The Reserve Bank of India paid a record dividend to the government after higher interest income and large gains from foreign exchange operations boosted earnings, the central bank’s annual report showed.
The central bank transfered a record 2.87 trillion rupees ($30.1 billion) as dividend to the government, compared with last year’s 2.69 trillion rupees, though the payout was lower than the nearly 3 trillion rupees forecast by most economists in a Bloomberg News survey.
The annual report released Friday showed interest income rose 11.81% to 2.36 trillion rupees in the financial year ended March. Interest earned on rupee bonds climbed 37.66% to 1.18 trillion rupees. Gains from foreign exchange transactions rose to 1.68 trillion rupees from 1.11 trillion rupees a year earlier.
The Reserve Bank of India books gains when it sells dollars from its reserves at a higher exchange rate than when they were procured. Those gains add to the central bank’s surplus, which is subsequently transferred to the government.
This report is auto-generated from Bloomberg news service. The Print holds no responsibility for its content.