Financial system robust, resilient: RBI FSR report
Says gross NPAs fall to multi-year low of 2.8%
image for illustrative purpose
RBI stress tests show that even under severe stress scenarios, banks’ and non-banks’ buffers will remain above regulatory capital levels. RBI is watchful of emerging risks from cyber hazards, climate change and global spillover -- Shaktikanta Das, RBI Governor
Financial Stability Report:
- With improved balance sheets
- Sustained credit expansion
Mumbai: Indian economy and the financial system remain robust and resilient as the gross non-performing assets (GNPA) ratio fell to a multi-year low of 2.8 per cent at the end-March 2024, RBI said in its June Financial Stability Report (FSR). Scheduled Commercial Banks’ gross non-performing assets (GNPA) ratio fell to a multi-year low of 2.8 per cent and the net non-performing assets (NNPA) ratio to 0.6 per cent at end-March 2024, it said.
“The Indian economy and the financial system remain robust and resilient, anchored by macroeconomic and financial stability. With improved balance sheets, banks and financial institutions are supporting economic activity through sustained credit expansion,” it said. The capital to risk-weighted assets ratio (CRAR) and the common equity tier 1 (CET1) ratio of SCBs stood at 16.8 per cent and 13.9 per cent, respectively, at end-March 2024, it said.
According to the report, macro stress tests for credit risk reveal that SCBs would be able to comply with minimum capital requirements, with the system-level CRAR in March 2025 projected at 16.1 per cent.
