The Reserve Bank of India’s (RBI) balance sheet has surged by 11.08% to Rs 70.48 lakh crore as of March 31, 2024, according to its annual report released on Thursday. This growth in the central bank’s financial statement underscores significant economic developments over the past fiscal year.
At $844.76 billion, the RBI’s balance sheet is now nearly 2.5 times the size of Pakistan’s entire GDP, which the International Monetary Fund (IMF) estimates at approximately $338.24 billion.
In the previous fiscal year, the RBI’s balance sheet stood at Rs 63.44 lakh crore. The central bank highlighted that its balance sheet has normalized to pre-pandemic levels, increasing to 24.1% of India’s GDP at the end of March 2024, up from 23.5% at the end of March 2023.
Financial Performance and Surplus Transfer
RBI’s income rose by 17.04% in FY24, while its expenditure decreased by 56.30%. This resulted in a substantial increase in the central bank’s surplus, which grew by 141.23% to Rs 2.11 lakh crore, subsequently transferred to the Central Government. Additionally, the RBI allocated Rs 42,820 crore towards the contingency fund in FY24.
Economic Outlook
The RBI remains optimistic about India’s economic prospects, citing robust macroeconomic fundamentals. However, it flagged food inflation as a concern due to recurring supply shocks, which hinder a quicker alignment of headline inflation with target rates.
The central bank also praised the government’s emphasis on capital expenditure and fiscal consolidation, coupled with positive consumer and business sentiments, which it believes will bolster investment and consumption demand. The RBI forecasts a real GDP growth of around 7% for FY25.
Looking ahead, the RBI is confident that the Indian economy is well-positioned to enhance its growth trajectory over the next decade, maintaining macroeconomic and financial stability. As inflation trends downwards, it is expected to boost consumption, particularly in rural areas. Moreover, the RBI highlighted the strength of the external sector and foreign exchange reserves as buffers protecting domestic economic activities from global disturbances.
