India’s forex reserves increased 1.25 percent or by $6.561 billion to touch $531.081 billion for the week ended October 28, according to the latest data released by the Reserve Bank of India.
The change in forex reserve — which is the total cash (foreign currency) and other assets such as gold that are held by the central banks of the respective country or other financial institutions — is typically estimated on a week-on-week basis. The current forex reserve of India is however 15.9 percent lower compared to the February level.
The latest central bank data also showed that there was a robust momentum in the credit and deposit growth in the current fiscal. While the quantum of credit or loan grew to Rs 9.98 lakh crore, the total deposits increased to Rs 7.4 lakh crore as on October 28. The incremental credit and deposit (CD) ratio was at 135 percent.
Overall year-on-year credit growth was at 17.95 percent, which was the best since 269 fortnights. The credit-deposit ratio at 74.92 percent was also the highest since May 8, 2020, which was 74.02 percent. Food credit, on a fortnight basis, has grown for the first time in 12 fortnights.
