credit

Refinance Limit for the Fortnight

ended__________________


OTHER

ITEMS


PART – A

(Rs. In lakh)

1.

Outstanding Export Credit as on the last

Friday of the second preceding reporting

fortnight*___________________

2.

Export Credit Refinance Limit (15 per cent

of item no.1)

___________________

* Outstanding Export Credit for the purpose

of working out refinance limits will be

aggregate outstanding export credit minus

export bills rediscounted with other banks/

Exim Bank/Financial Institutions, export

credit against which refinance has been

obtained from NABARD/Exim Bank, pre-

shipment credit in foreign currency (PCFC),

export bills discounted/rediscounted under

the scheme of ‘Rediscounting of Export Bills

Abroad’, overdue rupee export credit and

other export credit not eligible for refinance.

RBI/2009-10/194 Ref.No.MPD.BC.1438/

02.01.005/2009-10 dated October 27, 2009


(excluding Regional Rural Banks)

Special Refiance Facility

Special Refinance Facility (SRF) underSection 17(3B) of the Reserve Bank ofIndia Act, 1934

Please refer to our circulars

Ref.No.MPD.BC.309/02.01.009/2008-09 dated

November 3, 2008 and MPD.BC.322/02.01.009/

2008-09 dated April 22, 2009 regarding the

Special Refinance Facility (SRF) under Section

17(3B) of the Reserve Bank of India Act, 1934.

In terms of this facility all scheduled

commercial banks (excluding RRBs) are

provided refinance from the Reserve Bank

equivalent to up to 1.0 per cent of each bank’s

net demand and time liabilities (NDTL) as on

October 24, 2008 at the repo rate under the

liquidity adjustment facility (LAF) up to a

maximum period of 90 days during which

refinance can be flexibly drawn and repaid.

2. As indicated in the Second Quarter

Review of Monetary Policy 2009-10, it has

been decided to discontinue this facility with

immediate effect. Accordingly, banks cannot

avail fresh refinance from the Reserve Bank

under the facility. Outstandings under this

facility, if any, should be repaid within the

stipulated time of 90 days from the first day

of utilisation as mentioned in the circular

Ref.No.MPD BC.309/02.01.009/2008-09 dated

November 3, 2008.

MPD.BC.325/07.01.279/2009-10 dated October

27, 2009

Second Quarter Review ofMonetary Policy 2009-10(Including Review of Developmentaland Regulatory Policies)

Please refer to Monetary Policy Statement

2009-10 section of the bulletin.

RBI/2009-10/197 MPD.BC.326 /07.01.279/

2009-10 dated October 28, 2009

Kartika 5, 1931(S)


Interest Rate Ceiling on RupeeExport Credit

Please refer to our circular No.

MPD.BC.323/07.01.279/2008-09 dated April

28, 2009 in terms of which the ceiling on


OTHER

ITEMS

Regulatoryand

OtherMeasures

interest rates on pre-shipment rupee export

credit up to 270 days and post-shipment

rupee export credit up to 180 days has been

stipulated at BPLR minus 2.5 per cent, valid

up to October 31, 2009.

2. It has been decided to extend the validity

of the above dispensation up to April 30, 2010

(Annex).

3. Kindly acknowledge receipt.

Annex

Category With effect from November 1, 2009

(up to April 30, 2010)

Pre-shipment Rupee Export Credit

Up to 270 days Not exceeding BPLR minus 2.5 percentag points

Post –shipment Rupee Export Credit

(a) On demand bills for transit period Not exceeding BPLR minus 2.5 percentage points

(as specified by FEDAI)

(b) Usance bills up to 180 days Not exceeding BPLR minus 2.5 percentage points.

BPLR : Benchmark Prime Lending Rate.

Note: 1. Since these are ceiling rates, banks would be free to charge any rate below the

ceiling rates.

2. Interest rates for the above-mentioned categories beyond the tenors as prescribed

above are free.

OTHER

ITEMS

ForeignExchange

Developments


i) Foreign Exchange ManagementAct, 1999 – Advance Remittancefor import of Services

In terms of A.P.(DIR Series) Circular No.

15 dated September 8, 2008 the limit for

advance remittance for all admissible

current account transactions for import of

services without bank guarantee was raised

from USD 100,000 to USD 500,000 or its

equivalent.

It is now clarified that the increase in

the limit for advance remittance for all

admissible current account transactions for

import of services without bank guarantee

is not applicable for a Public Sector Company

or a Department/ Undertaking of the

Government of India/ State Governments.

In the case of a Public Sector Company

or a Department/ Undertaking of the

Government of India/ State Governments,

approval from the Ministry of Finance,

Government of India for advance

remittance for import of services without

bank guarantee for an amount exceeding

USD 100,000 (USD One hundred thousand)

or its equivalent would continue to be

required.

[A. P. (DIR Series) Circular No. 10

dated October 5, 2009]

ii) Issue of Bank Guarantee onbehalf of service importers

In terms of Regulation 4(3)(iv) of Foreign

Exchange Management (Guarantees)

Regulations, 2000 notified vide Notification

No. FEMA 8/2000-RB dated May 3, 2000

thereof [amended vide Notification No.

FEMA 151/2007-RB dated January 4, 2007]

ForeignExchange DevelopmentsOctober 2009

OTHER

ITEMS

ForeignExchangeDevelopments


and A.P. (DIR Series) Circular No. 13 dated

November 17, 2006, banks were allowed to

issue guarantees in favour of a non-resident

service provider, on behalf of a resident

customer who is a service importer, for an

amount up to USD 100,000 or its equivalent,

subject to the terms and conditions

stipulated in the said circular.

2. With a view to further liberalise the

procedure (other than in respect of a Public

Sector Company or a Department/

Undertaking of the Government of India/

State Governments) for import of services,

it has been decided to increase the limit for

issue of guarantee by AD Category-I banks

from USD 100,000 to USD 500,000.

Accordingly, AD Category-I banks have now

been permitted to issue guarantee for

amount not exceeding USD 500,000 or its

equivalent in favour of a non-resident

service provider, on behalf of a resident

customer who is a service importer,

provided:

(a) the AD Category-I bank is satisfied about

the bonafides of the transaction;

(b) the AD Category-I bank ensures

submission of documentary evidence

for import of services in the normal

course; and

(c) the guarantee is to secure a direct

contractual liability arising out of a

contract between a resident and a non-

resident.

3. In the case of a Public Sector Company or

a Department/ Undertaking of the

Government of India/ State Governments,

approval from the Ministry of Finance,

Government of India for issue of guarantee

for an amount exceeding USD 100,000 (USD

One hundred thousand) or its equivalent

would be required.



iii) Exim Bank’s Line of Credit ofUSD 20 million to the State ofEritrea

Export-Import Bank of India (Exim

Bank) has concluded an Agreement dated

August 24, 2009 with the State of Eritrea

making available to the latter, a Line of

Credit (LoC) of USD 20 million (USD twenty

million) for financing eligible goods and

services, machinery and equipment

including consultancy services from India

for the purpose of financing multipurpose

agricultural projects not exceeding USD 10

million [ the proposed projects include

Artificial Insemination Development

Project, Poultry Waterer and Feeder,

Establishment of Milk Collection Centers,

Pressurised Irrigation System (Drip

Irrigation System), Solar Pumps Project and

Soil Survey and Land Evaluation

Equipment] and multipurpose educational

projects not exceeding USD 10 million

[which include purchase of teaching

materials including books, laboratory/

educational equipment, chemicals,

computers etc. for seven Eritrean

Institutions of Higher Education established

in 2003-04 viz. Eritrean Institute of

Technology (EIT), CSH, CBE, COMSAT,

OROTTA, HAC and CASS, in addition to the

National Board of Higher Education], in

Eritrea.



OTHER

ITEMS

ForeignExchange

Developments


iv) Opening of Diamond DollarAccounts (DDAs) - Modification

Attention of Authorised Dealer

Category - I (AD Category-I) banks is invited

to A.P. (DIR Series) Circular No. 51 dated

February 13, 2009 delegating powers to AD

Category–I banks to open and maintain

DDAs by eligible firms and companies

subject to certain terms and conditions.

2. The Government has since relaxed the

eligibility criteria of the track record of at

least 3 years to 2 years and the average

annual turnover of Rs.5 crores or above to

Rs. 3 crores or above during preceding three

licensing years. In this regard, the

Government has issued Notification No. 96

(RE-2008)/ 2004-2009 dated March 13, 2009.

3. Authorised Dealer Category–I banks

have to note the revised eligibility criteria

notified by the Government while

permitting eligible firms and companies to

open and maintain DDAs with them. They

have also been advised to be guided by

Foreign Trade Policy (FTP) in force from time

to time, in future.

[A. P. (DIR Series) Circular No. 13 dated

October 29, 2009]

v) Participants under ACUMechanism- Inclusion ofMaldives Monetary Authority

In the meeting of the Asian Clearing

Union (ACU) Board of Directors, held in

Colombo, Sri Lanka on June 16, 2009, the

Maldives Monetary Authority (MMA) was

admitted in the Asian Clearing Union as a

Member. The Maldives Monetary

Authority will commence ACU operations

with effect from January 1, 2010. All the

provisions of ACU mechanism, as

applicable to ACU member countries,

unless otherwise specifically exempted,

would be applicable to Maldives Monetary

Authority. AD Category - I banks should

follow the provisions contained in the

Memorandum of Procedure for

Channelling Transactions through Asian

Clearing Union (ACU) [Memorandum ACM]

and the regulations contained in FEMA

Notification No. FEMA 14/2000-RB dated

May 3, 2000 [Foreign Exchange

Management (Manner of Receipt and

Payment) Regulations, 2000], as amended

from time to time, in this regard.



Current Statistics

General

Money and Banking

Government Accounts


Production

Capital Market

Prices

Trade and Balance of Payments


RBIMonthly BulletinNovember 2009S 1096

CURRENT

STATISTICS

Contents

Contents

Table No. Title Page

General1. Selected Economic Indicators S 1098

Money and Banking2. Reserve Bank of India S 11003. All Scheduled Banks – Business in India S 11024. All Scheduled Commercial Banks – Business in India S 11045. Scheduled Commercial Banks’ Investments in Commercial Paper, Bonds, Debentures, Shares, etc. S 11066. State Co-operative Banks maintaining Accounts with Reserve Bank of India S 11077. Reserve Bank’s Standing Facilities to Scheduled Commercial Banks S 11088. Cheque Clearing Data S 1109

9A. Retail Electronic Payment Systems S 11139B. Large Value Clearing and Settlement Systems S 111410. Money Stock Measures S 111611. Sources of Money Stock (M

3) S 1117

11A. Commercial Bank Survey S 111911B. Monetary Survey S 112011C. Reserve Bank of India Survey S 112111D. Liquidity Aggregates (Outstanding Amounts) S 112212. Reserve Money and its Components S 112313. Sources of Reserve Money S 112414. Daily Call Money Rates S 112515. Average Daily Turnover in Call Money Market S 112616. Issue of Certificates of Deposit by Scheduled Commercial Banks S 112717. Issue of Commercial Paper by Companies S 1128

Government Accounts18. Union Government Accounts at a Glance S 1129

Government Securities Market19. Government of India : 91 – Day Treasury Bills (Outstanding at Face Value) S 113021. Auctions of 91 – Day Government of India Treasury Bills S 113122. Auctions of 182 – Day Government of India Treasury Bills S 113323. Auctions of 364 – Day Government of India Treasury Bills S 113424. Turnover in Government Securities Market (Face value) at Mumbai S 113525. Repo/Reverse Repo Auctions under Liquidity Adjustment Facility S 113626. Open Market Operations of Reserve Bank of India S 113727A. Secondary Market outright Transactions in Government Dated Securities (Face Value) S 113827B. Secondary Market outright Transactions in Treasury Bills (Face Value) S 113927C. Month-end Yield to Maturity of SGL Transaction in Central Government Dated

Securities for Various Residual Maturities S 114027D. Secondary Market Repo Transactions (Other than with RBI) S 114128. Redemption Yield on Government of India Securities Based on SGL Transactions S 1142

Production29. Group-wise Index Numbers of Industrial Production S 114430. IIP – Seventeen Major Industry Groups of Manufacturing Sector S 1145

Capital Market31. New Capital Issues by Non-Government Public Limited Companies S 114632. Index Numbers of Ordinary Share Prices S 1147

RBIMonthly BulletinNovember 2009 S 1097

CURRENT

STATISTICS

Contents

33. Volume in Corporate Debt Traded at NSE S 114834. Assistance Sanctioned and Disbursed by All-India Financial Institutions S 1149

Prices35. Bullion Prices (Spot) – Mumbai S 115036. Consumer Price Index Numbers for Industrial Workers – All-India and Selected Centres S 115137. Consumer Price Index Numbers for Urban Non-Manual Employees – All-India and Selected Centres S 115238. Consumer Price Index Numbers for Agricultural / Rural Labourers S 115339. Index Numbers of Wholesale Prices in India – By Groups and Sub-Groups (Averages) S 115540. Index Numbers of Wholesale Prices in India – By Groups and Sub-Groups (Month-end / Year-end) S 1159

Trade and Balance of Payments41. Foreign Trade (Annual and Monthly) S 116342. India’s Overall Balance of Payments S 116443. India’s Overall Balance of Payments S 117244. Foreign Exchange Reserves S 118045. NRI Deposits – Outstandings and Inflows(+) / Outflows(–) S 118146. Foreign Investment Inflows S 118246A Outward Remittances under the Liberalised Remittance Scheme for Resident Individuals S 118347. Daily Foreign Exchange Spot Rates S 118448. Sale / Purchase of US Dollar by Reserve Bank of India S 118549. Turnover in Foreign Exchange Market S 118650. Indices of REER and NEER of the Indian Rupee (36-Currency Export and Trade Based Weights) S 108751. Indices of REER and NEER of the Indian Rupee (6-Currency Trade Based Weights) S 1188

Quarterly Tables52. Savings Deposits with Commercial Banks53. Short and Medium-Term Advances of NABARD to State Co-operative Banks54. Small Savings55. Details of Central Government Market Borrowings55A. Details of State Government Market Borrowings55B. Ownership Pattern of Government of India Dated Securities

Notes on Tables S 1189

Notes : (1) The coverage of data will be expanded from time to time to include new statistical information as and when itbecomes available.

(2) Some of the figures included in the tables are provisional and may be revised in later issues. Each issue containsall the revisions made upto the date of publication of the Bulletin.

(3) The following symbols have been used throughout this Section :

.. = Figure is not available.

– = Figure is nil or negligible.P = Provisional.

(4) Where necessary, each figure has been rounded off to the nearest final digit. For this reason, there may be, insome tables, a slight discrepancy between the sum of the constituent items and the total.

(5) A line drawn across a column between two consecutive figures indicates that the figures above and below the linehave been compiled on different basis and are not strictly comparable. In each case, a suitable footnote is added.

(6) For definitions of important items, sources of data, coverage, scope, method of compilation, etc. a reference maybe made to the Explanatory Notes, issued as a supplement to the October 1978 issue of the Bulletin.

(7) 1 Lakh = 1,00,000, 1 Million = 10 lakh, 1 Crore = 10 Million.

Table No. Title Page


CURRENT

STATISTICS

General

General

No. 1: Selected Economic Indicators

Item Unit / Base 1990-91 2006-07 2007-08 2008-09 2009

Jul. Aug. Sep.

1 2 3 4 5 6 7 8 9

Output

1. Gross Domestic Product atFactor Cost (at 1999-00 prices) Rs. crore 10,83,572 28,71,120 31,29,717 (Q.E.) 33,39,375 (R.E.)

2. Index number of TrienniumAgricultural Production ended(All crops) 1993-94=100 148.4 167.2 168.6 ($) ..

a. Foodgrains Production Million tonnes 176.4 217.3 230.8 233.9 £

3. General Index ofIndustrial Production (1) 1993-94=100 212.6 * 247.1 268.0 275.4 289.7 (P) 292.3 (P)

Money and Banking

Reserve Bank of India (2)

4. Notes in Circulation Rs. crore 53,784 4,96,775 5,82,055 6,81,058 6,93,409 6,96,058 7,11,316

5. Rupee Securities (3) " 86,035 96,861 83,707 1,21,962 59,219 60,281 84,793

6. Loans and Discount " 19,900 6,585 4,579 21,562 10,652 8,966 9,734

(a) Scheduled Commercial Banks (4) " 8,169 6,245 4.000 11,728 296 — —

(b) Scheduled State Co-operative Banks (4) " 38 — — — — — —

(c) Bills Purchased and Discounted (internal) " — — — — — — —

Scheduled Commercial Banks

7. Aggregate Deposits (5) Rs. crore 1,92,541 26,11,933 31,96,939 38,34,110 40,70,458 40,80,711 41,20,007 (P)

8. Bank Credit (5) " 1,16,301 19,31,189 23,61,914 27,75,549 28,05,224 28,06,741 28,73,155 (P)

9. Investment in Govt.Securities (5) " 49,998 7,76,058 9,58,661 11,55,786 13,26,870 13,57,134 13,57,137 (P)

10. Cheque Clearances (6) Rs. thousandcrore 1,703 6,467 7,044 6,020 (P) 417 (P) 389 (P) 372 (P)

11. Money Stock Measures (7)

(a) M1

Rs. crore 92,892 9,67,955 11,55,837 12,53,184 12,66,389 12,78,842 13,07,215

(b) M3

" 2,65,828 33,10,068 40,17,883 47,64,019 50,23,552 50,43,113 50,95,812

Cash Reserve Ratio andInterest Rates

12. Cash Reserve Ratio (2), (16) Per cent 15.00 6.50 7.50 5.00 5.00 5.00 5.00

13. Bank Rate Per centPer annum 10.00 6.00 6.00 6.00 6.00 6.00 6.00

14. Inter-bank Call Money Rate(Mumbai) (8) " 4.00-70.00 0.50-4.90 6.15-9.30 2.50-5.75 1.50-3.30 1.75-3.30 2.15-4.30

15. Deposit Rate (9)

(a) 30 days and 1 year " 8.00 (11) 3.00-9.50 3.00-7.50 3.25-8.00 2.50-6.50 1.50-6.25 1.50-6.25

(b) 1 year and above " 9.00-11.00 7.50-9.60 8.25-9.00 8.00-8.50 6.50-7.75 6.50-7.75 6.50-7.75}Q.E. : Quick Estimate. R.E. : Revised Estimate.* : Base : 1980-81 = 100. + : Base : Triennium ending 1981-82=100. ‡ : Base 1982=100. £ : Fourth Advance Estimates for 2008-09.^ : Base : 2001 = 100 from January 2006 onwards. ^̂ : CPI (UNME) are Linked All - India Index from the April 2008 onwards.$ : Based on Fourth Advance Estimates for 2007-08 as released on July 9, 2008.@ : As the security 12.50% 2004 had matured on March 23, 2004, it has been substituted by 11.40% Loan 2008, with effect from March 2004, to represent the

short-term yield.# : As the maturity of the security 11.50% 2008, which represents the trends in long term yield, had become less than 5 years, it has been substituted by 7.40%

Loan 2012, with effect from April 2004.Also see 'Notes on Tables'.


CURRENT

STATISTICS

General

No. 1: Selected Economic Indicators (Concld.)

Item Unit / Base 1990-91 2006-07 2007-08 2008-09 2009

Jul. Aug. Sep.

1 2 3 4 5 6 7 8 9

16. Prime Lending Rate (10) " 12.25-12.50 12.25-12.75 11.50-12.50 11.00-12.00 11.00-12.00 11.00-12.00

17. Yield on 11.40% Loan 2008 @ " 7.22 7.26

18. Yield on 7.40% Loan 2012 # " 7.55 7.83 7.26 5.69 6.02 6.57

Government Securities Market (2)

19. Govt. of India 91-day TreasuryBills (Total outstandings) Rs. crore 45,229 39,957 75,549 76,500 76,500 76,500

Price Indices

20. Wholesale Prices (13) 1993-94=100

(a) All Commodities " 182.7 + 206.1 215.9 233.9 238.4 .. ..

(b) Primary Articles " 184.9 + 208.6 224.8 247.3 266.7 .. ..

(c) Fuel, Power, Light andLubricants " 175.8 + 324.9 327.2 351.4 338.2 .. ..

(d)Manufactured Products " 182.8 + 179.0 188.0 203.1 206.4 .. ..

(e) Foodgrains(Cereals + Pulses) " 179.2 + 205.9 215.6 234.1 259.1 .. ..

(f) Edible Oils " 223.3 + 154.6 175.4 188.1 176.4 ..

(g) Sugar, Khandsari & Gur " 152.3 + 179.8 155.2 168.7 212.6 .. ..

(h)Raw Cotton " 145.5 + 151.8 193.0 196.6 213.4 .. ..

21. Consumer Prices (All-India) (1)

(a) Industrial Workers ^ 2001=100 193 125 133 145 160 162 163

(b) Urban Non-Manual Employees ^̂ 1984-85=100 161 486 515 561 624 631 ..

(c) Agricultural Labourers July 1986-June 1987=100 .. 388 417 462 499 508 515

Foreign Trade

22. Value of Imports U.S. $ Million 24,073 1,85,735 2,51,439 2,91,475 19,621 (P) 22,661 (P)

23. Value of Exports " 18,145 1,26,414 1,62,904 1,82,631 13,623 (P) 14,289 (P)

24. Balance of Trade " –5,927 –59,321 –88,535 –1,08,844 –5,998 (P) –8,372 (P)

25. Foreign Exchange Reserves (14)

(a) Foreign Currency Assets U.S. $ Million 2,236 1,91,924 2,99,230 2,41,426 2,60,631 2,61,247 2,64,373

(b) Gold " 3,496 6,784 10,039 9,577 9,671 9,828 10,316

(c) SDRs " 102 2 18 1 1 4,828 5,224

Employment ExchangeStatistics (15)

26. Number of Registrations Thousand 6,541 .. .. .. .. ..

27. Number of Applicants

(a) Placed in Employment " 265 .. .. .. .. ..

(b) On live Register (14) " 34,632 .. .. .. .. ..


CURRENT

STATISTICS

Money andBanking

Money and Banking

No. 2: Reserve Bank of India

(Rs. crore)

Last Friday / 1990-91 2007-08 2008-09 2008 2009

Friday Oct. May Jun. Jul. Aug. Sep. Oct. 2 Oct. 9 Oct. 16 Oct. 23 Oct. 30

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Issue

Department

Liabilities

Notes in

Circulation 53,784 5,82,055 6,81,058 6,38,204 7,09,339 7,04,314 6,93,409 6,96,058 7,11,316 7,11,158 7,18,714 7,34,018 7,32,961 7,25,984

Notesheld in

Banking

Department 23 20 16 26 25 26 15 15 20 19 28 30 28 23

Total Liabilities

(Total Notes

Issued) or Assets 53,807 5,82,075 6,81,074 6,38,230 7,09,364 7,04,340 6,93,423 6,96,072 7,11,336 7,11,177 7,18,742 7,34,048 7,32,989 7,26,007

Assets

Gold Coin and

Bullion 6,654 31,170 40,390 33,724 37,103 37,103 38,050 38,050 39,247 40,485 40,485 40,485 40,485 41,434

Foreign Securities 200 5,49,722 6,39,531 6,03,430 6,71,066 6,65,939 6,54,183 6,56,920 6,70,892 6,69,508 6,77,102 6,92,447 6,91,407 6,83,498

Rupee Coin (1) 29 136 106 29 149 252 144 56 150 138 109 70 51 29

Government of

India Rupee

Securities 46,924 1,046 1,046 1,046 1,046 1,046 1,046 1,046 1,046 1,046 1,046 1,046 1,046 1,046

Banking

Department

Liabilities

Deposits 38,542 5,36,851 3,52,156 4,59,304 2,82,510 2,56,084 2,67,289 2,88,091 3,01,312 3,30,322 2,71,184 3,06,250 2,66,768 3,06,574

Central

Government 61 83,645 101 100 101 101 10,413 31,462 30,875 38,340 37,558 11,443 12,842 19,491

Market

Stabilisation

Scheme — 1,68,392 88,077 1,65,187 39,890 22,890 21,063 18,773 18,773 18,773 18,773 18,773 18,773 18,773

State

Governments 33 41 1,045 41 41 41 41 41 41 41 41 1,499 41 41

Scheduled

Commercial

Banks 33,484 2,57,122 2,38,195 2,65,773 2,16,462 2,06,391 2,09,614 2,10,431 2,25,681 2,46,655 1,88,727 2,45,725 2,08,972 2,42,199

Scheduled State

Co-operative

Banks 244 3,396 3,142 3,467 3,028 3,269 3,152 3,081 3,108 3,408 2,914 3,430 3,187 3,250

Non-Scheduled

State Co-operative

Banks 13 62 96 62 66 65 80 79 66 70 78 71 63 71

Other Banks 88 11,946 9,732 12,294 9,867 9,986 10,364 10,514 10,435 11,033 10,398 11,076 10,659 10,751

Others 4,619 12,247 11,768 12,380 13,055 13,341 12,563 13,711 12,333 12,003 12,694 14,234 12,232 11,998

Other

Liabilities (2) 28,342 2,14,216 3,96,402 3,40,946 3,79,037 4,16,776 4,35,589 4,28,159 4,17,787 4,14,124 3,84,634 3,91,388 3,98,795 4,04,065

Total

Liabilities

or Assets 66,884 7,51,067 7,48,557 8,00,250 6,61,547 6,72,860 7,02,878 7,16,250 7,19,100 7,44,446 6,55,818 6,97,638 6,65,563 7,10,639

See ‘Notes on Tables.’


CURRENT

STATISTICS

Money andBanking

No. 2: Reserve Bank of India (Concld.)

(Rs. crore)

Last Friday / 1990-91 2007-08 2008-09 2008 2009

Friday Oct. May Jun. Jul. Aug. Sep. Oct. 2 Oct. 9 Oct. 16 Oct. 23 Oct. 30

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Assets

Notes and Coins 23 20 16 27 25 26 15 15 20 19 28 31 28 23

Balances held

Abroad (3) 4,008 6,49,661 5,82,537 5,98,272 5,19,034 5,65,905 6,01,995 6,17,249 5,94,343 5,92,407 5,55,820 5,48,055 5,56,008 5,70,194

Loans and

Advances

Central

Government — — — — 6,114 — — — — — — — — —

State

Governments (4) 916 — — 948 — — — 90 227 — — 348 512 169

Scheduled

Commercial

Banks 8,169 4,000 11,728 8,454 410 400 296 — — — — — — —

Scheduled State

Co-op.Banks 38 — — — 10 10 — — — 20 20 20 20 20

Industrial Dev.

Bank of India 3,705 — — — — — — — — — — — — —

NABARD 3,328 — — 13,329 — — — — — — — — — —

EXIMBank 745 — — — — — — — — — — — — —

Others 1,615 579 9,834 848 11,977 9,955 10,356 8,876 9,507 11,077 6,682 5,337 5,191 4,734

Bills Purchased

and Discounted

Internal — — — — — — — — — — — — — —

Government

Treasury Bills 1,384 — — — — — — — — — — — — —

Investments 40,286 85,607 1,23,891 1,58,100 96,819 68,300 61,145 62,212 86,723 1,13,654 63,552 1,17,953 76,740 1,09,771

Other Assets (5) 2,666 11,201 20,552 20,272 27,158 28,263 29,071 27,807 28,278 27,270 29,716 25,895 27,065 25,727

(–) (6,984) (9,050) (7,557) (8,314) (8,314) (8,526) (8,526) (8,794) (9,071) (9,071) (9,071) (9,071) (9,284)


CURRENT

STATISTICS

Money andBanking

No. 3: All Scheduled Banks — Business in India

(Rs. crore)

Last Reporting Friday 1990-91 2007-08 2008-09 2008 2009

(in case of March)/

Last Friday Sep. Mar. Apr. May Jun. Jul. Aug. Sep.(P)

1 2 3 4 5 6 7 8 9 10 11 12

Number of Reporting Banks 299 239 235 234 235 235 235 235 234 234 234

Liabilities to the Banking

System(1) 6,673 1,01,724 1,04,419 1,10,040 1,04,419 1,02,166 1,00,928 95,761 89,546 92,059 81,019

Demand and Time Deposits

from Banks(2) 5,598 50,306 53,134 46,046 53,134 55,377 53,996 55,287 55,117 55,813 55,222

Borrowings from Banks (3) 998 33,034 29,504 29,090 29,504 26,958 27,744 23,803 19,799 22,782 19,576

Other Demand and

Time Liabilities (4) 77 18,385 21,780 34,904 21,780 19,830 19,188 16,671 14,631 13,464 6,222

Liabilities to Others (1) 2,13,125 37,06,404 43,79,668 39,59,768 43,79,668 44,51,340 45,16,325 45,33,347 46,25,577 46,50,953 46,70,156

Aggregate Deposits (5) 1,99,643 32,97,074 39,52,603 35,45,151 39,52,603 40,42,721 40,94,359 41,10,635 41,98,885 42,09,619 42,52,837

Demand 34,823 5,35,930 5,34,791 5,10,555 5,34,791 5,12,704 5,14,884 5,14,284 5,39,919 5,49,812 5,64,844

Time (5) 1,64,820 27,61,144 34,17,813 30,34,596 34,17,813 35,30,016 35,79,475 35,96,351 36,58,966 36,59,807 36,87,994

Borrowings (6) 645 1,07,712 1,15,355 1,14,403 1,15,355 1,05,376 1,20,525 1,13,732 1,04,054 1,19,414 96,456

Other Demand and

Time Liabilities (4) 12,838 3,01,618 3,11,709 3,00,214 3,11,709 3,03,243 3,01,442 3,08,980 3,22,638 3,21,920 3,20,863

Borrowings from

Reserve Bank (7) 3,483 4,000 11,728 6,116 11,728 2,912 420 410 296 — —

Against Usance

Bills/Promissory Notes — — — — — — — — — — —

Others (8) 3,483 4,000 11,728 6,116 11,728 2,912 420 410 296 — —

Cash in Hand and Balances

with Reserve Bank 25,995 2,83,514 2,65,699 3,52,557 2,65,699 2,53,660 2,50,487 2,39,077 2,41,116 2,41,482 2,57,893

Cash in Hand 1,847 18,593 20,825 24,089 20,825 23,924 27,512 26,009 24,530 24,167 25,273

Balances with Reserve

Bank (9) 24,147 2,64,921 2,44,874 3,28,468 2,44,874 2,29,736 2,22,975 2,13,068 2,16,586 2,17,315 2,32,620

See “Notes on Tables”


CURRENT

STATISTICS

Money andBanking

No. 3: All Scheduled Banks — Business in India (Concld.)

(Rs. crore)


(in case of March)/

Last Friday Sep. Mar. Apr. May Jun. Jul. Aug. Sep. (P)

1 2 3 4 5 6 7 8 9 10 11 12

Assets with the Banking

System 6,848 1,03,411 1,47,546 1,18,777 1,47,546 1,45,168 1,40,348 1,35,152 1,25,985 1,26,118 1,23,036

Balances with Other Banks 3,347 41,310 59,896 41,271 59,896 59,626 57,078 58,013 57,236 55,084 57,823

In Current Account 1,926 16,553 13,280 15,436 13,280 13,615 11,816 11,869 11,568 11,080 12,269

In Other Accounts 1,421 24,757 46,616 25,835 46,616 46,011 45,262 46,144 45,668 44,004 45,554

Money at Call and

Short Notice 2,201 25,766 26,295 21,022 26,295 27,251 28,959 26,147 21,341 23,325 21,621

Advances to Banks (10) 902 4,157 3,215 2,804 3,215 2,639 2,218 2,082 1,998 1,976 2,522

Other Assets 398 32,177 58,140 53,680 58,140 55,652 52,094 48,911 45,410 45,733 41,070

Investment 76,831 10,05,952 12,05,544 10,20,670 12,05,544 12,75,702 13,06,922 13,58,687 13,80,324 14,11,565 14,18,731

Government

Securities (11) 51,086 9,91,899 11,93,456 10,07,334 11,93,456 12,64,043 12,95,153 13,46,412 13,69,489 14,00,951 14,00,912

Other Approved

Securities 25,746 14,053 12,089 13,336 12,089 11,659 11,769 12,275 10,835 10,614 17,819

Bank Credit 1,25,575 24,47,646 28,59,554 26,37,632 28,59,554 28,28,400 28,28,311 28,59,204 28,86,311 28,88,410 29,54,921

Loans, Cash-credits and

Overdrafts 1,14,982 23,45,470 27,57,577 25,29,105 27,57,577 27,29,578 27,34,645 27,63,948 27,89,002 27,89,439 28,48,656

Inland Bills-Purchased 3,532 12,988 12,470 13,872 12,470 12,328 11,554 11,326 11,939 11,184 13,058

Inland Bills-Discounted 2,409 41,400 43,987 44,334 43,987 44,750 44,059 44,033 46,034 46,261 49,749

Foreign Bills-Purchased 2,788 16,535 18,651 19,449 18,651 16,688 16,043 16,589 15,650 15,495 17,200

Foreign Bills-Discounted 1,864 31,253 26,868 30,871 26,868 25,057 22,010 23,309 23,685 26,031 26,258

Cash-Deposit Ratio 13.0 8.6 6.7 9.9 6.7 6.3 6.1 5.8 5.7 5.7 6.1

Investment-Deposit Ratio 38.5 30.5 30.5 28.8 30.5 31.6 31.9 33.1 32.9 33.5 33.4

Credit-Deposit Ratio 62.9 74.2 72.3 74.4 72.3 70.0 69.1 69.6 68.7 68.6 69.5


CURRENT

STATISTICS

Money andBanking

No. 4: All Scheduled Commercial Banks — Business in India

(Rs. crore)


(in case of March)/


1 2 3 4 5 6 7 8 9 10 11 12

Number of Reporting Banks 271 170 166 165 166 166 166 166 165 165 165

Liabilities to the BankingSystem (1) 6,486 98,154 1,00,116 1,06,292 1,00,116 97,722 96,261 91,136 84,842 87,191 78,803

Demand and Time Depositsfrom Banks (2), (12) 5,443 46,778 48,856 42,327 48,856 50,948 49,454 50,689 50,418 50,961 53,032

Borrowings from Banks (3) 967 32,996 29,487 29,064 29,487 26,947 27,663 23,799 19,796 22,769 19,553

Other Demand and TimeLiabilities (4) 76 18,379 21,773 34,902 21,773 19,828 19,145 16,648 14,628 13,461 6,218

Liabilities to Others (1) 2,05,600 36,01,799 42,55,566 38,48,201 42,55,566 43,22,602 43,86,471 44,02,631 44,91,862 45,16,406 45,31,283

Aggregate Deposits (5) 1,92,541 31,96,939 38,34,110 34,39,327 38,34,110 39,19,671 39,69,590 39,84,721 40,70,458 40,80,711 41,20,007

Demand 33,192 5,24,310 5,23,085 4,98,899 5,23,085 5,01,341 5,03,826 5,02,786 5,28,171 5,37,835 5,51,572

Time (5) 1,59,349 26,72,630 33,11,025 29,40,428 33,11,025 34,18,330 34,65,764 34,81,934 35,42,287 35,42,876 35,68,435

Borrowings (6) 470 1,06,504 1,13,936 1,12,404 1,13,936 1,04,111 1,19,493 1,12,944 1,02,799 1,18,067 94,589

Other Demand and TimeLiabilities (4), (13) 12,589 2,98,355 3,07,520 2,96,469 3,07,520 2,98,820 2,97,388 3,04,966 3,18,605 3,17,628 3,16,687

Borrowings fromReserve Bank (7) 3,468 4,000 11,728 6,094 11,728 2,902 410 400 296 — —

Against Usance Bills/Promissory Notes — — — — — — — — — — —

Others 3,468 4,000 11,728 6,094 11,728 2,902 410 400 296 — —

See ‘Notes on Tables’.


CURRENT

STATISTICS

Money andBanking

No. 4: All Scheduled Commercial Banks — Business in India (Concld.)

(Rs. crore)


(in case of March)/


1 2 3 4 5 6 7 8 9 10 11 12

Cash in Hand and

Balances with

Reserve Bank 25,665 2,75,166 2,58,475 3,41,783 2,58,475 2,46,190 2,43,337 2,31,756 2,33,483 2,33,915 2,50,346

Cash in Hand 1,804 18,044 20,281 23,482 20,281 23,338 26,875 25,365 23,869 23,484 24,665

Balances with

Reserve Bank (9) 23,861 2,57,122 2,38,195 3,18,301 2,38,195 2,22,852 2,16,462 2,06,391 2,09,614 2,10,431 2,25,681

Assets with the

Banking System 5,582 90,877 1,22,571 1,03,184 1,22,571 1,15,754 1,11,495 1,05,126 95,142 95,388 91,405

Balances with

Other Banks 2,846 36,016 52,909 35,276 52,909 52,066 49,741 50,524 48,561 46,014 48,600

In Current Account 1,793 14,871 11,810 13,562 11,810 12,051 10,570 10,593 10,206 9,705 10,757

In Other Accounts 1,053 21,145 41,099 21,714 41,099 40,015 39,171 39,930 38,355 36,309 37,842

Money at Call and

Short Notice 1,445 19,925 15,038 15,602 15,038 14,216 16,320 12,647 8,953 11,718 9,896

Advances to Banks (10) 902 3,779 2,904 2,419 2,904 2,333 1,651 1,783 1,720 1,697 2,244

Other Assets 388 31,156 51,721 49,888 51,721 47,139 43,783 40,172 35,909 35,958 30,666

Investment 75,065 9,71,715 11,66,410 9,84,558 11,66,410 12,36,092 12,64,641 13,14,461 13,35,768 13,65,992 13,73,022

Government

Securities (11) 49,998 9,58,661 11,55,786 9,72,265 11,55,786 12,25,715 12,54,381 13,04,006 13,26,870 13,57,134 13,57,137

Other Approved Securities 25,067 13,053 10,624 12,293 10,624 10,378 10,260 10,454 8,898 8,859 15,885

Bank credit (14) 1,16,301 23,61,914 27,75,549 25,51,026 27,75,549 27,44,490 27,45,978 27,77,576 28,05,224 28,06,741 28,73,155

(4,506) (44,399) (46,211) (45,175) (46,211) (48,976) (58,780) (56,416) (48,891) (49,111) (42,418)

Loans,Cash-Credits and

Overdrafts 1,05,982 22,61,576 26,75,677 24,44,734 26,75,677 26,47,556 26,54,361 26,84,358 27,09,996 27,09,703 27,68,910

Inland Bills-Purchased 3,375 12,594 11,714 13,118 11,714 11,622 10,694 10,461 11,074 10,165 11,961

Inland Bills-Discounted 2,336 40,553 43,157 43,436 43,157 43,941 43,246 43,209 45,153 45,688 49,141

Foreign Bills-Purchased 2,758 16,499 18,522 19,416 18,522 16,661 16,013 16,557 15,625 15,452 17,170

Foreign Bills-Discounted 1,851 30,691 26,479 30,322 26,479 24,710 21,663 22,991 23,375 25,733 25,974

Cash-Deposit Ratio 13.3 8.6 6.7 9.9 6.7 6.3 6.1 5.8 5.7 5.7 6.1

Investment- Deposit Ratio 39.0 30.4 30.4 28.6 30.4 31.5 31.9 33.0 32.8 33.5 33.3

Credit-Deposit Ratio 60.4 73.9 72.4 74.2 72.4 70.0 69.2 69.7 68.9 68.8 69.7


CURRENT

STATISTICS

Money andBanking

No. 5: Scheduled Commercial Banks' Investments

Shares Issued by Bonds / Debentures issued by Instruments Issued by

Outstanding as on SLR Commercial PSUs Private Others PSUs Private Others Mutual FinancialSecurities Paper Corporate Corporate Funds Institutions

Sector Sector

1 2 3 4 5 6 7 8 9 10 11

March 21, 2003 5,47,546 4,041 1,639 7,591 — 48,258 33,026 — 6,455 31,066

March 19, 2004 6,77,588 3,835 1,565 7,400 41 49,720 27,966 5,232 11,930 32,988

March 18, 2005 7,39,154 3,944 1,886 10,289 44 46,939 31,994 6,980 12,744 31,557

March 31, 2006 7,17,454 4,837 2,627 10,502 41 33,018 29,550 15,153 10,410 29,203

March 30, 2007 7,91,516 9,038 2,129 16,225 74 29,232 27,641 17,787 11,761 26,568

March 28, 2008 9,71,715 13,270 3,025 23,389 294 27,935 28,700 29,230 18,824 25,942

March 27, 2009 11,66,410 20,001 2,769 25,060 407 25,456 33,131 31,073 37,035 32,585

September 12, 2008 10,01,328 12,538 3,497 24,219 169 25,548 27,889 27,031 22,042 23,835

September 26, 2008 9,84,558 11,311 3,424 24,193 150 27,538 28,728 24,882 10,736 24,676

October 10, 2008 9,77,884 11,957 3,403 24,339 149 24,320 29,101 24,077 9,229 24,213

October 24, 2008 10,55,599 15,788 3,443 24,694 119 23,915 28,415 26,274 14,879 23,325

November 7, 2008 10,71,338 15,919 3,405 24,891 110 24,610 29,442 26,530 18,865 23,510

November 21, 2008 10,67,608 16,297 3,429 24,978 110 25,119 28,706 29,256 29,194 24,355

December 5, 2008 11,02,953 17,280 3,450 25,008 114 23,836 29,812 29,751 34,982 24,232

December 19, 2008 10,82,764 17,927 3,398 25,246 114 24,486 30,567 30,311 32,482 23,983

January 2, 2009 11,50,038 16,730 3,358 25,157 114 25,056 31,183 26,261 43,185 25,347

January 16, 2009 11,39,279 18,702 2,988 25,073 516 25,610 33,522 30,056 60,355 26,148

January 30, 2009 11,68,305 17,174 3,005 25,178 359 26,195 34,226 30,170 71,246 28,767

February 13, 2009 11,68,869 17,717 2,771 25,400 355 25,825 33,765 30,178 83,258 30,282

February 27, 2009 11,86,557 15,752 2,778 25,455 251 26,988 33,442 29,764 90,273 24,327

March 13, 2009 11,80,132 15,248 2,782 25,507 251 25,041 33,352 29,967 83,957 30,968

March 27, 2009 11,66,410 20,001 2,769 25,060 407 25,456 33,131 31,073 37,035 32,585

April 10, 2009 12,51,702 20,018 2,760 25,117 646 23,121 33,774 28,462 90,840 32,708

April 24, 2009 12,36,092 17,559 2,757 25,002 305 23,403 33,631 30,350 1,04,318 29,479

May 8, 2009 12,68,610 15,424 2,719 24,893 263 23,234 32,790 30,802 1,19,372 29,800

May 22, 2009 12,56,911 16,841 2,565 24,710 391 22,364 34,186 29,576 1,21,039 28,784

June 5, 2009 12,73,903 16,668 2,481 24,564 320 22,485 34,253 29,944 1,20,546 28,269

June 19, 2009 12,91,463 15,830 2,561 24,370 255 22,050 34,863 28,592 1,23,452 27,510

July 3, 2009 13,36,303 15,595 2,475 24,468 239 22,098 35,473 30,874 89,570 27,516

July 17, 2009 13,18,106 15,029 2,456 24,587 194 21,806 34,612 30,665 1,32,267 26,939

July 31, 2009 13,35,768 14,610 2,355 24,406 111 21,783 35,328 31,809 1,39,934 26,185

August 14, 2009 13,43,160 13,490 2,062 24,826 99 21,987 34,535 31,400 1,54,232 28,221

August 28, 2009 13,69,461 13,147 2,221 24,956 98 20,163 36,707 30,690 1,51,136 27,169

September 11, 2009 13,48,192 12,665 2,342 24,751 95 21,196 35,175 32,221 1,56,573 25,850

September 25, 2009 13,73,022 14,776 2,243 24,640 88 20,611 35,161 34,650 66,687 26,148

PSUs : Public Sector Undertakings.

Note : Data on Investments are based on Statutory Section 42(2) Returns.

Final data upto : Aug 14, 2009.

(Rs. crore)


CURRENT

STATISTICS

Money andBanking

No. 6: State Co-operative Banks - Maintaining Accounts with the Reserve Bank of India

(Rs. crore)

Last Reporting Friday 1990-91 2007-08 2008-09 2008 2009(in case of March)/ Last Friday/Reporting Friday Jun. Jan. Feb. Mar. Apr. May Jun.05 Jun.19 Jun.26

1 2 3 4 5 6 7 8 9 10 11 12 13

Number of Reporting Banks 28 31 31 31 31 31 31 31 31 31 31 31

Demand and Time Liabilities

Aggregate Deposits (1) 2,152 19,611 22,588 20,395 21,261 21,868 22,588 23,282 23,812 23,734 23,793 24,030

Demand Liabilities 1,831 6,636 8,051 6,616 7,166 7,243 8,051 7,865 7,138 7,385 7,508 7,442

Deposits

Inter-Bank 718 1,539 1,936 1,567 1,805 1,557 1,936 1,587 1,126 1,317 1,407 1,299

Others 794 3,628 4,058 3,604 3,738 3,879 4,058 4,185 4,066 4,111 4,143 4,198

Borrowings from Banks 181 428 367 230 260 324 367 350 399 352 359 346

Others 139 1,041 1,689 1,215 1,362 1,483 1,689 1,743 1,547 1,605 1,599 1,599

Time Liabilities 3,963 47,523 59,625 50,410 54,661 56,915 59,625 63,846 64,608 64,408 64,337 64,472

Deposits

Inter-Bank 2,545 31,111 40,589 33,149 36,619 38,420 40,589 44,260 44,368 44,322 44,227 44,164

Others 1,359 15,983 18,530 16,791 17,523 17,990 18,530 19,097 19,746 19,623 19,650 19,832

Borrowings from Banks — 8 7 8 7 7 7 7 7 7 10 10

Others 59 421 500 461 512 498 500 482 488 457 451 466

Borrowing from Reserve Bank 15 — — 19 — — — 10 10 10 10 10

Borrowings from the

State Bank and / or a

Notified bank (2) and

State Government 1,861 13,988 11,879 12,703 10,338 11,462 11,879 12,312 11,165 11,118 11,282 11,309

Demand 116 3,378 3,057 3,130 2,769 3,290 3,057 3,161 2,715 2,716 2,664 2,646

Time 1,745 10,610 8,822 9,573 7,570 8,172 8,822 9,151 8,450 8,402 8,618 8,663

Assets

Cash in Hand and Balances

with Reserve Bank 334 3,639 3,387 4,215 2,824 2,845 3,387 3,339 3,247 3,382 3,538 3,496

Cash in Hand 24 143 149 149 143 145 149 149 156 149 151 161

Balance with Reserve Bank 310 3,496 3,238 4,066 2,681 2,699 3,238 3,190 3,091 3,233 3,387 3,335

Balances with Other Banks in

Current Account 93 486 554 363 473 413 554 557 435 502 472 498

Investments in Government

Securities (3) 1,058 16,806 18,432 19,214 18,567 18,940 18,432 19,314 20,561 20,677 21,003 21,148

Money at Call and Short Notice 498 7,855 15,801 7,350 10,554 13,628 15,801 17,327 17,292 17,353 17,322 17,620

Bank Credit (4) 2,553 17,345 18,501 17,832 18,461 18,901 18,501 18,996 17,956 17,743 17,605 17,451

Advances

Loans, Cash-Credits and

Overdrafts 2,528 17,336 18,490 17,822 18,451 18,891 18,490 18,987 17,947 17,734 17,598 17,441

Due from Banks (5) 5,560 32,466 27,239 30,702 27,674 27,193 27,239 26,478 25,339 25,162 25,361 25,416

Bills Purchased and Discounted 25 9 10 10 10 10 10 9 8 9 6 10

Cash - Deposit Ratio 15.5 18.6 15.0 20.7 13.3 13.0 15.0 14.3 13.6 14.2 14.9 14.5

Investment - Deposit Ratio 49.2 85.7 81.6 94.2 87.3 86.6 81.6 83.0 86.3 87.1 88.3 88.0

Credit - Deposit Ratio 118.6 88.4 81.9 87.4 86.8 86.4 81.9 81.6 75.4 74.8 74.0 72.6



CURRENT

STATISTICS

Money andBanking

No. 7: Reserve Bank’s Standing Facilities to Scheduled Commercial Banks

(Rs. crore)

As on last reporting Export Credit General Special Liquidity Total

Friday of Refinance (1) Refinance (2) Support (3) Refinance (4)

Limit Outstanding Limit Outstanding Limit Outstanding Limit Outstanding

1 2 3 4 5 6 7 8 9

1996-97 6,654.40 559.97 — — 6,654.40 559.97

1997-98 2,402.96 394.52 1,115.02 0.11 3,517.98 394.63

1998-99 7,269.27 2,616.57 1,115.02 19.23 3,235.02 258.00 11,619.31 2,893.80

March 1999 7,269.27 2,616.57 1,115.02 19.23 3,235.02 258.00 11,619.31 2,893.80

April 1999 8,638.29 5,164.76 1,115.02 56.31 — — 9,753.31 5,221.07

@ : ‘Others’ include Collateralised Lending Facility (CLF) (withdrawn completely effective from October 5, 2002) / Additional CLF (withdrawn effective from June 5,

2000), etc.

* : Normal Limit = 1/2 of total limit effective from November 16, 2002; 1/3 rd of the total limit effective from December 27, 2003.

** : Back-Stop Limit = 1/2 of total limit effective from November 16, 2002; 2/3 rd of the total limit effective from December 27, 2003.

*** : Total limits under Normal Facility and Back-Stop facility merged in to a single facility effective from March 29, 2004.

Also see ‘Notes on Tables’.

As on last Export Credit Refinance (1) Others @ Total

reportingNormal * Back Stop ** Total *** Normal * Back Stop ** Total

Standing FacilityFriday of

Limit Out- Limit Out- Limit Out- Limit Out- Limit Out- Limit Out- Limit Out-

standing standing standing standing standing standing standing

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

=(2+4) =(3+5) =(8+10) =(9+11) =(6+12) =(7+13)

2001-02 6,060.29 3,144.11 3,025.60 49.83 9,085.89 3,193.94 837.62 422.35 218.7 — 1,056.27 422.35 10,142.16 3,616.29

2002-03 2,524.13 61.51 2,524.13 23.00 5,048.26 84.51 399.66 — — — 399.66 — 5,447.92 84.51

2003-04 1,553.25 — 3,111.17 — 4,664.42 — 399.66 — — — 399.66 — 5,064.08 —

2004-05 — — — — 4,912.13 50.00 399.66 — — — 399.66 — 5,311.79 50.00

2005-06 — — — — 6,050.63 1,567.68 — — — — — — 6,050.63 1,567.68

2006-07 — — — — 8,110.33 4,984.94 — — — — — — 8,110.33 4,984.94

2007-08 — — — — 9,103.46 2,825.00 — — — — — — 9,103.46 2,825.00

2008-09 — — — — 34,951.79 3,106.62 — — — — — — 34,951.79 3,106.62

Dec. 2007 — — — — 7,818.76 779.00 — — — — — — 7,818.76 779.00

Mar. 2008 — — — — 9,103.46 2,825.00 — — — — — — 9,103.46 2,825.00

Jun. 2008 — — — — 9,052.03 1,132.14 — — — — — — 9,052.03 1,132.14

Apr. 2008 — — — — 9,509.23 474.00 — — — — — — 9,509.23 474.00

May 2008 — — — — 9,264.62 166.00 — — — — — — 9,264.62 166.00

Jun. 2008 — — — — 9,052.03 1,132.14 — — — — — — 9,052.03 1,132.14

Jul. 2008 — — — — 9,763.13 3,129.09 — — — — — — 9,763.13 3,129.09

Aug. 2008 — — — — 9,449.95 976.58 — — — — — — 9,449.95 976.58

Sep. 2008 — — — — 9,434.35 4,481.44 — — — — — — 9,434.35 4,481.44

Oct. 2008 — — — — 9,653.48 91.00 — — — — — — 9,653.48 91.00

Nov. 2008 — — — — 34,740.28 2,697.63 — — — — — — 34,740.28 2,697.63

Dec. 2008 — — — — 35,991.95 5,330.51 — — — — — — 35,991.95 5,330.51

Jan. 2009 — — — — 37,367.21 1,037.00 — — — — — — 37,367.00 1,037.00

Feb. 2009 — — — — 35,173.13 1,531.59 — — — — — — 35,173.13 1,531.59

Mar. 2009 — — — — 34,951.79 3,106.62 — — — — — — 34,951.79 3,106.62

Apr. 2009 — — — — 36,432.22 1,322.35 — — — — — — 36,432.22 1,322.35

May 2009 — — — — 34,542.21 715.18 — — — — — — 34,542.21 715.18

Jun. 2009 — — — — 33,195.57 1,800.00 — — — — — — 33,195.57 1,800.00

Jul. 2009 — — — — 33,293.12 — — — — — — — 33,293.12 —

Aug. 2009 — — — — 31,855.00 — — — — — — — 31,855.00 —


CURRENT

STATISTICS

Money andBanking

(Number in Lakhs and Amount in Rs. crore)

Month/Year Total Total MICR* Total Non-MICR** Total of RBI RBI Centres***

Centres Centres CentresAhmedabad Bangalore Bhopal

1 2 = (3+4) 3 = (5+22) 4 5 6 7 8

Number Amount Number Amount Number Amount Number Amount Number Amount Number Amount Number Amount

No. 8: Cheque Clearing Data

2001-02 9,015.0 1,25,75,254.0 5,377.0 1,09,47,391.0 3,638.0 16,27,863.0 5,377.0 1,09,47,391.0 414.0 2,07,524.0 445.0 2,69,346.0 — —

2002-03 10,139.0 1,34,24,313.0 5,980.0 1,09,78,762.0 4,159.0 24,45,551.0 5,980.0 1,09,78,762.0 434.0 2,25,060.0 485.0 3,07,577.0 — —

2003-04 10,228.0 1,15,95,960.0 6,241.0 91,78,751.0 3,987.0 24,17,209.0 6,241.0 91,78,751.0 473.0 2,80,649.0 547.0 3,75,885.0 — —

2004-05 11,668.5 1,04,58,894.9 9,414.6 93,56,252.2 2,253.9 11,02,642.7 7,384.8 84,93,320.7 525.5 3,52,696.6 601.6 4,77,810.1 59.3 47,188.1

2005-06 12,867.6 1,13,29,133.5 10,318.4 94,74,370.8 2,549.2 18,54,762.8 7,942.4 81,94,976.7 603.7 4,06,598.7 656.1 4,98,344.5 71.9 32,181.0

2006-07 13,672.8 1,20,42,425.7 11,441.0 1,04,35,436.1 2,231.8 16,06,989.5 8,309.9 85,99,494.3 594.4 4,29,955.8 702.5 5,58,675.6 71.7 52,224.6

2007-08 14,605.6 1,33,96,065.9 12,229.6 1,15,28,690.2 2,376.0 18,67,375.7 8,775.9 94,51,748.3 647.3 5,06,759.2 734.5 6,32,327.8 77.4 62,651.9

2008-09 (P) 13,959.1 1,24,61,201.7 11,623.4 1,04,00,308.7 2,335.7 20,60,892.9 8,332.4 82,89,452.1 570.3 4,77,112.7 687.6 5,46,017.8 74.5 70,837.6

2008-09 (P)

April 1,189.1 12,07,897.2 990.1 9,72,117.8 199.0 2,35,779.4 711.8 7,93,764.5 48.8 42,523.7 59.7 50,815.7 6.2 6,141.1

May 1,156.6 10,97,478.6 965.8 9,14,063.8 190.8 1,83,414.8 688.4 7,35,573.5 49.4 44,123.5 59.2 47,445.8 6.7 5,431.2

June 1,125.4 10,73,408.2 933.8 9,11,800.1 191.6 1,61,608.1 671.6 7,38,462.2 47.6 40,484.2 57.3 47,982.1 5.6 4,784.8

July 1,223.9 11,15,084.0 1,018.8 9,48,393.9 205.1 1,66,690.1 745.2 7,82,797.7 50.7 41,511.1 63.5 51,084.8 6.6 6,334.2

August 1,144.2 10,00,694.3 961.0 8,62,233.0 183.3 1,38,461.3 687.0 6,74,870.0 46.8 38,179.2 57.7 45,389.6 6.1 4,885.8

September 1,120.9 10,45,407.1 938.7 9,09,992.5 182.1 1,35,414.6 676.5 7,17,759.1 44.9 38,924.6 52.1 43,490.3 6.3 4,969.9

October 1,247.7 10,72,497.2 1,049.0 9,31,616.6 198.7 1,40,880.6 736.8 7,34,950.9 55.0 41,697.0 60.4 52,112.4 6.7 6,034.7

November 1,104.3 8,96,451.0 916.4 7,52,536.0 188.0 1,43,914.9 649.5 5,93,325.3 40.5 35,366.3 53.9 37,748.8 5.9 5,373.9

December 1,173.4 9,36,948.1 964.0 8,04,450.9 209.4 1,32,497.1 699.1 6,40,108.8 45.5 37,278.9 58.0 43,832.8 6.1 6,756.2

January 1,138.6 9,38,909.5 947.5 7,64,997.5 191.1 1,73,912.0 678.1 5,99,237.5 45.5 37,052.0 55.4 41,128.3 6.2 5,738.4

February 1,087.9 8,59,981.6 901.4 7,15,893.1 186.6 1,44,088.5 646.4 5,60,954.3 42.5 33,371.1 52.1 38,879.2 5.7 6,105.2

March 1,247.1 12,16,444.9 1,037.2 9,12,213.5 209.9 3,04,231.4 742.1 7,17,648.3 53.0 46,601.0 58.2 46,108.1 6.5 8,282.2

Total (upto

Mar, 09) 13,959.1 1,24,61,201.7 11,623.4 1,04,00,308.7 2,335.7 20,60,892.9 8,332.4 82,89,452.1 570.3 4,77,112.7 687.6 5,46,017.8 74.5 70,837.6

2009-10

April (P) 1,107.8 9,36,924.0 921.3 7,77,589.1 186.5 1,59,335.0 657.2 6,08,919.0 44.6 36,015.6 54.8 42,179.6 5.6 5,131.8

May (P) 1,099.4 8,48,648.0 908.1 6,89,906.5 191.4 1,58,741.5 643.2 5,32,225.1 46.2 35,614.5 54.4 35,229.2 5.5 4,726.4

June (P) 1,119.2 8,56,024.0 931.9 7,22,462.1 187.3 1,33,561.9 662.1 5,56,784.7 46.1 36,102.4 54.0 39,237.0 5.5 5,774.7

July (P) 1,197.2 8,98,532.8 999.0 7,58,196.7 198.2 1,40,336.1 711.4 5,89,480.4 50.1 35,569.2 59.2 42,623.4 6.4 5,355.0

August (P) 1110.2 8,06,839.2 923.1 6,84,420.2 187.1 1,22,419.0 671.3 5,45,345.9 49.8 35,295.9 54.7 37,459.0 6.4 5,355.0

September (P) 1,086.1 8,18,726.9 908.7 6,81,932.7 177.4 1,36,794.2 634.1 5,27,335.8 47.4 36,866.3 50.8 35,811.8 5.6 5,507.3

Total (upto

Sep, 09) 6,719.9 51,65,694.9 5,592.0 43,14,507.2 1,127.9 8,51,187.7 3,979.3 33,60,090.9 284.3 2,15,464.1 328.0 2,32,539.9 35.0 31,850.2

* : MICR - Magnetic Ink Character Recognition - automated CPC (Cheque Processing Centres).

** : Non MICR - Clearing done at the clearing house where MICR cheque processing centres have not been setup. The processing is done either usingmagnetic media based clearing system (MMBCS) or is done manually.

*** : RBI Centres (MICR) refers to all centres where RBI is the manager of Clearing House.


CURRENT

STATISTICS

Money andBanking

No. 8: Cheque Clearing Data (Contd.)


Month/Year RBI Centres***

Bhubaneswar Chandigarh Chennai Guwahati Hyderabad Jaipur Kanpur

1 9 10 11 12 13 14 15

Number Amount Number Amount Number Amount Number Amount Number Amount Number Amount Number Amount

2001-02 27.0 21,625.0 — — 522.0 5,00,872.0 30.0 19,592.0 305.0 1,82,764.0 123.0 54,432.0 67.0 32,369.0

2002-03 33.0 26,349.0 — — 557.0 5,52,913.0 34.0 22,436.0 337.0 2,15,035.0 130.0 58,202.0 73.0 34,532.0

2003-04 37.0 37,136.0 — — 602.0 6,12,158.0 37.0 27,840.0 369.0 2,75,503.0 148.0 70,122.0 78.0 41,397.0

2004-05 41.8 47,252.7 112.8 1,11,091.8 735.1 7,59,883.1 42.4 32,713.9 390.2 3,01,678.8 168.0 89,086.6 87.1 47,225.8

2005-06 48.6 53,649.7 123.8 1,27,037.9 813.2 6,55,277.9 48.2 39,660.5 416.8 3,63,317.1 187.4 1,13,452.5 92.7 55,328.7

2006-07 56.2 64,833.9 140.7 1,98,205.1 803.5 6,92,201.6 55.1 49,100.5 438.9 3,95,911.4 197.8 1,37,784.8 96.9 64,396.1

2007-08 60.0 80,993.5 141.4 1,61,218.5 854.1 7,78,853.6 59.5 55,169.2 454.6 4,52,498.8 219.3 1,62,021.8 100.0 69,885.1

2008-09 (P) 57.9 88,061.5 131.8 1,45,451.1 832.0 8,01,963.7 59.7 62,085.7 447.8 4,34,737.4 197.6 1,50,889.6 92.8 72,692.4

2008-09 (P)

April 4.8 7,898.6 11.1 15,341.9 70.7 72,489.2 4.9 6,274.0 38.4 40,598.4 16.6 13,502.7 8.1 6,010.4

May 4.8 8,125.9 11.4 13,000.7 69.6 69,582.6 5.1 5,392.7 38.8 38,131.8 16.6 13,568.5 8.3 6,029.0

June 4.5 6,632.5 10.2 11,862.1 68.7 71,149.3 4.6 4,930.8 37.3 38,755.0 15.6 12,802.2 7.1 5,740.4

July 5.3 8,800.5 11.4 11,275.7 75.6 78,720.8 5.1 5,111.4 41.1 41,507.0 17.3 13,557.8 8.0 5,968.0

August 4.7 6,984.8 10.7 11,619.5 70.3 70,375.1 4.6 4,265.3 36.9 36,005.4 16.0 12,053.7 7.6 5,526.9

September 4.9 6,957.5 10.5 13,186.6 70.2 72,544.8 4.8 4,809.8 37.8 36,634.4 15.8 14,134.9 6.4 4,998.1

October 5.3 7,253.1 11.9 13,155.4 72.0 71,608.6 4.9 4,905.6 38.0 36,958.1 18.4 14,329.4 8.7 7,371.3

November 4.7 6,844.5 10.7 11,879.8 63.8 61,432.9 5.0 4,954.1 37.1 34,102.3 15.7 11,459.3 8.3 5,956.9

December 4.9 7,605.8 11.1 10,674.5 69.4 61,611.0 5.2 4,780.9 35.4 32,809.5 15.8 11,200.5 7.4 6,203.8

January 4.5 6,374.5 11.1 11,166.4 64.0 57,150.4 5.0 5,294.0 35.0 31,278.3 16.4 11,180.4 7.7 6,086.7

February 4.4 6,598.2 10.0 10,250.6 65.4 52,115.5 4.9 4,834.0 33.4 31,257.2 15.1 10,078.4 6.9 5,633.2

March 5.1 7,985.6 11.7 12,037.9 72.4 63,183.7 5.7 6,533.1 38.7 36,699.8 18.2 13,021.7 8.2 7,167.7

Total (upto

Mar. 09) 57.9 88,061.5 131.8 1,45,451.1 832.0 8,01,963.7 59.7 62,085.7 447.8 4,34,737.4 197.6 1,50,889.6 92.8 72,692.4

2009-10

April (P) 4.5 5,308.6 11.5 14,123.3 64.1 63,050.0 4.6 5,704.3 34.6 32,461.9 16.0 11,286.1 6.9 6,478.5

May (P) 4.5 4,607.0 10.5 12,097.6 61.7 54,521.9 5.1 5,035.9 33.6 27,842.7 15.4 10,283.0 7.7 6,668.5

June (P) 4.3 53,30.6 10.3 11,231.1 65.7 54,603.2 5.1 47,90.2 34.7 30,336.9 15.6 10,714.8 7.2 6,535.7

July (P) 5.4 5,258.2 11.4 10,576.6 71.7 60,060.5 5.2 4,962.7 37.3 33,317.0 17.3 10,421.8 7.7 6,830.0

August (P) 5.0 4,682.1 10.5 10,176.4 66.7 51,118.9 5.3 4,342.2 33.3 27,933.7 16.8 10,087.0 7.6 5,121.6

September (P) 4.8 4,586.5 10.4 10,176.9 61.7 52,474.5 5.0 4,745.2 30.6 26,893.9 15.7 10,052.8 6.8 4,925.8

Total (upto

Sep, 09) 28.5 29,773.0 64.4 68,381.9 391.6 3,35,829.1 30.4 29,580.5 204.0 1,78,786.1 96.8 62,845.5 44.0 36,560.1


CURRENT

STATISTICS

Money andBanking

No. 8: Cheque Clearing Data (Contd.)


Month/Year

Kolkata Mumbai Nagpur New Delhi Patna Thiruvananthapuram

1 16 17 18 19 20 21

Number Amount Number Amount Number Amount Number Amount Number Amount Number Amount

2001-02 523.0 3,73,131.0 1,679.0 82,17,816.0 102.0 41,151.0 1,079.0 9,90,315.0 27.0 17,421.0 34.0 19,032.0

2002-03 531.0 4,19,164.0 2,019.0 76,94,748.0 109.0 46,924.0 1,164.0 13,19,625.0 37.0 19,506.0 37.0 36,691.0

2003-04 470.0 4,65,308.0 2,162.0 55,11,293.0 120.0 56,330.0 1,107.0 13,54,677.0 50.0 26,739.0 41.0 43,714.0

2004-05 599.9 5,60,659.9 2,304.1 37,53,670.3 124.4 63,495.1 1,479.3 17,73,610.1 65.0 30,861.7 48.2 44,396.1

2005-06 642.4 6,58,639.7 2,391.9 33,42,829.4 134.8 75,772.3 1,597.2 16,97,583.2 59.2 36,819.8 54.6 38,484.0

2006-07 684.2 6,82,358.0 2,518.3 33,19,090.1 145.6 92,546.6 1,690.9 17,73,548.3 56.8 47,968.8 56.2 40,693.0

2007-08 730.5 7,78,304.3 2,651.6 36,85,407.3 151.3 1,06,351.7 1,775.7 18,00,975.6 62.6 61,006.5 56.0 57,323.4

2008-09 (P) 692.3 7,53,067.8 2,512.7 27,99,764.9 146.2 1,06,246.5 1,726.9 16,64,709.4 62.0 67,977.2 55.0 55,769.9

2008-09 (P)

April 57.9 67,101.2 215.7 2,83,396.5 12.4 9,090.9 146.9 1,61,140.8 5.0 5,581.2 4.7 5,858.2

May 58.3 64,139.9 206.7 2,65,785.6 12.4 9,361.1 146.2 1,43,245.2 5.1 5,105.0 4.7 5,038.1

June 53.1 64,292.9 201.7 2,64,352.0 11.5 9,176.0 137.8 1,45,474.3 4.6 5,939.4 4.4 4,104.2

July 61.9 70,511.5 221.9 2,75,708.5 12.7 9,900.2 153.8 1,52,336.3 5.3 5,540.7 4.9 4,929.1

August 56.7 61,340.9 209.1 2,28,975.1 11.8 8,125.4 138.5 1,32,723.4 4.9 4,566.5 4.5 3,853.2

September 59.5 66,626.1 201.0 2,46,840.5 11.3 8,364.3 141.5 1,46,688.8 5.2 4,539.5 4.3 4,048.7

October 55.4 52,842.5 223.5 2,54,526.8 13.2 9,625.6 152.4 1,49,637.9 5.9 6,788.9 5.0 6,103.7

November 56.0 55,757.8 194.2 1,90,205.0 11.8 7,845.1 132.2 1,15,444.6 5.0 5,122.5 4.6 3,831.4

December 57.5 61,904.2 214.4 2,07,613.3 12.2 8,255.4 146.2 1,30,249.6 5.3 5,432.2 4.6 3,900.1

January 54.9 56,491.2 205.3 1,91,938.8 12.3 8,204.8 145.2 1,20,465.4 5.1 5,344.5 4.6 4,343.6

February 56.2 56,321.9 195.2 1,71,979.0 11.4 8,103.0 134.2 1,16,729.6 4.9 4,921.4 4.1 3,776.7

March 64.8 75,737.5 224.0 2,18,443.9 13.2 10,194.7 152.0 1,50,573.3 5.6 9,095.2 4.7 5,982.9

Total (upto

Mar, 09) 692.3 7,53,067.8 2,512.7 27,99,764.9 146.2 1,06,246.5 1,726.9 16,64,709.4 62.0 67,977.2 55.0 55,769.9

2009-10

April (P) 54.6 59,580.7 198.3 1,86,379.5 11.6 8,391.5 136.2 1,22,837.9 4.9 5,936.5 4.2 4,053.4

May (P) 51.6 48,641.7 194.5 1,64,609.0 11.3 7,241.1 132.1 1,07,565.6 4.7 4,388.7 4.2 3,152.3

June (P) 55.4 52,890.9 206.2 1,70,059.4 11.3 7,770.9 131.3 1,11,993.3 5.0 5,250.5 4.5 4,163.0

July (P) 57.8 56,100.5 214.5 1,86,871.2 12.2 8,357.6 144.9 1,13,810.1 5.5 5,342.2 4.7 4,024.2

August (P) 56.9 51,771.9 205.3 1,86,392.4 11.1 7,152.2 132.1 99,454.4 5.1 4,767.8 4.7 4,235.3

September (P) 52.8 51,425.9 196.1 1,73,285.5 10.9 7,388.9 126.5 95,083.7 5.2 4,974.1 3.7 3,136.7

Total (upto

Sep, 09) 329.1 3,20,411.6 1,215.0 10,67,597.1 68.4 46,302.3 803.1 6,50,745.0 30.5 30,659.7 26.1 22,765.0

RBI Centres***


CURRENT

STATISTICS

Money andBanking

No. 8: Cheque Clearing Data (Concld.)


Month/Year Other MICR Centres

1 22

Number Amount

2001-02 — —

2002-03 — —

2003-04 — —

2004-05 2,029.8 8,62,931.5

2005-06 2,375.9 12,79,394.1

2006-07 3,131.1 18,35,941.8

2007-08 3,453.7 20,76,941.9

2008-09 (P) 3,291.0 21,10,856.7

2008-09 (P)

April 278.2 1,78,353.3

May 277.4 1,78,490.3

June 262.2 1,73,337.9

July 273.5 1,65,596.2

August 274.0 1,87,363.0

September 262.3 1,92,233.3

October 312.2 1,96,665.7

November 266.9 1,59,210.7

December 264.9 1,64,342.2

January 269.3 1,65,760.0

February 255.0 1,54,938.8

March 295.1 1,94,565.2

Total (uptoMar, 09) 3,291.0 21,10,856.7

2009-10

April (P) 264.1 1,68,670.0

May (P) 264.8 1,57,681.4

June (P) 269.8 1,65,677.4

July (P) 287.6 1,68,716.3

August (P) 251.8 1,39,074.4

September (P) 274.6 1 54 597.0

Total (upto

Sep, 09) 1,612.7 9,54,416.3


CURRENT

STATISTICS

Money andBanking

No. 9A: Retail Electronic Payment Systems

(Number in Lakh and Amount in Rs. crore)

Year / Period Total ElectronicElectronic Clearing Services (ECS)

Electronic FundsCard Payments#

Payments Transfer EFT/NEFT

ECS (Credit) ECS (Debit) Credit Debit*

1 2=(3+4+5+6+7) 3 4 5 6 7

Volume Amount Volume Amount Volume Amount Volume Amount Number Volume Amount Number Volume Amount

of of

Out- Out-

standing standing

Cards** Cards**

2003-04 1,669.55 52,142.78 203.00 10,228.00 79.00 2,253.58 8.19 17,124.81 — 1,001.79 17,662.72 — 377.57 4,873.67

2004-05 2,289.04 1,08,749.83 400.51 20,179.81 153.00 2,921.24 25.49 54,601.38 — 1,294.72 25,686.36 — 415.32 5,361.04

2005-06 2,850.13 1,46,382.68 442.16 32,324.35 359.58 12,986.50 30.67 61,288.22 173.27 1,560.86 33,886.47 497.63 456.86 5,897.14

2006-07 3,787.09 2,35,693.12 690.19 83,273.09 752.02 25,440.79 47.76 77,446.31 231.23 1,695.36 41,361.31 749.76 601.77 8,171.63

2007-08 5,353.09 10,41,991.93 783.65 7,82,222.30 1,271.20 48,937.20 133.15 1,40,326.48 275.47 2,282.03 57,984.73 1,024.37 883.06 12,521.22

2008-09 (P) 6,678.24 5,00,321.79 883.94 97,486.58 1,600.55 66,975.89 321.61 2,51,956.38 246.99 2,595.61 65,355.80 1,374.31 1,276.54 18,547.14

2008-09 (P)

April 504.99 38,723.13 60.96 8,590.47 127.11 5,009.43 17.02 18,286.34 283.12 215.45 5,611.38 1,049.91 84.44 1,225.51

May 506.95 37,466.82 47.25 5,314.57 132.70 5,129.74 18.71 20,067.09 267.34 214.96 5,581.88 1,082.53 93.33 1,373.54

June 514.71 32,493.74 64.17 7,553.91 132.26 5,196.29 19.16 13,194.69 270.16 206.21 5,261.63 1,101.52 92.91 1,287.22

July 573.60 45,791.13 92.35 10,371.04 133.35 5,447.80 22.93 22,999.52 268.68 224.47 5,578.37 1,130.39 100.49 1,394.40

August 616.33 37,792.91 121.09 9,493.34 133.94 5,546.76 22.61 15,213.86 267.33 226.28 5,801.48 1,140.63 112.41 1,737.47

September 576.27 39,119.45 96.34 9,122.00 131.57 5,627.37 25.25 17,221.08 268.20 219.16 5,635.60 1,197.44 103.96 1,513.40

October 642.60 49,765.73 121.40 9,733.60 134.92 5,906.58 30.77 25,722.44 266.75 236.47 6,442.34 1,219.60 119.03 1,960.77

November 532.91 41,524.54 57.72 6,758.28 137.13 5,755.72 27.19 22,097.04 265.74 205.74 5,355.01 1,255.11 105.13 1,558.49

December 560.72 41,535.94 48.31 7,202.24 135.93 5,901.41 31.95 21,449.44 261.53 225.97 5,311.21 1,275.33 118.56 1,671.64

January 558.77 49,523.22 52.93 9,153.85 137.01 5,845.04 32.27 27,635.01 258.71 217.87 5,171.06 1,314.18 118.69 1,718.27

February 544.10 40,681.80 75.48 8,431.26 129.05 5,688.24 33.21 20,367.58 255.12 195.98 4,659.48 1,342.36 110.38 1,535.25

March 546.29 45,903.38 45.93 5,762.04 135.58 5,921.52 40.54 27,702.30 246.99 207.04 4,946.34 1,374.31 117.21 1,571.18

Total (upto

Mar. 09) 6,678.24 5,00,321.79 883.94 97,486.58 1,600.55 66,975.89 321.61 2,51,956.38 246.99 2,595.61 65,355.80 1,374.31 1,276.54 18,547.14

2009-10

April (P) 505.71 55,380.45 38.20 11,134.18 122.17 5,807.17 39.42 31,728.54 243.67 185.44 4,932.37 1,405.51 120.47 1,778.20

May (P) 520.52 42,635.99 51.19 6,665.42 121.27 5,792.75 38.94 23,474.15 240.54 182.04 4,815.94 1,430.33 127.08 1,887.71

June (P) 550.17 51,609.91 60.72 8,668.65 127.46 5,750.13 45.04 30,513.06 228.44 191.02 4,863.35 1,463.92 125.93 1,814.71

July (P) 637.01 63,785.64 115.45 12,797.93 126.22 5,671.51 50.97 38,261.03 222.56 202.11 4,957.33 1,512.59 142.27 2,097.84

August (P) 633.43 57,344.37 118.95 15,037.64 117.64 5,714.31 52.22 29,400.62 219.49 196.68 4,858.34 1,550.99 147.94 2,333.46

September (P) 592.04 53,843.63 114.20 11,420.36 116.13 6,069.78 49.49 29,582.34 212.92 191.16 4,902.85 1,561.90 121.06 1,868.30

Total (upto

Sep, 09) 3,438.88 3,24,599.98 498.71 65,724.17 730.90 34,805.65 276.07 1,82,959.75 212.92 1,148.46 29,330.19 1,561.90 784.74 11,780.23

# : Card Payments figures pertain only to Point of Sale (POS) transactions.

* : Debit Cards figures for 2003-04 and 2004-05 are estimated based on 2005-06 figures.

** : Cards issued by banks (excluding those withdrawn/blocked).


CURRENT

STATISTICS

Money andBanking

No. 9B: Large Value Clearing and Settlement Systems


Year / Period Real Time Gross Settlement System

Total Customer Remittance Inter-Bank Remittance Inter-bank Clearing Total Inter-bank

Settlement**

1 2=(3+4+5) 3 4 5 6=(4+5)

Number Amount Number Amount Number Amount Number Amount Number Amount

2003-04 0.001 1,965.49 0.00 0.00 0.001 1,965.49 — — 0.001 1,965.49

2004-05 4.604 40,66,184.00 0.68 2,49,662.00 3.92 38,16,522.00 — — 3.92 38,16,522.00

2005-06 17.670 1,15,40,836.25 7.13 25,70,212.29 10.54 89,70,623.96 — — 10.54 89,70,623.96

2006-07 38.80 2,46,19,179.99 24.82 71,67,807.91 13.94 1,13,13,346.69 0.04 61,38,025.39 13.98 1,74,51,372.08

2007-08 58.54 4,82,94,558.97 41.46 1,61,00,172.88 16.94 1,12,18,157.41 0.14 2,09,76,228.68 17.08 3,21,94,386.10

2008-09 133.84 6,11,39,912.44 112.34 2,00,04,107.80 21.32 1,22,75,773.49 0.19 2,88,60,031.15 21.50 4,11,35,804.65

2008-09

April 6.78 48,47,956.95 5.19 15,95,777.62 1.57 8,53,187.78 0.011 23,98,991.55 1.58 32,52,179.34

May 7.63 44,48,417.00 5.95 15,80,007.83 1.67 8,85,628.25 0.012 19,82,780.92 1.68 28,68,409.17

June 7.87 45,13,960.83 6.21 16,46,155.13 1.65 9,51,811.99 0.012 19,15,993.71 1.66 28,67,805.70

July 8.70 49,62,469.06 6.92 15,87,652.09 1.76 11,00,562.35 0.016 22,74,254.62 1.78 33,74,816.97

August 8.52 41,00,796.82 6.86 14,36,487.67 1.64 9,70,634.47 0.014 16,93,674.67 1.65 26,64,309.14

September 9.50 54,67,011.33 7.83 18,56,151.15 1.66 11,07,216.33 0.016 25,03,643.85 1.67 36,10,860.18

October 10.91 57,09,503.32 9.17 16,00,262.02 1.72 11,38,951.40 0.019 29,70,289.89 1.74 41,09,241.29

November 11.39 40,13,012.27 9.64 13,33,676.48 1.73 10,05,503.61 0.018 16,73,832.18 1.75 26,79,335.79

December 13.72 52,94,123.86 11.76 17,33,974.18 1.94 10,71,438.17 0.017 24,88,711.51 1.96 35,60,149.68

January 14.39 56,25,933.45 12.44 16,17,258.72 1.93 10,07,993.11 0.018 30,00,681.62 1.95 40,08,674.73

February 15.00 55,82,079.52 13.15 15,88,921.37 1.84 9,62,785.66 0.015 30,30,372.49 1.85 39,93,158.15

March (P) 19.43 65,74,648.05 17.22 24,27,783.53 2.20 12,20,060.37 0.020 29,26,804.14 2.22 41,46,864.51

Total (uptoMar, 09) 133.84 6,11,39,912.44 112.34 2,00,04,107.80 21.32 1,22,75,773.49 0.19 2,88,60,031.15 21.50 4,11,35,804.65

2009-10

April 18.15 74,83,009.75 16.20 18,82,570.44 1.94 9,38,518.59 0.014 46,61,920.71 1.95 56,00,439.31

May 19.81 93,67,548.14 17.72 20,05,120.69 2.07 9,26,922.08 0.017 64,35,505.38 2.09 73,62,427.46

June 22.32 1,00,45,166.89 20.10 24,14,892.93 2.20 9,32,255.88 0.017 66,98,018.08 2.22 76,30,273.96

July 23.48 99,66,068.81 21.24 23,61,696.14 2.23 8,17,679.51 0.015 67,86,693.16 2.25 76,04,372.67

August 23.24 92,48,113.39 21.13 24,51,621.30 2.10 7,44,363.88 0.008 60,52,128.20 2.11 67,96,492.08

September 24.34 92,58,141.64 22.18 26,39,052.07 2.16 8,39,448.23 0.008 57,79,641.34 2.16 66,19,089.57

Total (uptoSep, 09) 131.34 5,53,68,048.62 118.56 1,37,54,953.58 12.69 51,99,188.17 0.08 3,64,13,906.87 12.77 4,16,13,095.05

* : Inter-Bank Clearing Settlement pertains to the MNSB batches. MNSB settlement in RTGS started from 12 August, 2006.

** : The MNSB Settlement relates to the settlement of ECS, EFT, NEFT, REPO, Outright, FOREX, CBLO and Cheque Clearing at Mumbai.


CURRENT

STATISTICS

Money andBanking

No. 9B: Large Value Clearing and Settlement Systems (Concld.)


Year / Period CCIL Operated Systems

Government Securities Settlement Forex Settlement CBLO Settlement

Outright Repo

1 7 8 9 10

Number of Value Number of Value Number of Value Number of Value

Trades Trades Trades Trades

2003-04 2.44 15,75,133.00 0.21 9,43,189.00 3.31 23,18,530.80 0.03 76,850.70

2004-05 1.61 11,34,222.08 0.24 15,57,906.55 4.66 40,42,434.86 0.29 9,76,757.10

2005-06 1.25 8,64,751.40 0.25 16,94,508.70 4.90 52,39,673.90 0.68 29,53,133.90

2006-07 1.37 10,21,535.70 0.30 25,56,501.50 6.06 80,23,078.00 0.86 47,32,271.30

2007-08 1.89 16,53,851.30 0.27 39,48,750.70 7.57 1,27,26,831.90 1.13 81,10,828.60

2008-09 2.46 21,60,233.30 0.24 40,94,285.90 8.38 1,69,37,488.60 1.19 88,24,784.30

2008-09

April 0.12 1,08,602.80 0.02 3,44,220.20 0.56 12,06,935.70 0.11 8,93,038.50

May 0.17 1,42,728.70 0.02 3,68,236.20 0.75 12,28,186.00 0.11 9,08,156.90

June 0.10 1,09,956.10 0.02 2,81,545.80 0.69 13,67,490.70 0.11 8,94,344.20

July 0.10 93,002.60 0.01 2,23,370.40 0.83 15,57,981.60 0.10 6,15,406.80

August 0.16 1,21,961.30 0.01 2,50,899.70 0.76 14,50,096.30 0.09 5,30,643.70

September 0.22 1,66,720.60 0.01 2,55,691.60 0.81 17,15,233.60 0.09 4,93,139.60

October 0.18 1,42,787.80 0.02 2,10,993.60 0.76 17,12,726.60 0.08 3,69,994.30

November 0.23 1,92,139.70 0.02 3,49,388.60 0.69 14,66,754.00 0.09 5,60,709.60

December 0.44 3,76,930.40 0.02 4,23,566.00 0.69 14,83,818.30 0.11 8,06,517.70

January 0.37 3,17,482.70 0.02 4,51,316.30 0.64 12,40,573.00 0.10 7,94,849.10

February 0.21 1,91,203.20 0.03 4,38,427.00 0.51 9,99,461.50 0.09 8,46,655.30

March (P) 0.17 1,96,717.40 0.03 4,96,630.50 0.68 15,08,231.30 0.11 11,11,328.60

Total (uptoMar, 09) 2.46 21,60,233.30 0.24 40,94,285.90 8.38 1,69,37,488.60 1.19 88,24,784.30

2009-10

April 0.30 2,84,512.00 0.02 4,10,899.00 0.59 12,26,979.40 0.09 8,79,157.70

May 0.27 2,59,204.90 0.03 5,38,787.60 0.72 13,15,408.80 0.11 11,64,123.10

June 0.27 2,49,716.30 0.03 5,64,048.70 0.74 12,61,790.90 0.12 13,92,384.30

July 0.35 3,04,702.70 0.03 5,26,596.50 0.78 11,98,562.10 0.12 12,09,014.80

August 0.19 1,70,488.90 0.02 5,59,288.90 0.66 10,21,144.80 0.12 13,70,383.70

September 0.29 2,82,081.60 0.03 6,43,526.40 0.68 10,77,227.40 0.12 14,34,930.10

Total (uptoSep, 09) 1.67 15,50,706.40 0.16 32,43,147.10 4.16 71,01,113.40 0.68 74,49,993.70


CURRENT

STATISTICS

Money andBanking

Note : Monetary aggregates as at end-March incorporate data on i) scheduled commercial banks as on last reporting Friday and ii) the Reserve Bank of India

pertaining to the last working day of the fiscal year.


No. 10: Money Stock Measures

March 31/ReportingFridays ofthe month/Last reportingFridayof the month

Currency with the Public Deposit money of the Public

(Rs. crore)

Notesin

Circula-tion(1)

Circulation of

RupeeCoins

(2)

SmallCoins

(2)

Cashon

Handwith

Banks

Total(2+3+

4-5)

DemandDeposits

withBanks

‘Other’Deposits

withReserveBank (3)

Total(7+8)

M1

(6+9)

PostOffice

SavingsBank

Depos-its

M2

(10+11)

TimeDeposits

withBanks

M3

(10+13)

TotalPost

OfficeDeposits

M4

(14+15)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

2006-2007 4,95,938 6,684 1,477 21,244 4,82,854 4,77,604 7,496 4,85,100 9,67,955 5,041 9,72,996 23,42,113 33,10,068 25,969 33,36,037

2007-2008 5,81,577 7,656 1,567 22,390 5,68,410 5,78,372 9,054 5,87,427 11,55,837 5,041 11,60,878 28,62,046 40,17,883 25,969 40,43,852

2008-2009 6,81,099 8,487 1,567 24,790 6,66,364 5,81,247 5,573 5,86,820 12,53,184 5,041 12,58,225 35,10,835 47,64,019 25,969 47,89,988

September 12, 2008 6,07,669 8,057 1,567 23,712 5,93,581 5,18,774 4,958 5,23,732 11,17,312 5,041 11,22,353 31,21,852 42,39,165 25,969 42,65,134

September 26, 2008 6,03,489 8,088 1,567 26,998 5,86,146 5,51,818 5,459 5,57,276 11,43,422 5,041 11,48,463 31,40,123 42,83,545 25,969 43,09,514

May 2009 7,14,410 8,644 1,567 29,520 6,95,101 5,67,086 4,726 5,71,812 12,66,913 5,041 12,71,954 36,68,456 49,35,368 25,969 49,61,337

June 2009 7,10,537 8,741 1,567 30,081 6,90,763 5,46,839 9,616 5,56,455 12,47,219 5,041 12,52,260 36,87,186 49,34,404 25,969 49,60,373

July 2009 6,93,409 8,849 1,567 27,503 6,76,322 5,85,816 4,251 5,90,067 12,66,389 5,041 12,71,430 37,57,163 50,23,552 25,969 50,49,521

August 2009 6,96,058 8,937 1,567 27,043 6,79,519 5,93,884 5,439 5,99,324 12,78,842 5,041 12,83,883 37,64,270 50,43,113 25,969 50,69,082

September 11, 2009 7,05,900 8,937 1,567 25,949 6,90,455 5,83,377 14,994 5,98,371 12,88,826 5,041 12,93,867 37,83,493 50,72,319 25,969 50,98,288

September 25, 2009 7,11,316 8,937 1,567 28,375 6,93,445 6,09,708 4,061 6,13,770 13,07,215 5,041 13,12,256 37,88,598 50,95,812 25,969 51,21,781


CURRENT

STATISTICS

Money andBanking

No. 11: Sources of Money Stock (M3)

(Rs.crore)

Outstandings as on March 31/Reporting Fridays of the Month/Last Reporting Friday of the Month

Source 2006-07 2007-08 2008-09 September 12, September 26,2008 2008

1 2 3 4 5 6

1. Net Bank Credit to Government (A+B)

A. RBI’s net credit to Government (i-ii)

(i) Claims on Government (a+b)

(a) Central Government (1)

(b) State Governments

(ii) Government deposits with RBI (a+b)

(a) Central Government


B. Other Banks’ Credit to Government

2. Bank Credit to Commercial Sector (A+B)

A. RBI’s credit to commercial sector (2)

B. Other banks’ credit to commercial sector(i+ii+iii)

(i) Bank credit by commercial banks

(ii) Bank credit by co-operative banks

(iii) Investments by commercial andco-operative banks in other securities

3. Net Foreign Exchange Assets ofBanking Sector (A+B)

A. RBI’s net foreign exchange assets (i-ii)(3)

(i) Gross foreign assets

(ii) Foreign liabilities

B. Other banks’ net foreign exchange assets

4. Government’s Currency Liabilities to the Public

5. Banking Sector’s net Non-monetaryLiabilities Other than Time Deposits (A+B)

A. Net non-monetary liabilities of RBI(3)

B. Net non-monetary liabilities ofother banks(residual)

M3 (1+2+3+4-5)

8,27,626 8,99,518 12,77,199 9,70,501 9,67,296

2,423 -1,13,209 61,580 -71,788 -61,862

97,512 1,16,194 1,59,166 1,04,020 1,32,442

97,184 1,14,725 1,57,488 1,03,623 1,32,435

328 1,468 1,678 397 7

95,089 2,29,403 97,586 1,75,808 1,94,303

95,048 2,29,361 95,727 1,75,767 1,94,262

41 41 1,859 41 41

8,25,204 10,12,727 12,15,619 10,42,288 10,29,158

21,28,862 25,78,990 30,13,337 27,06,605 27,72,938

1,537 1,788 13,820 1,463 1,867

21,27,325 25,77,201 29,99,517 27,05,142 27,71,071

19,31,189 23,61,914 27,75,549 24,95,558 25,51,026

1,77,344 1,98,816 2,09,828 1,93,791 2,03,788

18,792 16,472 14,139 15,793 16,258

9,13,179 12,95,131 13,52,184 13,42,916 13,69,260

8,66,153 12,36,130 12,80,116 13,20,988 13,50,398

8,66,170 12,36,147 12,80,133 13,21,005 13,50,416

17 17 17 17 17

47,026 59,001 72,068 21,928 18,862

8,161 9,224 10,054 9,624 9,655

5,67,761 7,64,980 8,88,754 7,90,481 8,35,605

1,77,019 2,10,221 3,87,927 3,04,537 3,49,238

3,90,742 5,54,759 5,00,828 4,85,944 4,86,367

33,10,068 40,17,883 47,64,019 42,39,165 42,83,545


CURRENT

STATISTICS

Money andBanking

No. 11: Sources of Money Stock (M3) (Concld.)

Notes : 1. Monetary aggregates as at end-March incorporate data on i) scheduled commercial banks as on last reporting Friday and ii) the ReserveBank of India pertaining to the last working day of the fiscal year.

2. Net Foreign Exchange Assets of the RBI includes investment in foreign currency denominated bonds issued by IIFC (UK) since March 20, 2009.


(Rs.crore)

Outstandings as on March 31/Reporting Fridays of the Month/Last Reporting Friday of the Month

Source May June July August September 11, September 25,2009 2009 2009 2009 2009 2009

1 8 9 10 11 12 13

1. Net Bank Credit to Government (A+B)

A. RBI’s net credit to Government (i-ii)

(i) Claims on Government (a+b)

(a) Central Government (1)


(ii) Government deposits with RBI (a+b)

(a) Central Government


B. Other Banks’ Credit to Government

2. Bank Credit to Commercial Sector (A+B)

A. RBI’s credit to commercial sector (2)

B. Other banks’ credit to commercial sector(i+ii+iii)

(i) Bank credit by commercial banks

(ii) Bank credit by co-operative banks

(iii) Investments by commercial andco-operative banks in other securities

3. Net Foreign Exchange Assets ofBanking Sector (A+B)

A. RBI’s net foreign exchange assets (i-ii)(3)

(i) Gross foreign assets

(ii) Foreign liabilities

B. Other banks’ net foreign exchange assets

4. Government’s Currency Liabilities to the Public

5. Banking Sector’s net Non-monetaryLiabilities Other than Time Deposits (A+B)

A. Net non-monetary liabilities of RBI(3)

B. Net non-monetary liabilities ofother banks(residual)

M3 (1+2+3+4-5)

13,66,856 13,96,260 14,13,086 14,30,263 14,41,037 14,59,606

57,275 50,435 27,846 10,151 41,861 35,482

97,306 73,466 59,363 60,427 60,775 85,171

97,306 73,255 59,363 60,337 60,133 84,944

— 212 — 90 642 227

40,032 23,032 31,517 50,276 18,915 49,689

39,990 22,991 31,476 50,235 18,874 49,648

41 41 41 41 41 41

13,09,582 13,45,826 13,85,241 14,20,112 13,99,177 14,24,124

29,76,520 30,05,600 30,50,229 30,53,215 30,71,518 31,21,225

12,995 12,745 11,656 10,176 9,726 10,807

29,63,525 29,92,855 30,38,573 30,43,039 30,61,792 31,10,418

27,36,452 27,67,986 28,07,033 28,07,583 28,25,957 28,73,155

2,12,802 2,11,282 2,10,956 2,15,453 2,15,507 2,17,125

14,270 13,587 20,584 20,003 20,328 20,137

13,00,114 13,14,261 13,53,854 13,71,850 13,83,523 13,64,380

12,28,046 12,63,366 13,02,959 13,20,955 13,32,628 13,13,485

12,28,063 12,63,383 13,02,977 13,20,973 13,32,646 13,13,503

17 17 17 17 17 17

72,068 50,895 50,895 50,895 50,895 50,895

10,212 10,308 10,417 10,504 10,504 10,504

7,18,333 7,92,025 8,04,034 8,22,720 8,34,264 8,59,904

3,53,105 3,89,591 4,21,889 4,15,682 4,22,871 4,05,107

3,65,227 4,02,434 3,82,146 4,07,039 4,11,393 4,54,796

49,35,368 49,34,404 50,23,552 50,43,113 50,72,319 50,95,812


CURRENT

STATISTICS

Money andBanking

No. 11A: Commercial Bank Survey

(Rs. crore)

Outstanding as on

Item Mar. 30, Mar. 28, Sep. 12, Sep. 26, Mar. 27, Sep. 11, Sep. 25,

2007 2008 2008 2008 2009 2009 2009

1 2 3 4 5 6 7 8

Components

C.I Aggregate Deposits of Residents 25,44,473 31,40,004 33,41,778 33,76,446 37,66,842 40,19,766 40,51,569

(C.I.1+C.I.2)

C.I.1 Demand Deposits 4,29,731 5,24,310 4,67,569 4,98,899 5,23,085 5,25,671 5,51,572

C.I.2 Time Deposits of Residents 21,14,742 26,15,695 28,74,210 28,77,547 32,43,757 34,94,095 34,99,997

(C.I.2.1+C.I.2.2 )

C.I.2.1 Short-term Time Deposits 9,51,634 11,77,063 12,93,394 12,94,896 14,59,691 15,72,343 15,74,999

C.I.2.1.1 Certificates of Deposits (CDs) 97,442 1,66,642 1,77,394 1,67,532 1,98,931 2,26,903 2,19,934

C.I.2.2 Long-term Time Deposits 11,63,108 14,38,632 15,80,815 15,82,651 17,84,067 19,21,752 19,24,998

C.II Call/Term Funding from Financial Institutions 85,836 1,06,504 1,07,219 1,12,404 1,13,936 1,05,762 94,589

Sources

S.I Domestic Credit (S.I.1+S.I.2) 28,65,959 35,07,759 36,65,165 36,92,771 41,51,147 44,85,851 44,76,094

S.I.1 Credit to the Government 7,76,058 9,58,661 9,88,848 9,72,265 11,55,786 13,32,172 13,57,137

S.I.2 Credit to the Commercial Sector 20,89,901 25,49,097 26,76,316 27,20,506 29,95,361 31,53,678 31,18,957

(S.I.2.1+S.I.2.2+S.I.2.3+S.I.2.4)

S.I.2.1 Bank Credit 19,31,189 23,61,914 24,95,558 25,51,026 27,75,549 28,25,957 28,73,155

S.I.2.1.1 Non-food Credit 18,84,669 23,17,515 24,50,368 25,05,850 27,29,338 27,78,185 28,30,737

S.I.2.2 Net Credit to Primary Dealers 2,799 3,521 1,509 1,550 1,671 832 4,915

S.I.2.3 Investments in Other Approved Securities 15,458 13,053 12,480 12,293 10,624 16,020 15,885

S.I.2.4 Other Investments (in non-SLR Securities) 1,40,455 1,70,609 1,66,769 1,55,637 2,07,517 3,10,869 2,25,002

S.II Net Foreign Currency Assets of

Commercial Banks (S.II.1-S.II.2-S.II.3) -40,612 -70,196 -85,734 -95,685 -53,359 -56,255 -51,870

S.II.1 Foreign Currency Assets 58,754 31,189 25,955 25,740 55,312 41,804 44,301

S.II.2 Non-resident Foreign Currency Repatriable

Fixed Deposits 67,461 56,935 60,764 62,881 67,268 70,026 68,438

S.II.3 Overseas Foreign Currency Borrowings 31,905 44,451 50,925 58,544 41,404 28,033 27,732

S.III Net Bank Reserves (S.III.1+S.III.2-S.III.3) 1,90,116 2,71,166 3,33,802 3,35,688 2,46,748 2,48,501 2,50,346

S.III.1 Balances with the RBI 1,80,222 2,57,122 3,16,128 3,18,301 2,38,195 2,26,207 2,25,681

S.III.2 Cash in Hand 16,139 18,044 20,346 23,482 20,281 22,294 24,665

S.III.3 Loans and Advances from the RBI 6,245 4,000 2,671 6,094 11,728 0 0

S.IV Capital Account 2,02,800 2,72,622 3,22,882 3,25,171 3,32,444 3,76,251 3,76,284

S.V. Other items (net) (S.I+S.II+S.III-S.IV-C.I-C.II) 1,82,354 1,89,598 1,41,353 1,18,753 1,31,313 1,76,317 1,52,129

S.V.1 Other Demand & Time Liabilities (net of S.II.3) 2,10,329 2,53,905 2,41,417 2,37,925 2,66,116 3,04,042 2,88,955

S.V.2 Net Inter-Bank Liabilities (other than to PDs) 13,903 10,797 3,210 4,658 -20,785 -7,279 -7,686

Note : Data provisional.


CURRENT

STATISTICS

Money andBanking

No. 11B: Monetary Survey

Notes : 1. Data are provisional.2. Monetary Aggregates as at end-march incorporate data on i) scheduled commercial banks as on Last Reporting Friday and ii) the Reserve Bank of

India pertaining to the last working day of the fiscal year.

(Rs. crore)

Outstanding as on


2007 2008 2008 2008 2009 2009 2009

1 2 3 4 5 6 7 8

Monetary Aggregates

M1 (C.I+C.II.1+C.III) 9,69,509 11,54,454 11,16,840 11,41,271 12,51,143 12,85,086 13,03,218

NM2 (M

1+C.II.2.1) 19,90,818 24,06,796 24,87,447 25,13,457 27,88,457 29,37,421 29,58,342

NM3 (NM

2+C.II.2.2+C.IV = S.I+S.II+S.III-S.IV-S.V) 33,24,921 40,43,940 42,69,853 43,02,978 47,81,333 50,62,705 50,75,859

Components

C.I Currency with the Public 4,82,859 5,68,401 5,93,520 5,86,198 6,66,383 6,90,565 6,93,561

C.II Aggregate Deposits of Residents 27,48,730 33,59,981 35,64,156 35,98,918 39,95,441 42,51,383 42,83,649

(C.II.1+C.II.2)

C.II.1 Demand Deposits 4,79,154 5,76,999 5,18,362 5,49,615 5,79,188 5,79,526 6,05,597

C.II.2 Time Deposits of Residents 22,69,576 27,82,982 30,45,794 30,49,303 34,16,254 36,71,857 36,78,052

(C.II.2.1+C.II.2.2)

C.II.2.1 Short-term Time Deposits 10,21,309 12,52,342 13,70,607 13,72,186 15,37,314 16,52,335 16,55,123

C.II.2.1.1 Certificates of Deposits (CDs) 97,442 1,66,642 1,77,394 1,67,532 1,98,931 2,26,903 2,19,934

C.II.2.2 Long-term Time Deposits 12,48,267 15,30,640 16,75,187 16,77,117 18,78,940 20,19,521 20,22,929

C.III ‘Other’ Deposits with RBI 7,496 9,054 4,958 5,459 5,573 14,994 4,061

C.IV Call/Term Funding from Financial Institutions 85,836 1,06,504 1,07,219 1,12,404 1,13,936 1,05,762 94,589

Sources

S.I Domestic Credit (S.I.1+S.I.2) 30,97,537 36,38,516 38,39,774 38,79,060 44,76,836 47,92,696 47,78,850

S.I.1 Net Bank Credit to the Government 8,25,770 8,94,995 9,68,127 9,61,688 12,68,805 14,28,754 14,47,291

(S.I.1.1+S.I.1.2)

S.I.1.1 Net RBI credit to the Government 2,423 -1,13,209 -71,788 -61,862 61,580 41,861 35,482

S.I.1.2 Credit to the Government by 8,23,347 10,08,204 10,39,915 10,23,550 12,07,225 13,86,893 14,11,809

the Banking System

S.I.2 Bank Credit to the Commercial Sector 22,71,767 27,43,521 28,71,648 29,17,372 32,08,032 33,63,943 33,31,559

(S.I.2.1+S.I.2.2)

S.I.2.1 RBI Credit to the Commercial Sector 1,537 1,788 1,463 1,867 13,820 9,726 10,807

S.I.2.2 Credit to the Commercial Sector by 22,70,230 27,41,733 28,70,185 29,15,505 31,94,212 33,54,216 33,20,752

the Banking System

S.I.2.2.1 Other Investments ( Non-SLR Securities) 1,49,417 1,79,572 1,75,731 1,64,600 2,16,479 3,19,832 2,33,964

S.II Government’s Currency Liabilities to the Public 8,161 9,224 9,624 9,655 10,054 10,504 10,504

S.III Net Foreign Exchange Assets of

the Banking Sector (S.III.1+S.III.2) 8,25,541 11,65,934 12,35,254 12,54,713 12,26,757 12,76,373 12,61,616

S.III.1 Net Foreign Exchange Assets of the RBI 8,66,153 12,36,130 13,20,988 13,50,398 12,80,116 13,32,628 13,13,485

S.III.2 Net Foreign Currency Assets of -40,612 -70,196 -85,734 -95,685 -53,359 -56,255 -51,870

the Banking System


S.V Other items (net) 2,22,067 2,93,760 1,58,226 1,44,933 2,15,622 2,01,240 1,80,874


CURRENT

STATISTICS

Money andBanking

No. 11C: Reserve Bank of India Survey

(Rs. crore)

Outstanding as on


2007 2008 2008 2008 2009 2009 2009

1 2 3 4 5 6 7 8

Components

C.I Currency in Circulation 5,04,099 5,90,801 6,17,293 6,13,144 6,91,153 7,16,404 7,21,820

C.II Bankers’ Deposits with the RBI 1,97,295 3,28,447 3,36,184 3,38,334 2,91,275 2,40,451 2,39,290

C.II.1 Scheduled Commercial Banks 1,86,322 3,11,880 3,16,128 3,18,301 2,77,462 2,26,207 2,25,681

C.III ‘Other’ Deposits with the RBI 7,496 9,054 4,958 5,459 5,573 14,994 4,061

C.IV Reserve Money (C.I+C.II+C.III = 7,08,890 9,28,302 9,58,435 9,56,936 9,88,001 9,71,849 9,65,172

S.I + S.II + S.III - S.IV - S.V)

Sources

S.I RBI’s Domestic Credit (S.I.1+S.I.2+S.I.3) 11,596 -1,06,831 -67,640 -53,879 85,757 51,587 46,289

S.I.1 Net RBI credit to the Government (S.I.1.1+S.I.1.2) 2,423 -1,13,209 -71,788 -61,862 61,580 41,861 35,482

S.I.1.1 Net RBI credit to the Central Government 2,136 -1,14,636 -72,144 -61,827 61,761 41,260 35,296

(S.I.1.1.1+S.I.1.1.2+S.I.1.1.3+S.I.1.1.4-S.I.1.1.5)

S.I.1.1.1 Loans and Advances to the Central Government — — 965 — — — —

S.I.1.1.2 Investments in Treasury Bills — — — — — — —

S.I.1.1.3 Investments in dated Government Securities 97,172 1,14,593 1,02,521 1,32,329 1,57,389 59,930 84,793

S.I.1.1.3.1 Central Government Securities 96,125 1,13,547 1,01,475 1,31,283 1,56,343 58,883 83,747

S.I.1.1.4 Rupee Coins 12 132 136 105 99 204 150

S.I.1.1.5 Deposits of the Central Government 95,048 2,29,361 1,75,767 1,94,262 95,727 18,874 49,648

S.I.1.2 Net RBI credit to State Governments 287 1,427 356 -34 -181 601 186

S.I.2 RBI’s Claims on Banks 7,635 4,590 2,685 6,116 10,357 — —

S.I.2.1 Loans and Advances to Scheduled Commercial Banks 6,310 4,571 2,671 6,094 10,164 — —

S.I.3 RBI’s Credit to Commercial Sector 1,537 1,788 1,463 1,867 13,820 9,726 10,807

S.I.3.1 Loans and Advances to Primary Dealers 153 405 82 352 750 — —

S.I.3.2 Loans and Advances to NABARD — — — — — — —

S.II Government’s Currency Liabilities to the Public 8,161 9,224 9,624 9,655 10,054 10,504 10,504

S.III Net Foreign Exchange Assets of the RBI 8,66,153 12,36,130 13,20,988 13,50,398 12,80,116 13,32,628 13,13,485

S.III.1 Gold 29,573 40,124 38,064 38,064 48,793 48,041 48,041

S.III.2 Foreign Currency Assets 8,36,597 11,96,023 12,82,942 13,12,352 12,31,340 12,84,605 12,65,462


S.V Other Items (net) 19,740 31,040 -4,984 3,064 27,849 7,664 11,325

Note: 1. Data provisional.


CURRENT

STATISTICS

Money andBanking

(Rs. crore)

Liabilities of Financial Institutions Public Deposits

Month/Year NM3

Postal L1

Term Money CDs Term Total L2

withL3

Deposits Borrowings DepositsNBFCs

1 2 3 4=(2+3) 5 6 7 8=(5+6+7) 9=(4+8) 10 11=(9+10)

2007- 08

April 33,28,404 1,15,589 34,43,993 2,656 31 245 2,932 34,46,925

May 33,43,424 1,16,135 34,59,559 2,656 31 245 2,932 34,62,491

June 33,96,545 1,16,573 35,13,118 2,656 31 245 2,932 35,16,050 24,215 35,40,265

July 34,63,324 1,16,874 35,80,198 2,656 31 245 2,932 35,83,130

August 34,97,908 1,16,886 36,14,794 2,656 31 245 2,932 36,17,726

September 35,97,030 1,16,882 37,13,912 2,656 31 245 2,932 37,16,844 24,663 37,41,507

October 36,22,614 1,16,886 37,39,500 2,656 31 245 2,932 37,42,432

November 36,89,321 1,16,994 38,06,315 2,656 31 245 2,932 38,09,247

December 37,23,960 1,16,901 38,40,861 2,656 31 245 2,932 38,43,793 24,670 38,68,463

January 38,22,313 1,15,871 39,38,184 2,656 31 245 2,932 39,41,116

February 39,11,566 1,14,579 40,26,145 2,656 31 245 2,932 40,29,077

March 40,43,940 1,14,851 41,58,791 2,656 31 245 2,932 41,61,723 24,852 41,86,575

2008 - 09

April 40,60,194 1,14,497 41,74,691 2,656 31 245 2,932 41,77,623

May 41,10,950 1,15,131 42,26,081 2,656 31 245 2,932 42,29,013

June 41,28,575 1,15,471 42,44,046 2,656 31 245 2,932 42,46,978 24,647 42,71,625

July 41,65,104 1,15,714 42,80,818 2,656 31 245 2,932 42,83,750

August 42,47,373 1,15,507 43,62,880 2,656 31 245 2,932 43,65,812

September 43,02,978 1,15,451 44,18,429 2,656 31 245 2,932 44,21,361 24,647 44,46,008

October 43,78,543 1,15,441 44,93,984 2,656 31 245 2,932 44,96,916

November 44,14,019 1,15,157 45,29,176 2,656 31 245 2,932 45,32,108

December 44,63,077 1,14,988 45,78,065 2,656 31 245 2,932 45,80,997 24,647 46,05,644

January 45,86,826 1,13,965 47,00,791 2,656 31 245 2,932 47,03,723

February 46,69,549 1,13,471 47,83,020 2,656 31 245 2,932 47,85,952

March 47,81,333 1,14,076 48,95,409 2,656 31 245 2,932 48,98,341 24,647 49,22,988

2009-10

April 48,82,191 1,13,894 49,96,085 2,656 31 245 2,932 49,99,017

May 49,35,157 1,14,140 50,49,297 2,656 31 245 2,932 50,52,229

June 49,27,474 1,14,429 50,41,903 2,656 31 245 2,932 50,44,835 24,647 50,69,482

July 50,16,577 1,14,309 51,30,886 2,656 31 245 2,932 51,33,818

Aug 50,47,129 1,14,199 51,61,328 2,656 31 245 2,932 51,64,260

September 50,75,859 1,14,199 51,90,058 2,656 31 245 2,932 51,92,990 24,647 52,17,637

CDs: Certificates of Deposits; L1, L

2 and L

3: Liquidity Aggregates; NBFCs: Non-Banking Financial Companies.

Notes: 1. Postal Deposits comprise post office savings bank deposits, post office time deposits, post office recurring deposits, other deposits and postoffice cumulative time deposits.

2. Financial Institutions (FIs), here, comprise IFCI, EXIM Bank, IIBI, SIDBI, NABARD, NHB, TFCI and IDFC. Since October 2004, data on FIs donot include that of IDBI reflecting its conversion into a banking entity.

3. Since July 2001, the term money borrowings of the FIs comprise borrowings from corporates and others.

4. Since August 2002, Term Deposits include CPs and Others.

5. Estimates of public deposits are generated on the basis of returns received from all NBFCs with public deposits of Rs. 20 crore and more ashad been recommended by the Working Group.

6. While L1 and L

2 are compiled on a monthly basis, L

3 is compiled on a quarterly basis.

7. Data are provisional. Wherever data are not available, the estimates for the last available month have been repeated.

No. 11D: Liquidity Aggregates (Outstanding Amounts)


CURRENT

STATISTICS

Money andBanking

(Rs. crore)

Outstandings as on March 31/each Friday/ Currency in Circulation ‘Other’ Deposits Bankers’ Deposits Reserve Money

last reporting Friday of the monthTotal o / w cash

with RBI with RBI (2+4+5)

with banks

1 2 3 4 5 6

2006-2007 5,04,099 21,244 7,496 1,97,295 7,08,890

2007-2008 5,90,801 22,390 9,054 3,28,447 9,28,302

2008-2009 6,91,153 24,790 5,573 2,91,275 9,88,001

September 5, 2008 6,15,548 — 5,014 3,57,921 9,78,483

September 12, 2008 6,17,293 23,712 4,958 3,36,184 9,58,435

September 19, 2008 6,14,954 — 5,552 3,60,766 9,81,272

September 26, 2008 6,13,144 26,998 5,459 3,38,334 9,56,936

May 2009 7,24,621 29,520 4,726 2,28,434 9,57,781

June 2009 7,20,845 30,081 9,616 2,18,611 9,49,072

July 2009 7,03,825 27,503 4,251 2,23,209 9,31,285

August 2009 7,06,562 27,043 5,439 2,24,104 9,36,105

September 4, 2009 7,10,955 — 4,068 2,22,727 9,37,750

September 11, 2009 7,16,404 25,949 14,994 2,40,451 9,71,849

September 18, 2009 7,19,013 — 14,264 2,21,607 9,54,883

September 25, 2009 7,21,820 28,375 4,061 2,39,290 9,65,172

See ‘Notes on Table’.

No. 12: Reserve Money and its Components


CURRENT

STATISTICS

Money andBanking

No. 13: Sources of Reserve Money

(Rs. crore)

Outstanding as on Reserve Bank’s claims on Net Foreign Government’s Net Non- ReserveMarch 31/each Friday/ Exchange Currency Monetary Moneylast reporting Government Commercial National Commercial Assets of Liabilities Liabilities (2+3+4+5Friday of the month (net)(1) & Co-operative Bank for sector(2) RBI (3) to the Public of RBI (3) +6+7–8)

banks Agriculture and Rural

Development

1 2 3 4 5 6 7 8 9

2006-2007 2,423 7,635 — 1,537 8,66,153 8,161 1,77,019 7,08,890

2007-2008 -1,13,209 4,590 — 1,788 12,36,130 9,224 2,10,221 9,28,302

2008-2009 61,580 10,357 — 13,820 12,80,116 10,054 3,87,927 9,88,001

September 5, 2008 -57,376 3,673 — 1,507 12,78,748 9,624 2,57,694 9,78,483

September 12, 2008 -71,788 2,685 — 1,463 13,20,988 9,624 3,04,537 9,58,435

September 19, 2008 -44,244 8,227 — 1,733 13,48,025 9,624 3,42,093 9,81,272

September 26, 2008 -61,862 6,116 — 1,867 13,50,398 9,655 3,49,238 9,56,936

May 2009 57,275 2,360 — 12,995 12,28,046 10,212 3,53,105 9,57,781

June 2009 50,435 1,810 — 12,745 12,63,366 10,308 3,89,591 9,49,072

July 2009 27,846 296 — 11,656 13,02,959 10,417 4,21,889 9,31,285

August 2009 10,151 — — 10,176 13,20,955 10,504 4,15,682 9,36,105

September 4, 2009 4,755 — — 9,266 13,28,485 10,504 4,15,261 9,37,750

September 11, 2009 41,861 — — 9,726 13,32,628 10,504 4,22,871 9,71,849

September 18, 2009 27,357 — — 8,552 13,22,881 10,504 4,14,412 9,54,883

September 25, 2009 35,482 — — 10,807 13,13,485 10,504 4,05,107 9,65,172


Note : 1. Net Foreign Exchange Assets of the RBI includes investments in foreign currency denominated bonds issued by IIFC(UK) since March 20, 2009.


CURRENT

STATISTICS

Money andBanking

No. 14: Daily Call Money Rates

As on Range of Rates Weighted Average Rates

Borrowings Lendings Borrowings Lendings

1 2 3 4 5

September 1, 2009 2.00 — 3.30 2.00 — 3.30 3.24 3.24

September 2, 2009 2.00 — 3.30 2.00 — 3.30 3.23 3.23

September 3, 2009 1.75 — 3.30 1.75 — 3.30 3.22 3.22

September 4, 2009 1.75 — 3.30 1.75 — 3.30 3.24 3.24

September 5, 2009 2.00 — 3.47 2.00 — 3.47 3.33 3.33

September 7, 2009 1.50 — 3.30 1.50 — 3.30 3.23 3.23

September 8, 2009 1.50 — 3.30 1.50 — 3.30 3.22 3.22

September 9, 2009 2.00 — 3.30 2.00 — 3.30 3.21 3.21

September 10, 2009 2.00 — 3.30 2.00 — 3.30 3.23 3.23

September 11, 2009 1.75 — 3.30 1.75 — 3.30 3.21 3.21

September 12, 2009 1.75 — 3.35 1.75 — 3.35 3.26 3.26

September 14, 2009 1.75 — 3.30 1.75 — 3.30 3.25 3.25

September 15, 2009 1.75 — 3.30 1.75 — 3.30 3.24 3.24

September 16, 2009 2.25 — 3.35 2.25 — 3.35 3.27 3.27

September 17, 2009 2.00 — 3.30 2.00 — 3.30 3.26 3.26

September 18, 2009 2.00 — 4.00 2.00 — 4.00 3.27 3.27

September 19, 2009 2.00 — 4.25 2.00 — 4.25 3.71 3.71

September 21, 2009 2.00 — 4.25 2.00 — 4.25 3.71 3.71

September 22, 2009 1.50 — 3.30 1.50 — 3.30 3.25 3.25

September 23, 2009 1.70 — 3.50 1.70 — 3.50 3.26 3.26

September 24, 2009 1.75 — 3.35 1.75 — 3.35 3.24 3.24

September 25, 2009 1.75 — 3.35 1.75 — 3.35 3.23 3.23

September 26, 2009 2.15 — 3.50 2.15 — 3.50 3.35 3.35

September 28, 2009 2.15 — 3.50 2.15 — 3.50 3.35 3.35

September 29, 2009 2.15 — 4.30 2.15 — 4.30 3.38 3.38

October 1, 2009 2.15 — 3.30 2.15 — 3.30 3.24 3.24

October 2, 2009 2.15 — 3.30 2.15 — 3.30 3.24 3.24

October 3, 2009 1.50 — 3.30 1.50 — 3.30 1.96 1.96

October 5, 2009 2.00 — 3.30 2.00 — 3.30 3.13 3.13

October 6, 2009 1.85 — 3.50 1.85 — 3.50 3.21 3.21

October 7, 2009 2.15 — 3.50 2.15 — 3.50 3.23 3.23

October 8, 2009 2.00 — 3.35 2.00 — 3.35 3.24 3.24

October 9, 2009 2.00 — 3.30 2.00 — 3.30 3.14 3.14

October 10, 2009 2.10 — 4.40 2.10 — 4.40 3.89 3.89

October 12, 2009 2.15 — 3.35 2.15 — 3.35 3.28 3.28

October 13, 2009 2.15 — 3.35 2.15 — 3.35 3.28 3.28

October 14, 2009 2.00 — 3.35 2.00 — 3.35 3.27 3.27

October 15, 2009 2.00 — 3.30 2.00 — 3.30 3.27 3.27


CURRENT

STATISTICS

Money andBanking

No. 15: Average Daily Turnover in Call Money Market

(Rs. crore)

Fortnight ended

Banks Primary Dealers Total

Borrowings Lendings Borrowings Lendings

1 2 3 4 5 6

August 1, 2008 11,185 11,475 347 57 23,063

August 15. 2008 12,401 12,661 313 53 25,428

August 29. 2008 11,321 11,692 411 41 23,466

September 12, 2008 11,812 12,389 587 9 24,797

September 26, 2008 10,756 11,205 472 22 22,455

October 10, 2008 12,426 12,909 510 28 25,873

October 24, 2008 12,500 13,288 1,022 234 27,044

November 7, 2008 12,473 13,338 914 48 26,773

November 21, 2008 9,655 10,713 1,069 11 21,449

December 5, 2008 10,090 11,106 1,040 24 22,260

December 19, 2008 11,001 12,170 1,175 6 24,353

January 2, 2009 7,749 8,747 1,005 8 17,508

January 16, 2009 8,907 10,280 1,376 4 20,567

January 30, 2009 7,129 8,802 1,682 9 17,622

February 13, 2009 8,838 10,548 1,711 2 21,099

February 27, 2009 9,637 11,534 1,906 9 23,087

March 13, 2009 10,473 12,600 2,127 — 25,199

March 27, 2009 10,610 12,154 1,551 6 24,320

April 10, 2009 7,658 9,807 2,148 — 19,613

April 24, 2009 8,647 10,227 1,595 15 20,484

May 8, 2009 10,052 11,550 1,513 14 23,129

May 22, 2009 8,874 10,120 1,264 18 20,275

June 5, 2009 8,050 8,867 824 7 17,748

June 19, 2009 7,974 9,096 1,122 — 18,192

July 3, 2009 6,576 7,487 913 2 14,978

July 17, 2009 4,854 5,966 1,112 — 11,932

July 31, 2009 7,078 8,175 1,096 — 16,349

August 14, 2009 4,636 5,413 781 4 10,835

August 28, 2009 8,669 9,997 1,334 6 20,005

September 11, 2009 6,860 7,855 1,028 32 15,774

September 25, 2009 8,051 8,816 766 1 17,634

October 9, 2009 5,198 6,034 835 — 12,067

Notes : 1. Data are provisional.

2. Since August 6, 2005 eligible participants are Banks and Primary Dealers.

Average Daily Call Money Turnover


CURRENT

STATISTICS

Money andBanking

No. 16: Issue of Certificates of Deposit by Scheduled Commercial Banks

@ : Effective discount rate range per annum.

2007-08

April 13 93,808 9.50–11.50

27 95,980 9.40–11.50

May 11 97,292 10.05–11.50

25 99,715 7.00–10.82

June 8 99,287 6.13–10.95

22 98,337 7.00–10.20

July 6 1,02,992 6.25–9.69

20 1,05,317 5.50–10.82

August 3 1,03,750 6.05–10.75

17 1,06,350 6.87–8.91

31 1,09,224 6.87–10.75

September 14 1,13,892 6.87–10.00

28 1,18,481 6.87–10.00

October 12 1,22,142 6.87–10.00

26 1,24,232 6.85–10.00

November 9 1,25,653 6.87–9.00

23 1,27,143 6.87–9.03

December 7 1,25,327 8.05–9.25

21 1,23,466 8.05–10.00

January 4 1,27,154 6.87–9.82

18 1,29,123 7.90–9.21

February 1 1,32,395 7.90–9.85

14 1,35,097 6.83–9.75

29 1,39,160 9.22–10.27

March 14 1,43,714 7.00–10.48

28 1,47,792 9.00–10.75


Fortnight ended Total Range ofAmount Discount Rate

Outstanding (per cent) @

1 2 3



1 2 3



1 2 3

2008-09

April 11 1,49,986 8.00–9.72

25 1,50,865 7.70–9.96

May 9 1,53,410 7.75–10.20

23 1,56,780 8.00–10.20

June 6 1,59,696 8.60–10.20

20 1,63,143 8.62–9.79

July 4 1,64,557 8.30–10.60

18 1,64,892 8.92–10.95

August 1 1,63,546 8.92–11.05

15 1,66,996 8.92–11.11

29 1,71,966 10.00–11.57

September 12 1,78,280 8.92–12.00

26 1,75,522 8.92–12.35

October 10 1,74,975 8.92-21.00

24 1,58,562 8.80-12.90

November 7 1,54,172 8.92-11.50

21 1,51,493 8.80-11.75

December 5 1,50,779 8.50-11.00

19 1,51,214 7.00-11.50

January 2 1,52,901 7.00-11.50

16 1,62,883 6.10-11.50

30 1,64,979 5.25-11.50

February 13 1,74,088 5.40-11.50

27 1,75,057 5.40-11.50

March 13 1,67,320 5.45-11.50

27 1,92,867 6.00-11.50

2009-10

April 10 1,98,497 5.90-11.50

24 2,10,954 3.90-11.50

May 8 2,11,370 3.75-6.20

22 2,18,437 3.65-7.60

June 5 2,18,079 3.90-6.60

19 2,21,491 3.60-8.00

July 3 2,28,638 3.34-8.25

17 2,35,715 3.34-8.00

31 2,40,395 3.55-8.00

August 14 2,30,198 3.75-8.00

28 2,32,522 3.60-8.00


CURRENT

STATISTICS

Money andBanking

No. 17: Issue of Commercial Paper* By Companies

* : Issued at face value by companies.

@ : Typical effective discount rate range per annum on issues during the fortnight.

2007-08

April 15 19,012.70 10.00–14.00

30 18,759.00 9.65–11.75

May 15 19,288.00 9.25–11.45

31 22,024.00 8.71–12.00

June 15 25,499.75 7.00–10.80

30 26,256.25 7.35–12.00

July 15 28,129.25 4.00–11.50

31 30,631.25 7.05–11.50

August 15 31,784.25 7.59–13.50

31 31,527.00 8.30–10.25

September 15 33,227.00 6.35–10.90

30 33,614.05 7.70–12.00

October 15 38,494.55 7.00–13.00

31 42,182.55 6.70–12.00

November 15 41,677.55 7,50–12,00

30 41,307.55 8.05–11.50

December 15 40,913.55 8.22–11.50

31 40,231.17 8.40–11.70

January 15 42,391.55 7.35–12.50

31 50,063.05 7.55–16.00

February 15 43,920.58 6.95–11.00

29 40,642.05 7.40–11.00

March 15 37,282.76 9.50–11.00

31 32,591.55 9.50–14.25


Fortnight ended Total Rate ofAmount Interest


1 2 3



1 2 3



1 2 3

2008-09

April 15 35,793.55 7.74–10.25

30 37,583.55 7.35–10.10

May 15 41,005.55 7.15–10.75

31 42,031.55 7.70–10.50

June 15 45,982.80 8.25–11.60

30 46,847.30 9.00–12.25

July 15 48,342.30 9.50–12.25

31 51,569.30 9.60–12.00

August 15 52,830.55 9.54–12.50

31 55,035.55 10.20–14.75

September 15 54,181.95 10.25–14.25

30 52,037.60 11.40–13.95

October 15 49,359.00 11.90–17.75

31 48,442.00 11.55–16.90

November 15 45,382.10 11.50–15.50

30 44,487.10 9.00–15.50

December 15 40,166.00 10.40-16.00

31 38,055.00 8.96-14.00

January 15 48,802.60 7.75-14.00

31 51,668.00 6.75-13.00

February 15 53,614.60 5.25-12.50

28 52,559.60 5.80-11.75

March 15 49,952.75 7.50-12.50

31 44,171.25 6.40-12.50

2009-10

April 15 46,550.90 6.00–12.50

30 52,880.90 3.30–10.25

May 15 57,844.90 2.83-9.90

31 60,739.90 3.32-9.00

June 15 67,238.75 3.50-9.15

30 68,720.55 3.20-12.00

July 15 77,559.58 3.04-8.85

31 79,582.05 3.25-8.90

August 15 77,352.05 3.43-9.20

31 83,025.90 3.05-9.35

September 15 88,161.00 3.20-9.05


CURRENT

STATISTICS

Government

Accounts

Government Accounts

No. 18: Union Government Accounts at a Glance


Item Financial Year April-September- 2009

2009-10 2008-09 2009-10 Percentage to Budget Estimates

(Budget Estimates) (Actuals) (Actuals)

1 2 3 4 5 6

1. Revenue Receipts 6,14,497 2,44,898 2,44,471 40.6 39.8

2. Tax Revenue (Net) 4,74,218 2,02,247 1,85,669 39.9 39.2

3. Non-Tax Revenue 1,40,279 42,651 58,802 44.5 41.9

4. Capital Receipts 4,06,341 1,04,183 2,04,377 70.4 50.3

5. Recovery of Loans 4,225 1,486 2,302 33.0 54.5

6. Other Receipts 1,120 43 4,300 0.4 383.9

7. Borrowings and Other Liabilities 4,00,996 1,02,654 1,97,775 77.0 49.3

8. Total Receipts (1+4) 10,20,838 3,49,081 4,48,848 46.5 44.0

9. Non-Plan Expenditure 6,95,689 2,40,629 3,22,070 47.4 46.3

10. On Revenue Account 6,18,834 2,29,484 3,01,291 51.2 48.7of which :

( i ) Interest Payments 2,25,511 86,061 86,669 45.1 38.4

11. On Capital Account 76,855 11,145 20,779 18.8 27.0

12. Plan Expenditure 3,25,149 1,08,452 1,26,778 44.6 39.0

13. On Revenue Account 2,78,398 93,727 1,08,163 44.7 38.9

14. On Capital Account 46,751 14,725 18,615 43.8 39.8

15. Total Expenditure (9+12) 10,20,838 3,49,081 4,48,848 46.5 44.0

16. Revenue Expenditure (10+13) 8,97,232 3,23,211 4,09,454 49.1 45.6

17. Capital Expenditure (11+14) 1,23,606 25,870 39,394 27.9 31.9

18. Revenue Deficit (16-1) 2,82,735 78,313 1,64,983 141.9 58.4

19. Fiscal Deficit {15-(1+5+6)} 4,00,996 1,02,654 1,97,775 77.0 49.3

20. Gross Primary Deficit [19-10(i)] 1,75,485 16,593 1,11,106 -28.8 63.3

Notes : 1. Financial year runs from “April to March”.

2. Actuals are unaudited figures.

Source : Controller General of Accounts, Ministry of Finance, Government of India.

2008-09 2009-10


CURRENT

STATISTICS

Government

Securities

Market


No. 19: Government of India : 91 Day Treasury Bills(Outstanding at Face Value)

(Rs. crore)

March 31/ Last Reserve Bank of India Banks State Governments Others Foreign Central Banks

Friday/ Friday Tap*Auction Tap* Auction Tap* Auction Tap* Auction Tap* Auction

Re-discounted Ad hocs

1 2 3 4 5 6 7 8 9 10 11 12

Mar. 31, 2000 — — 288 — 557 — — — 455 — 220

Mar. 31, 2001 — — 67 — 868 — — — 153 — 630

Mar. 31 2002 — — 154 — 2,292 — 450 — 360 — 1,301

Mar. 31, 2003 — — — — 6,427 — 800 — 780 — 700

Mar. 31, 2004 — — — — 3,948 — 600 — 1,452 — 39

Mar. 31, 2005 — — — — 21,176 — 1,755 — 4,829 — 32

Mar. 31, 2006 — — — — 5,943 — 9,762 — 576 — 37

Mar. 31, 2007 — — — — 12,684 — 24,250 — 6,743 — 5

Mar. 31, 2008 — — — — 6,057 — 23,825 — 10,075 — —

Mar. 31, 2009 — — — — 49,914 — 544 — 25,092 — —

Jan. 2008 — — — — 11,143 — 23,278 — 6,946 — 20

Feb. 2008 — — — — 8,503 — 26,135 — 8,629 — —

Mar. 2008 — — — — 6,057 — 23,825 — 10,075 — —

Apr. 2008 — — — — 7,596 — 23,547 — 10,946 — —

May 2008 — — — — 10,949 — 24,951 — 16,051 — —

Jun. 2008 — — — — 15,065 — 26,704 — 18,435 — —

Jul. 2008 — — — — 12,320 — 27,131 — 16,181 — —

Aug. 2008 — — — — 12,874 — 28,939 — 16,626 — —

Sep. 2008 — — — — 18,140 — 23,706 — 18,110 — —

Oct. 2008 — — — — 28,100 — 20,456 — 18,650 — —

Nov. 2008 — — — — 33,507 — 16,029 — 22,243 — —

Dec. 2008 — — — — 36,193 — 15,846 — 17,807 — —

Jan. 2009 — — — — 40,741 — 10,446 — 25,261 — —

Feb. 2009 — — — — 43,910 — 7,020 — 25,094 — —

Mar. 2009 — — — — 49,914 — 544 — 25,092 — —

Apr. 2009 — — — — 44,190 — 5,544 — 30,814 — —

May 2009 — — — — 39,653 — 5,000 — 35,347 — —

Jun. 2009 — — — — 38,979 — 5,000 — 36,021 — —

Jul. 2009 — — — — 25,841 — — — 50,309 — 350

Aug. 2009 — — — — 26,840 — — — 49,185 — 475

Week Ended

Sep. 4, 2009 — — — — 27,468 — — — 48,557 — 475

Sep. 11, 2009 — — — — 28,765 — — — 47,260 — 475

Sep. 18, 2009 — — — — 32,760 — — — 43,265 — 475

Sep. 25, 2009 — — — — 37,133 — — — 38,892 — 475

* : The rate of discount is 4.60 per cent —per annum.


CURRENT

STATISTICS

Government

Securities

Market

1 2 3 4 5 6 7 8 9 10 11 12 13 14

2008-09

Oct. 1 Oct. 3 5,000 109 7,752.00 500.00 10 500.00 500.00 — 1,000.00 97.84 8.8550 59,705.71

Oct. 8 Oct. 10 5,000 147 9,520.27 500.00 94 5,000.00 500.00 — 5,500.00 97.93 8.4782 60,605.71

Oct. 15 Oct. 17 5,000 138 9,103.80 2,000.00 91 5,000.00 2,000.00 — 7,000.00 97.88 8.6875 62,355.71

Oct. 22 Oct. 24 5,000 169 13,426.53 1,000.00 29 5,000.00 1,000.00 — 6,000.00 98.24 7.1858 64,605.71

Oct. 29 Oct. 31 5,000 158 8,835.26 1,400.00 106 5,000.00 1,400.00 — 6,400.00 98.18 7.4353 67,205.71

Nov. 5 Nov. 7 5,000 123 12,732.65 141.19 62 5,000.00 141.19 — 5,141.19 98.19 7.3937 66,708.80

Nov. 12 Nov. 14 5,000 133 8,873.07 753.00 89 5,000.00 753.00 — 5,753.00 98.20 7.3521 67,311.80

Nov. 19 Nov. 21 5,000 136 14,842.52 1,762.00 85 5,000.00 1,762.00 — 6,762.00 98.21 7.3105 69,073.80

Nov. 26 Nov. 28 5,000 157 11,617.88 1,313.79 70 5,000.00 1,313.79 — 6,313.79 98.25 7.1443 71,779.50

Dec. 3 Dec. 5 3,000 179 15,189.80 150.00 20 3,000.00 150.00 — 3,150.00 98.38 6.6048 68,929.50

Dec. 10 Dec. 12 5,000 183 15,176.55 5,275.00 114 5,000.00 5,275.00 — 10,275.00 98.61 5.6539 69,368.50

Dec. 17 Dec. 19 5,000 164 13,297.72 932.37 47 5,000.00 932.37 — 5,932.37 98.66 5.4477 69,727.39

Dec. 24 Dec. 26 500 72 5,340.91 119.00 8 500.00 119.00 — 619.00 98.76 5.0361 69,846.35

Dec. 31 Jan. 2 500 85 6,796.87 — 8 500.00 — — 500.00 98.84 4.7074 69,346.35

Jan. 7 Jan. 9 8,000 194 23,148.72 — 21 8,000.00 — — 8,000.00 98.84 4.7074 71,846.35

Jan. 14 Jan. 16 8,000 156 18,212.00 1.00 73 8,000.00 1.00 — 8,001.00 98.87 4.5842 72,847.35

Jan. 21 Jan. 23 8,000 143 18,886.80 0.30 66 8,000.00 0.30 — 8,000.30 98.85 4.6663 74,847.65

Jan. 28 Jan. 30 8,000 153 13,498.65 0.50 107 8,000.00 0.50 — 8,000.50 98.82 4.7895 76,448.15

Feb. 4 Feb. 6 8,000 157 16,458.20 543.72 81 8,000.00 543.72 — 8,543.72 98.81 4.8306 79,850.68

Feb. 11 Feb. 13 5,000 134 16,067.99 0.50 72 5,000.00 0.50 — 5,000.50 98.82 4.7895 79,098.18

Feb. 18 Feb. 21 5,000 131 15,552.04 2.30 37 5,000.00 2.30 — 5,002.30 98.83 4.7484 77,338.48

Feb. 25 Feb. 27 5,000 107 14,373.88 0.23 46 5,000.00 0.23 — 5,000.23 98.83 4.7484 76,024.92

Mar. 4 Mar 6 4,500 111 16,008.35 0.30 41 4,500.00 0.30 — 4,500.30 98.85 4.6663 77,375.22

Mar. 12 Mar. 13 5,000 99 8,467.05 — 66 5,000.00 — — 5,000.00 98.87 4.5842 72,100.22

Mar. 18 Mar. 20 5,000 136 12,741.75 — 58 5,000.00 — — 5,000.00 98.80 4.8716 71,167.85

Mar 25 Mar 26 5,000 123 13,051.57 0.15 50 5,000.00 0.15 — 5,000.15 98.78 4.9538 75,549.00

No. 21: Auctions of 91 Day Government of India Treasury Bills

Number NumberCom-

petitiveNon-Com-

petitive

Com-petitive

Non-Com-

petitive


Date ofAuction

Date of

Issue

Notified

Amount

Bids Received

Total Face Value

Bids Accepted

Total Face Value

Devolve-

ment on

PDs/

SDs*

Total

Issue

(8+9+10)

Cut-off

Price

Implicit

Yield at

Cut-offPrice

(per cent)

Amount

Out-

standing

as on theDate of

Issue (FaceValue)


CURRENT

STATISTICS

Government

Securities

Market

No. 21: Auctions of 91 Day Government of India Treasury Bills (Concld.)

1 2 3 4 5 6 7 8 9 10 11 12 13 14

2009-10

Apr. 2 Apr. 6 500 51 1,974.00 5000.00 17 500.00 5000.00 — 5,500.00 98.89 4.5022 80,549.00

Apr. 8 Apr. 9 8,000 183 25,567.22 — 60 8,000.00 — — 8,000.00 98.99 4.0924 80,549.00

Apr. 15 Apr. 17 8,000 135 22,989.28 — 53 8,000.00 — — 8,000.00 99.06 3.8061 80,548.00

Apr. 22 Apr. 24 8,000 137 26,201.45 — 72 8,000.00 — — 8,000.00 99.17 3.3570 80,547.70

Apr. 28 Apr. 29 8,000 99 22,553.60 — 48 8,000.00 — — 8,000.00 99.18 3.3162 80,547.20

May 6 May 8 8,000 124 30,163.75 — 49 8,000.00 — — 8,000.00 99.22 3.1532 80,003.48

May 13 May 15 5,000 85 17,295.42 — 58 5,000.00 — — 5,000.00 99.19 3.2754 80,002.98

May 20 May 22 5,000 72 14,652.35 — 35 5,000.00 — — 5,000.00 99.19 3.2754 80,000.68

May 27 May 29 5,000 71 12,755.00 — 41 5,000.00 — — 5,000.00 99.18 3.3162 80,000.45

Jun. 3 Jun. 5 4,500 74 12,343.10 — 39 4,500.00 — — 4,500.00 99.17 3.3570 80,000.15

Jun. 10 Jun. 12 5,000 77 15,594.06 — 22 5,000.00 — — 5,000.00 99.17 3.3570 80,000.15

Jun. 17 Jun. 19 5,000 81 20,012.75 — 42 5,000.00 — — 5,000.00 99.17 3.3570 80,000.15

Jun. 24 Jun. 26 5,000 61 18,082.10 — 19 5,000.00 — — 5,000.00 99.18 3.3162 80,000.00

Jul. 1 Jul. 3 2,000 44 12,557.00 — 1 2,000.00 — — 2,000.00 99.23 3.1124 76,500.00

Jul. 8 Jul. 10 8,000 82 25,695.00 — 37 8,000.00 — — 8,000.00 99.20 3.2347 76,500.00

Jul. 15 Jul. 17 8,000 77 24,462.18 — 61 8,000.00 — — 8,000.00 99.19 3.2754 76,500.00

Jul. 22 Jul. 24 8,000 68 29,287.85 — 41 8,000.00 — — 8,000.00 99.19 3.2754 76,500.00

Jul. 29 Jul. 31 8,000 61 26,942.55 — 19 8,000.00 — — 8,000.00 99.20 3.2347 76,500.00

Aug. 5 Aug. 7 8,000 63 21,896.20 — 29 8,000.00 — — 8,000.00 99.19 3.2754 76,500.00

Aug. 12 Aug. 14 5,000 81 12,680.75 — 55 5,000.00 — — 5,000.00 99.17 3.3570 76,500.00

Aug. 18 Aug. 21 5,000 62 17,015.62 — 29 5,000.00 — — 5,000.00 99.17 3.3570 76,500.00

Aug. 26 Aug. 28 5,000 72 17,504.25 — 55 5,000.00 — — 5,000.00 99.16 3.3978 76,500.00

Sep. 2 Sep. 4 4,500 72 15,258.50 — 33 4,500.00 — — 4,500.00 99.16 3.3978 76,500.00

Sep . 9 Sep. 11 5,000 69 18,112.76 — 18 5,000.00 — — 5,000.00 99.16 3.3978 76,500.00

Sep. 16 Sep. 18 5,000 55 15,635.00 — 22 5,000.00 — — 5,000.00 99.16 3.3978 76,500.00

Sep. 23 Sep. 25 5,000 55 14,990.00 — 22 5,000.00 — — 5,000.00 99.16 3.3978 76,500.00

* : Effective from auction dated May 14,1999, devolvement would be on RBI only.

Note : The presentation of implicit yield at cut-off price has been changed from actual/364-day count convention to actual/365-day count convention from

auction dated October 27, 2004.

Number NumberCom-

petitiveNon-Com-

petitive

Com-petitive

Non-Com-

petitive


Date ofAuction

Date of

Issue

Notified

Amount

Bids Received

Total Face Value

Bids Accepted

Total Face Value

Devolve-

ment on

PDs/

SDs*

Total

Issue

(8+9+10)

Cut-off

Price

Implicit

Yield at

Cut-offPrice

(per cent)

Amount

Out-

standing

as on theDate of

Issue (FaceValue)


CURRENT

STATISTICS

Government

Securities

Market

No. 22: Auctions of 182-day Government of India Treasury Bills

1 2 3 4 5 6 7 8 9 10 11 12 13 14

2008-09

Jun. 25 Jun. 27 500 41 1,393.00 1,000.00 18 500.00 1,000.00 — 1,500.00 95.63 9.1645 19,788.00

Jul. 9 Jul. 11 1,500 84 3,923.46 500.00 44 1,500.00 500.00 — 2,000.00 95.55 9.3401 20,288.00

Jul. 23 Jul. 25 1,500 83 4,232.25 — 23 1,500.00 — — 1,500.00 95.56 9.3181 19,683.00

Aug. 6 Aug. 8 1,500 91 4,666.50 1,000.00 39 1,500.00 1,000.00 — 2,500.00 95.57 9.2962 20,683.00

Aug. 20 Aug. 22 1,500 86 3,915.65 1,000.00 32 1,500.00 1,000.00 — 2,500.00 95.56 9.3181 22,683.00

Sep. 2 Sep. 5 2,500 96 8,519.50 — 17 2,500.00 — — 2,500.00 95.67 9.0768 23,828.00

Sep. 17 Sep. 19 2,000 94 5,328.50 — 31 2,000.00 — — 2,000.00 95.81 8.7705 24,128.00

Oct. 1 Oct. 3 2,000 77 3,252.00 175.00 11 500.00 175.00 — 675.00 95.70 9.0111 24,303.00

Oct. 15 Oct. 17 2,000 128 4,592.47 — 64 2,000.00 — — 2,000.00 95.85 8.6832 24,303.00

Oct. 29 Oct. 31 2,000 146 6,649.00 — 32 2,000.00 — — 2,000.00 96.45 7.3816 24,553.00

Nov. 12 Nov. 14 2,000 102 5,322.25 — 21 2,000.00 — — 2,000.00 96.53 7.2092 24,000.00

Nov. 26 Nov. 28 2,000 94 6,566.00 — 27 2,000.00 — — 2,000.00 96.60 7.0587 24,800.00

Dec. 10 Dec. 12 500 59 1,773.70 — 30 500.00 — — 500.00 97.28 5.6075 23,675.00

Dec. 24 Dec. 26 500 59 2,891.20 — 7 500.00 — — 500.00 97.52 5.1001 22,675.00

Jan. 7 Jan. 9 1,500 90 5,331.00 — 6 1,500.00 — — 1,500.00 97.74 4.6372 22,175.00

Jan. 21 Jan. 23 1,500 74 4,321.00 — 23 1,500.00 — — 1,500.00 97.78 4.5533 22,175.00

Feb. 4 Feb. 6 1,500 51 2,820.00 — 20 1,500.00 — — 1,500.00 97.71 4.7002 21,175.00

Feb. 18 Feb. 21 1,500 63 2,760.00 — 40 1,500.00 — — 1,500.00 97.70 4.7212 20,175.00

Mar. 4 Mar 6 1,500 51 4,925.00 — 16 1,500.00 — — 1,500.00 97.75 4.6162 19,175.00

Mar. 18 Mar 20 3,000 99 6,166.00 — 59 3,000.00 — — 3,000.00 97.52 5.1001 20,175.00

2009-10

Apr. 2 Apr. 6 500 35 1,510.00 375.00 11 500.00 375.00 — 875.00 97.71 4.7002 20,375.00

Apr. 15 Apr. 17 2,000 85 5,149.00 — 50 2,000.00 — — 2,000.00 98.01 4.0720 20,375.00

Apr. 28 Apr. 29 2,000 78 5,530.00 — 37 2,000.00 — — 2,000.00 98.26 3.5514 20,375.00

May 13 May 15 2,000 63 4,955.00 — 19 2,000.00 — — 2,000.00 98.29 3.4891 20,375.00

May 27 May 29 2,000 52 4,045.00 — 23 2,000.00 — — 2,000.00 98.24 3.5929 20,375.00

Jun. 10 Jun. 12 500 35 2,645.00 — 5 500.00 — — 500.00 98.24 3.5929 20,375.00

Jun. 24 Jun. 26 500 36 3,000.00 — 2 500.00 — — 500.00 98.27 3.5306 20,375.00

Jul. 8 Jul. 10 1,500 52 4,717.00 — 5 1,500.00 — — 1,500.00 98.32 3.4268 20,375.00

Jul. 22 Jul. 24, 1,500 47 3,870.00 — 28 1,500.00 — — 1,500.00 98.30 3.4683 20,375.00

Aug. 5 Aug. 7 1,500 45 2,745.00 — 31 1,500.00 — — 1,500.00 98.16 3.7593 20,375.00

Aug. 18, Aug. 21 1,500 67 3,800.00 — 16 1,500.00 — — 1,500.00 98.08 3.9259 20,375.00

Sep. 2 Sep. 4 1,500 62 7,365.00 — 11 1,500.00 — — 1,500.00 98.05 3.9885 20,375.00

Sep. 16 Sep. 18 3,000 77 13,615.00 — 21 3,000.00 — — 3,000.00 98.03 4.0302 20,375.00

Notes : 1. Outstanding amount is net of redemption during the week.

2. The presentation of implicit yield at cut-off price has been changed from actual/364-day count convention to actual/365-day count convention from

auction dated April 6, 2005.

3. The auctions of 182-day Treasury Bills (TBs) which were discontinued effective May 14, 2001 have been reintroduced from April 6, 2005 onwards.


Number NumberCom-

petitiveNon-Com-

petitive

Com-petitive

Non-Com-

petitive

Date ofAuction

Date of

Issue

Notified

Amount

Bids Received

Total Face Value

Bids Accepted

Total Face Value

Devolve-

ment on

PDs

Total

Issue

(8+9+10)

Cut-off

Price

Implicit

Yield at

Cut-offPrice

(per cent)

Amount

Out-

standing

as on theDate of

Issue (FaceValue)


CURRENT

STATISTICS

Government

Securities

Market

1 2 3 4 5 6 7 8 9 10 11 12 13 14

2008-09

Sep. 10 Sep. 12 4,000 194 15,037.00 — 46 4,000 — — 4,000.00 91.88 8.8619 57,416.05

Sep. 24 Sep. 26 1,000 87 3,383.98 — 36 1,000 — — 1,000.00 91.93 8.8025 55,041.05

Oct. 8 Oct. 10 2,000 131 7,344.00 — 38 2,000 — — 2,000.00 92.23 8.4477 54,041.05

Oct. 22 Oct. 24 2,000 153 8,652.50 32.00 14 2,000 32.00 — 2,032.00 93.13 7.3971 53,049.05

Nov. 5 Nov. 7 2,000 85 5,310.00 — 16 2,000 — — 2,000.00 93.15 7.3739 52,049.05

Nov. 19 Nov. 21 2,000 136 8,735.00 — 22 2,000 — — 2,000.00 93.40 7.0858 53,049.05

Dec. 3 Dec. 5 1,000 118 6,471.00 — 4 1,000 — — 1,000.00 94.09 6.2985 52,049.05

Dec. 17 Dec. 19 1,000 83 2,987.00 250.00 33 1,000 250.00 — 1,250.00 94.93 5.3554 52,049.05

Dec. 31 Jan. 2 1,000 74 7,301.00 — 6 1,000 — — 1,000.00 95.45 4.7800 52,049.05

Jan. 14 Jan. 16 1,000 69 4,235.00 — 19 1,000 — — 1,000.00 95.70 4.5056 49,930.30

Jan. 28 Jan. 30 1,000 69 2,850.50 13.50 30 1,000 13.50 — 1,013.50 95.62 4.5932 48,943.80

Feb 11 Feb. 13 3,000 116 9,810.00 — 22 3,000 — — 3,000.00 95.63 4.5822 48,440.10

Feb. 25 Feb. 27 3,000 70 5,915.00 108.50 34 3,000 108.50 — 3,108.50 95.57 4.6481 50,548.60

Mar. 12 Mar. 13 3,000 58 3,985.00 250.00 50 3,000 250.00 — 3,250.00 95.26 4.9895 52,525.95

Mar. 25 Mar. 26 3.000 88 4,645.00 23.85 78 3,000 23.85 — 3,023.85 94.80 5.5003 54,549.80

2009-10

Apr. 8 Apr. 9 1,000 76 5,875.00 — 4 1,000 — — 1,000.00 95.80 4.3962 53,549.80

Apr. 22 Apr. 24 1,000 60 4,266.00 — 7 1,000 — — 1,000.00 96.39 3.7555 52,549.80

May 6 May 8 1,000 58 4,330.00 — 12 1,000 — — 1,000.00 96.63 3.4971 49,399.80

May 20 May 22 1,000 37 1,955.30 — 28 1,000 — — 1,000.00 96.46 3.6800 47,899.80

Jun. 3 Jun. 5 1,000 39 2,160.50 — 27 1,000 — — 1,000.00 96.16 4.0043 46,499.80

Jun. 17 Jun. 19 1,000 59 3,565.00 — 18 1,000 — — 1,000.00 96.17 3.9935 46,499.80

Jul. 1 Jul. 3 1,000 56 3,650.00 — 8 1,000 — — 1,000.00 96.34 3.8095 46,491.05

Jul. 15 Jul. 17 1,000 81 4,965.00 259.42 18 1,000 259.42 — 1,259.42 96.45 3.6908 45,500.47

Jul. 29 Jul. 31 1,000 46 3,070.00 — 24 1,000 — — 1,000.00 96.35 3.7987 44,463.92

Aug. 12 Aug. 14 1,000 74 4,200.00 42.37 34 1,000 42.37 — 1,042.37 96.01 4.1672 43,006.29

Aug. 26 Aug. 28 1,000 51 3,315.00 — 23 1,000 — — 1,000.00 95.85 4.3416 41,979.64

Sep. 9 Sep. 11 4,000 128 12,380.00 — 39 4,000.00 — — 4,000.00 95.61 4.6042 41,979.64

Sep. 23 Sep. 25 1,000 55 5,000.00 33.30 3 1,000.00 33.30 — 1,033.30 95.86 4.3307 42,012.94

* : Effective from auction dated May 19, 1999, devolvement would be on RBI only.

Notes : 1. Outstanding amount is net of redemption during the week.

2. The presentation of implicit yield at cut-off price has been changed from actual/364-day count convention to actual/365-day count convention from

auction dated October 27, 2004.

No. 23: Auctions of 364-day Government of India Treasury Bills

Number NumberCom-

petitiveNon-Com-

petitive

Com-petitive

Non-Com-

petitive


Date ofAuction

Date of

Issue

Notified

Amount

Bids Received

Total Face Value

Bids Accepted

Total Face Value

Devolve-

ment on

PDs/

SDs*

Total

Issue

(8+9+10)

Cut-off

Price

Implicit

Yield at

Cut-offPrice

(per cent)

Amount

Out-

standing

as on theDate of

Issue (FaceValue)


CURRENT

STATISTICS

Government

Securities

Market

@ : Based on SGL outright transactions in government securities in secondary market at Mumbai. It excludes repo transactions.

+ : Turnover upto the last Friday of the month over the last Friday of preceding month.

* : RBI's Sales and Purchases include transactions in other offices and transactions on behalf of the State Governments and others. It excludestransactions relating to the Government of India and the Welfare Commissioner, Bhopal.

(Rs. crore)

Week / Month + Govt. of India State Govt. Treasury Bills RBI*

Dated Securities Securities

91 Day 182 Day 364 Day

1 2 3 4 5 6 7

2006-07

April 1,10,559.28 851.16 2,193.88 2,046.40 16,666.50 922.00May 1,00,542.72 4,781.64 6,217.52 4,076.30 10,766.88 1,453.00June 77,255.06 2,395.66 5,996.84 8,689.56 12,871.16 883.00July 65,538.70 1,376.06 5,206.80 3,761.72 8,127.34 387.88August 1,48,081.02 1,048.40 10,290.66 8,646.20 12,898.72 166.48September 2,84,464.66 1,893.48 8,821.54 6,014.18 17,127.28 279.19October 1,22,101.80 776.32 5,898.98 3,134.06 9,134.16 233.42November 2,57.667.60 1,358.46 4,857.48 8,209.80 13,484.26 151.08December 2,39,765.16 3,072.80 6,087.18 2,928.06 9,965.98 58.44January 1,40,660.36 1,319.26 6,006.94 3,306.44 6,204.12 551.14February 1,13,360.08 1,362.28 4,998.06 2,854.74 4,948.44 72.88March 1,10,983.52 4,861.96 5,968.82 4,739.42 6,464.76 1,405.99

2007-08

April 1,29,393.26 3,090.88 9,866.80 2,869.22 5,782.54 333.23May 1,14,658.96 2,481.32 7,160.10 1,498.68 3,183.70 680.35June 2,20,172.02 2,078.77 29,236.33 7,998.44 10,091.95 266.57July 3,83,106.46 1,906.39 19,820.37 3,291.27 22,143.25 715.20August 2,41,706.99 2,514.20 11,899.43 6,877.99 13,643.66 482.50September 1,74,533.46 1,201.42 5,521.11 8,768.86 10,539.40 428.36October 1,45,814.85 1,714.00 22,191.32 13,299.05 20,733.58 531.41November 1,73,573.07 3,058.32 8,788.56 6,219.26 14,338.14 193.03December 2,12,467.87 2,344.34 5,998.32 2,498.72 13,450.44 5,372.60January 5,54,272.55 4,412.28 5,581.92 6,000.66 21,903.31 5,344.63February 4,34,802.32 4,730.56 2,810.06 4,485.10 11,915.60 2,998.80March 1,72,568.68 1,962.38 2,892.25 2,054.68 8,168.54 3,429.97

2008-09

April 1,63,277.17 2,403.36 8,859.66 2,530.12 8,201.96 1,590.93May 3,18,354.85 11,798.94 11,537.89 2,526.64 4,653.10 350.87June 1,95,337.16 1,445.24 10,065.13 1,546.76 4,919.92 13,982.55July 1,44,355.59 4,278.14 4,681.45 2,666.96 7,285.49 7,236.53August 2,67,462.66 1,453.34 14,490.31 2,031.75 6,843.56 8,110.26September 2,98,155.18 658.34 16,333.94 2,676.00 5,348.22 2,680.46October 2,81,273.77 3,210.06 12,052.81 2,694.73 6,280.86 1,264.93November 3,52,322.10 2,854.11 20,603.48 3,193.06 11,987.06 883.69December 6,07,851.56 8,459.43 28,399.05 2,698.80 8,698.45 9,436.27January 6,95,344.05 5,979.19 28,907.53 3,098.29 12,589.53 5,833.07February 3,31,881.02 3,012.96 39,519.13 5,003.80 8,568.70 6,254.99March 2,73,558.86 24,942.96 29,000.26 4,899.04 9,781.90 54,278.76

2009-2010

April 4,39,334.81 13,969.46 49,924.92 8,997.86 17,185.16 22,578.72May 5,44,075.82 19,920.06 49,034.98 6,473.99 10,832.37 17,388.35June 3,89,434.91 8,234.85 33,481.31 4,614.14 13,476.32 6,859.93July 5,97,737.07 11,736.36 54,879.39 6,226.76 9,033.52 10,426.58August 2,80,993.15 13,700.45 24,210.32 6,638.70 7,161.74 14,030.00

Week Ended

Sep. 4, 2009 86,236.37 439.43 4,592.02 1,363.34 2,182.67 3,574.93Sep. 11, 2009 1,03,495.53 3,752.71 6,128.48 1,963.34 3,335.81 4,497.07Sep. 18, 2009 1,81,780.83 3,676.78 13,683.80 908.00 1,034.20 4,725.00Sep. 25, 2009 1,27,296.18 2,619.93 13,444.74 1,990.00 3,069.16 1,972.46

No. 24: Turnover in Government Securities Market (Face Value) at Mumbai @


CURRENT

STATISTICS

Government

Securities

Market

No. 25: Repo / Reverse Repo Auctions under Liquidity Adjustment Facility


LAF OutstandingDate Amount @

Cut-off Cut-off

Number Amount Number AmountRate (%)

Number Amount Number AmountRate (%)

1 2 3 4 5 6 7 8 9 10 11 12 13 14

Sep. 1, 2009 1 — — — — — 57 1,41,840 57 1,41,840 3.25 –1,41,840 1,41,485

Sep. 2, 2009 1 — — — — — 57 1,42,060 57 1,42,060 3.25 –1,42,060 1,41,705

Sep. 3, 2009 1 — — — — — 60 1,58,290 60 1,58,290 3.25 –1,58,290 1,57,935

Sep. 4, 2009 3 — — — — — 56 1,68,570 56 1,68,570 3.25 –1,68,570 1,68,215

Sep. 7, 2009 1 — — — — — 52 1,47,765 52 1,47,765 3.25 –1,47,765

Sep. 7, 2009 # 15 — — — — — — — — — — — 1,47,410

Sep. 8, 2009 1 — — — — — 55 1,49,240 55 1,49,240 3.25 –1,49,240 1,48,885

Sep. 9, 2009 1 — — — — — 56 1,20,235 56 1,20,235 3.25 –1,20,235 1,19,880

Sep. 10, 2009 1 — — — — — 56 1,31,695 56 1,31,695 3.25 –1,31,695 1,31,340

Sep. 11, 2009 3 — — — — — 46 92,810 46 92,810 3.25 –92,810

Sep. 11, 2009 $ 3 — — — — — 48 45,915 48 45,915 3.25 –45,915 1,38,370

Sep. 14, 2009 1 — — — — — 51 1,22,775 51 1,22,775 3.25 –1,22,775

Sep. 14, 2009 # 15 — — — — — — — — — — — 1,22,420

Sep. 15, 2009 1 — — — — — 48 1,30,575 48 1,30,575 3.25 –1,30,575 1,30,220

Sep. 16, 2009 1 — — — — — 47 1,25,770 47 1,25,770 3.25 –1,25,770 1,25,415

Sep. 17, 2009 1 — — — — — 40 88,535 40 88,535 3.25 –88,535 88,180

Sep. 18, 2009 4 — — — — — 43 1,13,740 43 1,13,740 3.25 –1,13,740 1,13,385

Sep. 22, 2009 1 — — — — — 39 91,755 39 91,755 3.25 –91,755

Sep. 22, 2009 # 14 — — — — — — — — — — — 91,400

Sep. 23, 2009 1 — — — — — 47 1,00,610 47 1,00,610 3.25 –1,00,610 1,00,255

Sep. 24, 2009 1 — — — — — 35 71,520 35 71,520 3.25 –71,520 71,165

Sep. 25, 2009 4 — — — — — 35 61,035 35 61,035 3.25 –61,035

Sep. 25, 2009 $ 4 — — — — — 47 45,320 47 45,320 3.25 –45,320 1,06,115

Sep. 29, 2009 2 1 2,000 1 2,000 4.75 27 60,760 27 60,760 3.25 –58,760

Sep. 29, 2009 # 14 — — — — — — — — — — — 58,520

$ : Second LAF # : Special Fixed Rate Repo under LAF.@ : Net of Repo. ‘—’ No bid was received in the auction.Note: The second LAF is being conducted on Reporting Fridays with effect from May 8, 2009.

Net Injection(+)/

Absorption (–)of liquidity

[ (6) — (11) ]

Bids Received Bids Accepted

REPO (INJECTION) REVERSE REPO (ABSORPTION)

Bids Received Bids Accepted

Repo/Reverse

RepoPeriod

(Day(s))


CURRENT

STATISTICS

Government

Securities

Market

No. 26: Open Market Operations of Reserve Bank of India*

(Rs. crore)

Month End Government of India Dated Securities – Face Value Treasury Bills

Purchase Sale Net Purchases (+) Purchase Sale Net Purchases (+)/ Net Sales (–) / Net Sales (–)

1 2 3 4 5 6 7

2006-07

April 2006 405.00 516.80 –111.80 — — —May 2006 85.00 1,386.74 –1,301.74 — — —June 2006 55.00 809.88 –754.88 — — —July 2006 25.00 374.36 –349.36 — — —August 2006 80.00 127.64 –47.64 — — —September 2006 40.00 237.24 –197.24 — — —October 2006 — 191.10 –191.10 — — —November 2006 10.00 140.20 –130.20 — — —December 2006 15.00 36.41 –21.41 — — —January 2007 — 571.36 –571.36 — — —February 2007 — 118.09 –118.09 — — —

March 2007 5.00 1,335.56 –1,330.56 — — —

Year / Month Government of India Dated Securities – Face Value Treasury bills

Purchase Sale Net Purchase Sale Net

Market State Market Statepurchase

Market State Market Statepurchase

Government Government(+)/net

Government Government(+)/net

and others and otherssale (-)

and others and otherssale (-)

1 2 3 4 5 6 7 8 9 10 11

2007-08April 10.00 — — 332.24 –322.24 — — — — —May — — — 742.80 –742.80 — — — — —June — — — 254.86 –254.86 — — — — —July 25.00 — — 656.74 –631.74 — — — — —August — — — 456.28 –456.28 — — — — —September 15.00 — — 413.35 –398.35 — — — — —October — — — 539.93 –539.93 — — — — —November — — — 184.51 –184.51 — — — — —December 5,485.00 — — 167.44 5,317.56 — — — — —January 2,535.00 — — 2,577.82 –42.82 — — — — —February 2,660.00 — — 290.27 2,369.73 — — — — —March 2,780.00 — — 970.93 1,809.07 — — — — —

2008-09April 745.58 — — 861.19 –115.61 — — — — —May 127.50 — — 216.63 –89.13 — — — — —June 15,238.80 — — 310.18 14,928.62 — — — — —July 5,218.50 — — 701.20 4,517.30 — — — — —August 4,338.00 — — 4,446.59 –108.59 — — — — —September 922.17 — — 930.92 –8.75 — — — — —October 627.75 — — 530.30 97.46 — — — — —November 757.20 — — 127.51 629.69 — — — — —December 11,901.38 — — 295.74 11,605.64 — — — — —January 2,568.00 — — 504.21 2,063.79 — — — — —February 6,027.80 — — 236.59 5,791.22 — — — — —March 56,007.66 — — 770.98 55,236.68 — — — — —

2009-10April 21,130.00 — — 747.03 20,382.97 — — — — —May 15,374.40 — — 207.91 15,166.49 — — — — —June 6,765.60 — — 315.25 6,450.35 — — — — —July 7,724.37 — — 2,479.71 5,244.66 — — — — —August 13,462.09 — — 982.68 12,479.41 — — — — —September 14,111.64 + — — 243.85 13,867.79 — — — — —

* : Excluding transactions of RBI with the Government of India and the Welfare Commissioner, Bhopal.+ : Includes purchase of Oil Marketing Companies Government of India Special Bonds (Oil Bonds) of Rs.NIL (face value) under Special Market

Operations (SMOs).


CURRENT

STATISTICS

Government

Securities

Market

No. 27 A: Secondary Market Outright Transactions in Government Dated Securities (Face Value)


Week ended State Govt.Securities

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-18 2018-19 2019-20 Beyond 2020

1 2 3 4 5 6 7 8 9 10 11 12

I September 4, 2009

a. Amount 1,084.00 1,601.82 1,530.00 679.00 924.00 2,042.01 19,415.35 82.51 6,863.30 8,896.22 219.75

b. YTM *

Min. 3.7229 4.5442 5.8300 6.3000 6.8100 6.9479 7.1301 7.3909 7.1514 7.8320 7.1000

Max. 3.9635 5.7172 6.8800 6.5033 7.1595 7.2619 7.6036 7.5800 7.7354 8.3487 8.2986

II September 11, 2009

a. Amount 685.01 1,708.50 1,080.29 718.07 66.10 1,600.00 19,773.85 55.18 23,038.20 3,022.56 1,876.36

b. YTM *

Min. 3.7412 4.4172 5.8700 6.4000 6.9781 7.0979 7.1113 7.5517 7.2725 7.7665 7.1000

Max. 4.1351 5.7700 6.5195 7.0000 7.1228 7.3202 7.5700 8.0274 7.9840 8.2544 8.2986

III September 18, 2009

a. Amount 1,720.00 2,759.71 2,315.76 4,762.00 730.00 1,663.00 25,690.53 15.70 43,788.30 7,445.43 1,838.39

b. YTM *

Min. 3.7169 4.3070 5.9262 6.5500 6.7434 6.8291 6.9161 7.3964 7.0143 7.6110 7.2548

Max. 3.9157 6.0433 6.9100 6.8474 7.2209 7.3380 8.1974 7.8924 7.8843 8.2789 8.2703

IV September 25, 2009

a. Amount 1,780.00 3,944.50 3,650.30 3,914.20 795.22 322.07 17,790.08 44.60 25,103.66 6,303.46 1,309.97

b. YTM *

Min. 3.7182 4.3450 5.8399 6.4440 6.7848 6.9226 6.9801 7.2375 6.9592 7.5979 7.2344

Max. 3.7396 5.7342 6.0113 6.9462 7.2000 7.2700 7.6210 7.5928 7.5881 8.2500 8.3422

* : Minimum and maximum YTMs (% PA) indicative have been given excluding transactions of non-standard lot size (less than Rs.5 crore).

Government of India Dated Securities — Maturing in the year


CURRENT

STATISTICS

Government

Securities

Market

No. 27 B: Secondary Market Outright Transactions in Treasury Bills

I. September 4, 2009

a. Amount 383.65 2,662.06 424.67 607.64

b. YTM *

Min. 2.8000 2.6493 3.4499 3.8500

Max. 3.3586 3.4000 3.8001 4.2129

II. September 11, 2009

a. Amount 373.00 4,064.15 826.67 450.00

b. YTM *

Min. 2.6999 2.6493 3.5299 3.8500

Max. 3.2497 3.4000 3.7800 4.5932

III. September 18, 2009

a. Amount 216.43 6,960.57 526.00 110.00

b. YTM *

Min. 2.6478 2.6493 3.8199 4.2500

Max. 3.3951 3.4000 4.0302 4.4600

IV. September 25, 2009

a. Amount 2,635.00 4,282.82 1,650.00 684.13

b. YTM *

Min. 3.0000 2.6493 3.6500 3.9000

Max. 3.5009 3.4000 3.9886 4.3025

* : Minimum and maximum YTMs (% PA) indicative have been given excluding transactions of non-standard lot size (less than Rs.5 crore).

(Amount in Rs. crore, YTM in per cent per annum)

Week ended Treasury Bills Residual Maturity in Days

up to 14 days 15 - 91 days 92 - 182 days 183 - 364 days

1 2 3 4 5


CURRENT

STATISTICS

Government

Securities

Market

No. 27 C: Month-end Yield to Maturity of SGL Transactions in Central GovernmentDated Securities for Various Residual Maturities

(Per cent)

Term to 2008 2009

Maturity(in years) Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep.

1 2 3 4 5 6 7 8 9 10 11 12 13

1 7.3525 6.6751 5.0196 4.7313 4.8830 5.1071 4.0065 4.0090 4.4459 4.1763 5.0370 4.8045

2 7.3839 6.8129 5.0690 4.9309 5.0359 5.5078 4.8017 4.9398 5.3876 5.2010 5.9969 6.0172

3 7.4717 6.8821 5.1735 5.4289 5.5459 6.0823 5.4287 5.8083 5.7660 6.2130 6.4633 6.6367

4 7.4991 6.9298 5.2876 5.7794 5.7366 6.4506 5.8113 6.0580 6.1519 6.5599 6.8698 6.8584

5 7.5285 6.9775 5.3499 5.9753 5.8351 6.6508 6.0037 6.3117 6.4988 6.7343 7.1895 7.0280

6 7.5343 7.0371 5.3238 6.0544 6.0582 6.7343 6.2194 6.6305 6.5920 6.8389 7.2960 7.1484

7 7.5962 7.2363 5.4210 6.3367 6.5500 6.9420 6.5487 6.8951 6.9382 6.9924 7.3850 7.1568

8 7.6254 7.3178 5.5435 6.3718 6.6358 7.1882 6.5640 6.9630 6.9917 7.0673 7.4468 7.1533

9 7.5558 7.2131 5.3842 6.2495 6.4542 7.1149 6.3958 6.8291 6.9899 7.0873 7.4272 7.1497

10 7.4808 7.1197 5.3028 6.0041 6.5711 7.0414 6.2923 6.7528 6.9536 6.9926 7.4969 7.3377

11 7.5441 7.1987 5.3868 6.2591 6.7800 7.2481 6.5485 6.9918 7.0107 7.2360 7.8458 7.6011

12 7.6074 7.2777 5.4708 6.5171 6.9889 7.4548 6.8046 7.3127 7.2511 7.3409 7.9966 7.6414

13 7.7548 7.5245 5.7983 6.7750 7.1978 7.6518 7.0182 7.4377 7.4029 7.4557 8.0248 7.6817

14 7.8462 7.6298 6.0418 6.7933 7.2728 7.6873 7.0669 7.4915 7.4148 7.4416 8.0530 7.7219

15 7.8706 7.6530 6.1420 6.8161 7.3114 7.7006 7.1156 7.5453 7.4206 7.4426 8.0812 7.7889

16 7.8950 7.6761 6.2423 6.8631 7.3500 7.7138 7.1644 7.5991 7.5399 7.5687 8.1095 7.9280

17 7.9194 7.6993 6.3426 6.9102 7.3886 7.7270 7.2131 7.6529 7.7222 7.6947 8.1377 8.0672

18 7.9438 7.7225 6.4428 6.9572 7.4272 7.7403 7.2548 7.6946 7.7408 7.7681 8.1561 8.1285

19 7.9571 7.7214 6.4318 7.0042 7.4658 7.7535 7.2692 7.7067 7.7595 7.7800 8.1664 8.1425

20 7.9659 7.7136 6.4053 7.0512 7.5044 7.7667 7.2836 7.7188 7.7781 7.7919 8.1766 8.1565

21 7.9747 7.7059 6.3788 7.0982 7.5430 7.7800 7.2980 7.7309 7.7967 7.8038 8.1869 8.1705

22 7.9834 7.6982 6.3522 7.1453 7.5815 7.7932 7.3125 7.7430 7.8154 7.8158 8.1971 8.1845

23 7.9922 7.6904 6.3257 7.1923 7.6201 7.8065 7.3231 7.7551 7.8340 7.8277 8.1854 8.1985

24 8.0002 7.6896 6.3287 7.2270 7.6459 7.8008 7.3016 7.7672 7.8526 7.8396 8.1553 —

25 8.0048 7.7097 6.3887 7.2448 7.6588 7.7822 7.2713 7.7793 7.8713 7.8515 8.1252 —

26 8.0094 7.7296 6.4570 7.2546 7.6651 7.7780 7.2603 7.7914 7.8899 7.8587 — —

27 8.0139 7.7624 6.4797 7.2554 7.6661 7.7840 7.2569 7.8035 7.9085 7.8658 — —

28 8.0185 7.8415 6.3722 7.2208 7.6444 7.7915 7.2534 — — — — —

29 — — — 7.1673 7.6140 7.7990 7.2500 — — — — —

30 — — — 7.1138 7.5836 7.8065 7.2465 — — — — —


CURRENT

STATISTICS

Government

Securities

Market

No. 27 D: Secondary Market Repo Transactions# (Other than with RBI)


Week ended Govt. Of India State Govt. 91 Day 182 Day 364 Day

Dated Securities Securities Treasury Bills Treasury Bills Treasury Bills

1 2 3 4 5 6

I. September 4, 2009

Amount 1,48,196 658 3,472 51 5,650

Repo Rate Min 0.10 2.00 2.10 2.50 2.00

Repo Rate Max 5.00 2.80 3.10 2.50 3.05

Repo Period Min 1 1 1 3 1

Repo Period Max 6 3 3 3 3

II. September 11, 2009

Amount 1,74,143 912 3,751 597 8,781

Repo Rate Min 0.50 1.20 1.05 2.25 1.35

Repo Rate Max 5.00 3.00 3.05 2.90 3.00



III. September 18, 2009

Amount 1,64,295 626 2,605 126 8,651

Repo Rate Min 1.00 2.40 2.00 2.65 2.65

Repo Rate Max 5.00 3.00 3.20 2.75 3.00



IV. September 25, 2009

Amount 1,26,612 426 1,304 401 11,558

Repo Rate Min 1.00 2.40 2.95 2.90 2.95

Repo Rate Max 3.50 3.20 3.50 2.95 3.50



# Represent the First Leg of Transactions.

Note : Repo rate in per cent per annum and repo period in days.


CURRENT

STATISTICS

Government

Securities

Market

No. 28: Redemption Yield on Government of India Securities Based on SGL Transactions*

(Per cent per annum)

Sr. Nomenclature 2006-07 2007-08 2008-09 2008 2009

No. of the loanAug. Sep. June July Aug. Sep.

1 2 3 4 5 6 7 8 9 10 11

Terminable under 5 years

1 5.48% 2009 6.88 7.63 7.28 9.17 8.71 5.23 .. .. ..

2 6.65% 2009 7.51 7.66 6.62 9.30 8.89 .. .. .. ..

3 6.99% 2009 .. .. .. .. .. .. .. .. ..

4 7.00% 2009 7.50 8.09 7.75 11.10 8.82 .. .. .. ..

5 11.50% 2009 7.52 7.95 7.31 .. 9.98 .. .. .. ..

6 11.99% 2009 7.25 7.65 7.40 9.14 8.68 .. .. .. ..

7 5.87% 2010 .. 7.63 7.48 9.18 8.69 3.96 3.70 3.84 3.88

8 6.00% 2010 .. .. .. .. .. .. .. .. ..

9 6.20% 2010 .. .. .. .. .. .. .. .. ..

10 7.50% 2010 7.77 7.35 7.61 9.62 8.85 7.15 4.45 4.51 4.54

11 7.55% 2010 7.42 7.69 6.57 8.12 8.41 4.10 3.97 4.59 4.48

12 8.75% 2010 7.98 .. 7.52 9.26 8.62 .. .. .. ..

13 11.30% 2010 7.39 7.70 7.64 9.11 8.90 4.19 4.04 4.54 4.63

14 11.50% 2010 7.43 7.70 6.39 7.97 .. 4.19 4.02 .. 4.54

15 12.25% 2010 7.45 7.55 6.90 9.24 8.91 4.22 4.09 4.66 4.69

16 12.29% 2010 7.50 7.78 7.66 9.61 8.84 4.11 3.78 4.17 3.93

17 5.03% 2011 .. .. .. .. .. .. .. .. ..

18 6.57% 2011 .. 7.37 7.24 9.19 8.44 5.18 4.84 5.52 5.72

19 8.00% 2011 7.86 7.93 7.11 9.58 .. .. .. 5.88 ..

20 9.39% 2011 7.52 7.78 7.09 8.07 8.64 5.28 5.03 5.58 5.98

21 10.95% 2011 7.33 7.94 6.86 .. 8.62 .. 4.96 5.58 5.94

22 11.50% 2011 7.43 7.82 6.37 9.23 8.75 8.28 5.12 5.40 5.57

23 12.00% 2011 7.97 7.95 6.92 .. .. 5.43 5.23 .. 6.11

24 12.32% 2011 7.59 7.85 7.09 9.32 .. 5.18 4.93 5.30 ..

25 6.72% 2012 6.93 7.87 7.75 .. .. .. .. .. ..

26 6.85% 2012 7.58 7.80 6.32 .. .. 6.36 5.64 6.23 6.58

27 7.40% 2012 7.55 7.83 7.26 8.33 8.96 5.82 5.69 6.02 6.57

28 9.40% 2012 7.60 7.87 7.10 .. .. 6.80 .. 6.42 6.70

29 10.25% 2012 7.88 8.08 8.36 .. 8.69 5.90 .. .. ..

30 11.03% 2012 7.81 8.10 6.63 7.16 .. 6.71 .. .. 6.71

31 7.27% 2013 7.58 7.66 7.21 9.17 8.53 6.39 6.30 6.82 6.90

32 9.00% 2013 7.86 8.25 7.61 9.18 8.65 .. .. .. ..

33 9.81% 2013 7.85 8.11 6.92 .. .. .. .. .. 7.10

34 12.40% 2013 7.93 7.99 7.90 9.14 8.66 6.53 6.37 6.85 7.12

Between 5 to 10 years

35 6.07% 2014 .. .. 6.52 6.65 .. 6.59 6.47 6.90 7.10

36 6.72% 2014 8.05 7.89 6.63 .. .. 6.71 .. .. 7.16

37 7.37% 2014 7.74 7.86 7.39 9.18 8.55 6.52 6.65 6.93 ..

38 7.56% 2014 .. .. 6.29 .. .. 6.60 6.71 6.99 7.09

39 10.00% 2014 7.71 8.09 7.96 9.82 .. 7.35 .. .. ..

40 10.50% 2014 7.83 7.85 7.86 9.15 8.20 6.77 .. .. 7.10

41 11.83% 2014 7.84 7.94 7.85 9.22 8.45 .. .. 7.07 7.25

42 6.49% 2015 .. .. 6.68 7.07 .. 6.61 6.60 6.96 7.19

43 7.38% 2015 7.70 7.95 7.66 9.00 8.38 6.79 6.94 7.02 7.28

44 9.85% 2015 7.76 8.01 7.69 .. 9.00 .. .. .. 7.23

45 10.47% 2015 7.59 8.06 7.49 9.28 8.76 .. .. 6.74 ..

46 10.79% 2015 7.65 8.02 8.37 9.39 8.51 .. .. .. ..

47 11.43% 2015 7.92 8.06 6.96 .. .. 7.35 .. 7.02 ..

48 11.50% 2015 7.91 8.12 7.46 9.31 8.84 6.78 6.55 .. ..

49 5.59% 2016 7.66 8.18 7.13 9.40 .. .. .. 7.27 7.40

50 7.02% 2016 .. .. .. .. .. .. .. 7.16 7.24


CURRENT

STATISTICS

Government

Securities

Market

No. 28: Redemption Yield on Government of India Securities Based on SGL Transactions*(Concld.)

(Per cent per annum)

Sr. Nomenclature 2006-07 2007-08 2008-09 2008 2009

No. of the loanAug. Sep. June July Aug. Sep.

1 2 3 4 5 6 7 8 9 10 11

* : Monthly redemption yield is computed from April 2000 as the mean of the daily weighted average yields of the transactions in each traded

security. The weight is calculated as the share of the transaction in a given security in the aggregated value of transactions in the said security.

Prior to April 2000, the redemption yield was not weighted and was computed as an average of daily prices of each security.

@ : GOI Securities issued with call and put options exercisable on or after 5 years from the date of issue.

.. : Indicates that the relevant security was not available for trading.

.. : Indicates that trading in the relevant security was nil/negligible during the month.

51 7.59% 2016 7.79 7.91 7.32 8.84 8.42 6.90 6.79 7.20 7.2952 10.71% 2016 7.95 7.89 6.44 .. .. 7.40 .. .. ..53 12.30% 2016 8.21 8.41 8.04 9.14 8.68 7.15 7.03 7.08 7.5054 7.46% 2017 7.81 7.88 7.00 9.50 8.71 7.14 7.03 7.27 7.5455 7.49% 2017 7.82 7.87 7.56 9.05 8.58 7.06 7.12 7.24 7.5056 7.99% 2017 .. 7.85 7.84 9.10 8.36 7.00 7.09 7.23 7.4557 8.07% 2017 7.80 7.93 7.28 9.14 8.50 7.07 7.05 7.30 7.6658 5.69% 2018 7.95 7.99 7.53 9.34 8.58 6.95 7.02 .. 7.5559 6.25% 2018 7.91 8.03 7.14 .. 8.54 6.88 6.98 7.21 ..60 8.24% 2018 .. .. 7.60 9.02 8.41 6.85 7.09 7.25 7.4261 10.45% 2018 8.05 8.19 7.00 .. .. .. .. .. ..62 12.60% 2018 7.91 .. 7.74 9.29 8.45 .. 7.17 .. 7.38

Between 10 to 15 years63 5.64% 2019 8.12 8.07 7.63 9.44 8.76 6.74 7.17 7.75 7.2664 6.05% 2019 7.91 8.11 7.05 9.22 8.99 6.78 6.95 7.26 7.4265 6.90% 2019 .. .. 6.98 6.98 .. .. 6.87 7.15 7.2566 10.03% 2019 7.83 8.22 6.90 10.30 .. .. .. .. ..67 6.35% 2020 7.95 8.12 7.17 .. .. 6.84 7.01 7.59 7.5968 10.70% 2020 8.00 8.48 7.54 10.70 .. 7.45 .. .. ..69 11.60% 2020 7.73 8.00 7.91 .. 8.66 .. .. .. ..70 7.94% 2021 8.07 8.11 7.51 9.00 8.98 7.33 7.23 7.65 7.8271 10.25% 2021 8.07 8.11 7.81 9.35 9.36 7.77 7.44 8.00 7.8472 5.87% 2022 8.02 6.87 7.48 .. .. .. .. .. ..73 8.08% 2022 .. 7.90 .. .. .. 7.46 .. .. ..74 8.13% 2022 .. 7.90 .. .. .. .. .. 7.50 ..75 8.20% 2022 .. 7.95 7.82 7.53 8.70 7.44 7.36 7.71 7.9976 8.35% 2022 8.02 7.99 7.90 9.36 9.10 7.55 7.26 7.50 ..77 6.17% 2023 8.01 8.18 7.44 9.76 9.03 7.09 7.40 7.78 7.6378 6.30% 2023 8.01 8.08 6.85 .. .. 7.98 7.22 7.71 7.7379 7.35% 2024 .. .. 7.39 7.42 .. 7.41 7.40 7.85 7.77

Over 15 years80 10.18% 2026 7.86 8.26 8.00 .. .. 7.75 .. 8.05 8.1781 8.24% 2027 8.19 8.06 8.31 9.49 8.93 7.68 7.73 7.99 8.1282 8.26% 2027 .. 8.21 8.34 .. .. .. .. .. ..83 8.28% 2027 .. .. .. .. .. .. .. .. 8.0784 6.01% 2028 8.02 8.28 7.81 8.87 9.08 7.35 7.56 7.83 ..85 6.13% 2028 8.02 8.31 7.58 .. 9.04 7.46 7.66 .. ..86 7.95% 2032 8.07 8.19 8.18 9.74 8.97 7.70 7.83 8.06 8.1087 8.28% 2032 .. .. 8.27 9.61 8.98 7.75 .. 8.04 8.2088 8.32% 2032 .. 7.94 .. .. .. .. .. .. ..89 8.33% 2032 .. .. 8.26 .. 8.26 .. .. .. ..90 7.5% 2034 8.19 8.38 7.64 .. 8.82 7.74 7.82 8.04 8.0691 7.40% 2035 8.14 8.27 7.55 7.86 8.97 7.74 7.83 8.02 8.1092 8.33% 2036 8.13 8.28 8.05 9.52 8.97 7.89 .. 8.06 8.0893 6.83% 2039 .. .. 7.39 .. .. 7.64 7.84 7.93 ..


CURRENT

STATISTICS

Production

Production

No. 29: Group-wise Index Number of Industrial Production(Base: 1993-94=100)

Sr. Industry Weight Annual Cumulative MonthlyNo.

2006-07 2007-08 2008-09 April - August August

2008-09 2009-10 P 2008 2009 P

1 2 3 4 5 6 7 8 9 10

General Index 100.00 247.1 268.0 275.4 269.2 284.8 264.7 292.3

I. Sectoral Classification

1 Mining and Quarrying 10.47 163.2 171.6 176.0 165.8 179.7 160.4 181.1

2 Manufacturing 79.36 263.5 287.2 295.1 288.8 304.8 284.0 313.0

3 Electricity 10.17 204.7 217.7 223.7 222.6 237.2 221.6 245.1

II. Use-Based Classification

1 Basic Goods 35.57 209.3 223.9 229.7 225.3 240.4 226.0 248.6

2 Capital Goods 9.26 314.2 370.8 397.9 358.9 370.4 372.0 402.7

3 Intermediate Goods 26.51 242.4 264.1 259.0 264.7 289.1 258.3 295.2

4 Consumer Goods 28.66 276.8 293.6 307.5 298.8 308.2 283.9 308.0

4(a) Consumer Durables 5.36 382.0 378.0 395.0 382.7 452.0 394.5 482.3

4(b) Consumer Non-Durables 23.30 252.6 274.2 287.3 279.4 275.1 258.4 267.9

Source : Central Statistical Organisation, Government of India.


CURRENT

STATISTICS

Production

No. 30: IIP — Seventeen Major Industry Groups of Manufacturing Sector(Base : 1993-94 = 100 )

Industry Industry Weight Annual Cumulative Monthly

Group2006-07 2007-08 2008-09 April - August August

2008-09 2009-10 P 2008 2009 P

1 2 3 4 5 6 7 8 9 10

Manufacturing Index 79.36 263.5 287.2 295.1 288.8 304.8 284.0 313.0

20-21 Food Products 9.08 185.2 198.2 178.9 151.3 132.2 135.0 122.0

22 Beverages, Tobacco and Related Products 2.38 444.5 498.0 578.5 587.9 568.6 500.6 505.9

23 Cotton Textiles 5.52 157.3 164.0 160.9 165.7 166.8 160.9 168.9

24 Wool, Silk and Man-made Fibre Textiles 2.26 268.4 281.2 281.2 275.7 308.5 257.3 297.7

25 Jute and Other Vegetable Fibre Textiles (Except Cotton) 0.59 90.7 120.7 108.6 111.9 93.5 116.6 104.7

26 Textile Products (Including Wearing Apparel) 2.54 285.0 295.5 312.5 309.3 338.6 285.6 332.4

27 Wood and Wood Products, Furniture and Fixtures 2.70 91.0 127.9 115.6 120.9 135.2 146.4 141.2

28 Paper and Paper Products and Printing,Publishing and Allied Industries 2.65 248.6 255.3 260.0 257.5 264.5 268.0 273.1

29 Leather and Leather & Fur Products 1.14 150.2 167.8 156.3 165.5 167.7 156.0 157.9

30 Chemicals and Chemical Products (Except ProductsOf Petroleum and Coal) 14.00 283.4 313.4 326.3 341.7 358.8 327.0 375.2

31 Rubber, Plastic, Petroleum and Coal Products 5.73 226.3 246.4 242.6 237.0 268.2 233.5 283.6

32 Non-metallic Mineral Products 4.40 305.8 323.2 327.0 322.1 346.6 313.0 336.1

33 Basic Metal and Alloy Industries 7.45 278.9 312.7 325.1 319.8 342.4 335.8 364.5

34 Metal Products and Parts, ExceptMachinery and Equipment 2.81 183.2 172.9 165.9 158.6 158.3 149.0 154.0

35-36 Machinery and Equipment Other ThanTransport Equipment 9.57 357.1 394.4 429.1 400.4 438.5 411.5 469.8

37 Transport Equipment and Parts 3.98 367.7 378.4 387.9 393.7 429.5 404.0 459.6

38 Other Manufacturing Industries 2.56 298.4 357.4 358.9 301.7 334.3 317.5 351.0



CURRENT

STATISTICS

Capital Market


Security & Type of Issue 2007-08 2008-09 April-August 2008 April-August 2009(April-March) (April-March)

No. of Amount No. of Amount No. of Amount No. of AmountIssues Issues Issues Issues

1 2 3 4 5 6 7 8 9

No. 31: New Capital Issues By Non-Government Public Limited Companies

Capital Market

Note : Figures in brackets indicate data in respect of premium on capital issues which are included in respective totals.

Source : Data are compiled from prospectus/circulars/advertisements issued by companies, replies given by the companies to the Reserve Bank’s questionnaire,information received from SEBI, stock exchanges, press reports, etc.


1) Equity Shares (a+b) 111 56,848.3 45 14,670.6 25 2,661.0 13 7,806.6

(103) (54,732.4) (39) (13,022.0) (23) (2,335.0) (12) (6,259.3)

a) Prospectus 85 47,477.5 25 2,673.3 17 1,949.5 8 7,579.4

(83) (46,138.8) (24) (1,966.5) (16) (1,719.0) (8) (6,109.5)

b) Rights 26 9,370.8 20 11,997.3 8 711.5 5 227.2

(20) (8,593.6) (15) (11,055.5) (7) (616.0) (4) (149.8)

2) Preference Shares (a+b) 1 5,480.8 — — — — — —

a) Prospectus — — — — — — — —

b) Rights 1 5,480.8 — — — — — —

3) Debentures (a+b) 2 808.8 — — — — — —

a) Prospectus — — — — — — — —

b) Rights 2 808.8 — — — — — —

of which:

I) Convertible (a+b) 1 205.9 — — — — — —

a) Prospectus — — — — — — — —

b) Rights 1 205.9 — — — — — —

II) Non Convertible (a+b) 1 602.9 — — — — — —

a) Prospectus — — — — — — — —

b) Rights 1 602.9 — — — — — —

4) Bonds (a+b) 1 500.0 — — — — — —

a) Prospectus 1 500.0 — — — — — —

b) Rights — — — — — — — —

5) TOTAL (1+2+3+4) 115 63,637.9 45 14,670.6 25 2,661.0 13 7,806.6

a) Prospectus 86 47,977.5 25 2,673.3 17 1,949.5 8 7,579.4

b) Rights 29 15,660.4 20 11,997.3 8 711.5 5 227.2


CURRENT

STATISTICS

Capital Market

Year / Month BSE Sensitive Index BSE - 100 S & P CNX Nifty(Base : 1978 - 79 = 100) (Base : 1983 - 84 = 100) (Base : November 3, 1995 = 1000)

Average High Low Average High Low Average High Low

1 2 3 4 5 6 7 8 9 10

2005-06 8280.08 11307.04 6134.86 4393.54 5904.17 3310.14 2513.44 3418.95 1902.50

2006-07 12277.33 14652.09 8929.44 6242.73 7413.22 4535.00 3572.44 4224.25 2632.80

2007-08 16568.89 20873.33 12455.37 8691.47 11509.96 6287.69 4896.60 6287.85 3633.60

2008-09 12365.55 17600.12 8160.40 6433.13 9348.64 4160.43 3731.03 5228.20 2524.20

September 2008 13942.81 15049.86 12595.75 7276.35 7860.87 6564.06 4206.69 4504.00 3850.05

October 2008 10549.65 13055.67 8509.56 5432.92 6776.87 4343.21 3210.22 3950.75 2524.20

November 2008 9453.96 10631.12 8451.01 4823.36 5396.09 4332.17 2834.79 3148.25 2553.15

December 2008 9513.58 10099.91 8739.24 4864.55 5181.94 4443.50 2895.80 3077.50 2656.45

January 2009 9350.42 10335.93 8674.35 4802.01 5328.95 4441.84 2854.36 3121.45 2678.55

February 2009 9188.03 9647.47 8822.06 4668.37 4900.74 4484.30 2819.21 2948.35 2733.90

March 2009 8995.45 10048.49 8160.40 4569.09 5091.61 4160.43 2802.27 3108.65 2573.15

April 2009 10911.20 11403.25 9901.99 5574.43 5814.66 5028.39 3359.83 3484.15 3060.35

May 2009 13046.14 14625.25 11682.99 6714.15 7620.13 5965.67 3957.96 4448.95 3554.60

June 2009 14782.47 15466.81 14265.53 7718.53 8050.77 7435.17 4436.37 4655.25 4235.25

July 2009 14635.19 15670.31 13400.32 7657.54 8176.54 6983.12 4343.10 4636.45 3974.05

August 2009 15414.67 15924.23 14784.92 8052.66 8322.22 7737.74 4571.11 4732.35 4387.90

September 2009 16338.45 17126.84 15398.33 8546.26 8930.31 8093.88 4859.31 5083.95 4593.55

Sources : 1. Bombay Stock Exchange Ltd.

2. National Stock Exchange of India Ltd.

No. 32: Index Numbers of Ordinary Share Prices


CURRENT

STATISTICS

Capital Market

(Rs. crore)

Week / Month / Year (April-March) Volume

1 2

No. 33: Volume in Corporate Debt Traded at NSE*

2005-06 10,619.36

2006-07 6,639.78

2007-08 8,576.11

2008-09 11,934.44

2008-09

April 2008 443.76

May 2008 530.84

June 2008 1,053.75

July 2008 1,225.27

August 2008 237.06

September 2008 756.89

October 2008 384.25

November 2008 633.13

December 2008 1,901.88

January 2009 1,208.92

February 2009 2,067.15

March 2009 1,491.54

2009-10

April 2009 4,178.12

May 2009 2,703.44

June 2009 2,168.95

July 2009 3,876.68

August 2009 4,388.71

September 2009 4,405.57

Week ended

August 7, 2009 588.53

August 14, 2009 646.29

August 21, 2009 541.45

August 28, 2009 1,900.09

September 4, 2009 2,103.77

September 11, 2009 1,085.68

September 18, 2009 1,139.74

September 25 , 2009 480.74

* : Excluding trade in commercial papers.

Source : National Stock Exchange of India Ltd.


CURRENT

STATISTICS

Capital Market

No. 34: Assistance Sanctioned and Disbursed by All - India Financial Institutions

(Rs. crore)

April-September April-March

2003-04 2004-05 2002-03 2003-04

1 2 3 4 5

Sanctions

All-India Development Banks 9,831.9 12,860.0 22,318.1 23,444.3

1. IDBI 2,860.2 6,314.4 5,898.2 5,630.8

2. IFCI 132.1 — 2,005.8 1,451.9

3. SIDBI 2,607.9 2,991.8 10,903.7 8,223.7

4. IIBI 1,392.8 0.9 1,206.4 2,411.9

5. IDFC 2,838.9 3,552.9 2,304.0 5,726.0

Investment Institutions 13,025.1 7,805.5 5,666.5 29,479.2

6. LIC 12,291.1 7,135.3 4,341.5 27,748.0

7. GIC 324.3 93.0 369.3 674.0

8. National Ins. Co. Ltd. 115.6 87.3 200.0 373.0

9. New India Ass. Co Ltd. 84.1 179.3 138.0 199.1

10. Oriental Ins. Co. Ltd. 93.3 28.2 123.9 134.8

11. United India Ins. Co. Ltd. 116.7 282.4 493.8 350.3

Total 22,857.0 20,665.5 27,984.6 52,923.5

Disbursements

All India Development Banks 5,750.2 5,027.1 17,225.2 14,056.6

1. IDBI 637.2 2,085.1 6,614.9 4,409.1

2. IFCI 176.3 43.8 1,779.9 279.0

3. SIDBI 1,742.2 1,358.3 6,789.5 4,412.7

4. IIBI 1,216.5 7.6 1,091.9 2,251.8

5. IDFC 978.0 1,532.3 949.0 2,704.0

Investment Institutions 4,615.6 5,421.3 7,487.6 17,400.2

6. LIC 3,829.2 4,871.0 6,205.7 15,781.6

7. GIC 328.4 108.0 328.4 657.7

8. National Ins. Co. Ltd. 118.4 17.3 177.6 224.4

9. New India Ass. Co Ltd. 85.6 115.2 78.0 195.6

10. Oriental Ins. Co. Ltd. 135.0 27.4 241.5 187.1

11. United India Ins. Co. Ltd. 119.0 282.4 456.4 353.8

Total 10,365.8 10,448.4 24,712.8 31,456.8

Note : Data are provisional. Monthly data are not adjusted for inter-institutional flows.

Source : Industrial Development Bank of India.


CURRENT

STATISTICS

Prices

No. 35: Monthly Average price of Gold and Silver in Mumbai

Prices

Month / Year Standard Gold Silver(Rs. per 10 grams) (Rs. per kilogram)

1 2 3

2000-01 4,474 7,868

2001-02 4,579 7,447

2002-03 5,332 7,991

2003-04 5,719 8,722

2004-05 6,145 10,681

2005-06 6,901 11,829

2006-07 9,240 19,057

2007-08 9,996 19,427

2008-09 12,905 21,272

October 2007 9,691 18,385

November 2007 10,340 19,573

December 2007 10,311 19,056

January 2008 11,291 20,405

February 2008 11,888 21,979

March 2008 12,632 24,357

April 2008 11,810 23,474

May 2008 12,143 23,796

June 2008 12,369 24,213

July 2008 13,055 25,269

August 2008 11,855 22,265

September 2008 12,214 20,191

October 2008 12,766 18,687

November 2008 12,207 17,174

December 2008 12,897 17,327

January 2009 13,508 19,115

February 2009 14,781 21,442

March 2009 15,255 22,311

April 2009 14,501 21,336

May 2009 14,610 22,553

June 2009 14,620 23,069

July 2009 14,749 22,334

August 2009 14,996 23,646

September 2009 15,723 26,323

October 2009 15,864 27,360

Source : Bombay Bullion Association Ltd.Also see ‘Notes on Tables’.


CURRENT

STATISTICS

Prices

@ Base 1982=100.

Note : New series of Consumer Price Index for Industrial Workers with base 2001 = 100 was released in January 2006 by Labour Bureau, Shimla.Linking Factors between old and new series as published by the Labour Bureau are reproduced in column 2.

For (1) and (2) See ‘Notes on Tables’.Source : Labour Bureau, Ministry of Labour, Government of India.

(Base : 2001 = 100)

Centre New 1990-91 2007-08 2008-09 2009

Linking @

Factor (1) Mar. Apr. May Jun. Jul. Aug. Sep.

1 2 3 4 5 6 7 8 9 10 11 12

All India (2) 4.63 193 133 145 148 150 151 153 160 162 163

Ahmedabad 4.62 196 131 141 143 145 145 147 153 158 156

Alwaye (Ernakulam) 4.52 176 133 145 146 147 151 150 155 155 155

Asansol 4.37 189 141 155 161 163 164 165 176 176 177

Bangalore 4.51 183 138 154 160 161 164 165 169 170 171

Bhavnagar 4.76 198 131 137 137 139 141 141 151 153 154

Bhopal 4.83 196 136 148 150 153 153 155 170 171 169

Chandigarh 5.26 189 132 143 146 149 149 149 158 158 162

Chennai 4.95 189 126 139 142 143 145 147 150 151 153

Coimbatore 4.49 178 129 140 144 145 146 148 151 153 156

Delhi 5.60 201 130 140 141 143 143 144 150 151 152

Faridabad 4.79 187 133 149 152 154 155 156 163 164 164

Guwahati 4.80 195 120 132 135 136 139 140 140 147 148

Howrah 5.42 212 132 142 144 145 147 150 156 158 162

Hyderabad 4.79 182 125 139 145 146 149 150 154 155 154

Jaipur 4.25 190 136 148 151 151 152 154 161 165 167

Jamshedpur 4.23 187 134 145 145 150 151 152 165 166 165

Kolkata 5.12 203 134 145 147 148 150 152 157 160 163

Ludhiana 4.12 193 136 149 151 154 154 157 163 165 166

Madurai 4.51 192 123 137 139 140 145 148 149 150 150

Monghyr-Jamalpur 4.30 189 136 148 153 158 158 160 166 166 167

Mumbai 5.18 201 136 148 153 154 153 155 160 161 162

Mundakayam 4.37 184 132 150 153 156 158 159 159 158 159

Nagpur 4.68 201 142 155 160 162 165 168 186 185 186

Pondicherry 4.88 204 133 151 157 158 158 164 164 165 166

Rourkela 4.03 179 140 153 155 157 159 160 172 174 175

Kanpur 4.50 195 133 144 148 149 149 151 164 166 167

Solapur 4.73 197 141 151 152 155 155 155 160 165 164

Srinagar 5.62 184 126 137 138 140 143 143 144 148 148

No. 36: Consumer Price Index Numbers for Industrial Workers — All-India and Selected Centres


CURRENT

STATISTICS

Prices

No. 37: Consumer Price Index Numbers for Urban Non-manualEmployees — All-India and Selected Centres

Centre 1990-91 2006-07 2007-08 2007 2008

Mar. Sep. Oct. Nov. Dec. Jan. Feb. Mar.

1 2 3 4 5 6 7 8 9 10 11 12

All India (1) 161 486 515 498 516 520 519 518 520 523 528

Mumbai 154 478 504 490 502 506 508 510 509 510 513

Delhi 156 499 521 508 522 528 523 523 525 529 532

Kolkata 164 439 476 449 481 486 480 479 479 482 484

Chennai 168 569 605 585 606 607 609 607 610 611 618

Hyderabad 164 526 560 541 558 561 565 564 564 568 574

Bangalore 161 513 546 527 545 544 547 551 559 563 566

Lucknow 158 465 484 471 488 487 482 480 480 486 492

Ahmedabad 153 426 449 435 450 454 453 454 452 453 459

Jaipur 165 477 515 491 517 519 521 519 527 532 545

Patna 167 451 484 466 490 494 495 492 496 496 501

Srinagar 150 475 513 496 511 517 515 513 524 528 538

Thiruvananthapuram 152 507 535 512 528 530 535 542 548 552 555

Cuttack 154 479 507 492 507 511 512 510 510 509 510

Bhopal 166 458 482 461 481 488 490 488 490 493 502

Chandigarh 176 637 665 649 672 672 669 666 668 671 678

Shillong 179 499 565 528 566 571 572 571 580 582 584

Shimla 163 490 511 506 517 519 511 508 507 508 513

Jammu 161 480 511 492 512 514 512 507 515 523 533

Amritsar 152 402 423 412 431 433 425 422 423 427 431

Kozhikode (Calicut) 150 447 465 452 462 464 469 469 473 475 483

Kanpur 165 450 481 462 490 489 483 479 478 483 489

Indore 170 485 507 490 513 515 510 507 510 516 526

Pune 162 509 547 517 546 549 555 555 554 560 563

Jabalpur 164 437 467 452 473 476 473 471 467 471 478

Jodhpur 168 465 487 476 490 492 489 490 489 492 501

(Base : 1984 – 85 = 100)

Linked All-India Consumer Price Index Number for Urban Non-Manual Employees (UNME)(Base : 1984 – 85 = 100)

2008 2009

Aug. May Jun. Jul. Aug.

1 2 3 4 5 6

General Index 559 589 595 624 631

Note : The CPI (UNME) for base 1984-85 = 100 has been discontinued due to outdated base year with effect from April 2008 onwards. Linked all-India CPI

(UNME) number are available for meeting the requirement of users.




CURRENT

STATISTICS

Prices

A : Consumer Price Index Numbers for Agricultural Labourers(Base : July 1986 - June 1987 = 100)

State 1990-91(1) Linking 2007-08 2008-09 2008 2009Factor (2)

Sep. Apr. May Jun. Jul. Aug. Sep.

1 2 3 4 5 6 7 8 9 10 11 12

All India 830 5.89 417 462 455 468 475 484 499 508 515

Andhra Pradesh 657 4.84 430 484 478 489 497 509 520 532 534

Assam 854 (3) 417 451 444 454 462 480 492 505 512

Bihar 858 6.22 411 446 443 454 458 462 478 482 490

Gujarat 742 5.34 424 459 450 468 476 486 501 517 525

Haryana (5) 447 498 489 508 518 525 537 552 563

Himachal Pradesh (5) 376 406 407 407 412 419 421 437 447

Jammu & Kashmir 843 5.98 413 453 440 468 475 474 486 489 497

Karnataka 807 5.81 406 458 446 464 476 478 501 514 523

Kerala 939 6.56 403 454 442 460 463 469 473 476 477

Madhya Pradesh 862 6.04 412 459 450 466 480 491 505 509 512

Maharashtra 801 5.85 432 475 469 479 485 499 526 540 551

Manipur (5) 367 407 396 416 421 432 434 438 444

Meghalaya (5) 439 484 475 496 506 511 525 528 538

Orissa 830 6.05 400 438 435 444 452 462 485 485 486

Punjab 930 (4) 448 501 497 507 523 529 541 558 569

Rajasthan 885 6.15 439 490 477 502 515 523 534 553 558

Tamil Nadu 784 5.67 403 455 446 459 465 474 483 492 497

Tripura (5) 407 433 425 440 444 447 449 460 465

Uttar Pradesh 960 6.60 433 469 467 477 483 490 506 515 524

West Bengal 842 5.73 395 432 428 437 445 449 459 468 481


No. 38: Consumer Price Index Numbers for Agricultural / Rural Labourers


CURRENT

STATISTICS

Prices

No. 38: Consumer Price Index Numbers for Agricultural / Rural Labourers

B : Consumer Price Index Numbers for Rural Labourers(Base : July 1986 - June 1987 = 100)

State 1995-96 (7) 2007-08 2008-09 2008 2009

Sep. Mar. Apr. May Jun. Jul. Aug. Sep.

1 2 3 4 5 6 7 8 9 10 11 12

All India 240 418 462 455 464 468 475 484 498 507 514

Andhra Pradesh 244 429 482 475 484 487 495 507 518 529 532

Assam 243 419 454 446 453 457 465 482 494 508 514

Bihar 223 412 447 444 447 454 458 463 479 483 491

Gujarat 241 425 460 450 466 469 477 488 502 517 525

Haryana 237 445 495 487 500 505 514 521 533 547 558

Himachal Pradesh 221 388 420 419 419 423 427 436 438 454 463

Jammu & Kashmir 225 413 451 440 459 465 473 471 482 486 492

Karnataka 250 407 459 446 465 466 477 479 500 512 522

Kerala 260 404 456 444 459 462 466 472 477 481 482

Madhya Pradesh 239 415 463 453 468 471 484 495 510 514 518

Maharashtra 247 428 470 465 469 474 479 494 521 535 546

Manipur 245 368 407 397 414 416 422 433 435 439 445

Meghalaya 250 436 481 472 485 493 502 507 521 524 533

Orissa 236 400 439 435 439 445 452 462 485 485 486

Punjab 247 449 501 495 503 508 523 528 539 554 568

Rajasthan 239 438 486 474 493 498 510 517 528 547 552

Tamil Nadu 244 402 452 444 458 457 462 471 479 488 493

Tripura 219 399 429 420 432 436 440 443 445 458 462

Uttar Pradesh 231 434 469 468 469 477 481 488 503 512 521

West Bengal 232 398 435 431 435 442 449 453 462 472 485

Source: Labour Bureau, Ministry of Labour, Government of India.


CURRENT

STATISTICS

Prices

No. 39: Index Numbers of Wholesale Prices in India — by Groups and Sub-Groups (Averages)

ALL COMMODITIES

I. PRIMARY ARTICLES

(A) Food Articles

a. Foodgrains

(Cereals+Pulses)

a1. Cereals

a2. Pulses

b. Fruits & Vegetables

b1. Vegetables

b2. Fruits

c. Milk

d. Eggs, Meat & Fish

e. Condiments & Spices

f. Other Food Articles

(B) Non-Food Articles

a. Fibres

b. Oil seeds

c. Other Non-Food Articles

(C) Minerals

a. Metallic Minerals

b. Other Minerals

II. Fuel, Power, Light & Lubricants

a. Coal Mining

b. Minerals Oils

c. Electricity

(Base : 1993-94 = 100)

Average of months/Average of Weight 1994-95 2007-08 2008-09 2008 2009

weeks ended Saturday April-March Jul. Feb. Mar. Apr. May Jun. Jul.

1 2 3 4 5 6 7 8 9 10 11 12

100.000 112.6 215.9 233.9 240.0 227.6 228.2 231.5 234.3 235.0 238.4

22.025 115.8 224.8 247.3 248.7 246.4 248.2 254.4 257.2 259.8 266.7

15.402 112.8 222.1 239.8 236.7 242.9 243.8 250.2 252.9 257.6 268.1

5.009 114.7 215.6 234.1 228.2 248.0 248.1 250.6 254.3 256.0 259.1

4.406 113.6 211.8 230.5 224.7 244.7 244.9 246.5 250.4 251.6 252.4

0.603 122.2 243.2 259.8 253.3 272.1 271.3 280.1 282.7 288.1 307.5

2.917 108.0 236.5 255.5 252.0 241.4 241.0 271.2 272.2 274.0 291.0

1.459 110.4 224.4 232.9 259.8 193.5 192.3 262.6 270.5 299.5 333.1

1.458 105.7 248.6 278.2 244.3 289.2 289.7 279.8 273.8 248.5 248.8

4.367 110.3 212.6 228.5 225.0 234.2 235.8 234.2 235.8 241.1 246.4

2.208 116.1 238.7 249.8 252.8 250.7 249.7 250.0 250.0 263.9 297.3

0.662 126.2 239.3 267.7 268.8 257.9 275.7 274.3 277.5 286.2 291.2

0.239 111.6 155.4 204.7 200.7 198.7 194.4 214.2 260.0 254.5 241.5

6.138 124.2 212.2 235.8 246.7 226.4 225.6 231.7 238.7 241.5 239.5

1.523 150.0 179.1 217.2 233.2 204.1 196.2 203.3 207.9 208.0 211.7

2.666 118.5 218.3 245.9 259.8 235.4 237.0 243.9 253.2 254.3 252.0

1.949 112.0 229.7 236.5 239.4 231.4 233.0 237.4 243.0 250.0 244.0

0.485 104.9 469.5 631.6 656.2 612.2 675.3 675.4 629.9 562.4 564.4

0.297 103.8 687.7 943.1 979.5 921.8 1024.2 1024.2 949.9 839.4 842.3

0.188 106.7 124.8 139.6 145.5 123.3 124.2 124.5 124.6 125.0 125.6

14.226 108.9 327.2 351.4 377.2 323.9 321.0 323.4 325.7 327.5 338.2

1.753 105.1 238.0 253.5 254.4 251.8 251.8 251.8 251.8 251.8 251.8

6.990 106.1 392.0 435.2 487.0 379.1 378.9 383.9 388.7 392.2 414.0

5.484 113.6 273.1 275.9 276.5 276.5 269.2 269.2 269.2 269.2 269.2


CURRENT

STATISTICS

Prices

No. 39: Index Numbers of Wholesale Prices in India — by Groups and Sub-Groups (Averages) (Contd.)

(Base : 1993-94 = 100)



1 2 3 4 5 6 7 8 9 10 11 12

III.MANUFACTURED PRODUCTS

(A) Food Products

a. Dairy Products

b. Canning, Preserving &

Processing of Fish

c. Grain Mill Products

d. Bakery Products

e. Sugar, Khandsari & Gur

f. Manufacture of

common Salts

g. Cocoa, Chocolate, Sugar &

Confectionery

h. Edible Oils

i. Oil Cakes

j. Tea & Coffee Proccessing

k. Other Food Products n.e.c.

(B) Beverages, Tobacco &

Tobacco Products

a. Wine Industries

b. Malt liquor

c. Soft drinks &

Carbonated Water

d. Manufacture of Bidi,

Cigarettes, Tobacco & Zarda

63.749 112.3 188.0 203.1 206.4 199.5 200.6 203.0 205.9 205.8 206.4

11.538 114.1 190.4 209.4 212.5 216.0 219.7 228.1 233.2 234.1 233.6

0.687 117.0 232.6 248.4 249.0 249.1 251.2 252.3 254.7 255.6 256.8

0.047 100.0 293.8 327.8 293.8 419.4 419.4 419.4 419.4 419.4 419.4

1.033 103.7 230.4 240.5 237.3 244.0 243.5 240.8 240.8 236.4 237.8

0.441 107.7 195.5 201.3 201.3 201.3 201.3 201.7 203.0 203.0 203.0

3.929 119.1 155.2 168.7 158.0 187.2 189.6 201.2 206.3 212.1 212.6

0.021 104.8 222.4 253.2 231.1 259.4 259.4 267.5 272.6 276.9 264.4

0.087 118.3 188.1 188.1 188.1 188.1 188.1 188.1 188.1 188.1 188.1

2.775 110.9 175.4 188.1 201.3 178.7 178.7 177.9 179.4 177.0 176.4

1.416 121.6 256.6 323.4 360.4 323.5 346.4 384.6 406.8 404.6 398.7

0.967 104.4 193.8 201.0 195.8 221.9 221.9 221.9 223.4 224.3 224.3

0.154 111.6 218.9 240.5 238.1 243.1 247.0 250.9 250.9 250.9 250.9

1.339 118.3 268.5 294.0 289.8 301.5 301.9 302.4 301.6 302.7 305.6

0.269 150.2 309.3 309.9 310.9 311.7 311.9 313.9 309.6 309.6 310.1

0.043 109.1 198.0 235.8 215.7 270.5 270.5 270.5 270.5 305.2 305.2

0.053 109.1 187.6 189.1 188.1 188.6 198.9 202.3 202.6 203.0 203.0

0.975 110.4 264.8 297.8 292.7 306.1 306.1 306.1 306.1 306.1 309.9


CURRENT

STATISTICS

Prices

No. 39: Index Numbers of Wholesale Prices in India — by Groups and Sub-Groups (Averages) (Contd.)

(C) Textiles

a. Cotton Textiles

a1. Cotton Yarn

a2. Cotton Cloth (Mills)

b. Man Made Textiles

b1. Man Made Fibre

b2. Man Made Cloth

c. Woolen Textiles

d. Jute, Hemp & Mesta Textiles

e. Other Misc. Textiles

(D) Wood & Wood Products

(E) Paper & Paper Products

a. Paper & pulp

b. Manufacture of boards

c. Printing & publishing of

newspapers,periodicals etc.

(F) Leather & Leather Products

(G) Rubber & Plastic Products

a. Tyres & Tubes

a1. Tyres

a2. Tubes

b. Plastic Products

c. Other Rubber &

Plastic Products

(H) Chemicals & Chemical

Products

a. Basic heavy Inorganic

Chemicals

b. Basic Heavy Organic

Chemicals

c. Fertilisers & Pesticides

c1. Fertilisers

c2. Pesticides

d. Paints, Varnishes & Lacquers

e. Dyestuffs & Indigo

f. Drugs & Medicines

g. Perfumes, Cosmetics,

Toiletries etc.

h. Turpentine, Synthetic

Resins, Plastic Materials etc.

i. Matches, Explosives &

Other Chemicals n.e.c.

(Base : 1993-94 = 100)



1 2 3 4 5 6 7 8 9 10 11 12

9.800 118.2 130.9 138.8 140.8 139.8 139.8 140.7 141.6 143.1 143.7

4.215 132.7 156.3 168.6 170.8 173.1 171.7 173.1 173.1 176.4 177.1

3.312 136.2 153.0 167.1 170.7 171.5 169.8 171.5 171.5 175.8 176.6

0.903 119.9 168.4 174.2 171.3 178.8 178.8 178.8 178.8 178.8 178.8

4.719 105.9 97.4 100.3 103.5 96.3 97.4 97.5 98.5 97.5 97.7

4.406 105.6 94.8 97.7 101.3 93.2 94.4 94.5 95.6 94.5 94.8

0.313 109.9 134.4 137.0 134.5 139.4 139.4 139.4 139.4 139.4 139.4

0.190 132.6 170.6 176.7 178.6 178.2 172.0 172.0 172.4 172.5 174.0

0.376 110.3 205.6 227.6 212.9 248.5 252.7 259.1 269.7 284.0 289.6

0.300 109.0 182.7 192.1 191.8 196.1 196.1 196.1 196.1 196.1 196.1

0.173 110.9 215.9 233.9 237.0 232.5 232.6 237.6 237.6 237.6 237.6

2.044 106.1 194.2 202.7 200.2 204.2 203.9 204.0 205.0 204.7 204.2

1.229 108.7 175.5 189.1 185.4 190.7 190.1 189.6 190.0 189.4 188.6

0.237 110.9 164.3 165.7 166.6 164.3 165.3 166.2 166.7 166.8 166.8

0.578 98.5 246.2 246.8 245.6 249.1 249.1 250.0 252.7 252.7 252.7

1.019 109.7 166.1 167.9 168.3 167.4 167.1 166.2 166.2 166.2 166.2

2.388 106.4 159.0 166.3 164.9 167.4 167.5 167.9 170.2 169.4 169.1

1.286 104.1 156.8 167.2 163.2 170.1 170.0 172.0 175.2 175.3 175.2

1.144 103.4 143.5 150.2 149.3 151.0 151.0 153.9 154.9 155.0 154.9

0.142 110.0 264.2 303.9 275.7 324.4 322.9 317.8 338.9 338.9 338.9

0.937 106.8 154.2 158.7 160.4 157.4 157.9 156.0 155.9 153.4 152.7

0.165 121.0 203.0 202.8 202.8 202.8 202.8 202.8 212.2 214.5 214.5

11.931 116.6 204.8 219.5 222.2 214.3 215.1 220.3 229.6 226.3 228.4

1.446 112.2 190.3 226.2 240.2 191.9 192.6 186.5 183.6 183.5 183.6

0.455 118.7 176.4 180.0 219.9 139.5 145.9 152.2 166.6 165.6 174.1

4.164 117.7 173.7 188.3 189.3 188.5 187.8 187.8 192.0 190.2 186.6

3.689 115.8 180.8 196.5 197.6 196.9 196.1 196.1 197.3 195.4 191.3

0.475 132.5 118.5 124.4 124.8 122.9 122.9 122.9 150.5 150.5 150.5

0.496 101.3 143.0 157.3 155.3 166.3 166.3 166.3 166.3 166.3 165.7

0.175 108.4 111.2 118.6 120.4 112.9 112.8 112.4 112.4 112.4 112.4

2.532 129.4 314.9 320.8 316.4 326.9 331.7 357.1 382.4 382.4 382.4

0.978 118.0 239.7 258.2 258.6 259.0 259.0 259.0 259.0 259.0 288.3

0.746 107.6 143.4 152.2 158.2 131.2 131.0 135.6 171.7 129.4 138.8

0.940 98.3 144.3 158.0 154.5 159.4 155.9 155.9 157.0 157.0 157.0


CURRENT

STATISTICS

Prices

No. 39: Index Numbers of Wholesale Prices in India — by Groups and Sub-Groups (Averages) (Concld.)

(I) Non-Metallic Mineral

Products

a. Structural Clay Products

b. Glass, Earthernware,

Chinaware & their Products

c. Cement

d. Cement, Slate & Graphite

Products

(J) Basic Metals Alloys &

Metals Products

a. Basic Metals & Alloys

a1. Iron & Steel

a2. Foundries for Casting,

Forging & Structurals

a3. Pipes, Wires Drawing &

Others

a4. Ferro Alloys

b. Non-Ferrous Metals

b1. Aluminium

b2. Other Non-Ferrous

Metals

c. Metal Products

(K) Machinery & Machine Tools

a. Non-Electrical Machinery

& Parts

a1. Heavy Machinery

& Parts

a2. Industrial Machinery

for Textiles, etc.

a3. Refrigeration & Other

Non-electrical

Machinery

b. Electrical Machinery

b1. Electrical Industrial

Machinery

b2. Wires & Cables

b3. Dry & Wet Batteries

b4. Electrical Apparatus &

Appliances

(L) Transport Equipment & Parts

a. Locomotives, Railway

Wagons & Parts

b. Motor Vehicles, Motorcycles,

Scooters, Bicycles & Parts

Source : Office of the Economic Adviser, Ministry of Commerce & Industry, Government of India.

(Base : 1993-94 = 100)



1 2 3 4 5 6 7 8 9 10 11 12

2.516 110.9 208.8 216.6 215.4 217.2 218.4 220.4 220.6 221.9 225.7

0.230 100.0 212.8 221.4 219.4 224.0 224.0 226.2 227.2 227.2 227.2

0.237 113.3 167.9 166.4 166.4 166.4 166.4 166.4 166.4 166.4 172.5

1.731 112.4 217.5 223.3 222.0 223.6 225.4 227.9 228.1 230.0 230.8

0.319 108.8 189.1 214.2 213.2 215.1 215.1 215.1 215.1 215.1 236.0

8.342 108.4 249.8 285.3 300.2 255.1 256.4 255.0 254.9 255.0 254.7

6.206 107.0 256.3 307.8 326.5 271.6 273.0 270.8 270.7 270.7 270.4

3.637 106.0 280.0 336.6 362.6 286.6 288.4 285.8 286.3 286.4 286.5

0.896 106.7 245.2 301.3 301.9 296.5 296.5 296.5 292.1 292.1 292.1

1.589 109.5 213.5 253.3 265.9 230.3 231.7 229.0 229.7 229.5 230.0

0.085 104.5 155.5 159.7 175.3 142.2 142.2 142.2 142.2 142.2 103.5

1.466 115.9 265.1 248.2 254.2 228.7 230.3 232.0 232.2 232.6 233.2

0.853 114.7 248.7 245.3 250.8 225.8 225.8 225.8 225.8 225.8 225.8

0.613 117.7 288.0 252.1 258.9 232.8 236.5 240.7 241.2 242.1 243.4

0.669 105.0 155.9 158.0 157.4 159.1 159.1 159.0 158.7 158.7 156.7

8.363 106.0 166.6 174.5 176.1 172.2 172.4 171.8 172.0 171.9 172.2

3.379 108.6 199.5 210.0 210.0 209.7 209.4 209.2 209.2 209.9 210.8

1.822 111.0 207.3 222.5 222.6 222.1 222.1 221.8 221.6 222.7 224.6

0.568 108.5 260.5 258.6 259.0 257.4 257.4 258.1 258.4 258.4 257.9

0.989 104.3 150.2 159.0 158.6 159.3 158.5 157.9 158.0 158.6 158.5

4.985 104.2 144.3 150.4 153.2 146.7 147.3 146.5 146.7 146.2 146.1

1.811 105.2 160.9 169.6 168.3 174.8 173.9 172.1 172.1 171.9 172.0

1.076 109.0 230.3 237.8 251.2 212.5 214.9 214.2 215.5 213.6 212.8

0.275 105.8 163.3 175.8 177.4 175.5 175.5 175.5 175.6 175.6 174.5

1.823 100.1 74.2 75.9 76.6 75.7 76.6 76.6 76.6 76.6 76.6

4.295 107.4 166.9 175.5 174.8 175.6 175.4 175.1 175.1 175.3 175.9

0.318 105.3 131.6 142.1 141.8 144.9 144.9 144.2 143.9 143.9 143.9

3.977 107.6 169.7 178.2 177.4 178.1 177.8 177.6 177.6 177.8 178.5


CURRENT

STATISTICS

Prices

No. 40: Index Numbers of Wholesale Prices in India — by Groups and Sub-groups(Month-end/Year-end)

(Base : 1993-94 = 100)

Last Week of month / year Weight 1994-95 2007-08 2008-09 2008 2009

ended Saturday April-March Sep. Apr. May Jun. Jul. Aug.(P) Sep.(P)

1 2 3 4 5 6 7 8 9 10 11 12

ALL COMMODITIES

I. PRIMARY ARTICLES

(A) Food Articles

a. Foodgrains

(Cereals+Pulses)

a1. Cereals

a2. Pulses

b. Fruits & Vegetables

b1. Vegetables

b2. Fruits

c. Milk

d. Eggs, Meat & Fish

e. Condiments & Spices

f. Other Food Articles

(B) Non-Food Articles

a. Fibres

b. Oil seeds

c. Other Non-Food

Articles

(C) Minerals

a. Metallic Minerals

b. Other Minerals

II. Fuel, Power, Light

& Lubricants

a. Coal Mining

b. Minerals Oils

c. Electricity

III. Manufactured

Products

(A) Food Products

a. Dairy Products

b. Canning, Preserving

& Processing of Fish

c. Grain Mill Products

d. Bakery Products


100.000 117.1 216.2 234.0 241.3 233.1 234.4 235.8 239.0 241.1 243.0

22.025 120.8 225.5 247.7 252.8 255.6 257.4 263.6 269.5 271.2 276.8

15.402 114.9 222.5 240.0 244.0 251.9 253.9 262.8 272.7 273.8 281.7

5.009 118.9 216.1 234.9 229.5 253.1 255.8 255.9 260.7 261.4 262.6

4.406 118.2 212.3 231.4 224.6 249.0 251.7 250.9 253.1 253.1 254.8

0.603 123.9 243.2 260.4 265.0 283.2 285.6 292.8 316.3 322.4 319.2

2.917 103.1 237.3 253.9 278.0 272.9 270.7 287.3 297.1 320.6 341.3

1.459 95.0 226.3 230.7 256.6 270.5 271.3 318.6 343.5 360.6 366.9

1.458 111.2 248.4 277.1 299.4 275.3 270.1 256.0 250.6 280.6 315.7

4.367 111.3 213.1 229.2 229.4 235.8 235.8 246.4 246.4 249.4 249.4

2.208 122.1 238.5 250.1 252.3 250.0 253.0 271.2 317.2 283.4 304.5

0.662 131.6 239.2 268.4 277.0 269.6 283.1 292.1 293.4 304.0 316.4

0.239 127.4 155.8 206.1 233.6 232.4 264.9 251.3 237.1 237.6 239.5

6.138 136.9 212.6 236.6 246.8 231.9 242.2 242.0 238.3 241.4 239.9

1.523 168.7 179.3 218.4 237.1 200.9 209.8 208.5 213.1 212.0 208.7

2.666 127.8 219.2 246.8 249.5 245.3 255.3 255.1 249.9 250.1 254.5

1.949 124.4 229.9 236.8 250.7 237.9 249.5 250.2 242.1 252.5 244.2

0.485 104.2 481.7 631.9 610.1 675.4 561.7 564.4 564.4 564.4 587.0

0.297 102.5 707.9 945.4 897.5 1024.2 838.4 842.3 842.3 842.3 879.4

0.188 107.0 124.6 136.9 156.2 124.5 124.8 125.6 125.6 125.6 125.3

14.226 109.1 327.4 350.4 375.3 324.0 326.1 327.9 338.0 343.3 345.6

1.753 106.2 238.6 253.5 254.4 251.8 251.8 251.8 251.8 251.8 251.8

6.990 106.2 392.3 433.1 483.2 385.1 389.4 393.0 413.6 414.5 419.2

5.484 113.6 273.0 275.9 276.5 269.2 269.2 269.2 269.2 281.9 281.9

63.749 117.6 188.1 203.4 207.5 205.0 206.0 205.7 206.4 207.9 208.5

11.538 113.2 190.8 210.3 213.6 233.2 232.8 234.0 232.4 240.9 238.1

0.687 129.0 233.4 249.2 248.9 252.9 255.2 255.9 258.3 259.1 262.3

0.047 100.0 293.8 329.5 293.8 419.4 419.4 419.4 419.4 419.4 419.4

1.033 109.0 230.5 240.6 237.8 240.8 240.8 236.4 237.8 237.8 241.6

0.441 111.0 195.6 201.3 201.3 203.0 203.0 203.0 203.0 203.0 203.0


CURRENT

STATISTICS

Prices

No. 40: Index Numbers of Wholesale Prices in India — by Groups and Sub-groups(Month-end/Year-end) (Contd.)

(Base : 1993-94 = 100)



1 2 3 4 5 6 7 8 9 10 11 12

e. Sugar, Khandsari & Gur

f. Manufacture of

Common Salts

g. Cocoa, Chocolate, Sugar

& Confectionery

h. Edible Oils

i. Oil Cakes

j. Tea & Coffee Processing

k. Other Food

Products n.e.c.

(B) Beverages, Tobacco &

Tobacco Products

a. Wine Industries

b. Malt Liquor

c. Soft Drinks &

Carbonated Water

d. Manufacture of Bidi,

Cigarettes, Tobacco &

Zarda

(C) Textiles

a. Cotton Textiles

a1. Cotton Yarn

a2. Cotton Cloth (Mills)

b. Man Made Textiles

b1. Man Made Fibre

b2. Man Made Cloth

c. Woolen Textiles

d. Jute, Hemp & Mesta

Textiles

e. Other Misc. Textiles

(D) Wood & Wood Products

(E) Paper & Paper Products

a. Paper & pulp

b. Manufacture of Boards

c. Printing & Publishing

of Newspapers,

Periodicals etc.

3.929 109.5 155.4 169.6 168.1 208.1 207.7 213.8 213.6 229.5 237.7

0.021 114.1 222.4 253.1 273.8 273.7 276.9 276.9 264.4 264.4 270.2

0.087 124.1 188.1 188.1 188.1 188.1 188.1 188.1 188.1 188.1 188.1

2.775 118.4 175.8 188.4 191.6 180.4 177.8 175.8 176.8 179.1 177.9

1.416 118.3 257.9 326.6 358.0 401.4 402.1 401.3 384.8 405.0 358.1

0.967 99.5 194.4 202.4 197.1 221.9 223.8 224.3 224.3 224.3 224.3

0.154 117.3 219.0 240.9 239.5 250.9 250.9 250.9 250.9 250.9 249.6

1.339 124.3 269.2 294.7 296.6 302.4 301.6 302.7 305.9 305.5 305.9

0.269 163.5 309.4 311.4 310.9 313.9 309.6 309.6 311.7 309.6 311.7

0.043 125.5 198.1 238.5 215.7 270.5 270.5 305.2 305.2 305.2 305.2

0.053 109.1 187.6 189.4 188.1 202.3 203.0 203.0 203.0 203.0 203.0

0.975 114.2 265.6 298.3 302.1 306.1 306.1 306.1 309.9 309.9 309.9

9.800 128.1 130.6 139.3 140.8 141.1 142.6 143.4 143.8 143.2 144.7

4.215 148.3 155.6 169.7 169.8 173.0 174.7 176.3 177.6 177.8 179.0

3.312 152.1 152.1 168.4 168.7 171.4 173.6 175.6 177.3 177.5 179.1

0.903 134.4 168.4 174.6 173.7 178.8 178.8 178.8 178.8 178.8 178.8

4.719 110.9 97.4 100.2 102.8 97.9 99.1 97.1 98.1 97.9 97.8

4.406 110.6 94.8 97.5 100.2 95.0 96.2 94.1 95.2 94.9 94.8

0.313 114.7 134.4 137.6 139.4 139.4 139.4 139.4 139.4 139.4 139.4

0.190 139.9 170.7 177.3 180.2 172.0 172.5 172.5 174.5 174.5 174.5

0.376 120.5 204.0 228.2 230.8 265.5 270.3 299.7 280.3 264.7 293.0

0.300 117.9 182.8 192.5 191.8 196.1 196.1 196.1 196.1 196.1 196.1

0.173 113.3 215.9 232.0 237.0 237.6 237.6 237.6 237.6 237.6 237.6

2.044 117.0 194.3 202.7 203.9 204.8 205.0 204.7 204.2 204.0 204.0

1.229 122.9 175.7 189.1 191.4 189.7 190.0 189.4 188.6 188.2 188.2

0.237 113.0 164.3 165.6 167.0 166.2 166.8 166.8 166.8 166.8 166.8

0.578 106.2 246.2 247.0 245.6 252.7 252.7 252.7 252.7 252.7 252.7


CURRENT

STATISTICS

Prices

No. 40: Index Numbers of Wholesale Prices in India — by Groups and Sub-groups(Month-end/Year-end) (Contd.)

(Base : 1993-94 = 100)



1 2 3 4 5 6 7 8 9 10 11 12

(F) Leather & Leather Products

(G) Rubber & Plastic Products

a. Tyres & Tubes

a1. Tyres

a2. Tubes

b. Plastic Products

c. Other Rubber & Plastic

Products

(H) Chemicals &

Chemical Products

a. Basic Heavy Inorganic

Chemicals

b. Basic Heavy Organic

Chemicals

c. Fertilisers & Pesticides

c1. Fertilisers

c2. Pesticides

d. Paints, Varnishes &

Lacquers

e. Dyestuffs & Indigo

f. Drugs & Medicines

g. Perfumes, Cosmetics,

Toiletries, etc.

h. Turpentine, Synthetic

Resins, Plastic Materials

etc.

i. Matches, Explosives &

Other Chemicals n.e.c.

(I) Non-Metallic Mineral

Products

a. Structural Clay Products

b. Glass, Earthernware,

Chinaware &

Their Products

c. Cement

d. Cement, Slate &

Graphite Products

1.019 117.8 166.1 167.9 168.3 166.2 166.2 166.2 166.2 166.2 166.2

2.388 117.0 159.1 166.4 169.2 168.1 170.2 169.3 169.0 169.6 169.4

1.286 119.6 156.9 167.3 170.5 172.9 175.2 175.2 175.2 175.2 175.2

1.144 120.3 143.6 150.3 151.0 154.9 154.9 154.9 154.9 154.9 154.9

0.142 114.1 256.2 305.1 327.5 317.8 338.9 338.9 338.9 338.9 338.9

0.937 108.8 154.3 158.6 161.6 155.3 155.6 153.3 152.5 154.0 153.4

0.165 143.9 203.0 202.8 202.8 202.8 214.5 214.5 214.5 214.5 214.5

11.931 121.6 205.0 219.7 224.7 225.7 229.4 225.1 229.1 229.4 229.7

1.446 125.6 191.7 226.4 251.9 186.5 183.5 183.5 183.6 184.1 184.4

0.455 131.4 176.4 180.5 208.1 153.2 166.4 167.2 174.5 182.9 184.6

4.164 123.0 173.8 188.2 189.4 187.8 191.4 186.6 186.6 186.6 186.6

3.689 121.8 180.9 196.4 197.5 196.1 196.7 191.3 191.3 191.3 191.3

0.475 132.5 118.5 124.4 126.6 122.9 150.5 150.5 150.5 150.5 150.5

0.496 101.4 143.1 157.6 155.3 166.3 166.3 166.3 163.9 166.3 164.0

0.175 115.0 111.2 118.1 120.4 112.4 112.4 112.4 112.4 112.4 112.4

2.532 132.9 314.9 321.6 321.5 382.4 382.4 382.4 382.5 382.4 382.5

0.978 119.0 239.7 258.9 259.2 259.0 259.0 259.0 298.0 298.0 298.0

0.746 111.9 143.7 152.0 157.9 135.9 171.7 129.6 138.8 135.8 139.1

0.940 96.3 144.2 157.7 160.0 155.9 157.0 157.0 157.0 157.4 157.6

2.516 122.4 209.0 216.7 217.9 220.6 220.6 222.8 228.1 224.1 226.2

0.230 101.4 213.5 221.5 220.2 227.2 227.2 227.2 227.2 227.2 227.2

0.237 126.3 167.9 166.4 166.4 166.4 166.4 166.4 190.6 166.4 190.6

1.731 126.9 217.6 223.4 225.2 228.1 228.1 231.3 230.6 228.1 228.1

0.319 110.3 189.7 214.2 215.1 215.1 215.1 215.1 242.9 242.9 242.0


CURRENT

STATISTICS

Prices

No. 40: Index Numbers of Wholesale Prices in India — by Groups and Sub-groups(Month-end/Year-end) (Concld.)

(Base : 1993-94 = 100)



1 2 3 4 5 6 7 8 9 10 11 12

(J) Basic Metals Alloys &

Metals Products

a. Basic Metals & Alloys

a1. Iron & Steel

a2. Foundries for Casting,

Forging & Structurals

a3. Pipes, Wires

Drawing & Others

a4. Ferro Alloys

b. Non-Ferrous Metals

b1. Aluminium

b2. Other Non-Ferrous

Metals

c. Metal Products

(K) Machinery & Machine Tools

a. Non-Electrical

Machinery & Parts

a1. Heavy Machinery

& Parts

a2. Industrial Machinery

for Textiles, etc.

a3. Refrigeration &

Other Non-Electrical

Machinery

b. Electrical Machinery

b1. Electrical Industrial

Machinery

b2. Wires & Cables

b3. Dry & Wet Batteries

b4. Electrical Apparatus

& Appliances & Parts

(L) Transport Equipment

& Parts

a. Locomotives, Railway

Wagons & Parts

b. Motor Vehicles,

Motorcycles, Scooters,

Bicycles & Parts

8.342 115.6 250.0 284.5 298.1 255.0 254.9 254.9 254.3 255.4 260.4

6.206 112.7 256.7 306.9 323.7 270.7 270.7 270.5 270.4 270.3 277.8

3.637 112.6 280.6 335.4 359.4 285.6 286.4 286.1 286.6 286.6 297.5

0.896 113.5 245.6 301.2 301.9 296.4 292.1 292.1 292.1 292.1 292.1

1.589 112.9 213.8 252.8 263.5 229.0 229.7 229.5 229.9 229.8 233.8

0.085 102.9 155.5 158.7 152.9 142.2 142.2 142.2 103.5 103.5 103.5

1.466 130.8 264.5 247.8 254.1 232.3 231.9 232.7 233.5 236.6 237.2

0.853 132.4 248.2 245.0 250.8 225.8 225.8 225.8 225.8 227.1 227.1

0.613 128.6 287.2 251.7 258.8 241.3 240.4 242.3 244.1 249.9 251.3

0.669 108.7 155.9 158.1 157.4 158.7 158.7 158.7 150.7 158.4 150.5

8.363 109.0 166.7 174.6 176.5 171.5 172.0 172.3 172.2 172.2 173.2

3.379 111.1 199.6 210.1 211.2 209.1 209.3 210.9 210.8 210.7 210.8

1.822 114.8 207.3 222.7 223.8 221.6 221.8 224.6 224.7 224.1 224.5

0.568 108.4 260.6 258.6 258.8 258.0 258.4 258.4 257.4 258.4 257.4

0.989 106.0 150.4 159.1 160.6 157.9 158.0 158.5 158.5 158.5 158.7

4.985 107.5 144.5 150.5 153.0 146.0 146.8 146.2 146.1 146.1 147.7

1.811 108.8 161.1 169.8 168.4 172.1 172.1 171.8 172.0 172.2 172.0

1.076 119.0 230.6 237.4 249.5 212.1 215.8 213.6 212.8 212.8 220.5

0.275 109.7 163.5 176.5 177.4 175.5 175.6 175.6 174.5 174.5 174.5

1.823 99.2 74.2 76.0 77.1 76.6 76.6 76.6 76.6 76.6 76.6

4.295 110.6 166.8 175.7 177.1 175.4 175.3 175.3 175.8 176.0 175.8

0.318 105.4 131.9 142.5 141.8 143.9 143.9 143.9 143.9 143.9 143.9

3.977 111.0 169.6 178.3 179.9 177.9 177.8 177.8 178.4 178.6 178.4

Source : Office of the Economic Adviser, Ministry of Commerce & Industry, Government of India.


CURRENT

STATISTICS

Trade andBalance ofPayments

Trade and Balance of Payments

No. 41: Foreign Trade (Annual and Monthly)

Year/ Month Rupees crore US dollar million SDR million

Export Import Balance Export Import Balance Export Import Balance

1 2 3 4 5 6 7 8 9 10

2003-04 2,93,367 3,59,108 -65,741 63,843 78,149 -14,307 44,663 54,672 -10,0092004-05 3,75,340 5,01,065 -1,25,725 83,536 1,11,517 -27,981 56,081 74,866 -18,7852005-06 4,56,418 6,60,409 -2,03,991 1,03,091 1,49,166 -46,075 70,774 1,02,405 -31,6322006-07 5,71,779 8,40,506 -2,68,727 1,26,414 1,85,735 -59,321 84,996 1,24,928 -39,9322007-08 6,55,864 10,12,312 -3,56,448 1,62,904 2,51,439 -88,535 1,04,537 1,60,854 -56,3172008-09 8,39,978 13,40,588 -5,00,610 1,82,631 2,91,475 -1,08,844 1,10,766 1,82,863 -72,097

2007-08April 47,741 77,429 -29,688 11,327 18,371 -7,044 7,442 12,069 -4,628May 50,796 86,251 -35,455 12,456 21,150 -8,694 8,208 13,937 -5,729June 49,340 81,612 -32,272 12,101 20,016 -7,915 8,007 13,245 -5,237July 50,571 85,389 -34,818 12,513 21,129 -8,615 8,183 13,817 -5,634August 51,600 83,136 -31,536 12,641 20,366 -7,725 8,263 13,312 -5,050September 50,511 73,489 -22,978 12,521 18,217 -5,696 8,112 11,802 -3,690October 57,982 86,264 -28,282 14,675 21,833 -7,158 9,415 14,008 -4,592November 50,910 87,171 -36,261 12,909 22,104 -9,195 8,137 13,933 -5,796December 57,682 79,340 -21,658 14,625 20,117 -5,491 9,273 12,755 -3,482January 58,624 89,947 -31,323 14,889 22,844 -7,955 9,400 14,423 -5,023February 60,061 82,661 -22,601 15,116 20,804 -5,688 9,534 13,122 -3,588March 69,630 95,134 -25,504 17,254 23,574 -6,320 10,563 14,432 -3,869

2008-09 RApril 64,340 99,347 -35,007 16,076 24,823 -8,747 9,825 15,171 -5,346May 65,506 1,12,405 -46,899 15,550 26,684 -11,133 9,576 16,433 -6,856June 75,930 1,14,995 -39,065 17,732 26,855 -9,123 10,952 16,587 -5,635July 81,548 1,33,609 -52,061 19,036 31,189 -12,153 11,673 19,125 -7,452August 76,103 1,43,890 -67,787 17,724 33,512 -15,787 11,173 21,125 -9,952September 65,147 1,35,422 -70,275 14,298 29,722 -15,424 9,190 19,104 -9,914October 62,578 1,19,212 -56,634 12,861 24,501 -11,640 8,491 16,175 -7,684November 50,507 1,10,059 -59,552 10,308 22,461 -12,154 6,958 15,163 -8,205December 61,715 89,579 -27,864 12,690 18,419 -5,729 8,335 12,098 -3,763January 60,460 90,125 -29,665 12,381 18,455 -6,075 8,200 12,223 -4,023February 56,321 64,736 -8,415 11,433 13,141 -1,708 7,699 8,849 -1,150March 66,093 82,188 -16,095 12,902 16,043 -3,142 8,693 10,811 -2,117

2009-10 PApril 53,779 78,832 -25,053 10,743 15,747 -5,004 7,199 10,553 -3,354May 53,435 78,682 -25,247 11,010 16,212 -5,202 7,235 10,654 -3,419June 61,217 90,657 -29,440 12,815 18,977 -6,163 8,294 12,283 -3,989July 66,041 95,118 -29,077 13,623 19,621 -5,998 8,771 12,633 -3,862August 69,066 1,09,533 -40,467 14,289 22,661 -8,372 9,156 14,521 -5,365

R: Revised. P: Provisional. Source : DGCI & S and Ministry of Commerce & Industry.

Notes: 1. Data conversion has been done using period average exchange rates. 2. Monthly data may not add up to the annual data on account of revision in monthly figures.Also see ‘Notes on Tables’


CURRENT

STATISTICS


No. 42: India's Overall Balance of Payments

A. CURRENT ACCOUNTI. MerchandiseII. Invisibles (a+b+c)

a) Servicesi) Travelii) Transportationiii) Insuranceiv) G.n.i.e.v) Miscellaneous

of whichSoftware ServicesBusiness ServicesFinancial ServicesCommunication Services

b) Transfersi) Officialii) Private

c) Incomei) Investment Incomeii) Compensation of Employees

Total Current Account (I+II)

B. CAPITAL ACCOUNT1. Foreign Investment (a+b)

a) Foreign Direct Investment (i+ii)i) In India

EquityReinvested EarningsOther Capital

ii) AbroadEquityReinvested EarningsOther Capital

b) Portfolio Investmenti) In India

of whichFIIsGDRs/ADRs

ii) Abroad2. Loans (a+b+c)

a) External Assistancei) By Indiaii) To India

b) Commercial Borrowingsi) By Indiaii) To India

c) Short Term To Indiai) Suppliers’ Credit >180 days & Buyers’ Creditii) Suppliers’ Credit up to 180 days

3. Banking Capital (a+b)a) Commercial Banks

i) Assetsii) Liabilities

of which: Non-Resident Depositsb) Others

4. Rupee Debt Service5. Other CapitalTotal Capital Account (1 to 5)

C. ERRORS & OMISSIONSD. OVERALL BALANCE (Total Current Account, Capital

Account and Errors & Omissions (A+B+C))E. MONETARY MOVEMENTS (i+ii)

i) I.M.F.ii) Foreign Exchange Reserves (Increase – / Decrease +)


(Rs. crore)

2005-06 2006-07

Credit Debit Net Credit Debit Net

2 3 4 5 6 71

4,65,748 6,95,412 –2,29,664 5,82,871 8,62,833 –2,79,9623,97,660 2,11,733 1,85,927 5,17,146 2,81,567 2,35,5792,55,668 1,53,057 1,02,611 3,33,093 2,00,029 1,33,064

34,871 29,432 5,439 41,127 30,249 10,87828,023 36,928 –8,905 36,049 36,504 –455

4,694 4,965 –271 5,403 2,903 2,5001,396 2,343 –947 1,143 1,825 –682

1,86,684 79,389 1,07,295 2,49,371 1,28,548 1,20,823

1,04,632 5,954 98,678 1,41,356 10,212 1,31,14441,356 34,428 6,928 65,738 71,500 –5,762

5,355 4,265 1,090 14,010 13,460 5507,000 1,285 5,715 10,227 3,589 6,638

1,13,566 4,134 1,09,432 1,42,037 6,288 1,35,7492,970 2,103 867 2,864 1,723 1,141

1,10,596 2,031 1,08,565 1,39,173 4,565 1,34,60828,426 54,542 –26,116 42,016 75,250 –33,23427,633 51,112 –23,479 40,297 70,955 –30,658

793 3,430 –2,637 1,719 4,295 –2,5768,63,408 9,07,145 –43,737 11,00,017 11,44,400 –44,383

3,42,778 2,73,996 68,782 6,00,951 5,34,160 66,79140,690 27,265 13,425 1,06,464 71,554 34,91039,730 273 39,457 1,03,037 385 1,02,65226,512 273 26,239 74,354 385 73,96912,220 — 12,220 26,371 — 26,371

998 — 998 2,312 — 2,312960 26,992 –26,032 3,427 71,169 –67,742960 17,678 –16,718 3,427 60,138 –56,711

— 4,834 –4,834 — 4,868 –4,868— 4,480 –4,480 — 6,163 –6,163

3,02,088 2,46,731 55,357 4,94,487 4,62,606 31,8813,02,088 2,46,731 55,357 4,94,102 4,62,472 31,630

2,90,648 2,46,736 43,912 4,77,132 4,62,472 14,66011,438 — 11,438 16,961 — 16,961

— — — 385 134 2511,74,729 1,40,332 34,397 2,46,525 1,36,091 1,10,434

16,133 8,541 7,592 16,978 9,005 7,973106 390 –284 90 144 –54

16,027 8,151 7,876 16,888 8,861 8,02763,476 52,971 10,505 93,932 21,567 72,365

— 1,105 –1,105 2,837 4,361 –1,52463,476 51,866 11,610 91,095 17,206 73,88995,120 78,820 16,300 1,35,615 1,05,519 30,09685,766 78,114 7,652 1,15,125 1,00,196 14,929

9,354 706 8,648 20,490 5,323 15,16795,988 90,193 5,795 1,67,494 1,59,017 8,47791,200 89,569 1,631 1,65,656 1,58,660 6,996

3,369 17,711 –14,342 64,972 80,726 –15,75487,831 71,858 15,973 1,00,684 77,934 22,75079,190 66,733 12,457 89,950 70,376 19,574

4,788 624 4,164 1,838 357 1,481— 2,557 –2,557 — 725 –725

26,451 20,903 5,548 36,797 18,101 18,6966,39,946 5,27,981 1,11,965 10,51,767 8,48,094 2,03,673

— 2,332 –2,332 4,344 — 4,34415,03,354 14,37,458 65,896 21,56,128 19,92,494 1,63,634

— 65,896 –65,896 — 1,63,634 –1,63,634— — — — — —— 65,896 –65,896 — 1,63,634 –1,63,634

Items


CURRENT

STATISTICS


No. 42: India's Overall Balance of Payments (Contd.)
























(Rs. crore)

2007-08 PR 2008-09 P


8 9 10 11 12 131

6,67,757 10,36,289 –3,68,532 798,956 13,41,069 –5,42,1135,96,954 2,97,336 2,99,618 746,036 3,36,194 4,09,8423,61,932 2,10,873 1,51,059 465,795 2,37,017 2,28,778

45,524 37,173 8,351 50,226 43,371 6,85540,200 46,277 –6,077 50,923 58,326 –7,403

6,587 4,194 2,393 6,474 5,235 1,2391,330 1,520 –190 1,773 3,767 –1,994

2,68,291 1,21,709 1,46,582 356,399 1,26,318 2,30,081

1,62,020 12,299 1,49,721 215,588 12,698 2,02,89067,424 67,105 319 74,699 70,711 3,98812,918 12,581 337 18,021 13,576 4,445

9,683 3,459 6,224 9,893 4,574 5,3191,77,737 9,290 1,68,447 214,736 12,556 2,02,180

3,025 2,073 952 3,031 1,901 1,1301,74,712 7,217 1,67,495 211,705 10,655 2,01,050

57,285 77,173 –19,888 65,505 86,621 –21,11655,438 72,769 –17,331 61,717 80,557 –18,840

1,847 4,404 –2,557 3,788 6,064 –2,27612,64,711 13,33,625 –68,914 15,44,992 16,77,263 –1,32,271

10,92,961 9,12,173 1,80,788 7,43,485 7,31,725 11,7601,47,951 86,158 61,793 1,64,473 87,651 76,8221,37,935 501 1,37,434 1,59,354 775 1,58,5791,07,753 433 1,07,320 1,26,137 775 1,25,362

28,859 — 28,859 29,705 — 29,7051,323 68 1,255 3,512 — 3,512

10,016 85,657 –75,641 5,119 86,876 –81,75710,016 67,952 –57,936 5,119 68,597 –63,478

— 4,363 –4,363 — 4,985 –4,985— 13,342 –13,342 — 13,294 –13,294

9,45,010 8,26,015 1,18,995 5,79,012 6,44,074 –65,0629,44,066 8,25,718 1,18,348 5,78,342 6,42,548 –64,206

9,07,934 8,25,718 82,216 5,73,451 6,42,548 –69,09734,937 — 34,937 4,890 — 4,890

944 297 647 670 1,526 –8563,35,600 1,67,077 1,68,523 2,76,833 2,57,549 19,284

17,022 8,557 8,465 23,535 11,100 12,43597 113 –16 110 147 –37

16,925 8,444 8,481 23,425 10,953 12,4721,22,270 31,090 91,180 71,626 33,617 38,009

6,407 6,537 –130 9,265 3,653 5,6121,15,863 24,553 91,310 62,361 29,964 32,3971,96,308 1,27,430 68,878 1,81,672 2,12,832 –31,1601,71,182 1,27,430 43,752 1,77,840 1,77,677 163

25,126 — 25,126 3,832 35,155 –31,3232,23,977 1,76,829 47,148 2,94,488 3,14,356 –19,8682,23,661 1,75,115 48,546 2,93,926 3,11,612 –17,686

78,365 50,733 27,632 1,14,095 1,30,578 –16,4831,45,296 1,24,382 20,914 1,79,831 1,81,034 –1,2031,18,079 1,17,373 706 1,70,788 1,50,357 20,431

316 1,714 –1,398 562 2,744 –2,182— 488 –488 — 476 –476

83,687 45,885 37,802 58,878 37,197 21,68117,36,225 13,02,452 4,33,773 13,73,684 13,41,303 32,381

4,830 — 4,830 2,775 — 2,77530,05,766 26,36,077 3,69,689 29,21,451 30,18,566 –97,115

— 3,69,689 –3,69,689 97,115 — 97,115— — — — — —— 3,69,689 –3,69,689 97,115 — 97,115

Items


CURRENT

STATISTICS


























(Rs. crore)

Apr-Jun 2006 Jul-Sep 2006


14 15 16 17 18 191

1,34,880 2,11,953 –77,073 1,51,636 225,903 –74,2671,13,377 56,479 56,898 1,15,305 67,687 47,618

72,944 38,537 34,407 76,122 46,213 29,9097,766 6,766 1,000 8,328 8,398 –707,798 9,081 –1,283 9,149 9,172 –231,082 587 495 1,461 714 747

182 359 –177 283 566 –28356,116 21,744 34,372 56,901 27,363 29,538

32,007 1,887 30,120 33,020 1,878 31,14215,396 12,032 3,364 15,933 15,302 631

2,314 1,446 868 3,320 3,260 602,160 491 1,669 2,638 835 1,803

32,603 1,314 31,289 28,833 1,674 27,159314 373 –59 552 464 88

32,289 941 31,348 28,281 1,210 27,0717,830 16,628 –8,798 10,350 19,800 –9,4507,544 15,737 –8,193 10,016 18,743 –8,727

286 891 –605 334 1,057 –7232,48,257 2,68,432 –20,175 2,66,941 2,93,590 –26,649

1,55,960 1,50,357 5,603 1,04,262 84,482 19,78015,810 7,906 7,904 21,074 11,263 9,81115,519 36 15,483 20,402 9 20,393

8,849 36 8,813 13,382 9 13,3736,625 — 6,625 6,756 — 6,756

45 — 45 264 — 264291 7,870 –7,579 672 11,254 –10,582291 5,406 –5,115 672 8,662 –7,990

— 1,223 –1,223 — 1247 –1,247— 1,241 –1,241 — 1,345 –1,345

1,40,150 1,42,451 –2,301 83,188 73,219 9,9691,40,055 1,42,446 –2,391 83,137 73,214 9,923

1,34,321 1,42,446 –8,125 81,004 73,214 7,7905,734 — 5,734 2,133 — 2,133

95 5 90 51 5 4652,288 28,591 23,697 52,065 29,890 22,175

2,624 2,391 233 3,654 2,082 1,57223 36 –13 23 37 –14

2,601 2,355 246 3,631 2,045 1,58622,968 4,879 18,089 12,428 4,266 8,162

396 1,014 –618 529 788 –25922,572 3,865 18,707 11,899 3,478 8,42126,696 21,321 5,375 35,983 23,542 12,44123,108 21,321 1,787 30,507 23,542 6,965

3,588 — 3,588 5,476 — 5,47645,057 22,044 23,013 26,682 34,648 –7,96644,730 22,044 22,686 26,682 34,444 –7,76223,904 8,535 15,369 7,271 16,475 –9,20420,826 13,509 7,317 19,411 17,969 1,44219,307 13,387 5,920 19,406 15,196 4,210

327 — 327 — 204 –204— 305 –305 — — —

1,555 4,793 –3,238 5,027 2,569 2,4582,54,860 2,06,090 48,770 1,88,036 1,51,589 36,447

411 — 411 728 — 7285,03,528 4,74,522 29,006 4,55,705 4,45,179 10,526

— 29,006 –29,006 — 10,526 –10,526— — — — — —— 29,006 –29,006 — 10,526 –10,526

Items


CURRENT

STATISTICS


























(Rs. crore)

Oct-Dec 2006 Jan-Mar 2007


20 21 22 23 24 251

1,38,660 2,12,583 –73,923 1,57,695 2,12,394 –54,6991,33,622 75,911 57,711 1,54,842 81,490 73,352

83,001 55,650 27,351 1,01,026 59,629 41,39711,790 7,368 4,422 13,243 7,717 5,526

9,411 9,456 –45 9,691 8,795 8961,296 904 392 1,564 698 866

391 436 –45 287 464 –17760,113 37,486 22,627 76,241 41,955 34,286

34,197 3,077 31,120 42,132 3,370 38,76216,599 19,195 –2,596 17,810 24,971 –7,161

3,725 2,910 815 4,651 5,844 –1,1932,686 1,075 1,611 2,743 1,188 1,555

40,311 1,498 38,813 40,290 1,802 38,4881,291 400 891 707 486 221

39,020 1,098 37,922 39,583 1,316 38,26710,310 18,763 –8,453 13,526 20,059 –6,533

9,865 17,706 –7,841 12,872 18,769 –5,897445 1,057 –612 654 1,290 –636

2,72,282 2,88,494 –16,212 3,12,537 2,93,884 18,653

1,73,846 1,44,755 29,091 1,66,883 1,54,566 12,31745,020 31,983 13,037 24,560 20,402 4,15844,332 31 44,301 22,784 309 22,47536,901 31 36,870 15,222 309 14,913

6,554 — 6,554 6,436 — 6,436877 — 877 1,126 — 1,126688 31,952 –31,264 1,776 20,093 –18,317688 29,033 –28,345 1,776 17,037 –15,261

— 1,210 –1,210 — 1,188 –1,188— 1,709 –1,709 — 1,868 –1,868

1,28,826 1,12,772 16,054 1,42,323 1,34,164 8,1591,28,768 1,12,745 16,023 1,42,142 1,34,067 8,0751,27,837 1,12,745 15,092 1,33,970 1,34,067 –97

931 — 931 8,163 — 8,16358 27 31 181 97 84

66,266 37,112 29,154 75,906 40,498 35,4085,006 2222 2,784 5,694 2,310 3,384

22 36 –14 22 35 –134,984 2,186 2,798 5,672 2,275 3,397

24,373 6,158 18,215 34,163 6,264 27,8991,912 1,552 360 — 1,007 –1,007

22,461 4,606 17,855 34,163 5,257 28,90636,887 28,732 8,155 36,049 31,924 4,12525,461 28,732 –3,271 36,049 26,601 9,44811,426 — 11,426 — 5,323 –5,32332,209 46,213 –14,004 63,546 56,112 7,43431,237 46,060 –14,823 63,007 56,112 6,895

2,501 20,378 –17,877 31,296 35,338 –4,04228,736 25,682 3,054 31,711 20,774 10,93728,453 21,871 6,582 22,784 19,922 2,862

972 153 819 539 — 539— 9 –9 — 411 –411

8,889 4471 4,418 21,326 6,268 15,058281,210 2,32,560 48,650 3,27,661 2,57,855 69,806

1323 — 1,323 1,882 — 1,8825,54,815 5,21,054 33,761 6,42,080 5,51,739 90,341

— 33,761 –33,761 — 90,341 –90,341— — — — — —— 33,761 –33,761 — 90,341 –90,341

Items


CURRENT

STATISTICS


























(Rs. crore)

Apr-Jun 2007 PR Jul-Sep 2007 PR


26 27 28 29 30 311

1,41,665 2,32,339 –90,674 1,55,101 2,41,164 –86,0631,23,208 60,079 63,129 1,37,838 69,189 68,649

77,892 40,889 37,003 83,430 46,964 36,4668,610 7,859 751 9,110 8,295 8158,053 10,416 –2,363 8,474 10,370 –1,8961,538 763 775 1,382 1,151 231

388 454 –66 276 519 –24359,303 21,397 37,906 64,188 26,629 37,559

36,435 2,800 33,635 36,675 3,246 33,42915,496 13,042 2,454 15,780 14,334 1,446

2,177 1,851 326 3,712 2,845 8672,115 953 1,162 2,484 729 1,755

35,577 1,781 33,796 39,341 1,654 37,687631 680 –49 640 454 186

34,946 1,101 33,845 38,701 1,200 37,5019,739 17,409 –7,670 15,067 20,571 –5,5049,397 16,593 –7,196 14,621 19,363 –4,742

342 816 –474 446 1,208 –7622,64,873 2,92,418 –27,545 2,92,939 3,10,353 –17,414

1,77,448 1,35,067 42,381 2,19,666 1,66,874 52,79234,101 22,818 11,283 22,297 13,673 8,62430,831 82 30,749 19,160 77 19,08322,984 82 22,902 11,436 77 11,359

7,389 — 7,389 7,262 — 7,262458 — 458 462 — 462

3,270 22,736 –19,466 3,137 13,596 –10,4593,270 19,619 –16,349 3,137 10,192 –7,055

— 1,117 –1,117 — 1,098 –1,098— 2,000 –2,000 — 2,306 –2,306

1,43,347 1,12,249 31,098 1,97,369 1,53,201 44,1681,43,108 1,12,224 30,884 1,97,349 1,53,108 44,241

1,41,455 1,12,224 29,231 1,87,221 1,53,108 34,1131,303 — 1,303 10,038 — 10,038

239 25 214 20 93 –7369,064 31,311 37,753 80,003 42,296 37,707

3,019 2,025 994 3,983 2,087 1,89625 29 –4 24 28 –4

2,994 1,996 998 3,959 2,059 1,90034,187 5,518 28,669 25,490 8,429 17,061

1,480 1,423 57 1,795 2,038 –24332,707 4,095 28,612 23,695 6,391 17,30431,858 23,768 8,090 50,530 31,780 18,75028,382 23,768 4,614 44,626 31,780 12,846

3,476 — 3,476 5,904 — 5,90435,297 39,086 –3,789 55,576 28,656 26,92035,297 39,061 –3,764 55,479 28,368 27,11110,486 11,797 –1,311 17,847 1,451 16,39624,811 27,264 –2,453 37,632 26,917 10,71521,656 23,499 –1,843 28,266 26,771 1,495

— 25 –25 97 288 –191— 177 –177 — 8 –8

4,746 7,550 –2,804 29,899 12,952 16,9472,86,555 2,13,191 73,364 3,85,144 2,50,786 1,34,358

364 — 364 1,535 — 1,5355,51,792 5,05,609 46,183 6,79,618 5,61,139 1,18,479

— 46,183 –46,183 — 1,18,479 –1,18,479— — — — — —— 46,183 –46,183 — 1,18,479 –1,18,479

Items


CURRENT

STATISTICS


























(Rs. crore)

Oct-Dec 2007 PR Jan-Mar 2008PR


32 33 34 35 36 371

1,61,737 2,64,548 –1,02,811 2,09,254 2,98,238 –88,9841,56,086 71,154 84,932 1,79,823 96,914 82,909

97,149 49,691 47,458 1,03,462 73,329 30,13313,397 9,941 3,456 14,407 11,078 3,32911,046 12,008 –962 12,627 13,483 –856

1,728 1,030 698 1,939 1,250 689355 296 59 311 251 60

70,622 26,416 44,206 74,178 47,267 26,911

37,915 3,362 34,553 50,995 2,891 48,10418,105 16,752 1,353 18,043 22,977 –4,934

3,481 3,011 470 3,548 4,874 –1,3262,372 722 1,650 2,712 1,055 1,657

45,098 1,945 43,153 57,721 3,910 53,811770 477 293 984 462 522

44,328 1,468 42,860 56,737 3,448 53,28913,839 19,518 –5,679 18,640 19,675 –1,03513,421 18,464 –5,043 17,999 18,349 –350

418 1,054 –636 641 1,326 –6853,17,823 3,35,702 –17,879 3,89,077 3,95,152 –6,075

3,41,473 2,74,812 66,661 3,54,374 3,35,420 18,95432,817 24,762 8,055 58,736 24,905 33,83131,239 170 31,069 56,705 172 56,53323,764 170 23,594 49,569 104 49,465

7,072 — 7,072 7,136 — 7,136403 — 403 — 68 –68

1,578 24,592 –23,014 2,031 24,733 –22,7021,578 20,544 –18,966 2,031 17,597 –15,566

— 1,069 –1,069 — 1,079 –1,079— 2,979 –2,979 — 6,057 –6,057

3,08,656 2,50,050 58,606 2,95,638 3,10,515 –14,8773,08,186 2,49,975 58,211 2,95,423 3,10,411 –14,988

2,85,349 2,49,975 35,374 2,93,909 3,10,411 –16,50222,087 — 22,087 1,509 — 1,509

470 75 395 215 104 11185,014 41,834 43,180 1,01,519 51,636 49,883

4,377 2,147 2,230 5,643 2,298 3,34524 28 –4 24 28 –4

4,353 2,119 2,234 5,619 2,270 3,34933,341 8,689 24,652 29,252 8,454 20,798

1,432 1,515 –83 1,700 1,561 13931,909 7,174 24,735 27,552 6,893 20,65947,296 30,998 16,298 66,624 40,884 25,74040,374 30,998 9,376 57,800 40,884 16,916

6,922 — 6,922 8,824 — 8,82449,675 48,858 817 83,429 60,229 23,20049,663 47,469 2,194 83,222 60,217 23,00522,241 15,544 6,697 27,791 21,941 5,85027,422 31,925 –4,503 55,431 38,276 17,15525,477 28,843 –3,366 42,680 38,260 4,420

12 1,389 –1,377 207 12 195— — — — 303 –303

26,093 14,349 11,744 22,949 11,034 11,9155,02,255 3,79,853 1,22,402 5,62,271 4,58,622 1,03,649

992 — 992 1,938 — 1,9388,21,070 7,15,555 1,05,515 9,53,286 8,53,774 99,512

— 1,05,515 –1,05,515 — 99,512 –99,512— — — — — —— 1,05,515 –1,05,515 — 99,512 –99,512

Items


CURRENT

STATISTICS


























(Rs. crore)



38 39 40 41 42 431

2,04,614 3,35,517 –1,30,903 2,14,463 3,83,785 –1,69,3221,62,205 68,870 93,335 2,00,056 85,511 1,14,545

96,055 47,658 48,397 1,21,848 60,307 61,54110,431 9,014 1,417 12,197 11,838 35910,876 13,863 –2,987 12,976 16,391 –3,415

1,458 950 508 1,607 1,340 267542 458 84 355 416 –61

72,748 23,373 49,375 94,713 30,322 64,391

50,637 3,570 47,067 53,499 4,045 49,45414,788 13,051 1,737 21,189 17,442 3,747

2,537 2,616 –79 7,311 4,225 3,0862,124 941 1,183 3,240 1,296 1,944

51,266 2,725 48,541 60,061 3,630 56,431617 446 171 223 425 –202

50,649 2,279 48,370 59,838 3,205 56,63314,884 18,487 –3,603 18,147 21,574 –3,42714,238 17,112 –2,874 16,877 20,121 –3,244

646 1,375 –729 1,270 1,453 –1833,66,819 4,04,387 –37,568 4,14,519 4,69,296 –54,777

2,20,364 2,00,553 19,811 2,26,665 2,10,948 15,71750,558 13,205 37,353 40,028 18,576 21,45249,562 92 49,470 38,636 228 38,40842,656 92 42,564 31,977 228 31,749

6,215 — 6,215 6,532 — 6,532691 — 691 127 — 127996 13,113 –12,117 1,392 18,348 –16,956996 9,772 –8,776 1,392 14,999 –13,607

— 1,129 –1,129 — 1,186 –1,186— 2,212 –2,212 — 2,163 –2,163

1,69,806 1,87,348 –17,542 1,86,637 1,92,372 –5,7351,69,727 1,87,131 –17,404 1,86,580 1,92,276 –5,696

1,65,566 1,87,131 –21,565 1,85,984 1,92,276 –6,2924,161 — 4,161 595 — 595

79 217 –138 57 96 –3957,673 40,114 17,559 71,282 55,958 15,324

3,787 2,324 1,463 4,794 2,526 2,26825 33 –8 26 35 –9

3,762 2,291 1,471 4,768 2,491 2,27711,497 5,386 6,111 15,664 8,265 7,399

1,683 804 879 2,329 604 1,7259,814 4,582 5,232 13,335 7,661 5,674

42,389 32,404 9,985 50,824 45,167 5,65738,557 32,404 6,153 50,824 42,755 8,069

3,832 — 3,832 — 2,412 –2,41291,443 80,212 11,231 70,958 61,659 9,29991,443 79,583 11,860 70,958 61,646 9,31247,725 43,876 3,849 28,220 22,564 5,65643,718 35,707 8,011 42,738 39,082 3,65637,753 34,362 3,391 40,163 39,030 1,133

— 629 –629 — 13 –13— 125 –125 — 13 –13

9,064 11,155 –2,091 3,345 10,551 –7,206378,544 3,32,159 46,385 3,72,250 3,39,129 33,121

493 — 493 931 — 931745,856 7,36,546 9,310 7,87,700 8,08,425 –20,725

— 9,310 –9,310 20,725 — 20,725— — — — — —— 9,310 –9,310 20,725 — 20,725

Items


CURRENT

STATISTICS


No. 42: India's Overall Balance of Payments (Concld.)
























(Rs. crore)

1

Items

Credit Debit Net Credit Debit Net Credit Debit Net

44 45 46 47 48 49 50 51 52

1,81,677 3,50,904 -1,69,227 1,98,202 2,70,863 -72,661 1,89,246 3,16,030 -1,26,7851,96,319 90,646 1,05,673 1,87,456 91,167 96,289 1,88,733 90,284 98,4491,27,149 63,016 64,133 1,20,743 66,036 54,707 1,09,235 65,139 44,096

14,258 9,523 4,735 13,340 12,996 344 11,155 9,779 1,37612,542 15,653 -3,111 14,529 12,419 2,110 12,147 13,548 -1,402

1,677 1,312 365 1,732 1,633 99 1,888 1,532 356473 1,136 -663 403 1,757 -1,354 487 501 -14

98,199 35,392 62,807 90,739 37,231 53,508 83,558 39,778 43,780

55,804 2,828 52,976 55,648 2,255 53,393 52,517 1,909 50,60819,564 17,262 2,302 19,158 22,956 -3,798 12,619 17,785 -5,166

4,335 3,584 751 3,838 3,151 687 5,447 4,526 9212,399 1,058 1,341 2,130 1,279 851 2,039 1,523 516

53,610 4,116 49,494 49,799 2,085 47,714 65,102 2,274 62,8281,390 478 912 801 552 249 222 520 -298

52,220 3,638 48,582 48,998 1,533 47,465 64,880 1,754 63,12615,560 23,514 -7,954 16,914 23,046 -6,132 14,395 22,871 -8,47614,629 21,851 -7,222 15,973 21,473 -5,500 13,287 21,224 -7,937

931 1,663 -732 941 1,573 -632 1,109 1,647 -5383,77,996 4,41,550 -63,554 3,85,658 3,62,030 23,628 3,77,979 4,06,315 -28,336

1,61,708 1,87,922 -26,214 1,34,748 1,32,302 2,446 2,35,346 1,61,668 73,67832,008 29,842 2,166 41,879 26,028 15,851 46,898 13,560 33,33830,974 141 30,833 40,182 314 39,868 46,289 141 46,14920,037 141 19,896 31,467 314 31,153 36,109 141 35,968

8,392 — 8,392 8,566 — 8,566 8,274 — 8,2742,545 — 2,545 149 — 149 1,907 — 1,9071,034 29,701 -28,667 1,697 25,714 -24,017 608 13,419 -12,8111,034 21,890 -20,856 1,697 21,936 -20,239 608 10,017 -9,409

— 1,321 -1,321 — 1,349 -1,349 — 1,322 -1,322— 6,490 -6,490 — 2,429 -2,429 — 2,080 -2,080

1,29,700 1,58,080 -28,380 92,869 1,06,274 -13,405 1,88,449 1,48,108 40,3401,29,554 1,57,773 -28,219 92,481 1,05,368 -12,887 1,88,337 1,47,987 40,350

1,29,520 1,57,773 -28,253 92,381 1,05,368 -12,987 1,88,127 1,47,987 40,14034 — 34 100 — 100 210 — 210

146 307 -161 388 906 -518 112 121 -977,133 72,823 4,310 70,745 88,654 -17,909 63,611 79,990 -16,378

8,070 3,233 4,837 6,884 3,017 3,867 4,004 3,593 41129 39 -10 30 40 -10 64 568 -504

8,041 3,194 4,847 6,854 2,977 3,877 3,940 3,025 91526,566 7,627 18,939 17,899 12,339 5,560 10,205 11,943 -1,737

3,262 727 2,535 1,991 1,518 473 1,190 1,624 -43423,304 6,900 16,404 15,908 10,821 5,087 9,015 10,318 -1,30342,497 61,963 -19,466 45,962 73,298 -27,336 49,401 64,454 -15,05242,497 50,504 -8,007 45,962 52,014 -6,052 49,401 46,787 2,614

— 11,459 -11,459 — 21,284 -21,284 — 17,666 -17,66672,219 96,385 -24,166 59,868 76,100 -16,232 75,997 92,417 -16,42072,209 94,283 -22,074 59,316 76,100 -16,784 75,996 91,253 -15,25625,318 36,772 -11,454 12,832 27,366 -14,534 21,310 33,889 -12,57946,891 57,511 -10,620 46,484 48,734 -2,250 54,686 57,364 -2,67846,437 41,356 5,081 46,435 35,609 10,826 54,504 45,639 8,866

10 2,102 -2,092 552 — 552 1 1,165 -1,163— — — — 338 -338 — 110 -110

27,649 2,380 25,269 18,820 13,111 5,709 7,982 15,888 -7,9053,38,709 3,59,510 -20,801 2,84,181 3,10,505 -26,324 3,82,937 3,50,073 32,864

— 2,838 -2,838 4,189 — 4,189 — 3,967 -3,9677,16,705 8,03,898 -87,193 6,74,028 6,72,535 1,493 7,60,916 7,60,355 561

87,193 — 87,193 — 1,493 -1,493 — 561 -561— — - — — — — — —

87,193 — 87,193 — 1,493 -1,493 — 561 -561

Oct-Dec 2008 PR Apr-Jun 2009 PJan-Mar 2009 P


CURRENT

STATISTICS


Items

No. 43: India's Overall Balance of Payments
























(US $ million)

2005-06 2006-07


2 3 4 5 6 71

105,152 157,056 –51,904 128,888 190,670 –61,78289,687 47,685 42,002 114,558 62,341 52,21757,659 34,489 23,170 73,780 44,311 29,469

7,853 6,638 1,215 9,123 6,684 2,4396,325 8,337 –2,012 7,974 8,068 –941,062 1,116 –54 1,195 642 553

314 529 –215 253 403 –15042,105 17,869 24,236 55,235 28,514 26,721

23,600 1,338 22,262 31,300 2,267 29,0339,307 7,748 1,559 14,544 15,866 –1,3221,209 965 244 3,106 2,991 1151,575 289 1,286 2,262 796 1,466

25,620 933 24,687 31,470 1,391 30,079669 475 194 635 381 254

24,951 458 24,493 30,835 1,010 29,8256,408 12,263 –5,855 9,308 16,639 –7,3316,229 11,491 –5,262 8,926 15,688 –6,762

179 772 –593 382 951 –569194,839 204,741 –9,902 243,446 253,011 –9,565

77,298 61,770 15,528 133,210 118,457 14,7539,178 6,144 3,034 23,590 15,897 7,6938,962 61 8,901 22,826 87 22,7395,976 61 5,915 16,481 87 16,3942,760 — 2,760 5,828 — 5,828

226 — 226 517 — 517216 6,083 –5,867 764 15,810 –15,046216 3,982 –3,766 764 13,368 –12,604

— 1,092 –1,092 — 1,076 –1,076— 1,009 –1,009 — 1,366 –1,366

68,120 55,626 12,494 109,620 102,560 7,06068,120 55,626 12,494 109,534 102,530 7,004

65,552 55,626 9,926 105,756 102,530 3,2262,552 — 2,552 3,776 — 3,776

— — — 86 30 5639,479 31,570 7,909 54,642 30,152 24,490

3,631 1,929 1,702 3,767 1,992 1,77524 88 –64 20 32 –12

3,607 1,841 1,766 3,747 1,960 1,78714,343 11,835 2,508 20,883 4,780 16,103

— 251 –251 626 966 –34014,343 11,584 2,759 20,257 3,814 16,44321,505 17,806 3,699 29,992 23,380 6,61219,372 17,647 1,725 25,482 22,175 3,307

2,133 159 1,974 4,510 1,205 3,30521,658 20,285 1,373 37,209 35,296 1,91320,586 20,144 442 36,799 35,218 1,581

772 3,947 –3,175 14,466 17,960 –3,49419,814 16,197 3,617 22,333 17,258 5,07517,835 15,046 2,789 19,914 15,593 4,321

1,072 141 931 410 78 332— 572 –572 — 162 –162

5,941 4,709 1,232 8,230 4,021 4,209144,376 118,906 25,470 233,291 188,088 45,203

— 516 –516 968 — 968339,215 324,163 15,052 477,705 441,099 36,606

— 15,052 –15,052 — 36,606 –36,606— — — — — —— 15,052 –15,052 — 36,606 –36,606



CURRENT

STATISTICS


























(US $ million)


8 9 10 11 12 131

166,163 257,789 –91,626 175,184 294,587 –119,403148,604 74,012 74,592 162,556 72,970 89,586

90,077 52,512 37,565 101,224 51,406 49,81811,349 9,254 2,095 10,894 9,432 1,46210,014 11,514 –1,500 11,066 12,777 –1,711

1,639 1,044 595 1,409 1,131 278330 376 –46 389 791 –402

66,745 30,324 36,421 77,466 27,275 50,191

40,300 3,058 37,242 47,000 2,814 44,18616,771 16,715 56 16,251 15,269 982

3,217 3,138 79 3,939 2,961 9782,408 859 1,549 2,170 996 1,174

44,259 2,315 41,944 47,025 2,746 44,279753 514 239 645 413 232

43,506 1,801 41,705 46,380 2,333 44,04714,268 19,185 –4,917 14,307 18,818 –4,51113,808 18,089 –4,281 13,482 17,499 –4,017

460 1,096 –636 825 1,319 –494314,767 331,801 –17,034 337,740 367,557 –29,817

272,762 227,805 44,957 164,909 161,447 3,46236,838 21,437 15,401 36,258 18,762 17,49634,361 125 34,236 35,148 166 34,98226,866 108 26,758 27,975 166 27,809

7,168 — 7,168 6,426 — 6,426327 17 310 747 — 747

2,477 21,312 –18,835 1,110 18,596 –17,4862,477 16,898 –14,421 1,110 14,668 –13,558

— 1,084 –1,084 — 1,084 –1,084— 3,330 –3,330 — 2,844 –2,844

235,924 206,368 29,556 128,651 142,685 –14,034235,688 206,294 29,394 128,511 142,366 –13,855

226,621 206,294 20,327 127,349 142,366 –15,0178,769 — 8,769 1,162 — 1,162

236 74 162 140 319 –17983,528 41,598 41,930 60,158 55,157 5,001

4,241 2,127 2,114 5,042 2,404 2,63824 28 –4 24 32 –8

4,217 2,099 2,118 5,018 2,372 2,64630,376 7,743 22,633 15,382 7,224 8,158

1,592 1,624 –32 2,005 785 1,22028,784 6,119 22,665 13,377 6,439 6,93848,911 31,728 17,183 39,734 45,529 –5,79542,641 31,728 10,913 38,814 38,352 462

6,270 — 6,270 920 7,177 –6,25755,813 44,056 11,757 64,998 68,395 –3,39755,734 43,624 12,110 64,885 67,810 –2,92519,562 12,668 6,894 25,673 28,726 –3,05336,172 30,956 5,216 39,212 39,084 12829,401 29,222 179 37,089 32,799 4,290

79 432 –353 113 585 –472— 121 –121 — 101 –101

20,904 11,434 9,470 12,391 8,210 4,181433,007 325,014 107,993 302,456 293,310 9,146

1205 — 1,205 591 — 591748,979 656,815 92,164 640,787 660,867 –20,080

— 92,164 –92,164 20,080 — 20,080— — — — — —— 92164 –92,164 20,080 — 20,080

2007-08 PR 2008-09 PItems


CURRENT

STATISTICS


Items
























i) I.M.F.ii) Foreign Exchange Reserves (Increase — / Decrease +)

(US $ million)

Apr-Jun 2006 Jul-Sep 2006


14 15 16 17 18 191

29,663 46,613 –16,950 32,701 48,717 –16,016 24,934 12,421 12,513 24,866 14,597 10,269 16,042 8,475 7,567 16,416 9,966 6,450 1,708 1,488 220 1,796 1,811 –15 1,715 1,997 –282 1,973 1,978 –5 238 129 109 315 154 161 40 79 –39 61 122 –61 12,341 4,782 7,559 12,271 5,901 6,370

7,039 415 6,624 7,121 405 6,716 3,386 2,646 740 3,436 3,300 136 509 318 191 716 703 13 475 108 367 569 180 389 7,170 289 6,881 6,218 361 5,857 69 82 –13 119 100 19 7,101 207 6,894 6,099 261 5,838 1,722 3,657 –1,935 2,232 4,270 –2,038 1,659 3,461 –1,802 2,160 4,042 –1,882 63 196 –133 72 228 –156 54,597 59,034 –4,437 57,567 63,314 –5,747

34,299 33,067 1,232 22,485 18,219 4,266 3,477 1,739 1,738 4,545 2,429 2,116 3,413 8 3,405 4,400 2 4,398 1,946 8 1,938 2,886 2 2,884 1,457 — 1,457 1,457 — 1,457 10 — 10 57 — 57 64 1,731 –1,667 145 2,427 –2,282 64 1,189 –1,125 145 1,868 –1,723

— 269 –269 — 269 –269 — 273 –273 — 290 –290

30,822 31,328 –506 17,940 15,790 2,150 30,801 31,327 –526 17,929 15,789 2,140

29,540 31,327 –1,787 17,469 15,789 1,6801,261 — 1261 460 — 460

21 1 20 11 1 10 11,499 6,288 5,211 11,228 6,446 4,782 577 526 51 788 449 339 5 8 –3 5 8 –3 572 518 54 783 441 342 5,051 1,073 3,978 2,680 920 1,760 87 223 –136 114 170 –56 4,964 850 4,114 2,566 750 1,816 5,871 4,689 1,182 7,760 5,077 2,683 5,082 4,689 393 6,579 5,077 1,502 789 — 789 1,181 — 1,181 9,909 4,848 5,061 5,754 7,472 –1,718 9,837 4,848 4,989 5,754 7,428 –1,674 5,257 1,877 3,380 1,568 3,553 –1,985 4,580 2,971 1,609 4,186 3,875 311 4,246 2,944 1,302 4,185 3,277 908 72 — 72 — 44 –44

— 67 –67 — — — 342 1,054 –712 1,084 554 530 56,049 45,324 10,725 40,551 32,691 7,860 91 — 91 157 — 157

110,737 104,358 6,379 98,275 96,005 2,270

— 6,379 –6,379 — 2,270 –2,270 — — — — — — — 6,379 –6,379 — 2,270 –2,270


CURRENT

STATISTICS


























(US $ million)


20 21 22 23 24 251

30,824 47,257 –16,433 35,700 48,083 –12,383 29,704 16,875 12,829 35,054 18,448 16,606 18,451 12,371 6,080 22,871 13,499 9,372 2,621 1,638 983 2,998 1,747 1,251 2,092 2,102 –10 2,194 1,991 203 288 201 87 354 158 196 87 97 –10 65 105 –40 13,363 8,333 5,030 17,260 9,498 7,762

7,602 684 6,918 9,538 763 8,775 3,690 4,267 –577 4,032 5,653 –1,621 828 647 181 1,053 1,323 –270 597 239 358 621 269 352 8,961 333 8,628 9,121 408 8,713 287 89 198 160 110 50 8,674 244 8,430 8,961 298 8,663 2,292 4,171 –1,879 3,062 4,541 –1,479 2,193 3,936 –1,743 2,914 4,249 –1,335 99 235 –136 148 292 –144 60,528 64,132 –3,604 70,754 66,531 4,223

38,646 32,179 6,467 37,780 34,992 2,788 10,008 7,110 2,898 5,560 4,619 941 9,855 7 9,848 5,158 70 5,088 8,203 7 8,196 3,446 70 3,376 1,457 — 1,457 1,457 — 1,457 195 — 195 255 — 255 153 7,103 –6,950 402 4,549 –4,147 153 6,454 –6,301 402 3,857 –3,455

— 269 –269 — 269 –269 — 380 –380 — 423 –423

28,638 25,069 3,569 32,220 30,373 1,847 28,625 25,063 3,562 32,179 30,351 1,828

28418 25063 3355 30329 30351 –22207 — 207 1848 — 1848 13 6 7 41 22 19

14,731 8,250 6,481 17,184 9,168 8,016 1,113 494 619 1,289 523 766 5 8 –3 5 8 –3 1,108 486 622 1,284 515 769 5,418 1,369 4,049 7,734 1,418 6,316 425 345 80 — 228 –228 4,993 1,024 3,969 7,734 1,190 6,544 8,200 6,387 1,813 8,161 7,227 934 5,660 6,387 –727 8,161 6,022 2,139 2,540 — 2,540 — 1,205 -1,205 7,160 10,273 –3,113 14,386 12,703 1,683 6,944 10,239 –3,295 14,264 12,703 1,561 556 4,530 –3,974 7,085 8,000 –915 6,388 5,709 679 7,179 4,703 2,476 6,325 4,862 1,463 5,158 4,510 648 216 34 182 122 — 122

— 2 –2 — 93 –93 1,976 994 982 4,828 1,419 3,409 62,513 51,698 10,815 74,178 58,375 15,803 294 — 294 426 — 426 123,335 115,830 7,505 145,358 124,906 20,452

— 7,505 –7,505 — 20,452 –20,452 — — — — — — — 7,505 –7,505 — 20,452 –20,452

Oct-Dec 2006 Jan-Mar 2007Items


CURRENT

STATISTICS


Items

























(US $ million)



26 27 28 29 30 311

34,356 56,346 –21,990 38,273 59,510 –21,23729,880 14,570 15,310 34,013 17,073 16,94018,890 9,916 8,974 20,587 11,589 8,998

2,088 1,906 182 2,248 2,047 2011,953 2,526 –573 2,091 2,559 –468

373 185 188 341 284 5794 110 –16 68 128 –60

14,382 5,189 9,193 15,839 6,571 9,268

8,836 679 8,157 9,050 801 8,2493,758 3,163 595 3,894 3,537 357

528 449 79 916 702 214513 231 282 613 180 433

8,628 432 8,196 9,708 408 9,300153 165 –12 158 112 46

8,475 267 8,208 9,550 296 9,2542,362 4,222 –1,860 3,718 5,076 –1,3582,279 4,024 –1,745 3,608 4,778 –1,170

83 198 –115 110 298 –18864,236 70,916 –6,680 72,286 76,583 –4,297

43,034 32,756 10,278 54,205 41,178 13,0278,270 5,534 2,736 5,502 3,374 2,1287,477 20 7,457 4,728 19 4,7095,574 20 5,554 2,822 19 2,8031,792 — 1,792 1,792 — 1,792

111 — 111 114 — 114793 5,514 –4,721 774 3,355 –2,581793 4,758 –3,965 774 2,515 –1,741

— 271 –271 — 271 –271— 485 –485 — 569 –569

34,764 27,222 7,542 48,703 37,804 10,89934,706 27,216 7,490 48,698 37,781 10,917

34,305 27,216 7,089 46,199 37,781 8,418316 — 316 2,477 — 2,477

58 6 52 5 23 –1816,749 7,593 9,156 19,742 10,437 9,305

732 491 241 983 515 4686 7 –1 6 7 –1

726 484 242 977 508 4698,291 1,338 6,953 6,290 2,080 4,210

359 345 14 443 503 –607,932 993 6,939 5,847 1,577 4,2707,726 5,764 1,962 12,469 7,842 4,6276,883 5,764 1,119 11,012 7,842 3,170

843 — 843 1,457 — 1,4578,560 9,479 –919 13,714 7,071 6,6438,560 9,473 –913 13,690 7,000 6,6902,543 2,861 –318 4,404 358 4,0466,017 6,612 –595 9,286 6,642 2,6445,252 5,699 –447 6,975 6,606 369

— 6 –6 24 71 –47— 43 –43 — 2 –2

1,151 1,831 –680 7,378 3,196 4,18269,494 51,702 17,792 95,039 61,884 33,155

88 — 88 378 — 378133,818 122,618 11,200 167,703 138,467 29,236

— 11,200 –11,200 — 29,236 –29,236— — — — — —— 11,200 –11,200 — 29,236 –29,236


CURRENT

STATISTICS


























(US $ million)


32 33 34 35 36 371

40,985 67,038 –26,053 52,549 74,895 –22,34639,553 18,031 21,522 45,158 24,338 20,82024,618 12,592 12,026 25,982 18,415 7,567

3,395 2,519 876 3,618 2,782 8362,799 3,043 –244 3,171 3,386 –215

438 261 177 487 314 17390 75 15 78 63 15

17,896 6,694 11,202 18,628 11,870 6,758

9,608 852 8,756 12,806 726 12,0804,588 4,245 343 4,531 5,770 –1,239

882 763 119 891 1,224 –333601 183 418 681 265 416

11,428 493 10,935 14,495 982 13,513195 121 74 247 116 131

11,233 372 10,861 14,248 866 13,3823,507 4,946 –1,439 4,681 4,941 –2603,401 4,679 –1,278 4,520 4,608 –88

106 267 –161 161 333 –17280,538 85,069 –4,531 97,707 99,233 –1,526

86,531 69,639 16,892 88,992 84,232 4,7608,316 6,275 2,041 14,750 6,254 8,4967,916 43 7,873 14,240 43 14,1976,022 43 5,979 12,448 26 12,4221,792 — 1,792 1,792 — 1,792

102 — 102 — 17 –17400 6,232 –5,832 510 6,211 –5,701400 5,206 –4,806 510 4,419 –3,909

— 271 –271 — 271 –271— 755 –755 — 1,521 –1,521

78,215 63,364 14,851 74,242 77,978 –3,73678,096 63,345 14,751 74,188 77,952 –3,764

72,309 63,345 8,964 73,808 77,952 –4,1445,597 — 5,597 379 — 379

119 19 100 54 26 2821,543 10,601 10,942 25,494 12,967 12,527

1,109 544 565 1,417 577 8406 7 –1 6 7 –1

1,103 537 566 1,411 570 8418,449 2,202 6,247 7,346 2,123 5,223

363 384 –21 427 392 358,086 1,818 6,268 6,919 1,731 5,188

11,985 7,855 4,130 16,731 10,267 6,46410,231 7,855 2,376 14,515 10,267 4,248

1,754 — 1,754 2,216 — 2,21612,588 12,381 207 20,951 15,125 5,82612,585 12,029 556 20,899 15,122 5,777

5,636 3,939 1,697 6,979 5,510 1,4696,949 8,090 –1,141 13,920 9,612 4,3086,456 7,309 –853 10,718 9,608 1,110

3 352 –349 52 3 49— — — — 76 –76

6,612 3,636 2,976 5,763 2,771 2,992127,274 96,257 31,017 141,200 115,171 26,029

252 — 252 487 — 487208,064 181,326 26,738 239,394 214,404 24,990

— 26,738 –26,738 — 24,990 –24,990— — — — — —— 26,738 –26,738 — 24,990 –24,990

Oct-Dec 2007 PR Jan-Mar 2008 PRItems


CURRENT

STATISTICS


Items

























(US $ million)



38 39 40 41 42 431

49,120 80,545 –31,425 48,987 87,663 –38,67638,939 16,533 22,406 45,696 19,532 26,16423,059 11,441 11,618 27,832 13,775 14,057

2,504 2,164 340 2,786 2,704 822,611 3,328 –717 2,964 3,744 –780

350 228 122 367 306 61130 110 20 81 95 –14

17,464 5,611 11,853 21,634 6,926 14,708

12,156 857 11,299 12,220 924 11,2963,550 3,133 417 4,840 3,984 856

609 628 –19 1,670 965 705510 226 284 740 296 444

12,307 654 11,653 13,719 829 12,890148 107 41 51 97 –46

12,159 547 11,612 13,668 732 12,9363,573 4,438 –865 4,145 4,928 –7833,418 4,108 –690 3,855 4,596 –741

155 330 –175 290 332 –4288,059 97,078 –9,019 94,683 107,195 –12,512

52,901 48,145 4,756 51,774 48,184 3,59012,137 3,170 8,967 9,143 4,243 4,90011,898 22 11,876 8,825 52 8,77310,240 22 10,218 7,304 52 7,252

1,492 — 1,492 1,492 — 1,492166 — 166 29 — 29239 3,148 –2,909 318 4,191 –3,873239 2,346 –2,107 318 3,426 –3,108

— 271 –271 — 271 –271— 531 –531 — 494 –494

40,764 44,975 –4,211 42,631 43,941 –1,31040,745 44,923 –4,178 42,618 43,919 –1,301

39,746 44,923 –5,177 42,482 43,919 –1,437999 — 999 136 — 136

19 52 –33 13 22 –913,845 9,630 4,215 16,282 12,782 3,500

909 558 351 1,095 577 5186 8 –2 6 8 –2

903 550 353 1,089 569 5202,760 1,293 1,467 3,578 1,888 1,690

404 193 211 532 138 3942,356 1,100 1,256 3,046 1,750 1,296

10,176 7,779 2,397 11,609 10,317 1,2929,256 7,779 1,477 11,609 9,766 1,843

920 — 920 — 551 –55121,952 19,256 2,696 16,208 14,084 2,12421,952 19,105 2,847 16,208 14,081 2,12711,457 10,533 924 6,446 5,154 1,29210,495 8,572 1,923 9,762 8,927 835

9,063 8,249 814 9,174 8,915 259— 151 –151 — 3 –3— 30 –30 — 3 –3

2,176 2,678 –502 764 2,410 –1,64690,874 79,739 11,135 85,028 77,463 7,565

119 — 119 213 — 213179,052 176,817 2,235 179,924 184,658 –4,734

— 2,235 –2,235 4,734 — 4,734— — — — — —— 2,235 –2,235 4,734 — 4,734


CURRENT

STATISTICS


No. 43: India's Overall Balance of Payments (Concld.)
























(US $ million)

Credit Debit Net Credit Debit Net Credit Debit Net

44 45 46 47 48 49 50 51 521

37,257 71,961 -34,704 39,820 54,418 -14,598 38,789 64,775 -25,98640,260 18,589 21,671 37,661 18,316 19,345 38,684 18,505 20,17926,075 12,923 13,152 24,258 13,267 10,991 22,389 13,351 9,038

2,924 1,953 971 2,680 2,611 69 2,286 2,004 2822,572 3,210 -638 2,919 2,495 424 2,490 2,777 -287

344 269 75 348 328 20 387 314 7397 233 -136 81 353 -272 100 103 -3

20,138 7,258 12,880 18,230 7,480 10,750 17,127 8,153 8,973

11,444 580 10,864 11,180 453 10,727 10,764 391 10,3734,012 3,540 472 3,849 4,612 -763 2,586 3,645 -1,059

889 735 154 771 633 138 1,116 928 189492 217 275 428 257 171 418 312 106

10,994 844 10,150 10,005 419 9,586 13,344 466 12,878285 98 187 161 111 50 46 107 -61

10,709 746 9,963 9,844 308 9,536 13,298 360 12,9393,191 4,822 -1,631 3,398 4,630 -1,232 2,951 4,688 -1,7373,000 4,481 -1,481 3,209 4,314 -1,105 2,723 4,350 -1,627

191 341 -150 189 316 -127 227 338 -11077,517 90,550 -13,033 77,481 72,734 4,747 77,473 83,280 -5,808

33,162 38,538 -5,376 27,072 26,580 492 48,238 33,136 15,1016,564 6,120 444 8,414 5,229 3,185 9,612 2,779 6,8336,352 29 6,323 8,073 63 8,010 9,488 29 9,4594,109 29 4,080 6,322 63 6,259 7,401 29 7,3721,721 — 1,721 1,721 — 1,721 1,696 — 1,696

522 — 522 30 — 30 391 — 391212 6,091 -5,879 341 5,166 -4,825 125 2,750 -2,626212 4,489 -4,277 341 4,407 -4,066 125 2,053 -1,928

— 271 -271 — 271 -271 — 271 -271— 1,331 -1,331 — 488 -488 — 426 -426

26,598 32,418 -5,820 18,658 21,351 -2,693 38,625 30,357 8,26826,568 32,355 -5,787 18,580 21,169 -2,589 38,602 30,332 8,27026,561 32,355 -5,794 18,560 21,169 -2,609 38,559 30,332 8,227

7 — 7 20 — 20 43 — 4330 63 -33 78 182 -104 23 25 -2

15,818 14,934 884 14,213 17,811 -3,598 13,038 16,395 -3,3571,655 663 992 1,383 606 777 821 737 84

6 8 -2 6 8 -2 13 116 -1031,649 655 994 1,377 598 779 808 620 1885,448 1,564 3,884 3,596 2,479 1,117 2,092 2,448 -356

669 149 520 400 305 95 244 333 -894,779 1,415 3,364 3,196 2,174 1,022 1,848 2,115 -2678,715 12,707 -3,992 9,234 14,726 -5,492 10,126 13,211 -3,0858,715 10,357 -1,642 9,234 10,450 -1,216 10,126 9,590 536

— 2,350 -2,350 — 4,276 -4,276 — 3,621 -3,62114,810 19,766 -4,956 12,028 15,289 -3,261 15,577 18,942 -3,36514,808 19,335 -4,527 11,917 15,289 -3,372 15,577 18,704 -3,127

5,192 7,541 -2,349 2,578 5,498 -2,920 4,368 6,946 -2,5789,616 11,794 -2,178 9,339 9,791 -452 11,209 11,758 -5499,523 8,481 1,042 9,329 7,154 2,175 11,172 9,354 1,817

2 431 -429 111 — 111 — 239 -238 — — — — 68 -68 — 23 -23

5,670 488 5,182 3,781 2,634 1,147 1,636 3,256 -1,62069,460 73,726 -4,266 57,094 62,382 -5,288 78,489 71,753 6,736

— 582 -582 841 — 841 — 813 -813146,977 164,858 -17,881 135,416 135,116 300 155,961 155,846 115

17,881 — 17,881 — 300 -300 — 115 -115 — — — — — — — — —

17,881 — 17,881 — 300 -300 — 115 -115

Oct-Dec 2008 PR Apr-Jun 2009 PItems

Jan-Mar 2009 P


CURRENT

STATISTICS


No. 44: Foreign Exchange Reserves

End of Foreign Currency Gold SDRs # Reserve Tranche Total Assets* Position in IMF

Rupees In millions Rupees In millions In millions Rupees In millions Rupees In millions Rupees In millionscrore of US $ crore of US $ of SDRs crore of US $ crore of US $ crore of US $

1 2 3 4 5 6 7 8 9 10 11=(2+4+ 12=(3+5+7+9) 8+10)

2002-03 3,41,476 71,890 16,785 3,534 3 19 4 3,190 672 3,61,470 76,1002003-04 4,66,215 1,07,448 18,216 4,198 2 10 2 5,688 1,311 4,90,129 1,12,9592004-05 5,93,121 1,35,571 19,686 4,500 3 20 5 6,289 1,438 6,19,116 1,41,5142005-06 6,47,327 1,45,108 25,674 5,755 2 12 3 3,374 756 6,76,387 1,51,6222006-07 8,36,597 1,91,924 29,573 6,784 1 8 2 2,044 469 8,68,222 1,99,1792007-08 11,96,023 2,99,230 40,124 10,039 11 74 18 1,744 436 12,37,965 3,09,7232008-09 12,30,066 2,41,426 48,793 9,577 1 6 1 5,000 981 12,83,865 2,51,985

2007-08

April 8,12,995 1,96,899 29,051 7,036 7 45 11 1,910 463 8,44,001 2,04,409May 8,17,440 2,00,697 28,147 6,911 1 6 1 1,870 459 8,47,463 2,08,068June 8,39,913 2,06,114 27,655 6,787 1 6 1 1,875 460 8,69,449 2,13,362July 8,88,680 2,19,753 27,850 6,887 8 49 12 1,840 455 9,18,419 2,27,107August 9,07,301 2,21,509 28,186 6,881 1 9 2 1,866 455 9,37,362 2,28,847September 9,53,581 2,39,955 29,275 7,367 1 8 2 1,740 438 9,84,604 2,47,762October 10,08,271 2,56,427 30,712 7,811 8 52 13 1,735 441 10,40,770 2,64,692November 10,50,165 2,64,725 33,151 8,357 2 13 3 1,727 435 10,85,056 2,73,520December 10,50,485 2,66,553 32,819 8,328 2 13 3 1,703 432 10,85,020 2,75,316January 11,17,080 2,83,595 36,236 9,199 6 36 9 1,720 437 11,55,072 2,93,240February 11,62,671 2,91,250 38,154 9,558 - 1 - 1,705 427 12,02,531 3,01,235March 11,96,023 2,99,230 40,124 10,039 11 74 18 1,744 436 12,37,965 3,09,723

2008-09

April 12,30,896 3,04,225 38,141 9,427 11 74 18 1,961 485 12,71,072 3,14,155May 12,98,464 3,04,875 39,190 9,202 7 47 11 2,242 526 13,39,943 3,14,614June 12,98,552 3,02,340 39,548 9,208 7 48 11 2,269 528 13,40,417 3,12,087July 12,57,357 2,95,918 41,366 9,735 7 47 11 2,177 512 13,00,947 3,06,176August 12,52,904 2,86,117 38,064 8,692 2 16 4 2,173 496 12,93,157 2,95,309September 13,01,645 2,77,300 40,205 8,565 2 17 4 2,194 467 13,44,061 2,86,336October 12,01,920 2,44,045 41,281 8,382 6 43 9 2,200 447 12,45,444 2,52,883November 11,91,016 2,38,968 39,177 7,861 2 13 3 4,254 854 12,34,460 2,47,686December 11,94,790 2,46,603 41,110 8,485 2 13 3 4,248 877 12,40,161 2,55,968January 11,71,060 2,38,894 43,549 8,884 2 15 3 4,068 830 12,18,692 2,48,611February 12,11,002 2,38,715 49,440 9,746 1 6 1 4,141 816 12,64,589 2,49,278March 12,30,066 2,41,426 48,793 9,577 1 6 1 5,000 981 12,83,865 2,51,985

2009-10April 12,12,747 2,41,487 46,357 9,231 1 6 1 4,938 983 12,64,048 2,51,702May 11,89,136 2,51,456 45,417 9,604 - 2 1 5,886 1,245 12,40,441 2,62,306June 12,16,345 2,54,093 46,914 9,800 - 2 1 5,974 1,248 12,69,235 2,65,142July 12,55,197 2,60,631 46,576 9,671 - 3 1 6,444 1,338 13,08,220 2,71,641August 12,76,976 2,61,247 48,041 9,828 30,82.66 23,597 4,828 6,595 1,349 13,55,209 2,77,252September 12,70,049 2,64,373 49,556 10,316 32,97.23 25,096 5,224 6,557 1,365 13,51,258 2,81,278September 4, 2009 12,79,240 2,61,657 48,041 9,828 30,82.66 23,554 4,818 6,583 1,346 13,57,418 2,77,649September 11, 2009 12,83,392 2,64,562 48,041 9,828 32,97.23 25,336 5,223 6,620 1,365 13,63,389 2,80,978September 18, 2009 12,73,653 2,64,353 48,041 9,828 32,97.23 25,171 5,224 6,577 1,365 13,53,442 2,80,770September 25, 2009 12,64,262 2,63,498 48,041 9,828 32,97.23 25,047 5,220 6,544 1,364 13,43,894 2,79,910October 2, 2009 12,60,943 2,63,465 49,556 10,316 32,97.23 24,886 5,200 6,502 1,359 13,41,887 2,80,340October 9, 2009 12,31,979 2,64,942 49,556 10,316 32,97.23 24,345 5,235 6,361 1,368 13,12,241 2,81,861

— : Negligible. See ‘Notes on tables’.* : FCA excludes US $ 250.00 millon (as also its equivalent value in Indian Rupee) invested in foreign currency denominated bonds issued by IIFC (UK) since March 20, 2009.#: Includes SDRs 3,082.5 million allocated under general allocation and SDRs 214.6 million allocated under special allocation by the IMF done on August 28, 2009 and

Sepetember 9, 2009, respectively.


CURRENT

STATISTICS


(As at End March) (US $ million)

Scheme 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

1. FCNR(A) * 7,051 4,255 2,306 1 — — — — — — — — — — —2. FCNR(B) ** 3,063 5,720 7,496 8,467 7,835 8,172 9,076 9,673 10,199 10,961 11,452 13,064 15,129 14,168 13,2113. NR(E)RA 4,556 3,916 4,983 5,637 6,045 6,758 7,147 8,449 14,923 20,559 21,291 22,070 24,495 26,716 23,5704. NR(NR)RD + 2,486 3,542 5,604 6,262 6,618 6,754 6,849 7,052 3,407 1,746 232 — — — —5. NRO — — — — — — — — — — — 1,148 1,616 2,788 4,773

Total 17,156 17,433 20,389 20,367 20,498 21,684 23,072 25,174 28,529 33,266 32,975 36,282 41,240 43,672 41,554

P : Provisional. * : Withdrawn effective August 1994. ** : Introduced in May 1993.

@ : All figures are inclusive of accrued interest. + : Introduced in June 1992 and discontinued w.e.f April 2002. — : Not available.

Notes : 1. FCNR(A) : Foreign Currency Non-Resident (Accounts). 2. FCNR(B) : Foreign Currency Non-Resident (Banks).

3. NR(E)RA : Non-Resident (External) Rupee Accounts. 4. NR(NR)RD : Non-Resident (Non-Repatriable) Rupee Deposits.

5. NRO : Non-Resident Ordinary Rupee Account.

6. Figures in the brackets represent inflows (+)/outflows(–) during the corresponding month/period of the previous year.

No. 45: NRI Deposits- Outstanding and Inflows (+) /Outflows (–) @

(US $ million)

Scheme 2008-09 (End Month)

Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar.

1 2 3 4 5 6 7 8 9 10 11 12 13

1. FCNR(B) ** 14,028 13,877 14,001 13,766 13,475 13,504 12,694 12,733 12,936 12,981 13,114 13,2112. NR(E)RA 26,592 25,544 25,585 25,866 24,761 23,880 22,811 22,992 23,226 22,959 22,778 23,5703. NRO 2,986 2,963 3,026 3,230 3,243 3,238 3,302 3,749 4,134 4,366 4,125 4,773

Total 43,606 42,384 42,612 42,862 41,479 40,622 38,807 39,474 40,296 40,306 40,017 41,554

Inflow (+) /Outflow (–) During the Month (US $ million)

Scheme 2008-09

Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr.- Mar.

1 2 3 4 5 6 7 8 9 10 11 12 13 14

1. FCNR(B) –140 –151 124 –235 –291 29 –809 39 202 45 133 97 –957(41) (–46) (195) (78) (–163) (128) (24) (–125) (–503) (–299) (–174) (–116) (–960)

2. NR(E)RA –71 462 160 –39 –205 527 645 124 –220 –192 607 710 2,508(–320) (–265) (–167) (187) (–122) (126) (–40) (–205) (–154) (587) (45) (437) (109)

3. NRO 204 148 77 163 128 182 302 445 314 246 –98 627 2,738(22) (9) (85) (29) (269) (–164) (19) (49) (82) (237) (216) (177) (1,030)

Total –7 459 361 –111 –368 738 138 608 296 99 642 1,434 4,289(–257) (–302) (113) (294) (–16) (90) (3) (–281) (–575) (525) (87) (498) (179)

Inflow (+) /Outflow (–) During the Month

(US $ million)

(US $ million)

2009-10 (P) End Month

Scheme Apr. May Jun. Jul. Aug. Sep.

1 2 3 4 5 6 7

1. FCNR(B) ** 13,384 14,017 14,014 14,156 14,053 14,1862. NR(E)RA 23,935 25,418 24,952 25,369 24,931 25,3313. NRO 5,063 5,613 5,613 5,971 6,003 6,327

Total 42,382 45,048 44,579 45,496 44,987 45,844

2009-10 (P)

Scheme Apr. May Jun. Jul. Aug. Sep. Apr.- Sep.

1 2 3 4 5 6 7 8

1. FCNR(B) 173 633 -3 142 -103 133 975-(140) -(151) (124) -(235) -(291) (29) -(664)

2. NR(E)RA 67 128 187 234 -68 -64 484-(71) (462) (160) -(39) -(205) (527) (834)

3. NRO 229 257 146 316 120 210 1,278(204) (148) (77) (163) (128) (182) (902)

Total 469 1,018 330 692 -51 279 2,737-(7) (459) (361) -(111) -(368) (738) 1,072


CURRENT

STATISTICS


No. 46: Foreign Investment Inflows

(US $ million)

Item 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 (P) 2008-09 (P)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

A. Direct Investment (I+II+III) 2,144 2,821 3,557 2,462 2,155 4,029 6,130 5,035 4,322 6,051 8,961 22,826 34,362 35,168I. Equity (a+b+c+d+e) 2,144 2,821 3,557 2,462 2,155 2,400 4,095 2,764 2,229 3,778 5,975 16,481 26,867 27,995

a. Government (SIA/FIPB) 1,249 1,922 2,754 1,821 1,410 1,456 2,221 919 928 1,062 1,126 2,156 2,298 4,699b. RBI 169 135 202 179 171 454 767 739 534 1,258 2,233 7,151 17,129 17,998c. NRI 715 639 241 62 84 67 35 — — — — — — —d. Acquisition of shares * 11 125 360 400 490 362 881 916 735 930 2,181 6,278 5,148 4,632e. Equity capital of

unincorporated bodies # .. .. .. .. .. 61 191 190 32 528 435 896 2,292 666II. Reinvested earnings + .. .. .. .. .. 1,350 1,645 1,833 1,460 1,904 2,760 5,828 7,168 6,426III. Other capital ++ .. .. .. .. .. 279 390 438 633 369 226 517 327 747

B. Portfolio Investment (a+b+c) 2,748 3,312 1,828 -61 3,026 2,760 2,021 979 11,377 9,315 12,492 7,003 27,271 -13,855a. GDRs/ADRs # # 683 1,366 645 270 768 831 477 600 459 613 2,552 3,776 6,645 1,162b. FIIs ** 2,009 1,926 979 -390 2,135 1,847 1,505 377 10,918 8,686 9,926 3,225 20,328 -15,017c. Offshore funds and others 56 20 204 59 123 82 39 2 — 16 14 2 298 —

Total (A+B) 4,892 6,133 5,385 2,401 5,181 6,789 8,151 6,014 15,699 15,366 21,453 29,829 61,633 21,313

* : Relates to acquisition of shares of Indian companies by non-residents under Section 6 of FEMA, 1999. Data on such acquisitions have been included as part of FDIsince January 1996.

** : Represents inflow of funds (net) by Foreign Institutional Investors (FIIs).# : Figures for equity capital of unincorporated bodies for 2007-08 and 2008-09 are estimates.## : Represents the amount raised by Indian Corporates through Global Depository Receipts (GDRs) and American Depository Receipts (ADRs).+ : Data for 2007-08 and 2008-09 are estimated as average of previous two years.++ : Data pertain to inter company debt transactions of FDI entities.Notes : 1. Data for equity capital of unincorporated bodies reinvested earnings and other capital in the column of the monthly table, pertain to the April-June, 2009,

which are included in the last column (cumulative FDI). As a result, the monthy total of FDI may not match with the cumulative FDI given in the last column.2. Data on FDI have been revised since 2000-01 with expanded coverage to approach international best practices.3. These data, therefore, are not comparable with FDI data for previous years.Also see ‘Notes on Tables’ of Table No 42&43.4. Monthly data on components of FDI as per expanded coverage are not available.

(US $ million)

2008-09 (P)

Item Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr.- Mar.

1 2 3 4 5 6 7 8 9 10 11 12 13 14

A. Direct Investment (I+II+III) 3,749 3,932 2,392 2,247 2,328 2,562 1,497 1,083 1,362 2,733 1,488 1,956 35,168I. Equity (a+b+c+d) 3,749 3,932 2,392 2,247 2,328 2,562 1,497 1,083 1,362 2,733 1,488 1,956 27,995

a. Government (SIA/FIPB) 851 65 806 321 255 28 178 90 91 1,102 207 705 4,699b. RBI 1,819 3,091 1,188 1,497 1,324 2,345 1,117 900 1,189 1,471 981 1,076 17,998c. Acquisition of shares * 1,079 776 398 429 749 189 202 93 82 160 300 175 4,632d. Equity capital of

unincorporated bodies # .. .. .. .. .. .. .. .. .. .. .. .. 666II. Reinvested earnings + .. .. .. .. .. .. .. .. .. .. .. .. 6,426III. Other capital ++ .. .. .. .. .. .. .. .. .. .. .. .. 747

B. Portfolio Investment (a+b+c) –880 –288 –3,010 –492 593 –1,403 –5,243 –574 30 –614 –1,085 –889 –13,855a. GDRs/ADRs # # 552 446 1 7 129 — 7 — — — — 20 1,162b. FIIs ** –1,432 –734 –3,011 –499 464 –1,403 –5,250 –574 30 –614 – 1,085 –909 –15,017c. Offshore funds and others — — — — — — — — — — — — —

Total (A+B) 2,869 3,644 –618 1,755 2,921 1,159 –3,746 509 1,392 2,119 403 1,067 21,313

(US $ million)

2009-10 (P)

Item Apr. May Jun. Jul. Aug. Sep. Apr.- Sep.

1 2 3 4 5 6 7 8

A. Direct Investment (I+II+III) 2,339 2,095 2,582 3,476 3,268 1,512 17,744I. Equity (a+b+c+d) 2,339 2,095 2,582 3,476 3,268 1,512 15,657

a. Government (SIA/FIPB) 925 101 85 248 666 111 2,136b. RBI 1,156 1,916 2,448 1,757 2,548 1,355 11,180c. Acquisition of shares * 258 78 49 1,471 54 46 1,956d. Equity capital of

unincorporated bodies # .. .. .. .. .. .. 385II. Reinvested earnings + .. .. .. .. .. .. 1,696III. Other capital++ .. .. .. .. .. .. 391

B. Portfolio Investment (a+b+c) 2,278 5,639 353 3,032 1,574 4,999 17,875a. GDRs/ADRs # # 33 - 10 965 1,603 - 2,611b. FIIs** 2,245 5,639 343 2,067 -29 4,999 15,264c. Offshore funds and others - - - - - - -

Total (A+B) 4,617 7,734 2,935 6,508 4,842 6,511 35,619


CURRENT

STATISTICS


No. 46A: Outward Remittances under the Liberalised Remittance

Scheme for Resident Individuals

(US $ million)

Purpose 2004-05 2005-06 2006-07 2007-08 2008-09

1 2 3 4 5 6

1. Deposit 9.1 23.2 19.7 24.0 30.4

2. Purchase of immovable property 0.5 1.9 8.5 39.5 55.9

3. Investment in equity/debt — — 20.7 144.7 151.4

4. Gift — — 7.4 70.3 133.0

5. Donations — — 0.1 1.6 1.4

6. Others** — — 16.4 160.4 436.0

Total (1 to 6) 9.6 25.0 72.8 440.5 808.1

— : Not available.

** : Include items such as Education, Tours and Travels.

Notes : (i) The data from 2004 to 2007 are on calendar basis.

(ii) Under Liberalised Remittance Scheme (LRS), currently, the residents are permitted to remit up to an amount of US $ 2, 00,000 per financial year(April-March) for any permitted current or capital account transactions or a combination of both with effect from September 26, 2007. The LRSScheme was introduced in February 2004 to facilitate resident individuals to freely remit up to US $ 25,000 per calendar year, which wasenhanced to US $ 50,000 per financial year in December 2006; to US $ 1, 00,000 per financial year in May 2007; and to US $ 2, 00,000 per financialyear in September 2007.

(US $ million)

Purpose 2009-10

April May June July

1 2 3 4 5

1. Deposit 2.3 2.8 3.2 1.9

2. Purchase ofimmovable property 4.2 3.8 3.4 2.5

3. Investment inequity/debt 12.6 12.2 14.8 10.7

4. Gift 13.6 11.7 13.7 13.0

5. Donations 0.1 0.2 0.6 0.1

6. Travels 1.4 1.5 1.1 2.5

7. Maintenance ofclose relatives 10.5 10.0 8.8 9.7

8. Medical Treatment 1.3 2.3 2.4 2.3

9. Studies Abroad 6.1 6.8 89.3 12.7

10. Others 6.0 6.4 7.6 9.5

Total ( 1 to 10) 58.1 57.7 145.0 64.9

(US $ million)

Purpose 2008-09

April May June July August September October November December January February March

1 2 3 4 5 6 7 8 9 10 11 12 13

1. Deposit 3.4 3.0 4.1 2.3 2.6 1.6 1.2 1.4 1.6 1.7 1.8 5.7

2. Purchase ofimmovable property 7.7 7.0 6.5 5.7 4.6 5.7 3.1 2.6 2.5 2.6 2.7 5.2

3. Investment inequity/debt 13.3 13.7 14.9 12.5 12.7 9.8 8.7 12.4 11.2 10.4 6.8 25.0

4. Gift 8.8 10.9 10.2 12.7 16.0 7.9 8.6 23.2 9.7 7.6 8.5 8.9

5. Donations 0.2 0.1 — 0.2 0.2 — 0.1 0.2 — 0.1 0.1 0.2

6. Others** 17.1 18.5 20.5 27.4 123.6 26.0 19.2 19.0 32.7 33.1 19.3 79.6

Total ( 1 to 6) 50.5 53.2 56.2 60.8 159.7 51.0 40.9 58.8 57.7 55.5 39.2 124.6


CURRENT

STATISTICS


(Rupees per Unit of Foreign Currency)

Date RBI’s Reference Rate FEDAI Indicative RatesRs. Per Foreign Currency

US Dollar Pound Sterling Euro One Hundred

US Dollar Euro Japanese Yen

Buying Selling Buying Selling Buying Selling Buying Selling

1 2 3 4 5 6 7 8 9 10 11

September 1, 2009 48.7300 69.9900 48.7300 48.7400 79.5675 79.6075 69.9850 70.0050 52.3425 52.3750

September 2, 2009 49.0600 69.7800 49.0500 49.0600 79.3475 79.3850 69.7675 69.8025 52.7825 52.8275

September 3, 2009 48.8800 69.8100 48.8750 48.8850 79.6700 79.6975 69.7925 69.8225 52.9125 52.9450

September 4, 2009 48.8900 69.7600 48.8750 48.8850 79.8175 79.8500 69.7250 69.7500 52.7575 52.7750

September 7, 2009 48.7500 69.9000 48.7450 48.7550 79.9650 79.9975 69.8750 69.9050 52.2725 52.3000

September 8, 2009 48.6500 69.9300 48.6500 48.6600 79.6850 79.7100 69.9250 69.9475 52.5200 52.5650

September 9, 2009 48.4700 70.2900 48.4600 48.4700 80.0850 80.1200 70.2375 70.2875 52.3950 52.4175

September 10, 2009 48.3700 70.5200 48.3700 48.3800 80.0275 80.0550 70.5150 70.5375 52.5125 52.5300

September 11, 2009 48.5100 70.8700 48.5000 48.5100 81.0725 81.1125 70.8525 70.8775 53.2025 53.2250

September 14, 2009 48.7000 70.7300 48.6850 48.6950 80.6075 80.6450 70.6850 70.7050 53.7075 53.7350

September 15, 2009 48.5700 71.0600 48.5600 48.5700 80.8125 80.8400 71.0000 71.0375 53.3275 53.3625

September 16, 2009 48.3600 71.0200 48.3600 48.3700 79.6300 79.6750 71.0025 71.0350 53.3900 53.4125

September 17, 2009 47.9700 70.7600 47.9700 47.9800 79.3675 79.3925 70.8075 70.8275 52.7675 52.7950

September 18, 2009 48.1800 70.9200 48.1750 48.1850 78.8200 78.8600 70.8500 70.8850 52.8400 52.8750

September 21, 2009 +

September 22, 2009 48.1700 70.9500 48.1700 48.1800 78.3925 78.4175 70.9300 70.9550 52.6625 52.6900

September 23, 2009 47.9600 70.9900 47.9550 47.9650 78.5400 78.5775 70.9650 70.9875 52.8025 52.8425

September 24, 2009 48.1000 70.8800 48.1100 48.1200 78.6700 78.7150 70.8750 70.9050 52.9725 53.0125

September 25, 2009 47.9800 70.5300 47.9700 47.9800 76.7700 76.8075 70.4975 70.5200 52.9050 52.9525


September 29, 2009 48.0400 70.2400 48.0350 48.0450 76.4100 76.4400 70.2075 70.2475 53.3300 53.3725


FEDAI : Foreign Exchange Dealers’ Association of India.

+ : Market closed.

Note : Euro Reference rate was announced by RBI with effect from January 1, 2002.

Source : FEDAI for FEDAI rates.

No. 47: Daily Foreign Exchange Spot Rates


CURRENT

STATISTICS


No. 48: Sale/Purchase of U.S. Dollar by The Reserve Bank of India

Outstanding NetForward Sales (–)/

Purchase (+)at the end of

month(US $ million)

Cumulative(over end-April 2008)

Foreign Currency(US $ million)

Net(+/–)

Sale(–)

1 2 3 4 5 6 7 8

20008-09

April 2008 4,325.00 — (+) 4,325.00 (+) 17,237.89 (+) 4,325.00 (+) 17,237.89 (+) 17,095.00

May 2008 1,625.00 1,477.00 (+) 148.00 (+) 118.51 (+) 4,473.00 (+) 17,356.40 (+) 15,470.00

June 2008 1,770.00 6,999.00 (—) 5,229.00 (—) 22,970.78 (—) 756.00 (—) 5,614.37 (+) 13,700.00

July 2008 3,580.00 9,900.00 (—) 6,320.00 (—) 27,829.05 (—) 7,076.00 (—) 33,443.43 (+) 11,910.00

August 2008 3,770.00 2,560.00 (+) 1,210.00 (+) 4,557.53 (—) 5,866.00 (—) 28,885.89 (+) 9,925.00

September 2008 2,695.00 6,479.00 (—) 3,784.00 (—) 18,396.49 (—) 9,650.00 (—) 47,282.38 (+) 2,300.00

October 2008 1,960.00 20,626.00 (—) 18,666.00 (—) 92,925.06 (—) 28,316.00 (—) 1,40,207.44 (+) 90.00

November 2008 2,355.00 5,456.00 (—) 3,101.00 (—) 16,252.20 (—) 31,417.00 (—) 1,56,459.64 (—) 487.00

December 2008 2,005.00 2,323.00 (—) 318.00 (—) 3,524.72 (—) 31,735.00 (—) 1,59,984.36 (—) 1,752.00

January 2009 1,055.00 1,084.00 (—) 29.00 (—) 1,116.19 (—) 3,1764.00 (—) 1,61,100.55 (—) 1,723.00

February 2009 1,063.00 833.00 (+) 230.00 (+) 335.79 (—) 31,534.00 (—) 1,60,764.76 (—) 1,953.00

March 2009 360.00 3,748.00 (—) 3,388.00 (—) 17,826.91 (—) 34,922.00 (—) 1,78,591.67 (—) 2,042.00

Purchase(+)

Rs. equivalentat contract rate

(Rs. crore)(US $ million) (Rs. crore)

Month

(+) : Implies Purchase including purchase leg under swaps and outright forwards.

(–) : Implies Sales including sale leg under swaps and outright forwards.

Note : This table is based on value dates.

Outstanding NetForward Sales (–)/

Purchase (+)at the end of

month(US $ million)

Cumulative(over end-April 2009)

Foreign Currency(US $ million)

Net(+/–)

Sale(–)

1 2 3 4 5 6 7 8

2009-10

April 2009 204.00 2,691.00 (—) 2,487.00 (—) 12,063.87 (—) 2,487.00 (—) 12,063.87 (—) 1,071.00

May 2009 923.00 2,360.00 (—) 1,437.00 (—) 6,902.22 (—) 3,924.00 (—) 18,966.08 131.00

June 2009 1,279.00 235.00 1,044.00 4,974.19 (—) 2,880.00 (—) 13,991.90 745.00

July 2009 570.00 625.00 (—) 55.00 (—) 217.19 (—) 2,935.00 (—) 14,209.09 800.00

August 2009 415.00 234.00 181.00 837.52 (—) 2,754.00 (—) 13,371.58 619.00

September 2009 260.00 180.00 80.00 377.37 (—) 2,674.00 (—) 12,994.21 539.00

Purchase(+)

Rs. equivalentat contract rate

(Rs. crore)(US $ million) (Rs. crore)

Month


CURRENT

STATISTICS


No. 49: Turnover in Foreign Exchange Market

(US $ million)

Position Date Merchant Inter-bank

FCY / INR FCY / FCY FCY/INR FCY/FCY

Spot Forward Forward Spot Forward Forward Spot Swap Forward Spot Swap ForwardCancellation Cancellation

1 2 3 4 5 6 7 8 9 10 11 12 13

Purchases

Sep. 1 2009 1,530 928 448 220 513 500 4,331 4,752 225 3,167 1,397 74

Sep. 2 2009 1,595 934 342 234 765 428 5,157 4,798 196 3,598 1,500 88

Sep. 3 2009 1,050 474 221 187 588 619 3,378 3,241 341 2,583 1,494 234

Sep. 4 2009 1,951 521 253 129 410 344 3,161 3,020 179 2,322 1,091 36

Sep. 7 2009 1,327 501 165 205 435 500 2,878 1,645 82 2,331 501 61

Sep. 8 2009 1,679 1,401 465 327 666 624 5,949 4,848 163 4,085 1,640 57

Sep. 9 2009 2,470 707 436 288 622 392 5,010 4,966 323 4,459 1,736 114

Sep. 10 2009 2,171 835 497 142 459 463 5,306 4,078 385 3,324 1,337 99

Sep. 11 2009 1,700 816 362 150 579 486 5,213 3,495 695 4,204 1,603 122

Sep. 14 2009 1,730 696 471 292 619 448 4,522 3,435 266 3,458 992 100

Sep. 15 2009 1,481 1,129 275 277 632 616 4,473 3,623 187 3,515 1,425 40

Sep. 16 2009 1,793 1,212 841 252 594 552 6,199 3,498 188 3,385 1,188 155

Sep. 17 2009 2,157 1,247 745 228 558 695 5,369 4,046 842 2,996 1,485 510

Sep. 18 2009 1,849 662 309 342 493 480 4,127 3,083 782 2,753 1,224 312

Sep. 21 2009+ — — — — — — — — — — — —

Sep. 22 2009 2,472 994 609 461 652 651 4,973 4,492 185 3,001 1,067 594

Sep. 23 2009 2,113 1,558 1,317 761 568 573 6,373 5,246 459 2,784 1,834 154

Sep. 24 2009 3,069 1,586 1,489 1,110 719 683 5,964 6,310 597 3,686 2,223 381

Sep. 25 2009 2,743 2,449 727 523 722 857 6,417 5,326 1,299 3,818 2,069 206

Sep. 28 2009+ — — — — — — — — — — — —

Sep. 29 2009 3,147 1,398 1,332 429 800 1,022 5,737 4,587 367 4,817 2,875 590

Sep. 30 2009 12 49 — 68 96 109 — 72 — 582 220 12

Sales

Sep. 1 2009 1,678 1,130 291 209 500 508 4,184 4,052 227 3,145 1,483 75

Sep. 2 2009 1,451 823 394 227 646 439 5,092 4,536 219 3,592 1,676 111

Sep. 3 2009 1,209 534 219 195 550 674 3,120 3,008 551 2,566 1,624 200

Sep. 4 2009 1,774 588 325 127 395 365 2,758 2,935 533 2,331 1,211 36

Sep. 7 2009 889 868 284 200 433 503 2,751 1,303 102 2,355 506 60

Sep. 8 2009 2,002 1,242 806 318 668 619 5,621 4,636 190 4,154 1,702 57

Sep. 9 2009 1,679 1,216 492 278 733 437 4,753 5,108 305 4,343 1,798 158

Sep. 10 2009 1,910 1,395 443 137 474 474 4,924 3,652 579 3,340 1,474 89

Sep. 11 2009 1,727 1,044 394 157 600 470 4,927 3,651 867 4,196 1,673 119

Sep. 14 2009 1,749 997 411 292 623 453 4,413 3,255 146 3,438 1,030 126

Sep. 15 2009 1,644 867 478 279 635 613 4,299 3,407 270 3,422 1,469 126

Sep. 16 2009 1,867 1,811 1,012 245 647 522 5,759 3,709 225 3,400 1,325 156

Sep. 17 2009 1,718 1,752 782 222 607 699 5,360 3,703 694 3,016 1,446 526

Sep. 18 2009 1,542 1,089 352 336 544 507 3,692 3,032 1,119 2,699 1,355 367

Sep. 21 2009 + — — — — — — — — — — — —

Sep. 22 2009 2,401 1,256 444 457 851 678 4,910 3,968 259 3,009 1,282 594

Sep. 23 2009 2,479 1,882 745 756 591 558 6,193 4,755 435 2,792 2,062 154

Sep. 24 2009 2,331 2,481 1,008 1,103 793 760 5,516 5,287 885 3,747 2,164 380

Sep. 25 2009 2,773 2,137 1,103 556 840 872 6,386 4,475 1,294 3,758 2,517 198

Sep. 28 2009+ — — — — — — — — — — — —

Sep. 29 2009 3,384 1,805 1,134 418 871 1,078 5,572 4,484 494 4,803 3,255 576

Sep. 30 2009 22 46 24 68 96 108 11 74 — 582 407 12

NIR : Indian Rupees. + : Market Closed

Note :Data relate to sales and purchases of foreign exchange on account of merchant and inter-bank transactions. Data are provisional.


CURRENT

STATISTICS


No. 50: Indices of Real Effective Exchange Rate (REER) and Nominal EffectiveExchange Rate (NEER) of the Indian Rupee

(36-Currency Export and Trade Based Weights)(Base: 1993-94=100)*

* : For “Note on Methodology” and time series data on the indices presented here, please see December 2005 issue of this Bulletin.

Year Trade Based Weights Export Based Weights

REER NEER REER NEER

1 2 3 4 5

1993-94 100.00 100.00 100.00 100.00

1994-95 104.32 98.91 104.88 98.18

1995-96 98.19 91.54 100.10 90.94

1996-97 96.83 89.27 98.95 89.03

1997-98 100.77 92.04 103.07 91.97

1998-99 93.04 89.05 94.34 90.34

1999-00 95.99 91.02 95.28 90.42

2000-01 100.09 92.12 98.67 90.12

2001-02 100.86 91.58 98.59 89.08

2002-03 98.18 89.12 95.99 87.01

2003-04 99.56 87.14 99.07 87.89

2004-05 100.09 87.31 98.30 88.41

2005-06 102.35 89.85 100.54 91.17

2006-07 98.48 85.89 97.42 87.46

2007-08 104.81 93.91 104.12 95.30

2008-09 (P) 94.31 84.66 94.12 84.67

Year Trade Based Weights Export Based Weights

REER NEER REER NEER

1 2 3 4 5

2006-07 April 98.16 87.73 97.11 89.18May 96.43 85.43 95.67 87.12June 96.60 85.11 95.61 86.61July 95.75 84.22 94.80 85.74August 95.64 83.61 94.66 85.13September 98.00 84.65 96.78 86.05October 99.96 86.18 98.64 87.53November 100.35 86.50 99.31 88.12December 99.14 85.89 98.25 87.68January 100.69 87.05 99.53 88.72February 100.55 87.21 99.39 88.87March 100.53 87.11 99.35 88.85

2007-08 April 102.60 91.80 101.88 92.89May 106.01 94.69 105.24 95.83June 105.92 94.97 105.03 96.07July 105.99 94.84 105.19 96.08August 105.34 94.38 104.47 95.52September 105.90 94.65 105.12 95.91October 106.09 95.29 105.35 96.73November 104.63 94.27 104.01 95.83December 104.94 94.68 104.19 96.11January 104.85 94.29 104.26 95.91February 103.51 93.11 103.04 94.82March 101.94 90.01 101.72 91.92

2008-09 (P) April 101.67 91.51 101.60 91.92May 97.55 87.39 97.33 87.69June 97.58 86.03 97.49 86.36July 97.22 85.41 97.34 85.83August 99.45 87.04 99.47 87.27September 95.69 83.96 95.68 84.06October 92.01 81.91 91.99 81.81November 92.17 83.39 92.04 83.16December 90.01 82.47 89.81 82.25January 89.80 82.27 89.28 81.85February 90.59 83.84 90.14 83.47March 88.04 80.67 87.27 80.36

2009-10 (P) April 87.67 83.61 87.14 80.72May 89.76 84.42 89.14 81.58June 90.28 84.77 89.63 81.85July 89.82 83.39 89.15 80.48August 90.22 83.08 89.57 80.20September 90.14 82.14 89.46 79.37


CURRENT

STATISTICS


(6-Currency Trade Based Weights)

Year/Month/Day Base: 1993-94 (April-March) =100 Base: 2007-08 (April-March) =100

NEER REER NEER REER

1993-94 100.00 100.00 133.82 87.58

1994-95 96.96 105.82 129.69 92.63

1995-96 88.56 101.27 118.46 88.65

1996-97 86.85 101.11 116.17 88.51

1997-98 87.94 104.41 117.63 91.40

1998-99 77.49 96.14 103.65 84.16

1999-00 77.16 97.69 103.21 85.51

2000-01 77.43 102.82 103.57 90.01

2001-02 76.04 102.71 101.72 89.91

2002-03 71.27 97.68 95.33 85.51

2003-04 69.97 99.17 93.59 86.81

2004-05 69.58 101.78 93.07 89.10

2005-06 72.28 107.30 96.69 93.93

2006-07 69.49 105.57 92.96 92.41

2007-08 74.76 114.23 100.00 100.00

2008-09 (P) 64.87 104.47 86.78 91.45

2007-08 April 73.33 111.87 98.09 97.93

May 75.79 116.00 101.38 101.55

June 75.95 115.38 101.59 101.01

July 75.75 115.20 101.33 100.85

August 75.03 114.20 100.36 99.97

September 75.24 115.18 100.64 100.83

October 76.08 115.98 101.76 101.53

November 74.97 114.11 100.29 99.89

December 75.25 114.72 100.66 100.42

January 74.88 114.25 100.16 100.01

February 73.96 113.03 98.93 98.95

March 70.94 110.98 94.89 97.15

2008-09 (P) April 71.18 112.23 95.21 98.25

May 67.98 108.34 90.94 94.84

June 66.85 108.22 89.42 94.74

July 66.30 107.91 88.69 94.46

August 67.64 111.20 90.48 97.34

September 64.81 106.96 86.70 93.63

October 62.34 102.09 83.38 89.37

November 63.25 102.45 84.61 89.68

December 62.35 99.93 83.40 87.47

January 62.49 99.23 83.59 86.86

February 62.97 99.43 84.23 87.04

March (P) 60.35 95.68 80.73 83.76

2009-10 (P) April (P) 61.49 98.58 82.25 86.30

May (P) 62.31 101.37 83.35 88.74

June (P) 62.43 101.11 83.51 88.51

July (P) 61.36 100.64 82.08 88.10

August (P) 61.22 100.77 81.90 88.21

September (P) 60.61 101.56 81.08 88.91

As on

September 25, 2009 (P) 61.12 102.66 81.75 89.87

October 1, 2009 (P) 61.27 102.78 81.95 89.97

October 9, 2009 (P) 62.87 104.99 84.10 91.91

October 16, 2009 (P) 62.83 104.92 84.04 91.85

Notes : 1. Rise in indices indicate appreciation of rupee and vice versa.2. For “Note on Methodology” on the indices presented here, please see December 2005 issue of this Bulletin.3. Base year 2007-08 is a moving one, which gets updated every year.

No. 51: Indices of Real Effective Exchange Rate (REER) and Nominal EffectiveExchange Rate (NEER) of the Indian Rupee


CURRENT

STATISTICS

Notes on

Tables

Notes on Tables

Table No. 1

(1) Annual data are averages of the months.

(2) Figures relate to last Friday of the month / year.

(3) Total of Rupee Securities held in Issue and Banking Departments.

(4) Relates to loans and advances only.

(5) Figures relate to the last Friday / last reporting Friday (in case of March).

(6) Total for Mumbai, Chennai, Kolkata and New Delhi only.

(7) Figures relate to last reporting Friday / March 31.

(8) Rates presented as low / high for the period indicated. The source of data prior to April 2000 issue ofthe Bulletin has been DFHI. The data from April 2000 issue of the Bulletin are not strictly comparablewith that pertaining to earlier periods due to wider coverage of Call Market business.

(9) Relating to major banks.

(10) Relating to five major banks. PLR concept was introduced with effect from October 1994.

(11) Monthly data are averages of the weeks and annual data are averages of the months.

(12) Figures relate to the end of the month / year.

(13) Data relate to January – December.

(14) Cash Reserve Ratio of Scheduled Commercial Banks (excluding Regional Rural Banks).

Table No. 2

The gold reserves of Issue Department were valued at Rs.84.39 per 10 grams up to October 16, 1990and from October 17, 1990 they are valued close to international market prices.

(1) Includes Government of India one rupee notes issued from July 1940.

(2) Includes (i) Paid-up Capital of Rs.5 crore (ii) Reserve Fund of Rs.6,500 crore (iii) National IndustrialCredit (Long-Term Operations): Fund of Rs.16 crore and (iv) National Housing Credit (Long-TermOperations) Fund of Rs.190 crore from the week ended November 30, 2007.

(3) Includes cash, short-term securities and fixed deposits. This also includes investment in foreign currencydenominated bonds issued by IIFC(UK) since March 20, 2009.

(4) Includes temporary overdrafts to State Governments.

(5) Figures in bracket indicate the value of gold held under other assets.

Table Nos. 3 & 4

The expression ‘Banking System’ or ‘Banks’ means (a) State Bank of India and its associates (b)Nationalised Banks (c) Banking companies as defined in clause ‘C’ of Section 5 of the Banking RegulationAct, 1949 (d) Co-operative banks (as far as scheduled co-operative banks are concerned) (e) RegionalRural Banks and (f) any other financial institution notified by the Central Government in this regard.

(1) Excludes borrowings of any scheduled state co-operative bank from the State Government and anyReserve Fund deposit required to be maintained with such bank by any co-operative society within thearea of operation of such bank.

(2) Deposits of co-operative banks with scheduled state co-operative banks are excluded from this itembut are included under ‘Aggregate deposits’.

(3) Excludes borrowings of regional rural banks from their sponsor banks.


CURRENT

STATISTICS

Notes on

Tables

(4) Wherever it has not been possible to provide the data against the item ‘Other demand and timeliabilities’ under ‘Liabilities to the Banking System’ separately, the same has been included in the item‘Other demand and time liabilities’ under ‘Liabilities to others’.

(5) Data reflect redemption of India Millennium Deposits (IMDs) on December 29, 2005.

(6) Other than from the Reserve Bank of India, NABARD and Export-Import Bank of India.

(7) Figures relating to scheduled banks’ borrowings in India are those shown in the statement of affairs ofthe Reserve Bank of India. Borrowings against usance bills and/or promissory notes are under section17(4) of the Reserve Bank of India Act, 1934.

(8) Includes borrowings by scheduled state co-operative banks under Section 17(4AA) of the Reserve Bankof India Act, 1934.

(9) As per the Statement of Affairs of the Reserve Bank of India.

(10) Advances granted by scheduled state co-operative banks to co-operative banks are excluded from thisitem but included under ‘Loans, cash-credits and overdrafts’.

(11) At book value; it includes treasury bills and treasury receipts, treasury savings certificates and postalobligations.

(12) Includes participation certificates (PCs) issued by scheduled commercial banks to other banks andfinancial institutions.

(13) Includes participation certificates (PCs) issued by scheduled commercial banks to others.

(14) Figures in brackets relate to advances of scheduled commercial banks for financing food procurementoperations.

Table No. 6

(1) Total of demand and time deposits from ‘Others’.

(2) Includes borrowings from the Industrial Development Bank of India and National Bank for Agricultureand Rural Development.

(3) At book value; includes treasury bills and treasury receipts, treasury savings certificates and postal obligations.

(4) Total of ‘Loans, cash credits and overdrafts’ and ‘Bills purchased and discounted’.

(5) Includes advances of scheduled state co-operative banks to central co-operative banks and primary co-operative banks.

Table No. 7

With a view to enable the banks to meet any unanticipated additional demand for liquidity in the contextof the century date change, a ‘Special Liquidity Support’ (SLS) facility was made available to all scheduledcommercial banks (excluding RRBs) for a temporary period from December 1, 1999 to January 31, 2000.

(1) With effect from April 13,1996, banks are provided export credit refinance against their rupee exportcredit and post-shipment export credit denominated in U.S. Dollars taken together.

(2) General Refinance Facility was replaced by Collateralised Lending Facility (CLF)/Additional CollateralisedFacility (ACLF) effective April 21, 1999. ACLF was withdrawn with the introduction of Liquidity AdjustmentFacility (LAF), effective June 5, 2000. CLF was withdrawn completely effective October 5, 2002.

(3) Special Liquidity Support Facility which was introduced effective September 17, 1998 was availableupto March 31, 1999.


CURRENT

STATISTICS

Notes on

Tables

(4) Post-shipment credit denominated in US dollars (PSCFC) scheme was withdrawn effective February 8,1996 and the refinance facility thereagainst was withdrawn effective April 13, 1996. The scheme ofgovernment securities refinance was terminated effective July 6, 1996.

Table No. 8

(a)The data includes cheque clearing for both i.e. clearing houses managed by Reserve Bank of India andclearing houses managed by other banks. Paper based inter-bank clearing has been discontinued at all thecentres, the last June, 2005.

The other MICR Centres are Agra, Allahabad, Amritsar, Aurangabad, Baroda, Belgaum, Bhilwara, Coimbatore,Cuttak, Dehradun, Ernakulum, Erode, Gorakhpur, Gwalior, Hubli, Indore ,Jabalpur, Jalandhar, Jamshedpur, Jammu,Jodhpur, Kolhapur, Kozhikode, Kota, Lucknow, Ludhiana, Madurai, Mangalore, Mysore, Nasik, Panaji, Pondicherry,Pune, Raipur, Rajkot, Ranchi, Salem, Sholapur, Surat, Thiruchirapalli, Tirupur, Thrissur, Tirunelveli, Udaipur,Varanasi, Vijayawada and Vishakhapatnam.

(b) Graphs: The graphs 3 and 4 on Paper and Electronic payments - the Electronic Payment System data includeRetail Electronic Payment Systems, RTGS (customer and inter-bank) and CCIL operated systems.

(c) Non MICR Data pertains to the Clearing Houses managed by 10 banks namely SBI (709), SBBJ (51), SB Indore(27), PNB (8), SBT (69), SBP (63), SBH (50), SBM (45) and United Bank of India (6). (Figures in bracket indicateNon MICR Cheque Clearing Houses managed by the bank.)

(d) The other MICR Centres includes 47 centres managed by 13 PSBs namely Andhra Bank, Bank of Baroda, Bankof India, Canara Bank, Central Bank of India, Corporation Bank, Oriental Bank of Commerce, Punjab NationalBank, State Bank of India, State Bank of Indore, State Bank of Travancore, State Bank of Hyderabad and UnionBank of India.

Table No. 9A

The data pertains to retail electronic payment.

Table No. 9B

The data pertains to Large Value Payment Systems. The figures for CCIL, the operations pertains toselected services, are taken from the CCIL published data.

Table No. 10

(a) For details of money stock measures according to the revised series, reference may be made to January1977 issue of this Bulletin (pages 70-134).

(b) Banks include commercial and co-operative banks.

(c) Financial year data relate to March 31, except scheduled commercial banks’ data which relate to the lastreporting Friday of March. For details, see the note on page S 963 of October 1991 issue of this Bulletin.

(d) Scheduled commercial banks’ time deposits reflect redemption of Resurgent India Bonds (RIBs), sinceOctober 1, 2003 and of India Millennium Deposits (IMDs) since December 29, 2005.

(e) Data are provisional.

(1) Net of return of about Rs.43 crore of Indian notes from Pakistan upto April 1985.

(2) Estimated : ten-rupee commemorative coins issued since October 1969, two-rupee coins issued sinceNovember 1982 and five-rupee coins issued since November 1985 are included under rupee coins.


CURRENT

STATISTICS

Notes on

Tables

(3) Exclude balances held in IMF Account No.1, Reserve Bank of India Employees’ Provident Fund,Pension Fund, Gratuity and Superannuation Fund and Co-operative Guarantee Fund, the amountcollected under the Additional Emoluments (Compulsory Deposit) Act, 1974 and the CompulsoryDeposit Scheme (Income-Tax Payers’) Act.

(f) Revised in line with the new accounting standards and consistent with the Methodology of Compilation(June 1998). The revision is in respect of pension and provident funds with commercial banks whichare classified as other demand and time liabilities and includes those banks which have reported suchchanges so far.

Table Nos. 11 & 13

(a) On the establishment of National Bank for Agriculture and Rural Development (NABARD), on July 12,1982, certain assets and liabilities of the Reserve Bank were transferred to NABARD, necessitatingsome reclassification of aggregates in the sources of money stock from that date.

(b) Please see item (c) of notes to Table 10.

(c) Data are provisional.

(1) Includes special securities and also includes Rs.751.64 crore (equivalent of SDRs 211.95 million)incurred on account of Reserve Assets subscription to the IMF towards the quota increase effectiveDecember 11, 1992.

(2) Represents investments in bonds/shares of financial institutions, loans to them and holdings ofinternal bills purchased and discounted. Excludes since the establishment of NABARD, its refinanceto banks.

(3) Inclusive of appreciation in the value of gold following its revaluation close to internationalmarket price effective October 17, 1990. Such appreciation has a corresponding effect on ReserveBank’s net non-monetary liabilities.

Table No. 11A

The conceptual basis of the compilation of the Commercial Bank Survey are available in the report ofthe Working Group on Money Supply: Analytics and Methodology of Compilation (Chairman: Dr. Y.V.Reddy), RBI Bulletin, July 1998, which recommended changes in the reporting system of commercialbanks and the article entitled “New Monetary Aggregates: An Introduction”, RBI Bulletin, October 1999.

(1) Time Deposits of Residents : These do not reckon non-residents’ foreign currency repatriable fixeddeposits (such as FCNR(B) deposits, Resurgent India Bonds (RIBs) and India Millennium Deposits(IMDs)) based on the residency criterion and exclude banks’ pension and provident funds becausethey are in the nature of other liabilities and are included under ‘other demand and time liabilities’.

(2) Short-term Time Deposits : Refers to contractual maturity of time deposits of up to and includingone year. This is presently estimated at 45.0 per cent of total domestic time deposits.

(3) Domestic Credit : It includes investments of banks in non-SLR securities, comprising commercialpaper, shares and bonds issued by the public sector undertakings, private sector and public financialinstitutions and net lending to primary dealers in the call/term money market, apart frominvestment in government and other approved securities and conventional bank credit (by wayof loans, cash credit, overdrafts and bills purchased and discounted).


CURRENT

STATISTICS

Notes on

Tables

(4) Net Foreign Currency Assets of Commercial Banks : Represent their gross foreign currency assetsnetted for foreign currency liabilities to non-residents.

(5) Capital Account : It consists of paid-up capital and reserves.

(6) Other Items (net) : It is the residual balancing the components and sources of the CommercialBanking Survey and includes scheduled commercial banks’ other demand and time liabilities, netbranch adjustments, net inter-bank liabilities etc.

Table No. 11B

The conceptual basis of the compilation of new monetary aggregates are available in the report of theWorking Group on Money Supply: Analytics and Methodology of Compilation (Chairman: Dr. Y.V. Reddy),RBI Bulletin, July 1998. A link series between the old and present monetary series has been publishedin the article entitled “New Monetary Aggregates: An Introduction”, RBI Bulletin, October 1999.

(1) NM2 and NM

3 : Based on the residency concept and hence does not directly reckon non-resident

foreign currency repatriable fixed deposits in the form of FCNR(B) deposits, Resurgent IndiaBonds (RIBs) and India Millennium Deposits (IMDs).

(2) NM2 : This includes M

1 and residents’ short-term time deposits (including and up to the contractual

maturity of one year) with commercial banks.

(3) Domestic Credit : Consistent with the new definition of bank credit which includes investmentsof banks in non-SLR securities, comprising of commercial paper, shares and bonds issued by thepublic sector undertakings, private sector and public financial institutions and net lending toprimary dealers in the call/term money market. The RBI’s loans and advances to NABARD wouldbe included in the RBI credit to commercial sector. Other components such as credit toGovernment, investments in other approved securities and conventional bank credit remainunchanged.

(4) Net Foreign Assets of The Banking Sector : It comprises the RBI’s net foreign assets and scheduledcommercial banks’ net foreign currency assets (refer to note 4 of Table 11A).

(5) Capital Account : It consists of paid-up capital and reserves.

(6) Other Items (net) of the Banking System : It is the residual balancing the components and sourcesof money stock, representing other demand and time liabilities etc. of the banking system.

Table No. 11C

The conceptual basis of the compilation of the Reserve Bank Survey is given in the report of theWorking Group on Money Supply: Analytics and Methodology of Compilation (Chairman: Dr. Y.V.Reddy), RBI Bulletin, July 1998 and the article “New Monetary Aggregates: An Introduction”, RBIBulletin, October 1999. The components of reserve money (to be referred as M

0) remain unchanged.

On the sources side, the RBI’s refinance to the National Bank for Agriculture and Rural Development(NABARD), which was hitherto part of RBI’s claims on banks has been classified as part of RBI creditto commercial sector. The Reserve Bank’s net non-monetary liabilities are classified into capitalaccount (comprising capital and reserves) and other items (net).

Table No. 12

Please see item (c) of notes to Table 10.


CURRENT

STATISTICS

Notes on

Tables

Table No. 27C

(a) Month-end yields for different integer valued residual maturities are estimated using interpolationtechnique on weighted average yields of select indicative securities derived from SGL transactions dataon government securities observed during a select month-end day. Yield corresponding to eachtransaction in a security is calculated from the following Yield to Maturity (YTM) and price relationship.

Where,

P = price of the bond

bpi = broken period interest

c = annual coupon payment

y = yield to maturity

v = number of coupon payments in a year

n = number of coupon payments till maturity

F = Redemption payment of the bond

ti

= time period in year till ith coupon payment

(b) The weighted average yield corresponding to each traded security on that particular day is calculatedfrom the yields of all transactions on that security using amount (Face Value) traded as the weights.

(c) Broken period (number of days) is based on day count convention of 30 days a month and 360 days a year.

Table Nos. 29 & 30

Table 29 presents Index Numbers of Industrial Production (Sectoral and Use-based Classification). Due torevision of the indices of the mining sector and also the deletion of four items, viz., radio receivers,photosensitised paper, chassis (assembly) for HCVs (bus, truck) and engines from the item–basket of themanufacturing sector, the IIP data have been revised from 1994-95 onwards. This has also resulted in thechange in redistribution of weights in use-based classification of IIP. Table 30 contains data onmanufacturing sector at two digit level of 17 groups along with general index and sectoral indices, viz.,Mining and Quarrying, Manufacturing and Electricity.

Table No. 31

(a) Figures exclude data on private placement and offer for sale but include amounts raised by privatefinancial institutions.

(b) Equity shares exclude bonus shares.

(c) Preference shares include cumulative convertible preference shares and equi-preference shares.

(d) Debentures include bonds.

(e) Convertible debentures include partly convertible debentures.

(f) Non-convertible debentures include secured premium notes and secured deep discount bonds.

(g) Figures in brackets indicate data in respect of premium on capital issues which are included in respectivetotals.

P + bpi =c/v

(1+ y/v)vti

n

i = 1

+ F

(1+ y/v)vtn


CURRENT

STATISTICS

Notes on

Tables

Table No. 35

The ban on forward trading in gold and silver, effective November 14, 1962 and January 10, 1963, hasbeen lifted with effect from April 1, 2003.

(1) In case Friday is a holiday, prices relate to the preceding working day.

Table No. 36

Annual data relate to average of the months April to March.

(1) The new series of index numbers with base 2001=100 was introduced from January 2006 and withthat the compilation of the index numbers with the base year 1982 was discontinued. The linkingfactor can be used to work out the index numbers with the base year 2001 for data from January 2006onwards.

(2) Based on indices relating to 78 centres.

Table No. 37

Annual data relate to average of the months April to March. The new series of index numbers with base 1984-85=100 was introduced from November 1987.

(1) Based on indices relating to 59 centres.

Table No. 38

Annual data relate to the average of the months July to June.

(1) With respect to base: July 1960-June 1961=100.

(2) The new series of index numbers with base : July 1986 to June 1987 = 100 was introduced fromNovember 1995 and with that the compilation of index numbers with base : July 1960 to June1961 was discontinued. The linking factor given in this column can be used to work out the indexnumbers with old base (i.e., 1960-61 = 100) for November 1995 and subsequent months.

(3) In the case of Assam, the old series (i.e., with base 1960-61 = 100) was being compiled for the compositeregion viz. Assam, Manipur, Meghalaya and Tripura while the index of the new series (i.e., with base1986-87 = 100) has been compiled for each of the constituent States separately. The index for Assamregion on old base can be estimated from the corresponding indices of the new series as under :

I AO = 5.89 [ (0.8126 X IA

N) + (0.0491 X IMa

N) +(0.0645 X IMe

N) + (0.0738 X IT

N)]

where IO and I

N represent the index numbers for old and new series, respectively, and superscripts A,

Ma, Me and T indicate Assam, Manipur, Meghalaya and Tripura, respectively.

(4) Similarly, in the case of Punjab, where the old series (i.e., with base 1960-61 = 100) was being compiledfor the composite region, viz., Punjab, Haryana and Himachal Pradesh, the index for the Punjab regionon old base can be estimated as under :

IPO = 6.36 [(0.6123 X IP

N) + (0.3677 X IHa

N) + (0.0200 X IHi

N)]

where IO and I

N represent the index numbers for old and new series, respectively, and superscripts P,

Ha and Hi indicate Punjab, Haryana and Himachal Pradesh, respectively.

(5) Indices for the State compiled for the first time from November, 1995.


CURRENT

STATISTICS

Notes on

Tables

(6) Consumer Price Index for Rural Labourers (including agricultural labourers) are compiled from November1995 only.

(7) Average of 8 months (November 1995 - June 1996).

Table Nos. 39 & 40

The new series of index numbers with base 1993-94=100 was introduced in April 2000. Details regardingthe scope and coverage of new series are published in June 2000 issue of the Bulletin.

Table No. 41

(a) The foreign trade data relate to total sea, air and land trade, on private and government accounts. Exportsare on f.o.b. basis and imports are on c.i.f. basis. Exports include re-exports of foreign merchandisepreviously imported to India and imports relate to foreign merchandise whether intended for homeconsumption, bonding or re-exportation. Direct transit trade, transshipment trade, passengers baggage,ship’s stores, defence goods and transactions in treasure i.e. gold and current coins and notes, diplomaticgoods, “proscribed substances” under Atomic Energy Act, 1962, are excluded from the trade data, whileindirect transit trade, transactions in silver (other than current coins) and in notes and coins not yet in

circulation or withdrawn from circulation are included.

Table Nos. 42 & 43

(1) Data up to 1980-81 are final, subsequent data are preliminary actuals.

(2) Interest accrued during the year and credited to NRI deposits has been treated as notional outflowunder invisible payments and added as reinvestment in NRI deposits under Banking Capital – NRD.

(3) The item “Non-monetary Gold Movement” has been deleted from Invisibles in conformity with theIMF Manual on BOP (5th edition) from May 1993 onwards; these entries have been included undermerchandise.

(4) Since 1990-91 the value of defence related imports are recorded under imports (merchandise debit)with credits financing such imports shown under “Loans (External commercial Borrowings to India)”in the capital account. Interest payments on defence debt owed to the General Currency Area (GCA)are recorded under Investment Income debit and principal repayments under debit to “Loans (Externalcommercial Borrowings to India)”. In the case of the Rupee Payment Area (RPA), interest payment onand principal repayment of debt is clubbed together and shown separately under the item “RupeeDebt Service” in the capital account. This is in line with the recommendations of the High LevelCommittee on Balance of Payments (Chairman : Dr. C. Rangarajan).

(5) In accordance with the provisions of IMF’s Balance of Payments Manual (5th Edition), gold purchasedfrom the Government of India by the RBI has been excluded from the BOP statistics. Data from theearlier years have, therefore, been amended by making suitable adjustments in “Other Capital Receipts”and “Foreign Exchange Reserves”. Similarly, item “SDR Allocation” has been deleted from the table.

(6) In accordance with the recommendations of the Report of the Technical Group on Reconciling of Balanceof Payments and DGCI & S Data on Merchandise Trade, data on gold and silver brought in by theIndians returning from abroad have been included under import payments with contra entry underPrivate Transfer Receipts since 1992-93.


CURRENT

STATISTICS

Notes on

Tables

(7) In accordance with the IMF’s Balance of Payments Manual (5th edition), ‘compensation of employees’has been shown under head, “income” with effect from 1997-98; earlier, ‘compensation of employees’was recorded under the head “Services – miscellaneous”.

(8) Since April 1998, the sales and purchases of foreign currency by the Full Fledged Money Changers(FFMC) are included under “travel” in services.

(9) Exchange Rates : Foreign currency transactions have been converted into rupees at the par/centralrates up to June 1972 and on the basis of average of the Bank’s spot buying and selling ratesfor sterling and the monthly averages of cross rates of non-sterling currencies based on Londonmarket thereafter. Effective March 1993, conversion is made by crossing average spot buyingand selling rate for US dollar in the forex market and the monthly averages of cross rates ofnon-dollar currencies based on the London market.

Explanatory Notes

Balance of payments is a statistical statement that systematically summarises, for a specific time period, theeconomic transactions of an economy with the rest of the world.

Merchandise credit relate to export of goods while merchandise debit represent import of goods.

Travel covers expenditure incurred by non-resident travellers during their stay in the country and expenditureincurred by resident travellers abroad.

Transportation covers receipts and payments on account of international transportation services.

Insurance comprises receipts and payments relating to all types of insurance services as well as reinsurance.

Government not included elsewhere (G.n.i.e.) relates to receipts and payments on government account notincluded elsewhere as well as receipts and payments on account of maintenance of embassies and diplomaticmissions and offices of international institutions.

Miscellaneous covers receipts and payments in respect of all other services such as communication services,construction services, software services, technical know-how, royalties etc.

Transfers (official, private) represent receipts and payments without a quid pro quo.

Investment Income transactions are in the form of interest, dividend, profit and others for servicing ofcapital transactions. Investment income receipts comprise interest received on loans to non-residents,dividend/profit received by Indians on foreign investment, reinvested earnings of Indian FDI companiesabroad, interest received on debentures, floating rate notes (FRNs), Commercial Papers (CPs), fixed depositsand funds held abroad by ADs out of foreign currency loans/export proceeds, payment of taxes by non-residents/refunds of taxes by foreign governments, interest/discount earnings on RBI investment etc.Investment income payments comprise payment of interest on non-resident deposits, payment of intereston loans from non-residents, payment of dividend/profit to non-resident share holders, reinvested earningsof the FDI companies, payment of interest on debentures, FRNs, CPs, fixed deposits, Government securities,charges on Special Drawing Rights (SDRs) etc.

Foreign investment has two components, namely, foreign direct investment and portfolio investment.


CURRENT

STATISTICS

Notes on

Tables

Foreign direct investment (FDI) to and by India up to 1999-2000 comprise mainly equity capital. In linewith international best practices, the coverage of FDI has been expanded since 2000-01 to include, besidesequity capital reinvested earnings (retained earnings of FDI companies) and ‘other direct capital’ (inter-corporate debt transactions between related entities). Data on equity capital include equity of unincorporatedentities (mainly foreign bank branches in India and Indian bank branches operating abroad) besides equityof incorporated bodies. Data on reinvested earnings for the latest year are estimated as average of theprevious two years as these data are available with a time lag of one year. In view of the above revision, FDIdata are not comparable with similar data for the previous years. In terms of standard practice of BoPcompilation, the above revision of FDI data would not affect India’s overall BoP position as the accretion tothe foreign exchange reserves would not undergo any change. The composition of BoP, however, wouldundergo changes. These changes relate to investment income, external commercial borrowings and errorsand omissions. In case of reinvested earnings, there would be a contra entry (debit) of equal magnitudeunder investment income in the current account. ‘Other Capital’ reported as part of FDI inflow has beencarved out from the figure reported under external commercial borrowings by the same amount. ‘OtherCapital’ by Indian companies abroad and equity capital of unincorporated entities have been adjusted againstthe errors and omissions for 2000-01 and 2001-02.

Portfolio investment mainly includes FIIs’ investment, funds raised through ADRs/GDRs by Indian companiesand through offshore funds. Data on investment abroad, hitherto reported, have been split into equitycapital and portfolio investment since 2000-01.

External assistance by India denotes aid extended by India to other foreign Governments under variousagreements and repayment of such loans. External Assistance to India denotes multilateral and bilateralloans received under the agreements between Government of India and other Governments/Internationalinstitutions and repayments of such loans by India, except loan repayment to erstwhile “Rupee area” countriesthat are covered under the Rupee Debt Service.

Commercial borrowings covers all medium/long term loans. Commercial Borrowings by India denote loansextended by the Export Import Bank of India (EXIM bank) to various countries and repayment of suchloans. Commercial Borrowings to India denote drawals/repayment of loans including buyers’ credit, suppliers’credit, floating rate notes (FRNs), commercial paper (CP), bonds, foreign currency convertible bonds (FCCBs)issued abroad by the Indian corporate etc. It also includes India Development Bonds (IDBs), Resurgent IndiaBonds (RIBs), India Millennium Deposits (IMDs).

Short term loans denotes drawals in respect of loans, utilized and repayments with a maturity of less thanone year.

Banking capital comprises of three components : a) foreign assets of commercial banks (ADs), b) foreignliabilities of commercial banks (ADs), and c) others. ‘Foreign assets’ of commercial banks consist of (i)foreign currency holdings, and (ii) rupee overdrafts to non-resident banks. ‘Foreign liabilities’ of commercialbanks consists of (i) Non-resident deposits, which comprises receipt and redemption of various non-resident deposit schemes, and (ii) liabilities other than non-resident deposits which comprises rupee andforeign currency liabilities to non-resident banks and official and semi-official institutions. ‘Others’ underbanking capital include movement in balances of foreign central banks and international institutions likeIBRD, IDA, ADB, IFC, IFAD etc. maintained with RBI as well as movement in balances held abroad by theembassies of India in London and Tokyo.


CURRENT

STATISTICS

Notes on

Tables

Rupee debt service includes principal repayments on account of civilian and non-civilian debt in respect ofRupee Payment Area (RPA) and interest payment thereof.

Other capital comprises mainly the leads and lags in export receipts (difference between the customdata and the banking channel data). Besides this, other items included are funds held abroad, India’ssubscription to international institutions, quota payments to IMF, remittances towards recouping thelosses of branches/subsidiaries and residual item of other capital transactions not includedelsewhere.

Movement in reserves comprises changes in the foreign currency assets held by the RBI and SDRbalances held by the Government of India. These are recorded after excluding changes on account ofvaluation. Valuation changes arise because foreign currency assets are expressed in US dollar terms and theyinclude the effect of appreciation/depreciation of non-US currencies (such as Euro, Sterling, Yen) held inreserves.

Table No. 44

1. Gold is valued at average London market price during the month.

2. Conversion of SDRs into US dollars is done at exchange rates released by the International MonetaryFund (IMF).

3. Conversion of foreign currency assets into US dollars is done at week-end (for week-end figures) andmonth-end (for month-end figures) New York closing exchange rates.

4. Foreign exchange holdings are converted into rupees at rupee-US dollar RBI Holding rates.

5. Reserve Tranche Position (RTP) in IMF has been included in foreign exchange reserves from April 2,2004 to match the international best practices. Foreign exchange reserves figures have accordinglybeen revised for 2002-03 and 2003-04 to include RTP position in the IMF.

Table No. 51

The 5-country indices of REER/NEER were replaced with new 6-currency indices in December 2005. The RBIBulletin December 2005 carried a detailed article on the rationale and methodology for the replacement. Arevision has now been undertaken in the construction of the 6-currency REER indices. This revision wasnecessitated by a sudden spurt in Chinese inflation indices during April-May, 2006. It may be mentioned thatChinese inflation indices are not readily available in the public domain. The National Bureau of Statistics providesonly point-to-point inflation rates on a monthly basis in the public domain. In view of this, inflation indiceswere constructed taking into account the inflation rates with 1993-94 as the base year. It may be further mentionedthat the period from January 1993 to December 1995 was marked by continuous double digit inflation rates inChina. This lent an upward bias to the Chinese inflation indices (base: 1993-94=100) leading to a sharp fall inthe value of 6-currency REER in April 2006. In order to remove the distortion in REER on account of suddenspurt in Chinese inflation numbers, a new series of Chinese inflation indices has been constructed taking 1990as the base year (a year with much less volatility in inflation rates). Subsequently, the base year of the new seriesof Chinese inflation indices has been changed from 1990 to 1993-94 through splicing to facilitate the constructionof the 6-currency REER (base 1993-94=100).

RBIMonthly BulletinNovember 2009 I

PUBLICATIONS

ImportantRecent

Publicationsof the

Reserve Bankof India

Important Recent Publications of the Reserve Bank of India

Name of Publication

India Abroad

1. The Reserve Bank of India Rs.3,700 (including postal charges) –History 1935-1981(3 Volumes)

2. Reserve Bank of India Bulletin Rs.200 per copy (over the counter) US $ 20 per copy (inclusive of postage)Rs.150 per copy (concessional over the counter) US $ 200 (one-year subscription),Rs.180 per copy (concessional inclusive of postage) US $ 500 (three-year subscription)Rs.225 per copy (inclusive of postage)Rs.2,250 (one-year subscription),Rs.1,750 (concessional one-year subscription)Rs.6,250 (three-year subscription)Rs.5,000 (concessional three-year subscription)

3. Weekly Statistical Supplement Rs.12 per copy, US $ 34 (one-year subscription),to RBI Monthly Bulletin Rs.550 (one-year subscription),

Rs.1,500 (three-year subscription) US $ 85 (three-year subscription)

4. Report on Trend and Progress Rs.350 per copy (normal) US $ 36 per copy (inclusive of airmailof Banking in India 2008-09 Rs.425 per copy (including postal charges) Courier charges)

Rs.335 per copy(concessional inclusive of postal charges)Rs.260 per copy (concession price over the counter)

5. India’s Financial Sector an Rs.2,000 per set (over the counter) US $ 40 per set andAssessment Vol. I to VI 2009 Rs.2,300 (inclusive of postage) US $ 120 per set (inclusive airmail(Including Vol. I to VI CD Rom) Rs.1,500 (concessional over the counter) courier charges)

Rs.1,800 (concessional inclusive of postage)

6. Quarterly Statistics on Deposit Rs.40 per copy (over the counter) US $ 10 per copyand Credit of Scheduled Rs.60 per copy (including postal charges) (including registered air-mail)Commercial Banks 2009 US $ 15 (inclusive of courier charges)i) Marchii) June

7. State Finance - Rs.215 per copy (normal) US $ 23 per copy (including airmailA Study of Budgets of 2008-09 Rs.245 per copy (including postal charges) courier charges)

Rs.160 per copy (concessional)Rs.190 per copy (concessional inclusive of postage)

8. A Profile of Banks 2008-09 Rs.60 per copy (normal) US $ 5 per copy (inclusive of registeredRs.90 per copy (inclusive of postal charges) airmail charges)

US $ 45 per copy (inclusive ofcourier charges)

9. Handbook of Statistics on the Rs.175 per copy (normal) US $ 28 per copy & US $ 6 for CD-ROMIndian Economy 2008-09 Rs.240 per copy (Inclusive of postage) and US $ 30 for Print version

Rs.130 per copy (Concessional) alongwith CD-ROM by air-mailRs.190 per copy (Concessional with postage) courier charges

CD-ROM Rs.185 (Normal)Rs.210 (Inclusive of postage)Rs.140 (Concessional)Rs.165 (Concessional with Postage)Print version alongwith CD-ROMRs.350 (Normal)Rs.450 (Inclusive of postage)Rs.250 (Concessional)Rs.350 (Concessional with postage)

Price

RBIMonthly BulletinNovember 2009II

PUBLICATIONS

ImportantRecentPublicationsof theReserve Bankof India

10. Circulars on Monetary and CD - Rom US $ 9 per CD Romcredit policy No. 12 Rs.335 per CD (over the counter) (inclusive air-mail book-post and(from April 2008 to Rs.355 per CD (inclusive of postage) US $ 43 inclusive ofMarch 2009) Rs.255per CD (concessional at counter) airmail courier charges)

Rs.275 per CD (concessional inclusive of postage)

11. Basic Statistical Returns of Rs.300 per copy (normal) US $ 25 per copy (inclusive ofScheduled Commercial Banks Rs.340 per copy (inclusive of postal charges) Registered air-mail)in India Vol. 37 March 2008 US $ 60 per copy (inclusive of

courier charges)

12. Reports on Currency and Rs.1,100 Normal US $ 55 per set (including airmailFinance 2003-08 Vol. I to V Rs.1,170 (inclusive of postage) courier charges)(Special Issue) Rs.830 (concessional)

Rs.900 (concessional inclusive of postage)

13. Report on Currency and Rs.400 per set (over the counter) US $ 40 per set (inclusive offinance 2006-08 Vol. I and II Rs.425 per set (inclusive of postal charges) airmail courier charges)

Rs.300 per set (concessional)Rs.325 per set (concessional inclusive of postage)

14. Statistical Tables Relating to Rs.200 per copy (Rs.250 by registered book-post) US $ 80 per copy (by courier)Banks in India 2007-08 US $ 20 per copy (by registered

CD-ROM Rs.225 & Rs.250 inclusive of air-mail)postal charges US $ 15 per CD inclusive of

registered air mailUS $ 45 per CD inclusive ofcourier charges

15. Banking Glossary Rs.75 per copy (normal) –(English-Hindi 2007) Rs.100 per copy (including postal Charges)

16. Handbook of Instructions Basic Rs.40 per copy inclusive of postage –Statistical Returns 1 and 2Seventh Edition March 2008

17. Foreign Collabration in Indian Rs.75 per copy (normal) US $ 15 per copy (inclusive of air-mailIndustry Seventh Survey Report Rs.90 per copy (inclusive of postal charges) courier charges)2007 (1994-95 to 2000-01) Rs.70 per copy (concessional)

18. Directory of Commercial Bank Rs.150 per CD (normal) US $ 15 per CD (include of postage)Offices in India Vol. 3 March Rs.200 per CD (including postal charges)31, 2006. on CD ROM

19. 50 Years of Central Banking Rs.400 per copy (normal) –Governors Speak

20. C.D. Deshmukh Memorial Rs.100 per copy (normal) US $ 25 per copyLecture Series Centenary (by air-mail book-post)Commemorative Volume

21. Reserve Bank of India Rs.80 per copy (inclusive of postal charges) US $ 45 per copy (inclusive ofOccasional paper 2008 postal charges)1) Vol.29 No.1 (Summer)2) Vol.29 No.2 (Monsoon)3) Vol.29 No.3 (Winter)


PriceName of Publication

India Abroad

RBIMonthly BulletinNovember 2009 III

22. L. K. Jha Memorial Rs.190 per copy (normal) US $ 23 per copy (inclusive ofLecture Series Rs.200 per copy (inclusive of postal charges) air-mail courier charges)

Rs.150 per copy (Concessional)

23. Statistical Tables Relating to Rs.190 (over the counter) US $ 20 inclusive of registeredBanks in India 1979 - 2007 Rs.240 (inclusive of postage) air-mail & US $ 55 inclusive ofon CD-ROM Courier Charges

24. Selected Banking Indicators Rs.320 per copy (normal) (Rs.460 by registered US $ 75 per copy (by air-mail1981 to 2002 book post). Rs.250 for CD-ROM Rs.300 (including book-post)

postal charges)

25. Private Corporate Business Rs.300 per copy (normal) and US $ 60 per copy and US $ 100 forSector in India, Selected Rs.500 for Print version and CD-ROM CD-ROMFinancial Statistics From 1950-51 (including postal charges) (including registered air-mail)to 1997-98 (All Industries)

26. Selected Financial Statistics Rs.700 for all Vol. I. II. and III US $ 140 for all Vol. I. II. and IIIPublic Limited companies Rs.350 for CD-ROM US $ 70 for CD-ROM1974-75 to 1999-2000 (including postal charge) (including registered air-mail)(Selected Industries)

27. Report of the Committee on Rs.140 per copy (normal) US $ 25 per copy (includingFuller Capital Account Rs.170 (per copy by post) air-mail charges)Convertibility(Tarapore Committee Report II)

PUBLICATIONS

ImportantRecent

Publicationsof the


Notes : 1) All above publications are also available at M/s. Jain Book Agency, C-9, Connaught Place, New Delhi-110001,Ph:011 2341 6390 upto 94, Fax: 011 4151 3850, website: www.jba.in, e-mail: [email protected] and at their dealer network.

2) The Reserve Bank of India History 1935-1981 (3 Volumes) is available at leading book stores in India.

3) All other publications are available from The Director, Sales Section, Division of Reports, Reviews and Publications, Departmentof Economic Analysis and Policy, Reserve Bank of India, Amar Building (First Floor), P.M. Road, Fort, Mumbai-400001.

4) Concessional price is available only at RBI counters for research students, full time teachers in economics statistics,commerce and business management, academic/education institutions and public libraries in india provided the requestis forwarded through the head of the institution every year.


PriceName of Publication

India Abroad

Cheques/drafts should be drawn in favour of Reserve Bank of India payable at Mumbai, and sent to The Director, Divisionof Reports, Reviews and Publications, Department of Economic Analysis and Policy, Reserve Bank of India, Amar Building,Sixth Floor, P.M. Road, Fort, Mumbai - 400 001. The yearly subscription will be for 12 issues subject to the processing/realisation of the cheques/drafts. The details and confirmation of the subscription will be sent accordingly. The back issuesof monthly Bulletin are not available, the same can be accessed through internet at the address given at website page. Thecomplaints about non-receipt of the Bulletin issue should be intimated within three months of release of the issue. Fordetails on subscription, please contact on the above address. Publications are available on sale at Sales Section, Division ofReports, Reviews and Publications, Department of Economic Analysis and Policy, Reserve Bank of India, Amar Building,Ground Floor, P.M. Road, Fort, Mumbai - 400 001.

RBIMonthly BulletinNovember 2009 i

PUBLICATIONS


Publications

A. Annual Publications

1. Report on Trend and Progress of Banking in India # DEAP –i) 1987-88 1988 32 *£ 13

ii) 1988-89 1989 45 *£ 15iii) 1990-91 1991 60 *£ 35iv) 1992-93 1993 60 * 35v) 1993-94 1995 60 * 35

vi) 1994-95 1995 75 * 35vii) 1995-96 1996 85 * 35

viii) 1996-97 1997 85 * 35ix) 1997-98 1998 120 *£ 45x) 1998-99 1999 220 * 50

xi) 1999-00 2000 350 *£ 70xii) 2000-01 2001 350 * 70

xiii) 2001-02 2002 400 80542 *

xiv) 2002-03 2003 250 £ 30

400 * 20 *xv) 2003-04 2004 275 30

300 * 20 *250 **

xvi) 2004-05 2005 325 30

350 * 20 *275 **250 ***

xvii) 2005-06 2006 400 £ 40

450 * 25 *350 **300 ***

xviii) 2006-07 2007 500 45

550 * 38 *375 ***425 **

xix) 2007-08 2008 425 38

475 * 37 *320 ***370 **

2. Report on Currency and Finance # DEAPi) 1988-89 - Vol.I 1989 100 *£ 35

80 **- Vol.II 1989 60 * 20

45 **ii) 1989-90 - Vol.I 1990 100 *£ 40

80 **- Vol.II 1990 60 *£ 25

45 **iii) 1990-91 - Vol.I 1991 100 *£ 40

80 **- Vol.II 1991 60 * 25

45 **

Reserve Bank of India Publications

(In stock)

Title of the Publication Department Year of Price Price Weight in gms.publication (Rs.) US $ & RBP Charges

of Single copy in Rs.

1 2 3 4 5 6

RBIMonthly BulletinNovember 2009ii

PUBLICATIONS

Reserve Bankof IndiaPublications

iv) 1991-92 - Vol.I DEAP 1992 100 * 4080 **

- Vol.II 1992 60 *£45 **

v) 1992-93 - Vol.I 1993 100 * £ 4080 **

- Vol.II 1993 60 * £45 ** 25

vi) 1993-94 - Vol.I 1994 110 * £ 4085 **

- Vol.II 1994 75 * £ 25vii) 1994-95 - Vol.I 1996 110 * £ 40

85 **- Vol.II 1996 105 * £ 40

85 **viii) 1995-96 - Vol.I 1996 110 * 40

85 **- Vo.II 1996 105 * 40

85 **ix) 1996-97 - Vol.I 1997 125 * 40

100 **- Vo.II 1997 125 * 40

100 **x) 1997-98 - Vol.I 1998 175 * £ 50

125 **- Vol.II 1998 175 * 50

125 **Hindi Edition 1999 175 * 50

xi) 1998-99 1999 200 * £ 60150 **

xii) 1999-00 2001 200 * 60150 **

xiii) 2000-01 2001 200 * 60150 **

xiv) 2001-02 2003 200 60150 **

xv) 2002-03 2004 300 25 325 * 20 *150 **

xvi) 2003-04 2005 200 £ 25 *225 *150 **

xvii) 2004-05 2006 200 £ 25 *225 *150 **

xviii) 2005-06 2007 280 35 300 *210 ***235 **




1 2 3 4 5 6

RBIMonthly BulletinNovember 2009 iii

PUBLICATIONS


Publications

3. Handbook of Statistics on Indian Economy DEAPi) 1998 Print version 1998 125 * £ 20

100 **ii) 1999 (a) Print version 1999 200 * £ 60

150 **(b) CD-ROM 1999 200 *

iii) 2000 (a) Print version 2000 250 * 70200 **

(b) CD-ROM 2000 200 *iv) 2001 (a) Print version 2001 250 * 70

200 **(b) CD-ROM 2001 300 * 60

200 **v) 2002-03 (a) Print version 2003 300 * £ 80

250 **(b) CD-ROM 2003 300 * 60

200 **(c) Print version along with CD-ROM 2003 500 * £ 130

400 **vi) 2003-04 (a) Print version 2004 180 25

200 *150 **

(b) CD-ROM 2004 200 15 220 *150 **

(c) Print version along with CD-ROM 2004 380 30 400 *300 **

vii) 2004-05 (a) Print Version 2005 200 25 *225 *170 **

(b) CD-ROM 120140 ** 15 *100 **

(c) Print Version alongwith CD-ROM 300350 * 30 *270 **

viii) 2005-06 (a) Print Version (£) 2006 200 25 *225 *170 **

(b) CD-ROM 110 15 *130 *100 **

(c) Print Version alongwith CD-ROM 300 30 *350 *270 **

ix) 2006-07 (a) Print Version 2007 270 40300 *200 ***230 **




1 2 3 4 5 6

RBIMonthly BulletinNovember 2009iv

PUBLICATIONS


(b) CD-ROM DEAP 100 15120 *

75 ***95 **

(c) Print Version alongwith CD-ROM 330 50380 *240 ***300 **

x)2007-08 (a) Print Version 2008 250 38 290 *190 ***230 **

(b) CD-ROM 150 6 170 *115 ***135 **

(c) Print Version alongwith CD-ROM 400 40 450 *300 ***350 **

4. State Finances - A Study of Budgets DEAPi) 1999-00 2000 110 * 20

90 **ii) 2000-01 2000 110 * 20

90 **iii) 2001-02 2002 110 *£ 20

(English £ & Hindi) 90 **iv) 2002-03 2003 110 * 20

90 **v) 2003-04 2004 100

125 * 15 *90 ** 12 *

vi) 2004-05 2005 120(English & Hindi) 150 * 15

100 **vii) 2005-06 2006 170 15 *

(English & Hindi) 200 *130 **

viii) 2006-07 2007 200 20*(English & Hindi) 230 *

150 ***175 **

ix) 2007-08 2008 320350 * 30 250 ***280 **

5. Handbook of Statistics on State Government Finances 2004 do 2004(a) Print version 170

200 * 25 125 ** 20 *




1 2 3 4 5 6

RBIMonthly BulletinNovember 2009 v

PUBLICATIONS


Publications


(b) CD ROM DEAP 120 15 140 * 10 *

90 **6. Handbook of Monetary Statistics in India 2006 do 2006

(a) Print version 130 20 *155 *120 **

(b) CD ROM 100 15 *

90 **120 *

(c) Print version along with CD ROM 200 25 *250 *190 **

B. Banking Statistics

1. Basic Statistical Returns of Scheduled Commercial Banks in India(Formerly Banking Statistics (BSR) till March 1999 Vol. 28 issue) DSIM

i) Dec. 76-77 - Vol. 7 (Formerly known 1981 65 * £ii) June 79 to Dec. 79 Vol. 9 as DESACS) 1984 150 * £

iii) June 80 to June 81 Vol. 10 1986 125 * £iv) March 1990 - Vol. 19 1992 210 65v) March 1994 - Vol. 23 1997 220 * 70

vi) March 1995 - Vol. 24 1997 220 * 70vii) March 1996 - Vol. 25 1998 220 * 70

viii) March 1997 - Vol. 26 1999 220 * 70ix) March 1998 - Vol. 27 1999 220 * 70x) March 1998 - Vol. 27 (Hindi Edition) 1999 220 *

xi) March 1999 - Vol. 28 2000 220 * 70xii) March 2000 - Vo. 29 (English Hindi) 2000 220 * 70

xiii) March 2001 - Vol. 30 (Hindi English) 2002 220 * 70xiv) March 2002 - Vol. 31 (Print Version) 2003 225 * 70

(a) CD-ROM 2003 225 * 70xv) March 2003 - Vol. 32 (Print Version) 2004 210 55

250 * 20 *(a) CD-ROM 210 55

250 * 20 *xvi) March 2004 - Vol. 33 (Print Version) 2005 180 55

220 * 20 *(a) CD-ROM 180 55

220 * 20 *xvii) March 2005 - Vol. 34 (Print Version) 2006 180 55

220 * 20 *(a) CD-ROM 180 55

220 * 20 *xviii) March 2006 - Vol. 35 (Print Version) 2007 280 60

320 * 25 *

2. Basic Statistical Return 1 & 2 doi) Handbook of Instructions (English) 1996 20 * £

ii) Handbook of Instructions (Hindi) 1996 20 * £

iii) Basic Statistical Returns 1 and 2 Handbook of Instructions 2002 35 *



1 2 3 4 5 6

RBIMonthly BulletinNovember 2009vi

PUBLICATIONS



3. i) Form A-1 (Revised) DSIM 1996 2 £ 13ii) Form A-2 (Revised) 1996 3 £ 38

iii) BSR-1 A forms (1 pad contains 25 sheets) 1996 14 £ 200 19iv) BSR-1 B forms (1 pad contains 25 sheets) (Revised) 1996 14 £v) BSR-2 forms (1 pad contains 25 Sheets) (Revised) 1996 14 200 19

(The Regional Rural Banks from Western region may please contactDESACS, RBI, B.K. Complex, Bandra (E), Mumbai 400 051 forBSR-1A, BSR-1B & BSR-2 forms.)

4. Banking Statistics Basic Statistical Returns 1 & 2 do 2004 420 59 Vol. 1 to 31, 1972 to 2002 DISC 1 & 2 475 * 27 *

5. Banking Statistics-Summary Tables, doi) March 1995 1997 25 *

ii) March 1996 1998 25 *iii) March 1997 1999 25 *iv) March 1998 1999 25 *v) March 1999 2000 25 *

vi) March 2000 2001 25 *

6. Banking Statistics - Quarterly Handout # doi) 1990 (4 Issues) 1990 40 * £

ii) March 1991 1991 10 * £iii) June 1991 1991 12 * £iv) September 1991 1991 15 * £v) December 1991 1991 12 * £

vi) 1992 (3 Issues) 1992 75 *vii) 1993 (4 Issues) 1993 120 *

viii) 1994 (4 Issues) 1994 120 *ix) 1995 (4 Issues) 1995 120 *x) 1996 (4 Issues) 1996 120 *

xi) 1997 (4 Issues) 1997 100 *xii) 1998 (4 Issues) 1998 100 *

xiii) 1999 (4 Issues) 1999 100 *xiv) 2000 (4 Issues) 2000 100 *xv) 2001 (4 Issues) 2001 100 *

xvi) 2002 (4 Issues) 2002 100 *xvii) 2003 (4 Issues) 2003 100 *

xviii) 2004 (4 Issues) 2004 140 *xix) 2005 (4 Issues) 2005 140 *xx) 2006 (4 Issues) 2006 140 *

xxi) 2007 (4 Issues) 2007 140 *

xxii) 2008 (4 Issues) 2008 140 *Name changed w.e.f. Sept. 2003 issue as Quarterly Statistics onDeposits and Credit of Scheduled Commercial Banks.

7. Banking Statistics - Bank Credit doi) June 1987 1989 20 * £

ii) December 1987 - June 1988 1989 40 * £iii) December 1988 1989 20 * £iv) June 1989 1989 25 * £

8. Banking Statistics 1972-95 do 1998 120 *

9. Branch Banking Statistics - Vol. 1 March 1999 do 1999 130 * 40

10. Branch Banking Statistics - Vol. 2 March 2001 do 2001 130 * 4050 **



1 2 3 4 5 6

RBIMonthly BulletinNovember 2009 vii

PUBLICATIONS


Publications


11. Branch Banking Statistics - Vol. 3 March 2002 (On CD-ROM) DSIM 2003 300 * 40

12. Branch Banking Statistics - Vol. 3 March 2002 do 2003 185 * 40

13. Statistical Tables Relating to Banks in India doi) 1988-89 1993 106 £ 12

123 *ii) 1990-91 1999 130

180 * 50iii) 1992-93 1998 135 £ 50

200 *iv) 1994-95 1997 125 45

185 *v) 1995-96 1998 125 45

185 *vi) 1996-97 1999 130 50

180 *vii) 1997-98 1999 130 50

180 *viii) 1998-99 1999 130 50

180 *ix) 1999-00 2000 175 50

225 *x) 2000-01 (a) Print version 2001 150 50

200 *(b) CD-ROM 2001 150 50

225 *xi) 2001-02 (a) Print version 2002 150 50

200 *(b) CD-ROM 2002 100

150 * 50xii) 2002-03 (a) Print version 2003 200 50 *

250 *(b) CD-ROM 2003 200 50 *

250 *xiii) 2003-04 (a) Print version 2004 230 25

280 * 15 *(b) CD-ROM 2004 175 25

225 * 15 *xiv) 2004-05 (a) Print version 2005 190 55

240 * 20*(b) CD-ROM 200 55

250 * 20*xv) 2005-06 (a) Print version 2006 250 55

300 * 20*(b) CD-ROM 200 55

250 * 20*xvi) 2006-07 (a) Print version 2007 180 55

230 * 20*(b) CD-ROM 150 55

200 * 20*

14. Selected Banking Indicators, 1947-1997 (Print Version) do 1998 45 15105 *

(a) CD -ROM 1998 50



1 2 3 4 5 6

RBIMonthly BulletinNovember 2009viii

PUBLICATIONS



15. Selected Banking Indicators 1981 to 2002 DSIM 2003 320 75460 *

16. Selected Banking Indicators 1981 to 2002 (On CD-ROM) do 2003 250 75300 *

17. Quarterly Statistics on Deposits and Credit of Scheduled do 2004 185 55 Commercial Banks 1981-2003 (on CD-ROM) 240 * 20 *

18. Annual Accounts of Scheduled Commercial Banks (Including do 2002 200 50Regional Rural Banks) 1989-90 to 2000-01 (on CD-ROM) 250 *

19. Annual Accounts of Scheduled Commercial Bank do 2004 85 £ 25(Including Regional Rural Banks 1979-2004) CD-Rom 135

20. Directory of Commercial Bank Offices in India Vol. 1-0 do 2000 500 * £ 100December 2000 (on CD-ROM)

21. Directory of Commercial Bank offices in India Vol. 2 do 2003 200 * £ 40 *September 2003 (On CD-ROM)

22. All-India Debt and Investment Survey 1981-82 doi) Assets and liabilities of households as on 30th June 1981 1987 75 15

85 *60 **

ii) Statistical tables relating to capital expenditure and capital 1987 125 £ 25formation of households during the year ended 30th June 1982 135 *

100 **iii) Statistical tables relating to cash borrowings and repayments 1990 100 £ 32

of households during July 1981 to June 1982 and cash dues 110 *outstanding as on 30th June 1982 80 **

23. A Profile of Banksi) 2004-05 do 2005 100 20 *

130 *ii) 2005-06 2006 90 55

120 * 20 *iii) 2006-07 2007 90 55

120 * 20 *

iv) 2007-08 2008 40 5 *70 * 45

C. Public/Private Limited Companies

1. Selected Financial Statistics Public Ltd. Companies 1974-75 to 1999-2000 do 2001 350 * 70(Selected Industries) on CD-ROM

2. Selected Financial Statistics Public Ltd. Companies 1974-75 to 1999-2000 do(Selected Industries)1974-75 To 1982-1983 Vol.I 2001 17001982-83 To 1990-1991 Vol.II 2001 700 * 140 15001990-91 To 1999-2000 Vol.III 2001 2000(Rs.700 for three volums)

3. Selected financial and other ratios-public limited companies do1980-81 to 1987-88 Vol.I 1990 45 £ 15

Vol.II 1990 60 £ 201988-89 to 1990-91 (Part I) 1996 90 £ 50

4. Selected financial & other ratios-private limited companies do 1996 80 451988-89 to 1990-91 (Part II)

5. Private Corporate Business Sector in India Selected Financial do 2000 300 * 60Statistics from 1950-51 to 1997-98 (All-Industries) (Print Version)(a) CD-ROM 500 * 100



1 2 3 4 5 6

}

RBIMonthly BulletinNovember 2009 ix

PUBLICATIONS


Publications


D. Reports of Committees/Working Groups

1. Study group on deployment of resources by State and Central UBD 1982 25 * £co-operative banks (Hate committee report)

2. Capital formation and savings in India 1950-51 to 1979-80 DEAP 1982 18 £ 400 21Report of the working group on savings (Raj committee report)

3. Report of the working group to consider feasibility of introducing MICR/ DBOD 1983 7 £ 200 19OCR technology for cheque processing (Damle committee report) (Amt. rounded off)

4. Report of the committee to review the working of the monetary DEAP 1985 35 £ 10system (Sukhamoy Chakravarty committee report) 25 **

5. Report of the committee to consider final accounts of banks DBOD 1985 56 £ 500 22(Ghosh committee report)

6. Report of the committee on agricultural productivity in Eastern India DEAP(Sen Committee Report) Vol. I 1985 70 * £ 15(Hard Bound) Vol. II 1985 85 * £ 20

7. Report of the working group on the money market MPD 1987 15 *(Vaghul committee report)

8. Report of the committee to review the working of credit IECD (Old) 1988 10 * 10authorisation scheme (Marathe committee report)

9. Co-ordination between term lending institutions and do 1988 10 * 1commercial banks (Bucher committee report)

10. Report of the working group to review the system of cash credit do 1988 12 * £(Chore committee report)

11. Report of the study group to frame guidelines for follow-up of do 1988 16 * £bank credit (Tandon committee report)

12. Report of the study group for examining introduction of factoring do 1989 30 *services in India (Kalyansundaram committee report)

13. Report of the committee on computerization in banks DSIM 1989 40 £ 500 22(Rangarajan committee report)

14. Report of the Committee on Financial System DBOD 1991 (Reprint) 60 £ 170 19(Narasimham Committee Report)

15. Report of the working group on financial companies DFC 1992 30 £ 300 20(Shah committee report)

16. Report of the task force on money market mutual funds MPD 1992 10 * £ 5(Basu committee report)

17. Report of the committee on the licensing of new urban co-operative UBD 1992 40 400 21banks (Marathe committee report) (Hindi Edition)

18. Report of the committee to examine the legal and other difficulties IECD (Old) 1993 (Reprint) 90 £ 500 22faced by banks and financial institutions in rehabilitation of sickindustrial undertakings and suggestremedial measures includingchanges in the law (Tiwari committee report)

19. Report of the committee on structure of export credit do 1993 36 25 200 19(Sundaram committee report) (English & Hindi Edition)

20. Report of the committee to review the system of lending under do 1993 50 £consortium arrangement (Shetty committee report)

21. Report of the committee to examine the adequacy of institutional credit RPCD 1993 (Reprint) 55 9 300 20to the SSI sector & related aspects (Nayak committee report)

22. Review of the agricultural credit system in India do 1993 (Reprint) 270 £ 80(Khusro committee report) 315 *

23. Report of the committee to enquire into securities transactions of DOC 1994 85 £banks and financial institutions (Jankiraman committee report) 100 *



1 2 3 4 5 6

RBIMonthly BulletinNovember 2009x

PUBLICATIONS



24. Committee on technology issues relating to payments system, DIT 1994 50 *£ 20cheque clearing and securities settlement in the banking industry(Saraf committee report) (Hindi Edition)

25. Report of the committee to study the problems of sick/weak units IECD (Old) 1994 69 £in leather industry and to suggest measures to overcome them(Balsubramanian committee report)

26. Report of the working group for examining the schemes and incentives FED 1995 50 *£ 10available to NRIs for investment in India (Sodhani Committee Report)

27. Report of the expert group for designing a supervisory framework DBOD 1996 35 307 21for non-banking financial companies (Khanna Committee Report)

28. Report of the committee for proposing legislation on electronic funds DIT 1996 150 15 333 21transfer and other electronic payments (Shere Committee Report)

29. Report of the Committee on Capital Account Convertibility DEIO 1997 100 * 35(Tarapore Committee Report)

30. Money Supply : Analystics and Methodology of Compilation- DEAP 1998 35 £ 20Report of the working group (Reddy Committee Report)

31. Report of the high level Committee on agricultural credit through RPCD 1998 30 £ 200 19commercial banks(Gupta Committee Report)

32. Report of the high level Committee on credit to SSI do 1998 50 £ 10 277 20(Kapur Committee Report)

33. Report of the Technical Committee on external debt DEAP 1998 20 *£ 15(Nair Committee Report)

34. Report of the Committee on Banking Sector Reforms DBOD 1998 32 244 20(Narasimham Committee Report)

35. Report of the Working Group on Euro DEIO 1998 100 £ 30(Subramanyam Committee Report)

36. Report of the Committee on Hedging through International FED 1998 100 * 50Commodity Exchange (Gupta Committee Report)

37. Report of the Committee on Tecnnology Upgradation in the DIT 1999 100 * 25Banking Sector (Vasudevan Committee Report)

38. Report of the High Power Committee on Urban Co-operative Banks UBD 1999 80 490 22(Madhava Rao Committee Report)

39. Report of the Advisory Group on Payment and Settlement System MPD 2000 40 * 15Part (I) June 2000 30 **

40. Report of the Advisory Group on Payment and Settlement do 2000 20 * 10System (Part II) 15 **

41. Report of the Advisory Group on Payment and Settlement do 2001 20 * 10System (Part III) 15 **

42. Report of the Advisory Group on “Transparency in Monetary do 2001 45 * 20and Financial Policies”. 35 **

43. Report of the Advisory Group on Corporate Governance do 2001 40 * 1530 **

44. Report of the Advisory Group on Fiscal Transperency do 2001 30 *20 ** 15

45. Report of the Advisory Group on Data Dissemination do 2001 35 * 2025 **

46. Report of the Advisory Group on Banking Supervision do 2001 90 * 4060 **

47. Report of the Advisory Group on Securities Market Regulation do 2001 25 * 1020 **

48. Report of the Advisory group on Bankruptcy Laws (Volume-I & II) do 2001 90 * 4575 **



1 2 3 4 5 6

RBIMonthly BulletinNovember 2009 xi

PUBLICATIONS


Publications


49 . Report of the Advisory Group on Insurance Regulation MPD 2001 35 * 2025 **

50 Report of the Advisory group on Accounting & Auditing do 2001 40 * 2051. Report of the Technical Group on Market Integrity do 2002 65 * 20

50 **52 Standing Committee on International Financial Standards and do 2002 200 * 60

Codes on CD-ROM 150 **53. Report of the Standing Committee on International Financial do 2002 65 * 20

Standards and Codes 50 **54. The Standing Advisory Committee for Urban Co-operative Banks UBD

i) First meeting 1983 5 200 19ii) Second meeting 1984 6 £ 200 19

iii) Third meeting 1985 6 200 19iv) Fourth meeting 1985 9 300 20v) Fifth meeting 1986 9 £ 200 19

vi) Sixth meeting 1988 12 £ 200 19vii) Seventh meeting 1989 12 200 19

viii) Eighth meeting 1990 21 300 20ix) Ninth meeting (Bilingual edition) 1992 24 200 19x) Tenth meeting 1994 95 300 20

xi) Eleventh meeting 1995 90 300 20xii) Twelfth meeting 1996 52 100 18

E. Manuals1. Manual for urban co-operative banks do 1984 15 £ 400 212. Manual on costing exercise in commercial banks MSD 1987 5 £ 200 193. Manual on costing exercises in private sector and urban banks (Reprint) do 1989 27 £ 200 194. RBI-Exchange Control Manual- (Reprint of 1993 edition) (Vol.I & II) FED 1998 400 £ 2200 39

(updated upto July, 1998)i) RBI - Exchange Control Manual on floppy Disc - size 3.5 1999 400 £

(Upadated upto June, 1999)ii) RBI - Exchange Control Manual - on C.D. Rom 1999 400 £

(updated upto 31st May, 2000)

F. Compendium of Circulars1. i) Compendium of A.D. (M.A. Series) circulars No. 1 do 1997 75 £

ii) Compendium of A.D. (M.A. Series) circulars No. 2 1998 120 £iii) Compendium of A.D. (M.A. Series) circulars No. 3 1999 200

2. A. D. (M.A. Series) Circular No. 11 Foreign Exchange Management Act 1999 do 2000 185 900 263. MPD Circulars

i) August 1970 to December 1981 - Vol. I MPD 1989 75 *ii) January 1982 to March 1989 - Vol.II 1989 75 *

iii) April 1989 to April 1995 Vol.III 1996 200 1530 334. i) Circulars on Monetary and Credit Policy Vol. 4 2002 165 * 50

(From May 1995 to April 1997) 130 **ii) Circular on Monetary and Credit Policy Vol. No. 5 2002 235 70

(From May 1997 to March 1999) 422 *372 **185 ***

iii) Circulars on Monetary and Credit PolicyVol. No. 6. Part I & II(from April 1999 to March 2003) (English & Hindi)

a) Print Version (A set of four books) 2003 900 1701300 *1100 **

700 ***b) CD-ROM 400 * 80

300 **



1 2 3 4 5 6

RBIMonthly BulletinNovember 2009xii

PUBLICATIONS



iv) Circulars on Monetary and Credit Policy Vol. No. 7 MPD(from April 2003 to March 2004) (English & Hindi)a) Print Version 2004 250 25

275 * 20 *200 **

b) CD-ROM 180 5 200 * 12 *140 **

v) Circulars on Monetary and Credit Policy Vol. No. 8 2005(from April 2004 to March 2005) 375 30 *(a) Print Version (Billingual) 400 *

280 **(b) CD-ROM 180 15 *

200 *140 **

vi) Compendium of MPD Circulars - Vol. No. 9 2006 480 35 *(April 2005 - March 2006) (Billingual) 500 *

375 **vii) Circulars on Monetary Policy Vol. No. 10 2007 600 40

(April 2006 to March 2007) Billingual 620 *450 **

viii) Circulars on Monetary Policy Vol. No. 11 (CD-ROM) 2008 210 8 *(April 2007 to March 2008) 230 *

160 ***180 **

5. IECD circulars IECD (Old)i) July 1978 to June 1986 bilingual (Vol.I & II) 1993 250 10 2114 39

ii) 1986-89 1990 70 1325 31iii) 1989-94 (Vol. I&II) 1995 250 £ 2295 40iv) 1994-95 1995 80 700 24v) 1995-96 1996 55 380 21

vi) 1996-97 1997 65 445 22

6. Rural Planning and Credit Department (RPCD) Circulars (Bilingual edition) RPCDi) July 1994 to June 1995 (Vol. X) 1998 180

200 *ii) July 1995 to June 1996 (Vol. XI) 180 £

200 *iii) July 1996 to June 1997 (Vol. XII) 1999 180

200 *iv) July 1997 to June 1998 (Vol. XIII) 1999 180

200 *v) July 1998 to June 1999 (Vol. XIV) 2000 180

200 *vii) July 1999 to June 2000 (Vo. XV) 2001 210

240 *7. Compendium of Circulars on Small Scale Industries do 2000 120 25

150 *8. RPCD Circular (on CD-ROM) (1st July 1982 to 31 March 2004) do 2004 120

150 *9. RPCD Circulars on Small Scale Industries (upto 30-09-2004) do 2004 120

on CD-ROM 150 *10. Compendium of Circulars on Small Scale Industries do 2004 140

(January 2000 - March 2004) 170 *



1 2 3 4 5 6

RBIMonthly BulletinNovember 2009 xiii

PUBLICATIONS


Publications


11. UBD circulars UBDi) June 1985 1986 115 274 20

ii) 1985-1992 (Vol.I & II) 1995 250 3195 49iii) 1992-1994 1995 165 1792 35iv) 1995-96 1997 55 735 25

12. i) Compendium of Instructions/Guidelines issued by RBI UBD 2000 85 742 25for Primary Co-operative Banks (July 1996-December 1997)

ii) Compendium of Instructions/Guidelines issued by RBI for 2003 100 £ 1032 68Primary Co-operative Banks (January 1998-December 1999)

iii) Compendium of Instructions/Guidelines issued by RBI for 2003 120 £ 1300 68Primary Co-operative Banks (January 2000-December 2001)

G. Memorandum1. Memorandum of Exchange Control Manual, 1993 containing FED

detailed procedural instructionsa) Relating to general insurance in India (GIM) 1994 20 70 19b) Relating to channeling transactions through Asian Clearing Union (ACM) 1996 20 70 19c) Relating to co-operative/commercial banks (other than authorised 1994 20 £

dealers) authorised to maintain non-resident rupee accounts (ABM)d) Memorandum of Instructions to full-fledged money changers (FLM) 1999 30 £ 110 19e) Memorandum of Instructions to restricted money changers (RLM) 1999 30 £ 90 18f) Memorandum of Instruction on project & service exports (PEM) 1997 40 £ 280 20

2. Memorandum of Exchange Control Regulations Relating to do 2002 30 26general insurance in India (GIM)

3. Memorandum of instructions to Authorised Money Changers (AMC) do 2002 30

4. Memorandum of Procedure for channelling transaction through do 2003 30 21Asian Clearing Union (ACU) Memorandum ACM

5. Memorandum of Instructions on Project and Service Exports (PEM) do 2003 40

H. Reserve Bank of India Occasional Papers (Quarterly) DEAP –i) 1987 to 1989 (Yearly four issues) 30 * @ £ 10 @

ii) 1990 to 1995 (Yearly four issues) 35 * @ £ 25 @iii) 1996 (Yearly four issues) 35 * @ 25 @iv) 1997 (Three issues) 35 * @ 25 @v) (Combined issue June-September, 1997) 70 * @ 50 @

vi) 1998 (Yearly four issues) 40 * @ 25 @vii) 1999 (Yearly 3 issues) 50 * @ 30 @

viii) 2000 (Yearly 2 issues) Summer - Vol. 21 No. 1 80 * @ 45 @ix) (Monsoon & Winter Combined Issue) - Vol. 21 No. 2 & 3 80 * @ 45 @x) 2001 Vol. 22 Nos. 1, 2 & 3 (Combined Issue) 80 * @ 45 @

xi) 2003 Vol. 24 Nos. 1 & 2 (Summer & Monsoon Combined Issue) 80 * @ £ 45 * @xii) 2003 Vol. 24 No. 3 (Winter) 80 * @ 45 * @xiii) 2004 Vol. 25 No. 1, 2 & 3 (Summer, Monsoon & Winter Combined Issue) 80 * @ 45 * @xiv) 2006 Vol. 27 No.1 and 2 (Summer and Monsoon Combined Issue) 80 * @ 45 * @xv) 2006 Vol. 27 No. 3 (Winter) 80 * @ 45 * @

xvi) 2007 Vol. 28 No. 1 (Summer) 80 * @ 45 * @xvii) 2007 Vol. 28 No. 2 (Monsoon) 80 * @ 45 * @

xviii) 2007 Vol 28 No. 3 (Winter) 80 * @ 45 * @

I. Others Important Publications1. Small Scale Industries-Policy & Guidelines RPCD 1997 20 200 192. Regulatory Framework for Non-Banking Financial Companies DNBS 1998 40 £ 365 213. Question/Answer New NBFC Policy do 1998 10 50 184. Payment Systems in India DIT 1998 60 * 10

150 *5. Mechanised Cheque Processing Using MICR Technology do 1999 50 *£

Procedural Guidelines



1 2 3 4 5 6

RBIMonthly BulletinNovember 2009xiv

PUBLICATIONS


Inclusive of Courier charges.* Inclusive of surface mail/sea mail/air postage whichever is applicable; for others it is subject to changes in the postal rates.** Concessional price (inclusive of postage) for public libraries and educational institutions. Also applicable to wholetime teachers and research

students in economics, commerce, statistics and business management in universities and colleges in India, provided the request is forwardedthrough the head of the institution.

*** Concessional price on the counter for public libraries and educational Institutions. Also applicable to wholetime teachers and researchstudents in economics, commerce, statistics and business management in universities and colleges in India, provided the request is forwardedthrough the head of the Institution.

# Few copies of earlier years’ report are also available.£ Out of stock at present.@ Price of single issue.




1 2 3 4 5 6

6. Mechanised Cheque Processing using MICR Technology DIT 2002 50 *Procedural Guidelines. (Second Edition)

7. Indian Financial Network Banking Applications Message Formats (INFINET) do 2000 100 *8. Indian Financial Network (INFINET) Banking Applications Messages do 2002 100 *

Formats Vol. II9. Balance of Payments compilation DEAP 1987 45 * 3010. New Series on Wholesale Price Index Numbers do 1990 11 * £11. India’s Balance of Payments monograph – 1948-49 to 1988-89 do 1993 90 £ 4012. Centenary Commemorative Volume do 1996 100 25 400 21

(C.D. Deshmukh Memorial Lecture series)13. 50 years of Central Banking : Governors Speak do 1997 400 800 2514. Indian Economy – Basic Statistics – 1997 do 1997 4 £15. External Debt-Management : Issues, Lessons and Preventive Measures do 1999 250 * 2016. Foreign Collaboration in Indian Industry - Sixth Survey Report do 1999 60 * 2017. Flow of Funds Accounts of the Indian Economy 1951-52 to 1995-96 do 2000 75 * 2018. Exchange facilities for foreign travel FED 1996 8 £ 35 1819. Exchange facilities for resident Indians do 1997 15 32 1820. A Handbook on foreign Collaboration do 1997 50 £ 15 *

65 *21. Indian Overseas Investment Handbook of Policies and Procedures do 1998 100 £

125 *22. Facilities for Non-resident Indians do 1999 35 £ 8

50 *23. RBI Remittance Facilities Scheme - 1975 DGBA 1989 3 £ 2524. Karyalayeen Shabdavli (English-Hindi) DAPM 1994 15 166 1925. Directory of Bank Offices 1993 (English) DBOD 1996 485

568 * 3626. Computer Paribhasha Kosh (Hindi) do 1999 100 528 2327. Your Guide to Money Matters DCM 1999 5 £ 4428. The Paper & The Promise: A Brief History of Currency & do 2001 100 £ 15 36

Bank notes in India29. Functions and Working of RBI (Hindi) CO 1984 30 £ 719 2530. RBI 50 years - 1935-85 do 1985 50 £ 15 428 22

35 **31. Banking Glossary (English-Hindi) Rajbhasha 1995 38 471 2232. Banking Glossary (English-Hindi) do 2003 50 5 2433. Reserve Bank of India Functions and working RBI Staff College, 2001 120 68

Chennai34. Risk Management (Hindi) BTC 2003 100 *35. Corporate Governance in Banks (Hindi) do 2005 100 *

RBIMonthly BulletinNovember 2009 xv

PUBLICATIONS


Publications

Reserve Bank of India Bulletin

General Instructions

1. Publications once sold will not be taken back.

2. Publications will not be supplied on a consignment VPP basis.

3. A 20 per cent discount will be allowed to Bookseller on the official price of the following Publications. Report on Trend and Progress of Banking

in India, Report on Currency and Finance, State Finances - Study of Budgets, Handbook of Statistics on Indian Economy, Handbook of Statistics

on State Government Finances, Handbook of Monetary Statistics in India, CPC, IECD, UBD and MPD Circulars, All Committee Reports, Banking

Statistics 1972-95, Statistical Tables relating to Banks in India, Selected Banking Indicator 1947-97, and 1981-2002, All India Debt and Investment

Survey 1981-82, Payment System in India, INFINET, External Debt Management, Foreign collaboration in India Seventh survey Report, Flow of

Funds Accounts of the Indian Economy 1951-52 to 1995-96, Indian Overseas Investment Handbook of Policy and procedures, Karyalaeen

Shabdavli, Banking Glossary, Risk Management (Hindi), Corporate Governance in Bank (Hindi), All Advisory Group Reports, Balance of payments

compilation.

4. Ordinary postal charges for sending the publications to the booksellers within India will be borne by the Bank. For safe delivery, registered

book post charges will be charged additionally.

5. The publications of the Reserve Bank of India in this list may be had from the Director, Division of Reports, Reviews and Publications, Sales

Section, Department of Economic Analysis and Policy, Reserve Bank of India, Amar Building, Ground Floor, Sir P. M. Road, Fort, P. B. No.1036,

Mumbai - 400 001. All communications and remittances may be made to him (Tel. No. 22604002). For direct purchase against cash payment

over the sales counter, the timing is 10.30 a.m. to 3.00 p.m. (Monday to Friday).

6. Remittances should be sent by demand draft/cheque payable at Mumbai in favour of Reserve Bank of India, Mumbai and addressed to the

Director, Division of Reports, Reviews and Publications, Department of Economic Analysis and Policy, Reserve Bank of India, Amar Building,

Sixth Floor, Sir P.M. Road, Fort, Mumbai - 400 001.

7. Recent publications are also available from Sales and Dissemination Cells at all Regional Offices of the Reserve Bank of India.

8. Foreign subscribers are requested to send their subscription directly to the address as above and not through agents.

9. Every endeavour will be made to despatch publications expeditiously. However, in case of rush of orders, these would be executed on a first-

come first-served basis. Minimum one month period will be required to complete formalities and then to despatch the available publication.

Complaints regarding ‘non-receipt of publication’ may be sent within 2 months’ period.

The subscription rates for the monthly RBI Bulletin and the Weekly Statistical Supplement to RBI Bulletin are as follows:

Single Issue One-Year Three-Year

Monthly Bulletin

In India:

(a) Inclusive of Postage Rs. 225 Rs. 2,250 Rs. 6,250

(b) Concessional ** Rs. 180 Rs. 1,750 Rs. 5,000

Abroad:

(a) Inclusive of Postage US $ 20 US $ 200 US $ 500

Weekly Statistical Supplement

In India (Inclusive of Postage) Rs. 12 Rs. 550 Rs. 1,500

Abroad (Inclusive of Postage) — US $ 34 US $ 85

The price of a single copy of December issue alongwith the supplement ‘Report on Trend and Progress of Banking in India 2007-08’

is Rs. 600 (Normal), Rs.675 (Inclusive of Postage), Rs.450 (Concessional normal), Rs. 525 (Concessional inclusive Postage), and Abroad

US $ 45 (Courier) and US $ 42 (Air-mail Book-post).

** Available for research students, full time teachers in economics, statistics, commerce and business management, academic/education

institutions and public libraries in India provided the request is forwarded through the head of the institution every year.


SUBSCRIPTION/

RENEWAL FORM

Reserve Bank of India BulletinSubscription for Bulletin / Weekly Statistical Supplement

Subscription / Renewal Form

1. Name :

2. Designation :

3. Organisation :

4. Address for communication :

i) Post Office :

ii) PIN Code :

iii) Telephone No. :

iv) Fax No. :

v) e-mail :

5. Whether new subscriber Yes / No

6. If No, please mention your Subscription No.

7. If Yes, please furnish the following details English / Hindi

i) Name of the Publication for Subscription Bulletin / WSS

ii) Regular Subscription Yes / No

iii) Concessional Subscription Yes / No

iv) Foreign Subscription Yes / No

8. Period of Subscription one year / three years

9. Details of Payment

i) Amount

ii) Currency

iii) Demand Draft Cheque No.

iv) Drawn on

v) Date of DD/Cheque

Signature

Date

(For Office use)

Subscription No. Receipt No.

SURVEY

Readers’ Views on the Monthly Bulletin

Dear Reader,

With a view to improving the format and content of RBI Bulletin, we approach you

with the following questionnaire. We greatly appreciate your sparing time to answer the

questionnaire and mail it to the address given below:

Editor,

RBI Bulletin,

Division of Reports, Reviews and Publications,

Department of Economic Analysis and Policy,

Reserve Bank of India,

Amar Building, 6th Floor,

P.M. Road, Fort,

Mumbai - 400 001.

Please tick-mark (✓) the appropriate box/boxes.

(1) Please tell us about yourself – your occupation/

your activity - association :

Government/Semi-Government/Public Sector

Financial Services

Profession/Business/Consultancy

Academics/Research Institute/Teaching Institution/Library

Audio and/or visual Media/Journalism

Other: Please specify

(2) Please indicate the items in the Bulletin that you find useful:

Studies/Articles on various aspects of banking, corporate sector,

Government finances, etc.

Supplements to the Bulletin

Speeches delivered by Governor/Deputy Governors/

Executive Directors of the RBI

Credit Policy/Credit Control Measures of the RBI

Exchange Control Measures

RBI Press Release

Current Statistics

SURVEY

(3) Please indicate, with reference to the answer given for (2) above, your suggestionsfor improvements in regard to items other than the ‘Current Statistics’ portion ofthe Bulletin.

(4) What in your opinion, should be done to improve the get up or coverage of the“Current Statistics” portion ?

(5) Do you think it would be advisable to separate ‘Current Statistics’ portion from therest of the Bulletin and have ‘Monthly Statistics’ separately brought out ?

Yes No

(6) If the answer to Q.(5) is Yes, do you think it would be sufficient to have a QuarterlyBulletin of articles, speeches, and policy measures ?

Yes No

(7) Are you a user of our web site (http://www/rbi.org.in) ? Yes No

Thank you very much for your cooperation.

Editor

Readers’ Views on the Monthly Bulletin

RBI

WEBSITES

Reserve Bank of India Websites

To facilitate quicker access to RBI documents available on the RBI Website

(URL : www.rbi.org.in), frequently accessed documents have been given a special

URL. By keying-in the URL which can also be saved in ‘Favourites’, the visitor can

directly reach the desired document on the RBI site.

Advance release calenders relating to data categories pertaining to: (i) analytical

accounts of the banking sector, (ii) analytical accounts of the central bank, (iii) share

price index, (iv) balance of payments, (v) international reserves, and (vi) exchange

rates under the Special Data Dissemination Standards (SDDS) of the IMF are also

posted on the RBI Website (http://www.rbi.org.in).

The documents available on special URL are:

� Weekly Statistical Supplement: www.wss.rbi.org.in

� RBI Bulletin: www.bulletin.rbi.org.in

� Monetary and Credit Policy: www.cpolicy.rbi.org.in

� 8.5% Government of India Relief Bonds: www.goirb.rbi.org.in

� RBI Notifications: www.notifics.rbi.org.in

� RBI Press Release: www.pr.rbi.org.in

� RBI Speeches: www.speeches.rbi.org.in

� RBI Annual Report: www.annualreport.rbi.org.in

� Credit Information Review: www.cir.rbi.org.in

� Report on Trend and Progress of Banking in India: www.bankreport.rbi.org.in

� FAQS: www.faqs.rbi.org.in

� Committee Reports: www.reports.rbi.org.in

� FII List: www.fiilist.rbi.org.in

� Facilities for Non-Resident Indians: www.nri.rbi.org.in

� SDDS-National Summary Data Page-India: www.nsdp.rbi.org.in

� Foreign Exchange Management Act, 1999: www.fema.rbi.org.in

� NBFC Notifications: www.nbfc.rbi.org.in

� Master Circulars: www.mastercirculars.rbi.org.in

� List of suit filed accounts: www.defaulters.rbi.org.in

� Currency Museum: www.museum.rbi.org.in

� Electronics Clearing Service: www.ecs.rbi.org.in

� Exchange Control Manual: www.ecm.rbi.org.in

� Y2K: www.y2k.rbi.org.in

� Data base on Indian Economy: http://dbie.rbi.org.in

– Editor

RBI

WEBSITES

RBI provides Web based Access to its Database on Indian Economy

The Reserve Bank of India has released a number of long time series data on

several aspects of Indian economy covering key macro economic aggregates to the

public in user-friendly manner through dynamic web based application.

Objective : The Database on Indian Economy is built for the convenience of

researchers, analysts and other users. It is created to provide the public with an

access to the published data series, with additional details on some series as available

in the Reserve Bank of India’s enterprise wide data warehouse.

Coverage : Data available on published time series, can be accessed through a

completely browser based software include data on:

� financial sector,

� real sector,

� financial market,

� external sector,

� public finance and

� corporate finance

Features :

� All the data series are accompanied with data definitions, i.e. metadata,

which allow the user to view the definitions/concepts of the underlying

variables;

� The data definitions provides search feature;

� Extract data through standard reports which allows the users to select and

view the preformatted reports or

� Dynamic ‘data query’, which enables user to define list of data series and

allows the user to choose the time period for data extraction.

� Data files can be downloaded in the form of CSV / pdf format.

Access : The data can be accessed from the home page of the RBI website

(www.rbi.org.in) through the static headline “Database on Indian Economy” List of

data series available on the site is available on the homepage of the site, i.e. Database

on Indian Economy.

This list will be proggressively enlarged on the basis of feedback received and

availability of relevant data series in the RBI data warehouse. Feedback may please

be sent to [email protected] or through the feedback option on the home

page of the website.

– Editor

REPORT OF THE

COMMITTEE ON

FINANCIAL SECTOR

ASSESSMENT

India’s Financial Sector – An Assessment

A comprehensive assessment of India’s financial sector by the Committee

on Financial Sector Assessment (CFSA), constituted by the Government of India

and the Reserve Bank of India, evaluating financial sector stability and

development, identifying gaps in compliance with various international financial

standards and codes, and suggesting corrective policy measures. The Report

contains six volumes. Volume III – VI contain independent reports by the four

Advisory Panels assisting the CFSA as follows:

• Financial Stability Assessment and Stress Testing, covering macro-

prudential analysis, stability assessment and stress-testing of the financial

sector (Volume III).

• Financial Regulation and Supervision, covering assessment of standards

pertaining to banking regulation and supervision, securities market

regulation and insurance regulation (Volume IV).

• Institutions and Market Structure, covering assessment of financial

infrastructure including legal, regulatory and liquidity management aspects

and standards regarding accounting and auditing, corporate governance,

payment and settlement systems and effective insolvency and creditor rights

systems (Volume V).

• Transparency Standards, covering assessments of standards regarding

transparency in monetary and financial policies, fiscal transparency and data

dissemination (Volume VI).

The Overview Report (Volume II) of the CFSA draws on the assessments and

recommendations of the Advisory Panel reports. Volume I is an Executive Summary

of the assessments and recommendations.

Exclusively distributed by:

Foundation Books, An Imprint of Cambridge University Press India Pvt. Ltd.,

Cambridge University Press India Pvt. Ltd, Cambridge House, 4381/4, Ansari Road,

Darya Ganj, New Delhi – 110 002.

Price: Rs. 2000 (Volumes I to VI)

Price: Rs. 500 (Volume I and II)

Reserve Bank of india november bulletin 2009

Documents

Transcript of Reserve Bank of india november bulletin 2009