RBI's balance sheet grows 2.5% to Rs 63.45 trn in FY23 on higher income

The size of the Reserve Bank's balance sheet increased by 2.5 per cent for the year ended on March 31 to about Rs 63.45 trillion on higher income, as per the central bank's annual report

The size of the Reserve Bank's balance sheet increased by 2.5 per cent for the year ended on March 31 to about Rs 63.45 lakh crore on higher income, as per the central bank's annual report released on Tuesday.

The balance sheet of the RBI 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 balance sheet increased by Rs 1,54,453.97 crore, i.e., 2.50 per cent from Rs 61,90,302.27 crore as on March 31, 2022 to Rs 63,44,756.24 crore as on March 31, 2023," the report said.

While income for the year increased by 47.06 per cent, the expenditure increased by 14.05 per cent.

The year ended with an overall surplus of Rs 87,416.22 crore as against Rs 30,307.45 crore in the previous year, resulting in an increase of 188.43 per cent.

The RBI transfers the surplus as dividend to the central government.

"The increase on the asset side was due to rise in foreign investments, gold, and loans and advances by 2.31 per cent, 15.30 per cent and 38.33 per cent, respectively," the RBI said.

On the liability side, the expansion was due to increase in notes issued, revaluation accounts and other liabilities by 7.81 per cent, 20.50 per cent and 79.07 per cent, respectively.

RBI further said domestic assets constituted 27.69 per cent while the foreign currency assets and gold (including gold deposit and gold held in India) constituted 72.31 per cent of total assets as on March 31, 2023 as against 28.22 per cent and 71.78 per cent, respectively, as on March 31, 2022.

A provision of about Rs 1.31 lakh crore was made and transferred to Contingency Fund (CF). No provision was made towards Asset Development Fund (ADF).

The central bank spent Rs 4,682.80 crore on printing of currency notes during 2022-23, marginally lower than Rs 4,984.80 crore in the preceding year.

As on March 31, 2023, total gold held by the Reserve Bank was 794.63 metric tonnes as compared to 760.42 metric tonnes as on March 31, 2022.

The increase, the RBI said, is on account of addition of 34.21 metric tonnes of gold during the year.

The value of gold (including gold deposit) held as asset of Banking Department increased by 17.20 per cent from Rs 1,96,864.38 crore as on March 31, 2022 to Rs 2,30,733.95 crore as on March 31, 2023, the RBI said.