Emkay: Fortnightly round up of key banking and economic indicators

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Fortnightly round up of key banking and economic indicators

n     The growth in non food credit moderated to 21.4% yoy during the fortnight ended March 25, 2011, while the growth in the deposit mobilization remained moderate at 15.8%.

n     The CD ratio improved marginally to 75.7% for the week ended March 25, 2011 with TTM CD ratio remaining high at 97.2%.

n     The money supply grew at 16.4% in line with reserve money growth of 17.2% The money multiplier was at 5.01x

n     Call money rates have dropped below the reverse repo rate at 5.45%. We believe that this is more seasonal phenomenon as the corporates would have started repaying working capital loans. Once, the government bond auctions start we could see them moving up

n     The shortage of liquidity in the system increased to Rs1.1tn for April 1, 2011. However, as the government spending picked up and the corporate have started repayments, the LAF balances have turned positive now

n     The spread between the long and short end OIS has gone up to 65bps as opposed to 32bps last fortnight