RBI's Net Income Jumps 27% To Rs 2.69 Lakh Crore In FY25 On Forex Gains
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RBI reported a 27.5% rise in net income for FY25, reaching Rs 2.69 trillion, driven by a surge in gains from foreign exchange transactions
RBI
The Reserve Bank of India (RBI) reported a 27.5% rise in net income for FY25, reaching Rs 2.69 trillion ($31.4 billion), driven by a surge in gains from foreign exchange transactions and interest earned on foreign securities, according to its annual report released Thursday.
Forex transaction gains jumped to Rs 1.11 trillion in FY25, up from Rs 83,616 crore in the previous fiscal. Interest income from foreign securities also surged, reaching Rs 97,007 crore, compared to Rs 65,328 crore in FY24.
The RBI's total balance sheet expanded 8.2% year-on-year to Rs 76.25 trillion.'The surge in dollar selling during FY25 was a result of a negative balance of payments," said Gaura Sen Gupta, Chief Economist at IDFC First Bank.
'In FY26, we expect the balance of payments to turn slightly positive, which should moderate the pace of dollar selling."
Last week, the RBI board approved a record surplus transfer of Rs 2.69 trillion to the government for FY25. This came alongside an upward revision to the central bank's contingency risk buffer under its economic capital framework.
The RBI had adopted a new capital framework in FY19, requiring a contingency risk buffer of 5.5%–6.5% of its balance sheet. In a recent update, the board revised the buffer range to 6% ±1.5 percentage points, allowing greater flexibility and smoother surplus transfers going forward.
Sen Gupta added that the central bank's dividend to the government in FY26 is expected to remain broadly in line with recent years, supported by robust interest income and stable provisioning.
Meanwhile, the dividend transfer by the RBI is expected to ease pressure on the exchequer as the Centre continues its aggressive capital expenditure and sustains tax relief measures announced in the Budget for FY26. Moreover, it could help the Centre shrink the fiscal gap. Plus, spending from the government would pump liquidity into the banking system, and the liquidity would be visible from early July, economists said.
The RBI's total expenditure for FY25 rose 7.76% to Rs 69,714 crore. This increase was mainly attributed to higher interest payments, employee-related costs, and expenses related to printing currency.
First Published:
May 29, 2025, 13:03 IST
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