Vol. 13, No. 40 October 3, 1998 1.Reserve Bank of India (Rs. crore) Item 1997 1998 Variation over Sept. 19 Sept. 11 Sept. 18 Week Year 1 2 3 4 5 6 Notes in circulation 1,39,403 1,55,053 1,53,463 -1,590 14,060 Notes issued 1,39,423 1,55,085 1,53,491 -1,594 14,068 Notes held in Banking Department 20 32 27 -5 7 Deposits : Central Government 50 51 50 -1 - State Governments 13 12 14 2 1 Scheduled Commercial Banks 53,021 72,039 70,759 -1,280 17,738 Scheduled State Co-operat

Variation over As on Sept. 25, 1998 Week End-March 1998 End-December 1997 Year Item Rs. Crore US$ Mn. Rs. Crore US$ Mn. Rs. Crore US$ Mn. Rs. Crore US$ Mn. Rs. Crore US$ Mn. 1 2 3 4 5 6 7 8 9 10 11 Total Reserves 1,24,019 29,208 312 118 8,114 -159 16,724 1,853 17,228 -268 of which : (a) Foreign Currency Assets 1,11,445 26,253 312 118 8,938 278 17,467 2,288 18,318 535 (b) Gold 12,513 2,941 - - -881 -450 -500 -372 -1,042 -787 (c) SDRs 61 14 - - 57 13 -243 -63 -48 -16 No

(Rs. crore) Outstanding Item as on Variation over 1998 Financial year so far Sept. 11# Fortnight 1997-98 1998-99 Year 1 2 3 4 5 6 Liabilities to the Banking System Demand and time deposits from banks 26,593 466 1,092 2,911 8,105 Borrowings from Banks(1) 8,596 1,055 2,754 1,436 2,584 Other demand and time liabilities(2) 676 118 -34 -769 171 Liabilities to Others Aggregate deposits 6,54,833 @ 2,635 30,602 49,423 1,18,632 (0.4) (6.1) (8.2) (22.1) Demand 95,844 -401 -5,28

1997 1998 Item / week ended Sept. 19 Aug. 21 Aug. 28 Sept. 4 Sept. 11 Sept. 18 1 2 3 4 5 6 7 Bank Rate 10.00 9.00 9.00 9.00 9.00 9.00 I.D.B.I.1 14.50 14.00 14.00 14.00 14.00 14.00 Prime Lending Rate2 13.50 12.75-13.0 12.75-13.0 12.75-13.0 12.75-13.0 12.75-13.0 Deposit Rate3 10.0-12.0 9.0-11.5 9.0-11.5 9.0-11.5 9.0-11.5 9.0-11.5 Call Money Rate (Low / High)4 5.00/10.50 5.00/30.0 0.50/30.0 8.50/21.0 3.00/9.50 7.50/12.50 1. Medium Term Lending Rate (MTLR). 2. Prime Lendi

(Rs. crore) 1998-99 1997-98 Outstanding Variations Outstanding Variations as on (3) - (2) as on (6) - (5) Item 1998 1997 Mar. 27 Sept. 11 Mar. 28 Sept. 12 1 2 3 4 5 6 7 1. Bank Credit 3,24,079 3,23,820 -258 2,78,401 2,76,352 -2,049 (-0.1) (-0.7) A. Food Credit 12,485 16,025 3,540 7,597 8,700 1,103 B. Non-Food Credit 3,11,594 3,07,795 -3,798 2,70,805 2,67,652 -3,153 (-1.2) (-1.2) 2. Investments £ 33,084 40,095 @ 7,011 19,411 26,022 6,611 A. Commercial Paper 2,070 4,319

Foreign 1997 1998 1997 1998 Currency Sept. 26 Sept. 21 Sept. 22 Sept. 23 Sept. 24 Sept. 25 Sept. 26* Sept. 21 Sept. 22 Sept. 23 Sept.24 Sept.25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 RBI's Reference Rate (Rs. per U.S. Dollar) Foreign Currency per Rs. 100@ 36.2200 42.5200 42.5100 42.5400 42.5300 42.5100 (Based on Middle Rates) FEDAI Indicative Rates (Rs. per Foreign Currency) U.S. Buying 36.2100 42.5100 42.5000 42.5400 42.5300 42.5000 2.7613 2.3518 2.3524 2.3507 2.3513 2.352

(Rs. crore) Outstanding Variation over as on Item Financial year so far 1998 Fortnight 1997-98 1998-99 Year Mar. 31# Sept. 11# Amount % Amount % Amount % Amount % 1 2 3 4 5 6 7 8 9 10 11 M3 8,25,389 8,86,535 @ 4,936 0.6 40,432 5.8 61,145 7.4 1,44,254 19.4 Components (i+ii+iii+iv) (i) Currency with the Public 1,45,182 1,52,877 3,196 2.1 7,984 6.0 7,695 5.3 12,806 9.1 (ii) Demand deposits with banks 1,18,435 1,10,931 -393 -0.4 -6,909 -6.6 -7,504 -6.3 12,507 12.7 (iii) T

(Rs. crore) Outstanding Variation over as on Item Financial year so far 1998 Week 1997-98 1998-99 Year Mar. 31# Sept. 18# Amount % Amount % Amount % Amount % 1 2 3 4 5 6 7 8 9 10 11 Reserve Money 2,26,233 2,32,907 -3,065 -1.3 911 0.5 6,674 2.9 32,011 15.9 Components (i+ii+iii) (i) Currency in circulation 1,50,823 1,56,704 -1,589 -1.0 5,284 3.9 5,881 3.9 14,203 10.0 of which : cash with banks 5,641 .. (ii) Bankers' deposits with RBI 71,806 72,548 -1,440 -1.9 -5,065 -8.

(Rs. crore) Date of Date of Notified Competitive Devolvement Non-Compe- Total Weighted Implicit Yield Amount Outstan- Auction Issue Amount Bids on PDs and titive Bids Issue Average at Cut-off ding as on the Accepted RBI Accepted (4+5+6) Price Price Date of Issue (Face Value) (Face Value) (Face Value) (Face Value) (per cent) (Face Value) 1 2 3 4 5 6 7 8 9 10 Oct. 3, '97 Oct. 4, '97 - 2350 10 100 2460 99.81 4.9494 7,860 Jan. 2, '98 Jan. 3, '98 - 35 100 - 135 99.73 7.039

(Rs. crore) Date of Date of Notified Competitive Devolvement Non-Compe- Total Weighted Implicit Yield Amount Outstan- Auction Issue Amount Bids on PDs and titive Bids Issue Average at Cut-off ding as on the Accepted RBI Accepted (4+5+6) Price Price Date of Issue (Face Value) (Face Value) (Face Value) (Face Value) (per cent) (Face Value) 1 2 3 4 5 6 7 8 9 10 Oct. 3, '97 Oct. 4, '97 300 205 95 - 300 98.31 6.8762 4,200 Jan. 2, '98 Jan. 3, '98 200 - - 200 200 98.23 7.2076

(Rs. crore) Date of Date of Notified Bids Devolvement Total Weighted Implicit Yield Amount Outstan- Auction Issue Amount Accepted on PDs and Issue Average at Cut-off ding as on the RBI (4+5) Price Price Date of Issue (Face Value) (Face Value) (Face Value) (Per cent) (Face Value) 1 2 3 4 5 6 7 8 9 Oct. 8, '97 Oct. 10, '97 - 2092 - 2092 92.23 8.4716 16,769 Jan. 14, '98 Jan. 16, '98 - - - - - - 17,517 @ Apr. 7, '98 Apr. 11, '98 100 6 94 100 92.61 7.9797 14,339 Jul. 1, '9

(Rs. crore) Fortnight ended Total Amount Issued during Rate of Interest Outstanding # the fortnight # (Per cent)@ 1 2 3 4 Jul. 4, 1997 9,219 296 8.00 - 14.25 Oct. 10, 1997 7,572 631 7.50 - 12.00 Jan. 2, 1998 6,876 811 6.50 - 11.75 Apr. 10, 1998 14,584 627 8.25 - 24.00 Jun. 19, 1998 9,754 613 6.50 - 13.65 Jul. 3, 1998 7,886 645 6.00 - 12.75 @ : Effective interest rate range per annum.

(Rs. crore) Fortnight ended Total Amount Reported during Rate of Interest Outstanding the fortnight (Per cent)@ 1 2 3 4 Oct. 15, 1997 3,377 325 8.45 - 11.00 Jan. 15, 1998 5,249 1,205 8.05 - 11.75 Apr. 15, 1998 1,030 338 11.75 - 18.00 Jul. 15, 1998 3,912 772 8.20 - 13.50 Aug. 31, 1998 5,107 1,014 7.65 - 15.25 Sep. 15, 1998 4,786 668 7.65 - 14.00 @ : Typical effective discount rate range per annum on issues during the fortnight.

1997 1998 Percentage Variation over Item / Week ended Weight Sept. 13 Jul. 18* Sep. 12# Week Month End Year March 1 2 3 4 5 6 7 8 9 ALL COMMODITIES 100.00 329.0 351.6 355.8 0.1 1.1 5.5 8.1 Primary Articles 32.30 336.9 377.9 385.8 - 2.0 10.9 14.5 (i) Fruits and Vegetables 4.09 372.0 512.1 533.5 1.9 10.3 46.4 43.4 Fuel, Power, Light and Lubricants 10.66 369.6 379.8 379.9 - - -1.1 2.8 Manufactured Products 57.04 316.9 331.5 334.3 0.1 0.7 3.7 5.5 (i) Sugar, Khandsari and

1997 1998 Sept. 25 Sept. 21 Sept. 22 Sept. 23 Sept. 24 Sept. 25 1 2 3 4 5 6 7 BSE SENSEX (1978-79=100) 3,887.56 3,080.91 3,095.25 3,135.42 3,225.30 3,223.57 S & P CNX NIFTY (3.11.1995=1000) 1,111.35 897.70 897.25 907.75 934.80 934.95 Note : NSE - 50, i.e. Nifty has since been rechristened as 'S&P CNX Nifty' with effect from July 28, 1998.

Fortnight Ended Apr. 10, '98 Apr. 24, '98 May 8, '98 May 22, '98 Jun. 5, '98 Jun. 19, '98 Jul. 3, '98 1 2 3 4 5 6 7 8 1. Banks a) Borrowing 6,583 7,132 7,739 8,483 8,207 8,710 9,539 b) Lending 5,207 5,280 5,279 6,055 5,787 6,081 6,294 2. Primary Dealers a) Borrowing 2,799 3,631 3,124 3,799 4,101 4,195 4,978 b) Lending 663 1,329 1,404 1,627 1,896 1,753 2,079 3. Non-Bank Institutions a) Lending 3,142 4,045 3,460 4,981 4,712 5,344 5,918

Week Ended Items Aug. 21, '98 Aug. 28, 98 Sept. 4, '98 Sept. 11, '98 Sept. 18, '98 Sept. 25, '98 1 2 3 4 5 6 7 I. Outright Transactions a. Govt. of India Dated Securities 10,561 5,679 3,739 3,134 2,492 2,550 b State Goverment Securities 40 94 95 111 87 1 c. 14 - Day Treasury Bills 967 43 30 20 - 50 d. 91 - Day Treasury Bills 390 96 457 272 370 298 e. 364 -Day Treasury Bills 898 219 187 209 821 617 II. RBI* 2,549 2,261 543 104 3 0.46 @ : Excluding Repo Transactions. *

(US$ Million) Merchant Inter-bank FCY/INR FCY/FCY FCY/INR FCY/FCY Spot Forward Forward Spot Forward Forward Spot Swap Forward Spot Swap Forward Cancel- Cancel- Position Date lation lation 1 2 3 4 5 6 7 8 9 10 11 12 13 Purchases Sept. 14, 1998 274 57 48 38 111 76 491 597 63 750 237 51 Sept. 15, 1998 161 53 55 57 182 72 255 394 50 1,002 192 39 Sept. 16, 1998 158 72 31 115 121 110 338 691 36 1,069 224 15 Sept. 17, 1998 178 57 65 74 192 101 460 543 76 1,225 287 21 Sept. 1

(Rs. crore) Week Ended Aug. 22, '98 Aug. 29, '98 Sept. 5, '98 Sept. 12, '98 Sept. 19, '98 Sept. 26, '98 1 2 3 4 5 6 7 Amount 5.37 25.85 26.30 14.79 18.66 17.04 Source: National Stock Exchange of India Ltd.

1997 1998 Item As on Friday Sept. 26 Aug. 28 Sept. 4 Sept. 11 Sept. 18 Sept. 25 1 2 3 4 5 6 7 8 Standard Gold Opening 4,410 4,095 4,150 4,245 4,250 4,280 (Rs. per 10 grams) Closing 4,415 4,050 4,160 4,255 4,245 4,300 Silver (999.0 fineness) Opening 6,825 7,405 7,460 7,580 7,535 7,700 (Rs. per kilogram) Closing 6,785 7,375 7,470 7,625 7,535 7,720 Note : In case Friday is a holiday, prices relate to the preceding working day. Source : Bombay Bullion Association Ltd.

(Rs. crore) Holders September 25, 1998 Variation in Total Treasury Bills Treasury Bills of Different Maturities Total Over the Over End 14 day 14 day 91 Day 364 Day (2+3+4+5) Week March (Auction) (Intermediate) 1 2 3 4 5 6 7 8 Reserve Bank of India 575 - 2,100 962 3,637 -210 3,011 Banks 25 - 1,055 5,718 6,798 -165 -6,522 State Governments 200 3,944 1,750 - 5,894 134 -1,990 Others - 374 957 839 2,170 -157 -1,845

(Rs. crore) Gross Amount Repayments Net Amount Raised Raised upto upto 1998-99 1997-98 September 25, 1998 September 25, 1998 (upto (upto September 25, 1998) September 26, 1997) 1 2 3 4 5 Total 58,121 8,659 49,462 27,099

(Rs. crore) For the Week Ended For the Week Ended September 18, 1998 September 25, 1998 Items Amount YTM (%PA) Amount YTM (%PA) Indicative Indicative Minimum Maximum Minimum Maximum 1 2 3 4 5 6 7 I. Outright Transactions 1. Govt. of India Dated Securities Maturing in the year 1998-99 314 10.3704 10.7041 111 10.1050 10.4613 1999-00 131 10.2439 10.7639 154 10.2068 11.1265 2000-01 215 11.1892 11.3694 217 11.1887 11.3962 2001-02 347 11.5374 12.0105 330 11.4100 11.6174 200