The Reserve Bank of India’s (RBI) balance sheet grew by 8.46% in FY22, primarily reflecting its liquidity and foreign exchange operations.
While revenue increased by 20.14%, expenditure increased by 280.13%, according to the RBI’s annual report for FY22.
The last financial year was the first full year of the accounting cycle from April to March. Previously, the RBI tracked the financial year from July to June.
The year ended with a surplus of Rs 30,307.45 crore against Rs 99,122 crore in the previous year (FY21).
Earlier this month, the central board of the RBI approved the transfer of Rs 30,207.45 crore as surplus to the central government.
Revenue for FY22 rose to over Rs 1.60 trillion from around Rs 1.34 trillion in FY21. However, expenses soared to around Rs 1.3 trillion due to Provisions of Rs 1.15 trillion for the Provident Fund and Rs 100 crore for the Asset Development Fund, leading to a decline in surplus. “Increased transfer to provident funds given the increase in the size of the RBI’s balance sheet resulted in lower dividend payments of Rs 303 billion for FY22,” YES Bank economists said. . “Provisioning under the “Provident Fund” at Rs 3.1 trillion, increased by 9.3% while balance sheet size was higher by 8.5% year-on-year. From a high of 29% of GDP in March 2021, the RBI’s balance sheet has now moderated to 26% in March 2022. Further moderation is likely through FY23 given liquidity and debt operations. RBI exchange this year to manage currency and bond volatility. market,” the report said.
The size of the RBI balance sheet increased by Rs 4,82,633.14 crore (8.46%) from Rs 57,07,669.13 crore as of March 31, 2021 to Rs 61,90,302.27 crore as of March 31, 2022.
The rise on the asset side is due to increased foreign and domestic investment, gold and advances, according to the report. Liabilities increased due to increased deposits, notes issued, etc. Domestic assets constituted 28.22% while foreign currency assets and gold constituted 71.78% of the total as of March 31, 2022.