Mumbai, May 30 || Net financial savings of India’s household sector may reach Rs 22 lakh crore or 6.5 per cent of gross national disposable income (GNDI) in FY25 based on the current trends, according to an SBI report released on Friday.
With the latest RBI annual report indicating that the household sector showed strong financial resilience, with net savings rising to 5.1 per cent of gross national disposable income (GNDI) in FY24, the SBI report says this growing capital pool remains crucial for funding government and corporate deficits and supporting macroeconomic stability.
Further, as against the increase in household liabilities to 6.1 per cent of GNDI, the gross financial savings of households increased to 11.2 per cent of GNDI in 2023-24 from 10.7 per cent in the previous year.
As per the central bank report, the RBI’s balance sheet expanded by 8.19 per cent in FY25, less than the nominal GDP growth of 9.9 per cent. Despite contractions in traditional income, streams such as domestic interest and LAF earnings, strategic management of foreign exchange and efforts to mitigate rupee volatility materially enhanced surplus generation. A Rs 44,861.7 crore provision to the Contingency Fund kept realised equity healthy at 7.5 per cent of the balance sheet, enabling record Rs 2.69 lakh crore surplus transfers to the government and enhancing the fiscal space.