The Reserve Bank of India’s income in the year ended June 30 grew 146.59% year-on-year, allowing for a record transfer of Rs 1.76 lakh crore to the government for FY19, the annual report for 2018-19 showed. According to the report, the size of the RBI’s balance sheet grew 13.42% or Rs 4.85 lakh crore for the year ended June 30, 2019 to Rs 41.03 lakh crore, compared with Rs 36.18 lakh crore in the previous year.
Total income rose 146.5% to Rs 1.93 lakh crore in 2018-19 while expenditure fell by 39.72% to Rs 17,045 crore, against Rs 28,277 crore in the previous year. The gain in income was primarily on account of the foreign exchange gains due to higher yield on securities and change in the method for valuation.
The central bank’s income from foreign sources rose to Rs 74,958 crore in 2018-19, from Rs 27,401 crore in the previous year, “mainly on account of the general rise in yield/interest rates across all currencies and movement in exchange rates,” the report stated.
The net income from domestic sources rose to Rs 1,18,078 crore in 2018-19, from Rs 50,880 crore in 2018-18, due to higher interest income and write back of Rs 52,637 crore excess risk provision from the contingency fund.
Source: financialexpress.com