Currency with the public also showed a consequent drop to 6.2 per cent from 6.7 per cent in the relevant period.

Demand deposits with banks decreased by 6.8 per cent as compared to a decline of 7.9 per cent during the corresponding period of last financial year.

Time deposits with banks went up by 6.8 per cent as against an increase of 7.2 per cent in the corresponding period of last year.

The annual growth of money supply as on August 14 this year stood at 17.4 per cent as compared to 17.6 per cent as on March end this year, the report said.

The net bank credit to government showed a higher growth of ten per cent during the current fiscal as compared to 7.9 per cent during the same period last year.

RBI's net bank credit to central government showed a high increase of 8.5per cent during the current financial year in contrast to a decline of 3.7 per cent in 1997-98.

Bank credit to commercial sector showed a negligible growth during current financial year as against a decline of 0.4 per cent in the same period of last year. Net foreign exchange assets of banking sector declined by 1.4 per cent as against a rise of 11.7 per cent in the corresponding period of 1997-98.

Bank credit by scheduled commercial banks during current fiscal till mid August fell by 0.7 per cent as compared with a decline of 0.9 per cent in corresponding period of last year.

Food credit increased by 36.1 per cent while non food credit showed a negative growth of 2.1 per cent during the current fiscal, the report said.

The aggregate deposits of scheduled commercial banks went up by 4.3 per cent during the period under review, it said.

The cash reserves showed a growth of 2.6 per cent during current financial year as compared with 2.7 per cent in the previous year.

Borrowings from RBI increased by271.7 per cent during current fiscal year in contrast to a decline of 58.1 per cent in the corresponding period of 1996-97.

On an annual basis, bank credit by scheduled commercial banks increased by 16.7 per cent, aggregate deposits by 19.4 per cent and borrowings from RBI increased by 525.2 per cent as on August fourteen this year.