RBI's balance sheet rises 11% to Rs 70.47 lakh crore in FY24

The size of Reserve Bank's balance sheet increased by 11.08 per cent to Rs 70.47 lakh crore as on March 2024, leading to the highest-ever dividend payout to the government, according to the central bank's annual report.

In actual terms, the increase was Rs 7,02,946.97 crore over Rs 63.45 lakh crore as on March 2023.

The central bank's net income stood at Rs 2.11 lakh crore 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 Contingency Fund (CF).

The net income during 2022-23 was Rs 87,420 crore.

Like 2022-23, no provision was made towards Asset Development Fund (ADF) during the year under review.

The balance sheet of the Reserve Bank reflects activities carried out in pursuance of its various functions 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 2.11 lakh crore to the central government for 2023-24. The dividend or surplus transfer by the RBI to the Centre was Rs 87,416 crore for the fiscal 2022-23. The previous high was Rs 1.76 lakh crore in 2018-19.

According to the RBI's Annual Report for 2023-24, the increase on assets side in the balance sheet was due to rise in foreign investments, gold, and loans and advances by 13.90 per cent, 18.26 per cent and 30.05 per cent, respectively.

On liabilities side, expansion was due to increase in notes issued, deposits and other liabilities by 3.88 per cent, 27.00 per cent and 92.57 per cent, respectively.

The RBI further said domestic assets constituted 23.31 per cent while foreign currency assets, gold (including gold deposit and gold held in India) and loans and advances to financial institutions outside India constituted 76.69 per cent of total assets as on March 31, 2024, as against 26.08 per cent and 73.92 per cent, respectively, as on March 31, 2023.

The Reserve Bank holds 822.10 metric tonnes of gold, of which 308.03 metric tonnes are held as backing for notes issued as on March 31, 2024.

The value of gold held as asset of Issue Department increased by 16.94 per cent from Rs 1,40,765.60 crore as on March 31, 2023 to Rs 1,64,604.91 crore as on March 31, 2024.

RBI said this increase in the value of gold during the year is on account of addition of 6.94 metric tonnes of gold, increase in price of gold and depreciation of Indian rupee against US dollar.