The report reflects the Financial Stability and Development Council (FSDC) subcommittee’s overall assessment of risks to the financial stability and resilience of the Indian financial system.
The Reserve Bank said on Thursday that banks’ net non-performing assets ratio fell to a multi-year low of 0.8% at the end of September 2023 and the country’s domestic financial system recovery is still possible.
“Resilience of the non-banking financial companies (NBFC) sector improved with CRAR at 27.6%, GNPA ratio at 4.6% and return on assets,” RBI said. (RoA) at 2.9% respectively in September 2023”. . Financial Stability Report (FSR).
Banks’ gross non-performing assets (GNPA) ratio also fell to its lowest level in several years at 3.2%.
The report reflects the Financial Stability and Development Council (FSDC) subcommittee’s overall assessment of risks to the financial stability and resilience of the Indian financial system. He added that the capital to risk assets ratio (CRAR) and tier 1 capital ratio (CET1) of scheduled commercial banks (SCBS) stood at 16.8 per cent and 13.7 respectively. % in September 2023.
“Credit risk macro stress tests suggest that SCB can comply with minimum capital requirements, with a September 2024 system-level CRAR forecast of 14.8% , 13.5%, hundredth, and 12.2% according to the baseline, mean, and mean conditions. severe stress scenarios,” the report states.
Touching on the current state of the Indian economy, he said the financial system in the country remains resilient, supported by strong macroeconomic factors, healthy balance sheets of institutions finances, moderate inflation, improving external sector position and continued fiscal consolidation.
However, the global economy faces many challenges, including slowing growth prospects, high public debt, increasing economic fragmentation and persistent geopolitical conflicts.
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