Mumbai's COVID-19 positivity rate also fell to 21.73 per cent from 24.38 per cent.
Mumbai reported 13,702 new coronavirus cases on Thursday - 16.55 per cent lower than a day ago - and six deaths, the Brihanmumbai Municipal Corporation (BMC) said.
The positivity rate - the share of tests returning positive - also fell to 21.73 per cent from 24.38 per cent.
The dip comes a day after Mumbai reported 16,420 new COVID-19 infections on Wednesday, around 41 per cent more than the previous day, the BMC said.
However, for the four days before that, the city had been witnessing a drop in daily cases after reporting the highest ever 20,971 cases on January 7.
On Tuesday, it had reported 11,647 cases, while two patients had died from the infection that day.
Municipal Commissioner Iqbal Singh Chahal said Wednesday's rise in daily positive cases is due to the revised national testing guidelines.
With Thursday's additions, the city's coronavirus tally jumped to 9,69,989, while the death count climbed to 16,426.
Significantly, the daily COVID-19 cases were less than the number of patients discharged in the last 24 hours.
Mumbai's active tally dropped below the 1-lakh mark and stood at 95,123, as per the bulletin.
The bulletin said out of the total new cases in the metropolis, 11,510, or 84 per cent, were asymptomatic.
Also, 871 new COVID-19 patients were hospitalised, while just 127 are on oxygen support, the BMC said.
The growth rate of COVID-19 cases in Mumbai stood at 1.85 per cent between January 6 and January 12, while the case doubling rate was 36 days, it said.
As per the bulletin, Mumbai has 61 sealed buildings, but zero containment zones in slums and 'chawls' (old row tenements).
The civic body seals buildings if the occupants of 20 per cent of the total number of flats or at least 10 residents are found infected with coronavirus.
Mumbai logged the highest-ever 20,971 COVID-19 cases on January 7. The earlier one-day high for Mumbai was 11,163 cases, registered on April 4, 2021, during the second wave of the pandemic.