RBI Report
Gains from FX ops boosted record FY25 surplus transfer to govt
This story was originally published at 14:14 IST on 29 May 2025
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--RBI: Balance sheet INR 76.25 tln on Mar 31, up 8.2% YoY
--RBI: Provision of INR 448.61 bln moved to contingency fund FY25
--RBI: FY25 net income INR 2.69 tln vs INR 2.11 tln FY24
--RBI: FY25 total expenditure INR 697.14 bln vs INR 646.94 bln FY24
--RBI: Interest income from foreign securities INR 970.07 bln in FY25
--CONTEXT:RBI FY24 interest income from foreign securities was INR 653.3 bln
--RBI: Gain from foreign exchange transactions INR 1.11 tln in FY25
--CONTEXT: RBI gained INR 836.16 bln from foreign exchange transactions FY24
--RBI: FY25 income from foreign sources INR 2.59 tln, up 38.1% YoY
--RBI: FY25 net income from domestic sources INR 794.71 bln, down 9.8% YoY
NEW DELHI – The Reserve Bank of India managed to transfer a record high surplus of INR 2.69 trillion for 2024-25 (Apr-Mar) because of a sharp rise in gains from foreign exchange transactions, data from the central bank's annual report showed.
RBI's total income rose 22.8% on year to INR 3.38 trillion in FY25, while total expenditure increased 7.8% to INR 697.14 billion, including a provision of INR 448.62 billion. The RBI's net income was INR 2.69 trillion in FY25, up 27.4% on year.
The rise in income was due to a 32.9% on-year rise in gains from foreign exchange transactions to INR 1.11 trillion in FY25. Interest income from foreign securities jumped 48.5% on year to INR 970.07 billion, adding to the RBI's income in FY25.
The RBI's balance sheet rose 8.2% on year in FY25 to INR 76.25 trillion as of Mar. 31. The balance sheet on the assets side increased due to a rise in gold, domestic investments and foreign investments by 52.1%, 14.3%, and 1.7%, respectively. On liabilities side, expansion was due to increase in notes issued, revaluation accounts, and other liabilities by 6.3%, 17.3%, and 23.3%, respectively, the central bank said.
The share of domestic assets in total assets rose to 25.7% as on Mar. 31 from 23.3% a year ago, while that of foreign currency assets, gold and loans and advances to financial institutions outside India was 74.3%, down from 76.7% a year ago.
Income from foreign sources increased 38.1% to INR 2.59 trillion in FY25. The rate of earnings on foreign currency assets was 5.31% in FY25 as against 4.21% in FY24.
Net income from domestic sources was INR 794.71 billion in FY25, down 9.8% on year. The decline was mainly on account of decrease in interest on holding of rupee securities, which fell 7.6% on year to INR 855.25 billion.
The INR 448.62-billion-provision was transferred to the contingency fund in FY25 as against INR 428.20 billion in the previous year. Contingency fund is a specific provision for meeting unexpected and unforeseen contingencies, including depreciation in value of securities, risks arising out of monetary and exchange rate policy operations.
Balance in the contingency fund as of Mar. 31 was INR 5.42 trillion compared to INR 4.29 trillion a year ago. The size of the RBI's provisions is governed by the Contingent Risk Buffer, which was raised to 7.50% of the balance sheet for FY25 from 6.50% a year ago. As such, the RBI must make provisions amounting to 7.50% of any increase in the size of its balance sheet.
Last week, the central bank widened the Contingent Risk Buffer range to 4.50-7.50% of balance sheet from 5.50-6.50% under the revised economic capital framework. The framework has been revised for the first time since its introduction in 2019 on the recommendation of recommendation of a panel headed by former governor Bimal Jalan. End
Reported by Shubham Rana
Edited by Tanima Banerjee
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