The Indian economy and the financial system remain robust and resilient, anchored by macroeconomic and financial stability, the Reserve Bank of India (RBI) said in the 29th issue of the Financial Stability Report (FSR)
With improved balance sheets, banks and financial institutions were supporting economic activity through sustained credit expansion
According to the FSR, the capital to risk-weighted assets ratio (CRAR) and the common equity tier 1 (CET1) ratio of scheduled commercial banks (SCBs) stood at 16.8% and 13.9%, respectively, as at end-March 2024.
SCBs’ gross non-performing assets (GNPA) ratio fell to a multi-year low of 2.8% and the net non-performing assets (NNPA) ratio declined to 0.6% at end-March 2024.
Non-banking financial companies (NBFCs) remained healthy, with CRAR at 26.6%, GNPA ratio at 4.0% and return on assets (RoA) at 3.3%, respectively, at end-March 2024
The RBI noted in the FSR that the global economy was facing heightened risks from prolonged geopolitical tensions, elevated public debt, and the slow progress being made in the last mile of disinflation.
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