RBI posted Rs 3.38 lakh cr income on strong foreign asset returns, forex sales

MUMBAI:RBI’s income rose 23% to Rs 3.38 lakh crore in FY25, driven by gains from foreign currency assets and dollar sales in the local market. This helped the central bank transfer a record Rs 2.7 lakh crore to the Govt, up from Rs 2.1 lakh crore in FY24.

RBI’s balance sheet grew 8.2% to Rs 76 lakh crore in FY25 from Rs 70 lakh crore in FY24. One of the drivers of the rise in assets, was higher gold holdings, as global uncertainty boosted safe-haven demand. The rest came from a larger domestic investment portfolio, supported by OMO purchases for managing liquidity.

Overall interest income rose by 12% to Rs 2.11 lakh crore, while gains from foreign exchange transactions contributed to a 47% jump in other income, which stood at Rs 1.28 lakh crore. The RBI’s total income for the year increased by 23% to Rs 3.38 lakh crore, mainly driven by a 29% rise in interest earnings from overseas assets to Rs 1.33 lakh crore. However, part of the money was used by the RBI to strengthen its financial buffers. The Contingency Fund rose by 27% to Rs 5.42 lakh crore, following a Rs 44,862 crore provision to align its Available Realised Equity (ARE) with the 7.5% target under the Economic Capital Framework. The ARE rose nearly 25% to Rs 5.72 lakh crore, while the Asset Development Fund remained unchanged at Rs 22,975 crore.

Domestic earnings, however, declined. Interest income from local investments dropped nearly 10% to Rs 77,327 crore, largely due to lower returns from rupee securities. Other income from domestic operations fell by 20% to Rs 2,143 crore. Total expenditure went up by 8% to Rs 69,714 crore, mainly due to higher costs for printing currency and employee benefits.



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