Indian economy and the financial system remain robust and resilient as the gross non-performing assets (GNPA) ratio fell to a multi-year low of 2.8 per cent at the end-March 2024, RBI said in its June Financial Stability Report (FSR).
Scheduled Commercial Banks' gross non-performing assets (GNPA) ratio fell to a multi-year low of 2.8 per cent and the net non-performing assets (NNPA) ratio to 0.6 per cent at end-March 2024, it said.
"The Indian economy and the financial system remain robust and resilient, anchored by macroeconomic and financial stability. With improved balance sheets, banks and financial institutions are supporting economic activity through sustained credit expansion," it said.
The capital to risk-weighted assets ratio (CRAR) and the common equity tier 1 (CET1) ratio of SCBs stood at 16.8 per cent and 13.9 per cent, respectively, at end-March 2024, it said.
According to the report, macro stress tests for credit risk reveal that SCBs would be able to comply with minimum capital requirements, with the system-level CRAR in March 2025 projected at 16.1 per cent, 14.4 per cent and 13.0 per cent, respectively, under baseline, medium and severe stress scenarios.
These scenarios are stringent conservative assessments under hypothetical shocks and the results should not be interpreted as forecasts, it said.
With regard to non-banking financial companies (NBFCs), the report said, they 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 end-March 2024.
Referring to the global economy, the report said, it is facing heightened risks from prolonged geopolitical tensions, elevated public debt, and the slow progress in the last mile of disinflation.
Despite these challenges, the global financial system has remained resilient, and financial conditions stable, it noted.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
Featured Video Of The Day
Mohali Building Collapse: 2 Dead, Many Feared Trapped
India Accounts For Nearly Half Of The Global Digital Payments: RBI Report Banks Recovered Over Rs 10 Lakh Crore Bad Loans In Last 9 Years: Centre Banks Write Off Rs 10.5 Lakh Crore In 5 years, NPA Recovery Rs 7.1 Lakh Crore Pics: Rahul Gandhi's Family Lunch At Iconic Delhi Restaurant Is Safe Car Enough? Volvo Crash That Killed CEO, Family Sparks Big Question "Nothing Short Of Nightmare": Woman Misses Life Event, Slams Air India Public Sector Hydropower Company Hiring For 118 Posts, Check Details Delhi's Air Quality Turns 'Severe' Despite GRAP-4 Restrictions PM Modi Meets Yoga Practitioner, Other Influencers In Kuwait Track Latest News Live on NDTV.com and get news updates from India and around the world.