On December 28, 2023, the Reserve Bank of India (RBI) released the 28th issue of the Financial Stability Report (FSR). The FSR reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on risks to financial stability and the resilience of the Indian financial system.
Key highlights:
* The global economy faces challenges including slowing growth, large public debt, increasing economic fragmentation and geopolitical conflicts.
* The Indian economy and domestic financial system remain resilient due to strong macroeconomic fundamentals, healthy balance sheets of financial institutions, moderating inflation, improving external sector position and continuing fiscal consolidation.
* 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 13.7% respectively in September 2023.
* SCBs' gross non-performing assets (GNPA) ratio declined to a multi-year low of 3.2%, and the net non-performing assets (NNPA) ratio to 0.8% in September 2023.
* Macro stress tests indicate SCBs would be able to comply with minimum capital requirements, with the system-level CRAR in September 2024 projected at 14.8%, 13.5%, and 12.2% under baseline, medium, and severe stress scenarios, respectively.
* The resilience of the non-banking financial companies (NBFCs) sector improved, with CRAR at 27.6%, GNPA ratio at 4.6%, and return on assets (RoA) at 2.9% in September 2023.
Contact: Yogesh Dayal, Chief General Manager. Website: www.rbi.org.in, email: helpdoc@rbi.org.in, phone: 022-2266 0502. Press Release: 2023-2024/1555
Key Entities Referenced
Financial Stability Report (FSR): A report released by the Reserve Bank reflecting the collective assessment of the Sub-Committee of the FSDC on risks to financial stability.
Reserve Bank: Releasing the Financial Stability Report.
Sub-Committee of the Financial Stability and Development Council (FSDC): The body whose collective assessment on risks to financial stability is reflected in the FSR.
Scheduled Commercial Banks (SCBs): Banks whose capital to risk-weighted assets ratio (CRAR) and gross non-performing assets (GNPA) ratio is mentioned in the report.
Non-banking financial companies (NBFCs): Companies whose resilience and CRAR is mentioned in the report.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र् व बकैं
RESERVE BANK OF INDIA
र्ेबसाइट : www.rbi.org.in/hindi सचं ार वर्भाग, केंद्रीय कायावलय, शहीद भगत ससंह मागव, फोटव, मब ं ई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
December 28, 2023
RBI releases the Financial Stability Report, December 2023
Today, the Reserve Bank released the 28th issue of the Financial Stability
Report (FSR), which reflects the collective assessment of the Sub-Committee of
the Financial Stability and Development Council (FSDC) on risks to financial stability
and the resilience of the Indian financial system.
Highlights:
• The global economy faces multiple challenges: prospects of slowing growth;
large public debt; increasing economic fragmentation; and prolonging
geopolitical conflicts.
• The Indian economy and the domestic financial system remain resilient,
supported by strong macroeconomic fundamentals, healthy balance sheets of
financial institutions, moderating inflation, improving external sector position
and continuing fiscal consolidation.
• 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 per cent
and 13.7 per cent, respectively, in September 2023.
• SCBs’ gross non-performing assets (GNPA) ratio continued to decline to a
multi-year low of 3.2 per cent and the net non-performing assets (NNPA) ratio
to 0.8 per cent in September 2023.
• Macro stress tests for credit risk reveal that SCBs would be able to comply
with minimum capital requirements, with the system-level CRAR in September
2024 projected at 14.8 per cent, 13.5 per cent and 12.2 per cent, respectively,
under baseline, medium and severe stress scenarios.
• The resilience of the non-banking financial companies (NBFCs) sector
improved with CRAR at 27.6 per cent, GNPA ratio at 4.6 per cent and return
on assets (RoA) at 2.9 per cent, respectively, in September 2023.
(Yogesh Dayal)
Chief General Manager
Press Release: 2023-2024/1555