Domestic investments, gold holdings and foreign investments drove the increase, while the share of domestic assets in the balance sheet continued to grow.
The Reserve Bank of India's balance sheet expanded 20.6% year-on-year to Rs 91.97 lakh crore as of March 31, 2026, driven by growth in domestic investments, gold holdings and foreign investments.
The increase marked an acceleration from the 8.2% growth recorded in FY25 and lifted the central bank's balance sheet size to 26.4% of gross domestic product. The expansion reflected the impact of liquidity operations, reserve management and changes in the composition of the RBI's assets.
Domestic investments rose 44.9% during FY26, while gold holdings increased 63.8% and foreign investments grew 7.9%, according to the RBI's annual report.
The balance sheet expanded by Rs 15.72 lakh crore during the year, taking total assets to Rs 91.97 lakh crore from Rs 76.25 lakh crore a year earlier.
Asset Mix Changes
The RBI said domestic assets accounted for 29.1% of total assets as of March 31, 2026, compared with 25.7% a year earlier.
Foreign currency assets, gold holdings, loans and advances to financial institutions outside India accounted for the remaining 70.9% of total assets, down from 74.3% a year earlier.
The shift indicates that domestic assets increased at a faster pace than foreign assets during the year.
"The balance sheet size increased by Rs 15,71,699.15 crore, i.e., 20.6 per cent from Rs 76,25,421.93 crore as on March 31, 2025, to Rs 91,97,121.08 crore as on March 31, 2026," the RBI said in its annual report.
The central bank said the increase on the asset side was due to a rise in domestic investments, gold and foreign investments.
Liabilities Increase
On the liabilities side, revaluation accounts, notes issued, deposits and other liabilities all increased during FY26.
The RBI said revaluation accounts rose 63.4%, while notes issued increased 11.8%. Deposits grew 11.6% and other liabilities increased 21.1%.
The report also showed that the central bank's balance sheet has expanded steadily in recent years. It stood at Rs 63.45 lakh crore at the end of FY23, increased to Rs 70.47 lakh crore in FY24 and rose further to Rs 76.25 lakh crore in FY25 before reaching Rs 91.97 lakh crore in FY26.
Buffer Provisioning
The RBI transferred Rs 1.09 lakh crore to the Contingency Fund during FY26. The central bank said the provision was made under its Economic Capital Framework. No transfer was made to the Asset Development Fund during the year.
"A provision of Rs 1,09,379.64 crore was made and transferred to Contingency Fund," the RBI said. The RBI's Economic Capital Framework allows the contingent risk buffer to remain within a range of 4.5% to 7.5% of the balance sheet.
The balance sheet expansion was accompanied by higher income and expenditure during the year. Income increased 26.4%, while expenditure rose 102.4%.
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