RBI's Balance Sheet Expands By 11% To Reach Rs 70.47 Lakh Crore In FY24

The net income for the fiscal year 2022-23 amounted to Rs 87,420 crore. Similar to the previous fiscal year, no provision was allocated to the Asset Development Fund (ADF) during the current year

On the liabilities side, the expansion was driven by a 3.88 per cent growth in notes issued, a 27.00 per cent increase in deposits, and a substantial 92.57 per cent surge in other liabilities

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The Reserve Bank's balance sheet expanded by 11.08 per cent, reaching Rs 70.47 lakh crore, resulting in the highest dividend payout to the government, as stated in the central bank's annual report as of March 2024. In absolute terms, this represented a rise of Rs 7,02,946.97 crore compared to Rs 63.45 lakh crore as of March 2023.

At the conclusion of March 2024, the central bank recorded a net income of Rs 2.11 lakh crore, following a provision of Rs 42,819.91 crore, marking a notable decrease from Rs 1,30,875.75 crore in the previous fiscal year. The sum allocated for provisioning is transferred to the Contingency Fund (CF). 

The net income for the fiscal year 2022-23 amounted to Rs 87,420 crore. Similar to the previous fiscal year, no provision was allocated to the Asset Development Fund (ADF) during the current year.

The Reserve Bank's balance sheet portrays the activities conducted in alignment with its diverse functions, encompassing currency issuance, monetary policy implementation, and reserve management goals.

Recently, the RBI sanctioned its largest-ever dividend payout of Rs 2.11 lakh crore to the central government for the fiscal year 2023-24. In the preceding fiscal year, 2022-23, the dividend or surplus transfer from the RBI to the Centre amounted to Rs 87,416 crore. Notably, the previous record was set at Rs 1.76 lakh crore in the fiscal year 2018-19.

As per the RBI's Annual Report for 2023-24, the increase in assets on the balance sheet was attributed to a 13.90 per cent rise in foreign investments, an 18.26 per cent increase in gold holdings, and a 30.05 per cent uptick in loans and advances.

On the liabilities side, the expansion was driven by a 3.88 per cent growth in notes issued, a 27.00 per cent increase in deposits, and a substantial 92.57 per cent surge in other liabilities.

Furthermore, the RBI highlighted that domestic assets comprised 23.31 per cent, while foreign currency assets, gold (including gold deposits and holdings within India), and loans and advances to financial institutions outside India constituted 76.69 per cent of the total assets as of March 31, 2024. This is in comparison to 26.08 per cent and 73.92 per cent, respectively, as of March 31, 2023.

As of March 31, 2024, the Reserve Bank held 822.10 metric tonnes of gold, of which 308.03 metric tonnes serve as backing for notes issued. The value of gold held as an asset by the Issue Department saw a 16.94 per cent increase, rising from Rs 1,40,765.60 crore as of March 31, 2023, to Rs 1,64,604.91 crore as of March 31, 2024.

The RBI attributed this rise in the value of gold during the year to several factors, including the addition of 6.94 metric tonnes of gold, an increase in the price of gold, and the depreciation of the Indian rupee against the US dollar.