RBI balance sheet expands by 9.5% in FY18 on rise in foreign investments

The Reserve Bank of India’s (RBI’s) balance sheet expanded by 9.5 per cent to Rs  361.75 trillion in 2017-18 (FY18), on rising foreign investments and growth in foreign exchange reserves.

On June 30, 2017, the size of the bank’s balance sheet was Rs 330.4 trillion.

In its annual report, released on Wednesday, the RBI said the asset side increased 9.49 per cent.

The RBI’s balance sheet plays a critical role in the functioning of the country’s economy, reflecting the activities carried out in pursuance of its currency issue function, monetary policy and reserve management objectives.

While income for the year FY18 increased by 26.63 per cent, expenditure decreased by 9.24 per cent. The year ended with an overall surplus of Rs 500 billion as against Rs 306.59 billion in the previous year, representing an increase of 63.08 per cent.

On the liability side, the increase was due to an increase in “notes issued” and “other liabilities and provisions” by 26.93 per cent and 16.95 per cent, respectively.

Domestic assets constituted 23.18 per cent while the foreign currency assets and gold (including gold held in India) constituted 76.82 per cent of total assets as of June 30, 2018. The share of domestic assets was 24.32 per cent and foreign currency and gold had a 75.68 per cent share as of June 30, 2017.

The RBI made a provision of Rs 141.9 billion and transferred it to the contingency fund. No transfer was made to the asset-development fund.