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Below perspective by Ms. Madhavi Arora, Lead Economist, Emkay Global Financial Services on RBI announcing dividend for 2022 2023.

“RBI has approved Rs 87,416 crore as a dividend payment to the government for 2022-23. The figure is in line with our estimate. We were expecting anything between Rs 80,000 cr to Rs 95,000 cr. The fact that they have increased the contingency buffer as a percentage of a balance sheet from a 5.5-6% probably has led to it remaining at the lower band of our expectation. Otherwise, it would have touched Rs 95,000 cr or even more. Nonetheless, we believe the RBI has made bumper profits on Fx sales. This has also been countered by the fact that would have made considerable losses on their MTM books and foreign securities for which they would have to do much higher provisioning from their profits and thus, their gains are lower than Rs 1 Lakh crore.”.

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