With improved balance sheets, the country's banks and financial institutions are supporting economic activity through sustained credit expansion, according to the RBI's Financial Stability Report released on Thursday.
The gross non-performing assets (GNPA) ratio of scheduled commercial banks fell to a multi-year low of 2.8 per cent and the net non-performing assets (NNPA) ratio at 0.6 per cent at the end of March 2024, the report said.
Non-banking financial companies (NBFCs) also remain healthy, with CRAR at 26.6 per cent, GNPA ratio at 4.0 per cent and return on assets (ROA) at 3.3 per cent respectively at the end of March 2024.
According to the RBI report, the capital-to-risk-weighted assets ratio (CRAR) and common equity tier 1 (CET1) ratio of scheduled commercial banks (SCBs) stood at 16.8 per cent and 13.9 per cent respectively at the end of March. 2024.
The report said macro stress tests for credit risk suggest that SCBs will be able to comply with the minimum capital requirements, with system-level CRAR in March 2025 projected at 16.1 per cent, 14.4 per cent and 13.0 per cent, respectively, under the baseline. . , moderate and severe stress scenarios.
These scenarios are strictly conservative assessments under hypothetical shocks and the results should not be interpreted as forecasts.
The Financial Stability Report also notes that the global economy faces increasing risks from prolonged geopolitical tensions, high public debt and slow progress in the final stages of deflation.
Despite these challenges, the global financial system remains resilient, and financial conditions are stable.
The gross non-performing assets (GNPA) ratio of scheduled commercial banks fell to a multi-year low of 2.8 per cent and the net non-performing assets (NNPA) ratio at 0.6 per cent at the end of March 2024, the report said.
Non-banking financial companies (NBFCs) also remain healthy, with CRAR at 26.6 per cent, GNPA ratio at 4.0 per cent and return on assets (ROA) at 3.3 per cent respectively at the end of March 2024.
According to the RBI report, the capital-to-risk-weighted assets ratio (CRAR) and common equity tier 1 (CET1) ratio of scheduled commercial banks (SCBs) stood at 16.8 per cent and 13.9 per cent respectively at the end of March. 2024.
The report said macro stress tests for credit risk suggest that SCBs will be able to comply with the minimum capital requirements, with system-level CRAR in March 2025 projected at 16.1 per cent, 14.4 per cent and 13.0 per cent, respectively, under the baseline. . , moderate and severe stress scenarios.
These scenarios are strictly conservative assessments under hypothetical shocks and the results should not be interpreted as forecasts.
The Financial Stability Report also notes that the global economy faces increasing risks from prolonged geopolitical tensions, high public debt and slow progress in the final stages of deflation.
Despite these challenges, the global financial system remains resilient, and financial conditions are stable.
