Balance sheet size higher than B’desh, Pak GDPs

Mumbai: The size of Reserve Bank’s balance sheet increased by 11.08 per cent to Rs70.47 lakh crore as on March 2024, leading to the highest-ever dividend payout to the government, according to the central bank’s annual report. The RBI’s balance sheet size, equivalent to $844.76 billion and it’s higher than the combined GDPs of Pakistan ($338.24 bn ) and Bangladesh ($455 billion).

In actual terms, the increase was Rs7,02,946.97 crore over Rs63.45 lakh crore as on March 2023. The central bank’s net income stood at Rs2.11 lakh crore at end-March 2024 after making a provision of Rs42,819.91 crore, significantly down from Rs1,30,875.75 crore in the preceding fiscal. The amount made towards provisioning is transferred to Contingency Fund (CF). The net income during 2022-23 was Rs87,420 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 Rs2.11 lakh crore to the central government for 2023-24. The dividend or surplus transfer by the RBI to the Centre was Rs87,416 crore for the fiscal 2022-23. The previous high was Rs1.76 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.