RBI dividend to govt seen around 750 bln-850 bln rupees - IDFC FIRST Bank

IDFC First Bank

03/05/2024 08:46

* RBI dividend to govt for FY24 seen at 750-850 bln INR,
says IDFC
FIRST Bank
    * Govt's estimate for dividend from RBI and state-owned
companies
was 1.02 trillion rupees, as per interim FY25 budget
    * Interest income on foreign securities and rupee securities
to
support higher dividend - IDFC FIRST Bank
    * Revenues from fx transactions to be "substantial" as cost
of
dollar purchase is lower than spot rate, bank says 
    * RBI sold $151.4 bln in FY24 (until Feb) vs $206.4 bln in
FY23
(until Feb)
    * RBI balance sheet expansion in FY25 to be supported by fx
reserves accumulation due to capital inflows
    * Provisioning expected to be at similar levels or higher
than
that of FY24 due to volatile global conditions
    * Dividend payment to support government expenditure and
liquidity
in May
    * Banking system liquidity expected to improve in
October-March,
supported by higher capital inflows






 (Reporting by Siddhi Nayak)
 ((siddhi.nayak@tr.com))