RBI balance-sheet expands 11% to Rs 70.47 tln in FY24

the increase in the size of the balance sheet is of Rs 7.03 trillion. up from Rs 63.45 trillion for the year ending March 2023.
Reserve Bank of India
Reserve Bank of India FILE Photo | PTI

MUMBAI: The balance-sheet of the Reserve Bank has grown 11.08 percent to Rs 70.47 trillion in FY24, leading to a record Rs 2.1 trillion in dividend payout out or surplus transfer to the government for the year, shows the annual report. In actual terms, the increase in the size of the balance sheet is of Rs 7.03 trillion. up from Rs 63.45 trillion for the year ending March 2023.

Accordingly, the monetary authority’s net income stood at Rs 2.11 trillion at end-March 2024 after making a provision of Rs 42,819.91 crore, significantly down from Rs 1,30,875.75 crore in the preceding fiscal. The amount made towards provisioning is transferred to the national contingency fund. The central bank’s net income in FY23 was only a Rs 87,420 crore.

Like in FY23, no provision was made towards the asset development fund, the RBI said Thursday.

The balance-sheet reflects activities carried out in pursuance of the various functions of the RBI including issuance of currency as well as monetary policy and reserve management objectives.

Last week, the RBI had approved the highest-ever dividend payout of Rs 2.1 trillion to the government for FY24. The dividend or surplus transfer in the central banking parlance  was Rs 87,416 crore for the FY23, which in the fiscal before was higher at Rs 1.76 trillion.

According to the annual report for FY24, the increase on assets side in the balance sheet is due to the rise in foreign investments, gold, and loans and advances by 13.90 percent, 18.26 percent and 30.05 percent, respectively during the year under review.

On the liabilities side, expansion is  due to the increase in the currency notes issued, deposits and other liabilities which grew by 3.88 percent, 27 percent and 92.57 percent, respectively.

The RBI further said domestic assets constitute 23.31 percent while foreign currency assets and gold, including the gold deposits and gold held in the country, and loans and advances to financial institutions outside the country constitute 76.69 percent of the assets as of end March 2024, as against 26.08 percent and 73.92 percent, respectively, as of March 2023.

The Reserve Bank holds 822.10 tonne of gold, of which 308.03 tonne are held as backing for the banknotes issued as of March 2024. The value of gold held as asset rose by 16.94 percent from Rs 1.41 trillion as of end March 2023 to Rs 1.65 trillion as of end March 2024.

The central bank said the increase in the value of gold is due to the addition of 6.94 tonne of gold, along with the increase in the price of gold and the depreciation of the rupee against the dollar.

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