Mumbai, Aug 25 : Despite Covid-19, the Reserve Bank of India (RBI) on Tuesday reported a growth of 30 per cent in its balance sheet to around Rs 53.34 lakh crore for the year 2019-20. RBI’s financial year runs from July-June.
According to the RBI’s annual report, the increase on the asset side was due to rise in domestic and foreign investments by 18.40 per cent and 27.28 per cent, respectively, increase in loans and advances by 245.76 per cent and increase in gold by 52.85 per cent.
“The balance sheet increased by Rs 12,318.88 billion, i.e., 30.02 per cent from Rs 41,029.05 billion as on June 30, 2019 to Rs 53,347.93 billion as on June 30, 2020,” it said.
On the liability side, the increase was due to rise in notes issued, other liabilities and provisions, and deposits by 21.52 per cent, 30.47 per cent and 53.72 per cent, respectively, it said.
Domestic assets constituted 28.75 per cent while the foreign currency assets and gold, including gold deposit and gold held in India, constituted 71.25 per cent of total assets as on June 30, 2020 as against 28.03 per cent and 71.97 per cent, respectively, as on June 30, 2019.
The balance sheet of the Reserve Bank 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.
RBI made a provision of Rs 736.15 billion (Rs 73,615 crore) and transferred it to the Contingency Fund (CF). Further, no provision was made towards Asset Development Fund (ADF).
The central bank’s total expenditure for 2019-20 stood at Rs 92,540 crore which included a risk provision of Rs 73,615 crore towards Contingency Fund, higher from the expenditure of Rs 17,045 crore in 2018-19.
The year ended with an overall surplus of Rs 57,128 crore, which RBI transferred to the government as dividend.
Disclaimer: This story is auto-generated from IANS service.