RBI’s Financial Stability Report (FSR) – December 2023: Key Highlights

• The Reserve Bank of India (RBI) recently released the 28th issue of the Financial Stability Report (FSR), offering a comprehensive evaluation of the Indian financial system’s resilience and potential risks. The report, based on the findings of the Sub-Committee of the Financial Stability and Development Council (FSDC), sheds light on both global and domestic economic conditions.
• Scheduled commercial banks (SCBs) showcase strength with a Capital to Risk-Weighted Assets Ratio (CRAR) of 16.8% and a Common Equity Tier 1 (CET1) ratio of 13.7% in September 2023.
• SCBs’ Gross Non-Performing Assets (GNPA) ratio hits a multi-year low at 3.2%, with Net Non-Performing Assets (NNPA) at 0.8% in September 2023.
• Stress tests project SCBs’ compliance with minimum capital requirements, projecting a system-level CRAR of 14.8%, 13.5%, and 12.2% in September 2024 under baseline, medium, and severe stress scenarios.
• NBFC sector resilience improves with a CRAR of 27.6%, GNPA ratio at 4.6%, and Return on Assets (RoA) at 2.9% in September 2023.
• High-risk stress scenario in the NBFC sector warrants monitoring due to increased inter-bank exposure, although system failure is not anticipated.

Also Read: Weekly Current Affairs (Science & Technology) 16-22 December 2023 Bitbank: Where was Barracuda, India's fastest solar-electric boat, launched?

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Published date : 08 Jan 2024 05:23PM