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Tuesday, September 29, 2020

RBI’s balance sheet up 30%, income declines 29%

The increase on the asset side was due to increase in domestic and foreign investments by 18.40 per cent and 27.28 per cent, respectively, increase in loans and advances by 245.76 per cent and increase in gold by 52.85 per cent, the RBI said in its Annual Report.

By: ENS Economic Bureau | Mumbai | Updated: August 26, 2020 10:17:55 am
A sign for the Reserve Bank of India (RBI) sign is displayed inside central bank's headquarters in Mumbai, India, on Thursday, Feb. 6, 2020. (Photographer: Dhiraj Singh/Bloomberg)

The Reserve Bank of India’s balance sheet increased by 30 per cent, or Rs 12,31,888 crore, from Rs 41,02,905 crore as of June 2019 to Rs 53,34,793 crore a year ago. The increase on the asset side was due to increase in domestic and foreign investments by 18.40 per cent and 27.28 per cent, respectively, increase in loans and advances by 245.76 per cent and increase in gold by 52.85 per cent, the RBI said in its Annual Report.

However, the gross total income for the year 2019-20 declined by 29 per cent to Rs 149,672 crore as compared to Rs 193,036 crore in 2018-19. The previous year’s income included a write back of excess provision from Contingency Fund amounting to Rs 52,637 crore. “A comparison excluding the same from previous year’s income, shows a marginal increase in the income for 2019-20,” the RBI said.

Its expenditure for the year 2019-20 is Rs 92,540 crore, which includes a risk provision of Rs 73,615 crore towards Contingency Fund, compared to an expenditure of Rs 17,045 crore in 2018-19. The year ended with an overall surplus of Rs 57,128 billion. This was transferred to the government.

On the liability side, the rise was due to increase in notes issued, other liabilities and provisions and deposits by 21.52 per cent, 30.47 per cent and 53.72 per cent, respectively. Domestic assets constituted 28.75 per cent while foreign currency assets and gold (including gold deposit and gold held in India) constituted 71.25 per cent of total assets as of June 2020 as against 28.03 per cent and 71.97 per cent, respectively, as of June 2019, it said.

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