RBI balance sheet: 4 lakh crores added this year to 57 lakh crores (this is around 25% of money supply - quite large) They pay 99,000 cr. mostly because they didn't need to make provisions.
Quick thread on the RBI accounts.
Quick thread on the RBI accounts.
Income from interest came down to 69,000 cr. from 109000 cr. Due to two things: lower rates (on indian and foreign bonds) and banks having to get paid for reverse repo.
RBI didn't generate as much profit selling dollars as I had thought. Only 50,000 cr. versus 30,000 cr. last year. Overall, income fell from 1.49 lakh cr. to 1.33 lakh cr. 
RBI owns 40 lakh cr. (!) of dollars, with only 13 lakh cr. for Indian government bonds. Still more than 3x higher in forex, so this "worry" about selling forex is largely blah.
Amazingly, unclaimed bank deposits in India has reached 39,000 cr. adding 6,000 cr. more in the last one year. So many people haven't operated accounts for 10 years or more - just saw a 6,000 cr. addition this year!
Thankfully, revaluation reserves are down to 9 lakh crores from 11 lakh crores. Some due to rupee appreciation, some due to bond prices falling longer term.
Contingency reserves are up 20,000 cr. to 284,000 cr.
The reserves add up to 12 lakh crores, about 21% of balance sheet.
Contingency reserves are up 20,000 cr. to 284,000 cr.
The reserves add up to 12 lakh crores, about 21% of balance sheet.
Notes printed: We printed about 2,00,000 cr. of rupee notes last year. Amazing because I thought digital got bigger so people would use less cash.
RBI continues to buy gold (34 tons more) and keep it stored abroad (WHY!!!)
We should bring it back to India and store locally. This is only for ultimate contingencies, when you need it with you. Keeping in Fort Knox is a BAD IDEA.
We should bring it back to India and store locally. This is only for ultimate contingencies, when you need it with you. Keeping in Fort Knox is a BAD IDEA.
RBI has cut employee expenses by half, largely because it's a nine month period, and there was less to put in gratuity/PF. Will go back up next year.
Oh and too much provisions. We have so much that we've never used even in a crisis; cos RBI expands Balance sheet in a crisis.
Oh and too much provisions. We have so much that we've never used even in a crisis; cos RBI expands Balance sheet in a crisis.
That's about it. Please comment on whether this deserves a post. I'm very clinical about this, so frivolous comments - unless you have very good jokes - will get a royal ignore.
Oh yes, and I must plug this post each time: capitalmind.in/2020/04/how-th…
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