$696 Billion and Climbing! India’s Forex Reserves Hit New High

Image Source: Hindustan Times

The Reserve Bank of India (RBI) has released its weekly statistical supplement, highlighting key financial indicators for the fortnight ending May 30 and the week ending June 6.

Key Highlights:

Loan Growth: Indian banks’ loans rose 9% yearonyear in the fortnight to May 30, reflecting strong credit demand.
Deposit Surge: Bank deposits increased 9.9% yearonyear, signaling robust liquidity in the system.
Forex Reserves: India’s foreign exchange reserves climbed to $696.66 billion on June 6, up $5.17 billion from the previous week.
Government Debt: The federal government had no outstanding loans with the RBI as of June 6.

Market Trends

The RBI’s bulletin provides insights into liquidity operations, money supply, and banking sector performance.

The rise in loan and deposit growth suggests continued economic momentum, while the forex reserve boost strengthens India’s external stability. Analysts note that the absence of government borrowing from the RBI indicates a stable fiscal position.

With India’s banking sector maintaining steady expansion and forex reserves nearing record highs, the latest RBI data underscores the country’s financial resilience.

Source: Moneycontrol, CNBCTV18, RBI Bulletin