"He was admitted last Thursday due to respiratory and kidney problems. He was put on ventilator when he arrived but has now been taken off it. He is conscious and is currently undergoing dialysis," the spokesperson told IANS Thursday.
"Even though his condition has improved, he will be kept under observation for a few more days," he added.
This is the second time in five months that Dey, 94, has had to be taken to hospital. The singer was in the same hospital for about 20 days in May and again in June.
A Dadasaheb Phalke awardee, Dey started his career as a playback singer in the early 1940s and crooned over 3,500 songs since then. Besides Hindi, he has also sung in Bengali, Gujarati, Kannada, Malayalam and Assamese.
Born as Prabodh Chandra Dey, he has sung across the spectrum - from romantic numbers to classical to fun songs to prove his versatility.
Dey was also honoured with the Dadasaheb Phalke Award, the country's highest award in the film world, in 2007.
The music genius's all-time hits include "Sur na saje kya gaun main", "Na to karanwa ki talash hai na to humsafar ki talash hain", "Puchho na kaise maine rain bitayee", "Laga chunari main daag", "Aaja sanam madhur chandani mein hum", "Dil ka haal sune dilwala", "Ye raat bhigi bhigi, ye mast fizayen", "Jhanak jhanak tori baaje payaliya", "Tu pyar ka saagar hai", "Chunari sambhal gori udi chali jaye re" and "Ay meri Zohara".