Balance sheet increased to 24.1% of GDP at end-March 2024, from 23.5% at end-March 2023
Mumbai: Backed by liquidity and foreign exchange operations, the balance sheet of RBI( Reserve Bank of India) rose 11.08 per cent year-on-year (Y-o-Y) to Rs70.47 trillion in 2023-24 fiscal. The balance sheet was Rs63.44 trillion a year ago.
According to the central bank’s FY24 annual report, the balance sheet increased to 24.1 per cent of gross domestic product (GDP) at end-March 2024, from 23.5 per cent at end-March 2023.
In other words, the balance sheet has returned to its pre-pandemic level.
The balance sheet reflects the RBI’s activities carried out in pursuance of various functions including the issuance of currency, monetary policy, and reserve management objectives.
The central bank’s income increased 17.04 per cent Y-o-Y to Rs 2.75 trillion, mainly due to profit from foreign exchange sales.
The annual reports say that RBI’s expenditure came down by 56.29 per cent Y-o-Y to Rs 64,694.33 crore. This included a provision of Rs 42,819.91 crore made and transferred to the contingency fund (CF). The allocation was meant to protect the central bank from the depreciation of value in securities and risks from monetary and forex operations.
In FY23, Rs 1.30 trillion was allocated to CF.
The contingency risk buffer now stands at 6.5 per cent of the balance sheet at the end of March 2024, up from 6 per cent at end-March 2023. The norm is maintaining a risk buffer between 5.5 and 6.5 per cent.
The balance in the CF was Rs 4,28,621.03 crore as on March 31, 2024 compared to Rs 3,51,205.69 crore as on March 31, 2023, said the annual report. The surplus transferred to the central government amounted to Rs 2.10 trillion in FY24, up from Rs 87,416.22 crore in FY23.
The annual report said that the increase on the asset side was due to a rise in foreign investments (13.90 per cent), gold (18.26 per cent), and loans and advances (30.05 per cent).
On the liability side, the expansion was due to an increase in notes issued (3.88 per cent), deposits (27.0 per cent), and other liabilities (92.57 per cent).
Domestic assets constituted 23.31 per cent of total assets as on March 31, 2024, down from 26.08 per cent a year ago. The share of foreign currency assets, gold (including gold deposits and gold held in India), and loans and advances to financial institutions outside India rose to 76.69 per cent from 73.92 per cent as on March 31, 2023.
