Latest news with #Ecowrap
Mint
26-05-2025
- Business
- Mint
Gains from dollar sales, interest income key factors for higher RBI dividend to govt: Analysts
Mumbai, May 26 (PTI) Substantial gains from US dollar sales and interest income from securities prompted the Reserve Bank to announce a record ₹ 2.7 lakh crore annual dividend to the central government, according to analysts. The Reserve Bank on Friday announced a record ₹ 2.69 lakh crore dividend to the government for FY25, helping the exchequer to tide over challenges posed by US tariffs and increased spending on defence due to the conflict with Pakistan. The decision on the dividend payout was taken at the 616th meeting of the Central Board of Directors of Reserve Bank of India held here under the Chairmanship of Governor Sanjay Malhotra. The central bank has transferred ₹ 2.1 lakh crore dividend to the government for the fiscal 2023-24. The payout was ₹ 87,416 crore for 2022-23. DK Srivastava, Chief Policy Advisor, EY India, said the RBI has been making higher and higher surplus transfers to the government after the Covid year of 2021-22. "This transfer is in spite of the RBI raising the Contingent Risk Buffer to 7.5 per cent for 2024-25 from its previous level of 6.5 per cent for 2023-24. The main reason for RBI's increased income relates to its foreign exchange operations, which included the selling of large amounts of USD and higher interest income," Srivastava said. In a report, CareEdge said though the RBI dividend is higher compared to the previous year, it has come below the market expectations centred around higher than ₹ 3 lakh crore. Increased risk provisioning under the revised Economic Capital Framework (ECF) reined in the dividend at ₹ 2.7 lakh crore, it said. "With the RBI yet to release its annual report, the reasons behind the higher surplus reported for FY25 are still awaited. However, we expect that the substantial gains incurred from dollar sales throughout the year may have been the key contributing factor for this record dividend transfer," CareEdge said. Furthermore, other factors like the interest income from rupee securities and foreign securities could have also underpinned the higher dividend amount to some extent, it added. Economists at SBI, in a report, said the Reserve Bank's bumper dividend will ease the fiscal position of the government and help bolster growth in the world's fourth-largest economy. Finance Minister Nirmala Sitharaman in her Budget for 2025-26 projected a dividend income of ₹ 2.56 lakh crore cumulatively from the RBI and public sector financial institutions. With the RBI's transfer, this number would now be much higher than the budgeted estimates. "We expect the fiscal deficit to ease by 20 basis points from the budgeted level to 4.2 per cent of GDP. Alternatively, it will open up for additional spending for around ₹ 70,000 crore, other things remaining unchanged," according to the latest edition of SBI Research's Ecowrap. In a report, Emkay Global Financial Services said the lower-than-expected surplus transfer appears to be largely on account of the RBI revising the risk provisioning range under the Contingent Risk Buffer (CRB). "As of now, we do not expect Centre's fiscal math to change drastically because of this. The incremental gain from the higher RBI dividend is expected to partly offset potential shortfalls in tax revenues and lower-than-expected nominal GDP growth. Accordingly, we maintain our FY26 gross FD/GDP target at 4.4 per cent, in line with the budget estimate," it said. On Friday, the central bank said the transferable surplus for the year (2024-25) has been arrived at on the basis of the revised ECF, which stipulates that the risk provisioning under the CRB be maintained within a range of 7.50 to 4.50 per cent of the RBI's balance sheet. During accounting years 2018-19 to 2021-22, owing to the prevailing macroeconomic conditions and the onslaught of the Covid-19 pandemic, the Central Board of Directors of the Reserve Bank of India decided to maintain the CRB at 5.50 per cent of the RBI's Balance Sheet size to support growth and overall economic activity. The CRB was increased to 6 per cent for FY 2022-23 and to 6.50 per cent for FY 2023-24. Based on the revised ECF, and taking into consideration the macroeconomic assessment, the Central Board decided to further increase the CRB to 7.50 per cent.
Time of India
25-05-2025
- Business
- Time of India
RBI's Rs 2.7 lakh crore bumper dividend to ease India's fiscal position: SBI
The Reserve Bank of India's record-breaking dividend of Rs 2.7 lakh crore for FY25 is set to significantly ease the government's fiscal position and bolster economic growth, a new report from SBI Research said. The massive surplus transfer far exceeds the Rs 2.56 lakh crore that finance minister Nirmala Sitharaman had announced during the budget for FY26 from the RBI and public sector financial institutions combined. The unexpected windfall will likely offer the government greater financial flexibility as it steers the world's fourth-largest economy. 'We expect the fiscal deficit to ease by 20 basis points from the budgeted level to 4.2 per cent of GDP. Alternatively, it will open up for additional spending for around Rs 70,000 crores, other things remaining unchanged,' SBI's Ecowrap report stated. The RBI announced a dividend of Rs 2.69 lakh crore for the financial year 2024–25, marking a 27.4% increase from the Rs 2.11 lakh crore transferred in FY24. This increase follows a revision in the central bank's contingency risk buffer range which now falls between 4.5% and 7.5% of the balance sheet, compared to the earlier 5.5%–6.5% range. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Free P2,000 GCash eGift UnionBank Credit Card Apply Now The bumper payout was fuelled by 'robust gross dollar sales, higher foreign exchange gains, and steady increases in interest income,' according to the SBI report, quoted by PTI. It also noted that the RBI was the largest seller of foreign exchange reserves among Asian central banks in January. Foreign exchange reserves reached a peak of $704 billion in September 2024, with the RBI actively intervening in currency markets by offloading substantial amounts of dollars to stabilise the rupee. The report added that RBI's surplus generation was influenced by its Liquidity Adjustment Facility (LAF) operations and earnings from domestic and foreign securities. From June 3 to December 13, 2024, the central bank remained in absorption mode under the LAF, contributing to operational expenses. However, liquidity turned to injection mode after mid-December, and system liquidity stood at a surplus of Rs 1.2 lakh crore as of March 31, 2025. Average liquidity from December 16, 2024 to March 28, 2025 was Rs 1.7 lakh crore. SBI expects this trend to continue into FY26, on the back of factors like OMO purchase, RBI's dividend transfer, and a BOP surplus of around $25–30 billion. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
29-04-2025
- Business
- Time of India
Punjab lags behind in smart city project execution: SBI report
With Smart Cities Mission approaching its 10-year milestone, Punjab is lagging behind in project execution. According to the latest Ecowrap report by the State Bank of India (SBI), the state completed 87 per cent of its smart city projects, notably below the national completion rate of 93 per cent. Launched by Prime Minister Narendra Modi on June 25, 2015, the Smart Cities Mission was designed to transform 100 cities across India into citizen-centric, sustainable urban centres. The mission aims to provide core infrastructure, a clean and liveable environment, and enhanced quality of life through the integration of smart solutions. In Punjab, three cities were selected under the initiative. Of the 205 projects sanctioned in the state, amounting to ₹4,450 crore, 179 projects worth ₹3,969 crore were completed. However, 26 projects, with a total value of ₹481 crore, are still pending. By comparison, 7,504 out of 8,063 approved projects were completed nationwide as of March 4. Neighbouring Himachal Pradesh performed better, with a 91 per cent completion rate. In the hill state, 265 of 291 projects worth ₹1,552 crore across two smart cities were executed, amounting to ₹1,206 crore in completed works. At the top of the performance chart is Jharkhand with 100 per cent project completion, followed by Tamil Nadu (98 per cent), and West Bengal, Uttarakhand, Uttar Pradesh, Karnataka, and Gujarat, each recording 97 per cent completion. On the lower end, Telangana ranks last with a 64 per cent completion rate, followed by Manipur (70 per cent), Mizoram (71 per cent), and Arunachal Pradesh (73 per cent). At the national level, nearly 50 per cent of the total project cost under the Smart Cities Mission has been allocated to mobility and water/sanitation-related projects, covering over 3,000 initiatives. On average, ₹22 crore has been spent per project. The Smart Cities Mission is a centrally sponsored scheme, requiring equal financial contributions from both state govt and urban local bodies (ULBs). States are encouraged to leverage multiple funding avenues, including state/ULB resources, transfers under the 14th Finance Commission, municipal bonds, pooled finance, and borrowing from financial institutions, to fund the projects outlined in their smart city proposals (SCPs). Despite its slow progress, Punjab is expected to gain from a new Indo-Canadian partnership aimed at fast-tracking smart city development. Under this initiative, 20 cities across Punjab, Haryana, and Rajasthan are being prioritised for accelerated reforms in governance and infrastructure. The initiative will focus on training at least 150 urban planners and designers and developing localised platforms and tools to improve planning, implementation, and delivery of services, particularly in areas such as water supply and sewerage.
Time of India
26-04-2025
- Business
- Time of India
Punjab lags in enforcing Smart Cities Mission; only 87% of projects completed in nearly 10 years
Chandigarh: With Smart Cities Mission approaching its 10-year milestone, Punjab is lagging behind in project execution. According to the latest Ecowrap report by the State Bank of India (SBI), the state completed 87% of its smart city projects, notably below the national completion rate of 93%. Launched by Prime Minister Narendra Modi on June 25, 2015, the Smart Cities Mission was designed to transform 100 cities across India into citizen-centric, sustainable urban centres. The mission aims to provide core infrastructure, a clean and liveable environment, and enhanced quality of life through the integration of smart solutions. In Punjab, three cities were selected under the initiative. Of the 205 projects sanctioned in the state, amounting to Rs 4,450 crore, 179 projects worth Rs 3,969 crore were completed. However, 26 projects, with a total value of Rs 481 crore, are still pending. By comparison, 7,504 out of 8,063 approved projects were completed nationwide as of March 4. Neighbouring Himachal Pradesh performed better, with a 91% completion rate. In the hill state, 265 of 291 projects worth Rs 1,552 crore across two smart cities were executed, amounting to Rs 1,206 crore in completed works. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Google Brain Co-Founder Andrew Ng, Recommends: Read These 5 Books And Turn Your Life Around Blinkist: Andrew Ng's Reading List Undo At the top of the performance chart is Jharkhand with 100% project completion, followed by Tamil Nadu (98%), and West Bengal, Uttarakhand, Uttar Pradesh, Karnataka, and Gujarat, each recording 97% completion. On the lower end, Telangana ranks last with a 64% completion rate, followed by Manipur (70%), Mizoram (71%), and Arunachal Pradesh (73%). At the national level, nearly 50% of the total project cost under the Smart Cities Mission has been allocated to mobility and water/sanitation-related projects, covering over 3,000 initiatives. On average, Rs 22 crore has been spent per project. The Smart Cities Mission is a centrally sponsored scheme, requiring equal financial contributions from both state govt and urban local bodies (ULBs). States are encouraged to leverage multiple funding avenues, including state/ULB resources, transfers under the 14th Finance Commission, municipal bonds, pooled finance, and borrowing from financial institutions, to fund the projects outlined in their smart city proposals (SCPs). Despite its slow progress, Punjab is expected to gain from a new Indo-Canadian partnership aimed at fast-tracking smart city development. Under this initiative, 20 cities across Punjab, Haryana, and Rajasthan are being prioritised for accelerated reforms in governance and infrastructure. The initiative will focus on training at least 150 urban planners and designers and developing localised platforms and tools to improve planning, implementation, and delivery of services, particularly in areas such as water supply and sewerage. Chandigarh: With Smart Cities Mission approaching its 10-year milestone, Punjab is lagging behind in project execution. According to the latest Ecowrap report by the State Bank of India (SBI), the state completed 87% of its smart city projects, notably below the national completion rate of 93%. Launched by Prime Minister Narendra Modi on June 25, 2015, the Smart Cities Mission was designed to transform 100 cities across India into citizen-centric, sustainable urban centres. The mission aims to provide core infrastructure, a clean and liveable environment, and enhanced quality of life through the integration of smart solutions. In Punjab, three cities were selected under the initiative. Of the 205 projects sanctioned in the state, amounting to Rs 4,450 crore, 179 projects worth Rs 3,969 crore were completed. However, 26 projects, with a total value of Rs 481 crore, are still pending. By comparison, 7,504 out of 8,063 approved projects were completed nationwide as of March 4. Neighbouring Himachal Pradesh performed better, with a 91% completion rate. In the hill state, 265 of 291 projects worth Rs 1,552 crore across two smart cities were executed, amounting to Rs 1,206 crore in completed works. At the top of the performance chart is Jharkhand with 100% project completion, followed by Tamil Nadu (98%), and West Bengal, Uttarakhand, Uttar Pradesh, Karnataka, and Gujarat, each recording 97% completion. On the lower end, Telangana ranks last with a 64% completion rate, followed by Manipur (70%), Mizoram (71%), and Arunachal Pradesh (73%). At the national level, nearly 50% of the total project cost under the Smart Cities Mission has been allocated to mobility and water/sanitation-related projects, covering over 3,000 initiatives. On average, Rs 22 crore has been spent per project. The Smart Cities Mission is a centrally sponsored scheme, requiring equal financial contributions from both state govt and urban local bodies (ULBs). States are encouraged to leverage multiple funding avenues, including state/ULB resources, transfers under the 14th Finance Commission, municipal bonds, pooled finance, and borrowing from financial institutions, to fund the projects outlined in their smart city proposals (SCPs). Despite its slow progress, Punjab is expected to gain from a new Indo-Canadian partnership aimed at fast-tracking smart city development. Under this initiative, 20 cities across Punjab, Haryana, and Rajasthan are being prioritised for accelerated reforms in governance and infrastructure. The initiative will focus on training at least 150 urban planners and designers and developing localised platforms and tools to improve planning, implementation, and delivery of services, particularly in areas such as water supply and sewerage.
