RBI Annual Report: Net income increases to Rs 2.11 lakh crore as interest from foreign securities surges

The Reserve Bank of India’s (RBI) balance sheet increased by 11.08 percent on a year-on-year basis (Rs 7,02,946.97 crore) to Rs 70.48 lakh crore as of March 31, 2024, from Rs 63.45 lakh crore as of March 31, 2023.  

Its net income for FY24 increased to Rs 2.11 lakh crore compared to Rs 87,420 crore a year ago, while total expenditure sharply fell to Rs 64,694 crore compared to Rs 1.48 lakh crore a year ago. 

In its annual report released on May 30, the RBI attributed the increase on assets side was due to rise in foreign investments, gold, and loans and advances by 13.90 percent, 18.26 percent and 30.05 percent, respectively.  

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

The central bank’s domestic assets constituted 23.31 percent 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 percent of total assets as of March 31, 2024, as against 26.08 percent and 73.92 percent, respectively, as of March 31, 2023. 

The central bank’s income from foreign source was up 23.2 percent YoY at Rs 1.87 lakh crore in FY24, while its domestic net income stood at Rs 88,100 crore, up 5.7 percent YoY. 

The bank had made a provision of Rs 42,800 crore to contingency fund for FY24. No provision was made towards Asset Development Fund (ADF), it said in the report. 

The RBI has already agreed to transfer Rs 2.11 lakh crore as surplus to the central government for FY24. The surplus amount calculation is based on the Economic Capital Framework (ECF) adopted by the central bank on August 26, 2019, as per recommendations of the Bimal Jalan committee.