November 13, 2024 11:48 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
Ryanair flight en route to Manchester makes emergency landing at London airport after passenger dies midair | Manipur: 3 children, 3 women missing following Jiribam encounter which killed 10 suspected Kuki militants | Kerala IAS officer N Prashanth aka 'Collector Bro' suspended for calling senior bureaucrat 'psychopath' | Manipur: 11 suspected Kuki militants killed in retaliation against attack on CRPF post in Jiribam | Man who issued death threat to Bollywood star Shah Rukh Khan arrested from Chhattisgarh
RBI's higher dividend payments might continue in FY25: SBI report
Photo Courtesy: Unsplash

RBI's higher dividend payments might continue in FY25: SBI report

| @indiablooms | 31 May 2024, 12:20 am

Mumbai: The higher dividends payments by the Reserve Bank of India (RBI) could continue in FY25 also, according to State Bank of India research report

According to the report authored by Dr. Soumya Kanti Ghosh, Group Chief Economic Adviser, State Bank of India, this will happen because US yields continuing at above 4% will imply asset income boost for RBI as well as bolstering foreign exchange reserves through $ buying.

Thus, there is a large probability of RBI dividend being healthy in FY25 as well and may even be closer to Rs 2.1 trillion, the report said.

“It may be noted that a rate cut by Fed towards September could fuel a rally in currency against the dollar,” the report added.

The RBI annual report 2023-24 has revealed that the RBI surplus evolved on unexpected lines and the Annual Report also shows that domestic income was flat for FY24 as expected.

The sharpest increase in income was from foreign sources registering a growth of 71% from the level in FY23.

On the expenses side, the major factor that decides the quantum of transferable surplus is the provision towards contingency funds (CF).

An amount of Rs 42,819.91 crore was also provided towards CF to maintain the Available Realised Equity at the level of 6.50 per cent of the size of the balance sheet.

This provision towards CF was substantially lower than what was done last year.

Since the transfer of surplus is dependent on meeting dual objective of maintaining contingency risk buffer between 5.5-6.5% and economic capital between 20.8-25.4% of total balance sheet, the required dual condition was comfortably met by making a provision of Rs 42,819.91 crore in CF in FY24 leading to a higher transfer of surplus in FY24.

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.