The increase on the asset side was due to a rise in domestic and foreign investments by 18.40% and 27.28%, respectively, surge in loans and advances by 245.76% and jump in gold by 52.85%
Mumbai: The balance sheet size of the Reserve Bank grew 30.02% to ₹53.35 lakh crore during fiscal year 2019-20 owing to rise in domestic and foreign investments. Last year, the balance sheet stood at ₹41.03 lakh crore.
The increase on the asset side was due to a rise in domestic and foreign investments by 18.40% and 27.28%, respectively, surge in loans and advances by 245.76% and jump in gold by 52.85%.
Domestic assets constituted 28.75%, while the foreign currency assets and gold (including gold deposit and gold held in India) constituted 71.25% of total assets as on 30 June, 2020.
On the liability side, the increase was due to 21.5% rise in notes issued, 30.5% surge in other liabilities and provisions, and 53.7% jump in deposits.
A provision of ₹73615 crore was made and transferred to the contingency fund.
The transfer to the contingency fund is in line with the recommendations of the Bimal Jalan committee, which had sought a transfer of 5.5% of the RBI’s balance sheet to the contingency fund.
The net interest income from LAF/MSF operations decreased from ₹1181 lakh crore in fiscal year 2019 to Rs(-)129.04 billion in fiscal year 2020 due to absorption of surplus liquidity in the banking system leading to net interest outgo under LAF/ MSF.
“The higher banking system surplus was due to pro-active liquidity management operations carried out by the Reserve Bank to augment system-level liquidity and to channelise liquidity to specific sectors facing funding constraints on account of disruptions caused due to COVID-19 pandemic," said RBI’s annual reort said