RBI's balance sheet grows by 11% to nearly ₹70.5L crore
The Reserve Bank of India (RBI) has reported an 11.08% increase in its balance sheet size for FY2024, reaching ₹70.48 lakh crore as of March 31. This marks a significant rise from the previous fiscal year's figure of ₹63.44 lakh crore. The central bank also noted that its balance sheet has returned to pre-pandemic levels and now constitutes 24.1% of India's GDP as of the end of March 2024, up slightly from the previous year's proportion of 23.5%.
RBI reports significant rise in income, decrease in expenditure
The RBI reported a 17.04% rise in income for the fiscal year 2024, while its expenditure decreased by a substantial 56.3%. This financial performance resulted in a significant increase of 141.23% in the RBI's annual surplus for FY24, amounting to ₹2.11 lakh crore. This surplus was recently transferred to the central government. Additionally, the RBI allocated ₹42,820 crore toward its contingency fund for FY24.
RBI optimistic about Indian economy, cautions on inflation
The RBI remains optimistic about the Indian economy due to a sustained strengthening of macroeconomic fundamentals. However, it also highlighted that food inflation continues to be vulnerable to recurring supply shocks, which is "preventing a quicker alignment of headline inflation with the target." The central bank further stated that "the government's continued thrust on capex while pursuing fiscal consolidation, and consumer and business optimism augur well for investment and consumption demand."
