RBI's balance sheet grows 2.5% to Rs 63.45 lakh crore in FY23

The Reserve Bank of India’s income surged by 47.06% to Rs 2.35 lakh crore in the financial year ended March 2023 on the back of a sharp jump in earnings from foreign sources and increase in gold price.

The RBI’s income from foreign sources increased by 69.82% to Rs 1.52 lakh crore in 2022-23 as against Rs 89,582.36 crore recorded in the previous year, according to the RBI’s annual report 2022-23 released on Tuesday.

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The rate of earnings on foreign currency assets rose to 3.73% in 2022-23 from 2.11% in 2021-22.

The central bank’s net income from domestic sources increased by 18.15% to Rs 83,328.72 crore in 2022-23 mainly on account of decrease in net outgo of interest under liquidity adjustment facility (LAF), marginal standing facility (MSF) and standing deposit facility (SDF) due to lower surplus liquidity in the banking system, the RBI said.

A sharp increase in income led to a substantial jump in the central bank’s balance sheet, which plays a critical role in the functioning of the country’s economy, largely reflecting the activities carried out in pursuance of its currency issue function as well as monetary policy and reserve management objectives.

The size of the RBI’s balance sheet increased by Rs 1.54 lakh crore, or 2.50%, to Rs 63.44 lakh crore as on March 31, 2023 as against Rs 61.90 lakh crore recorded at the end of fiscal 2021-22.

The increase on the asset side was due to a rise in foreign investments, gold, and loans and advances by 2.31%, 15.30% and 38.33%, respectively.

The RBI’s total expenditure during the year increased by 14.05% to Rs 1.48 lakh crore. Net income of the central bank jumped to Rs 87,420.22 crore in 2022-23 as compared to Rs 30,311.45 crore recorded in the previous year.

Out of the Rs 87,420.22 crore net income, the RBI transferred Rs 87,416.22 crore to the central government as dividend. The rest Rs 4 crore was transferred to different credit funds.

The RBI increased its gold reserves by 34.21 metric tonnes during the year. As on March 31, 2023, total gold held by the Reserve Bank rose to 794.63 metric tonnes as compared to 760.42 metric tonnes recorded on 31st March 2022.

The value of gold (including gold deposit) held as asset of the Banking Department increased by 17.20% to Rs 2.30 lakh crore as on March 31, 2023. “This increase is on account of addition of 28.94 metric tonnes of gold and also due to increase in the price of gold and depreciation of INR vis-à-vis USD,” the RBI noted in its annual report.

Foreign currency assets and gold (including gold deposits and gold held in India) constituted 72.31% of the central bank’s total assets as on March 31, 2023. The proportion of foreign assets in the RBI’s total assets increased during the year. It stood at 71.78% at the end of fiscal 2021-22.