RBI data: State loans down Rs 7,097 cr, forex reserves up
The Reserve Bank of India's weekly statistical supplement shows loans and advances to state governments fell by Rs 7,097 crore week-on-week to Rs 17,100 crore as on July 31, 2026. Year-on-year, the…
The Story in Brief
The Reserve Bank of India's weekly statistical supplement shows loans and advances to state governments fell by Rs 7,097 crore week-on-week to Rs 17,100 crore as on July 31, 2026. Year-on-year, the drop is Rs 15,133 crore. Foreign exchange reserves rose by Rs 24,233 crore over the week to Rs 66,12,148 crore. Bank credit grew 17.7% year-on-year to Rs 2,17,33,383 crore, while aggregate deposits grew 12.7% year-on-year but fell 1% over the fortnight to Rs 2,62,84,574 crore.
The Indian Opinion
Hawkish analysts often cite rising RBI loans to states as a sign of fiscal profligacy. This week's data, however, shows state government borrowings from the central bank actually fell by Rs 7,097 crore, while foreign exchange reserves climbed Rs 24,233 crore. The 17.7% year-on-year bank credit growth also undercuts narratives of a lending slowdown. The real test will be whether deposit growth, which dipped 1% fortnightly, can keep pace as credit demand persists.
Source: rbi.org.in
This story was synthesised by AI from the source linked above.
