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As on : 01-Jul-2026

Economy - Reports
01-Jul-2026 10:21

Indian financial system remains resilient as Bank NPA's at multi-decadal low of 1.8%: RBI FSR report

The Reserve Bank on Tuesday said Indian financial system remains resilient, underpinned by strong bank and non-bank balance sheets, as gross non-performing assets of banks have touched a multi-decadal low of 1.8 per cent at end-March 2026. The Indian banking sector continued to remain robust with adequate capital and liquidity buffers, and steady improvement in asset quality, the financial stability report stated. Macro stress test results showed that SCBs' aggregate capital levels will continue to remain above the regulatory minimum, even under adverse stress scenarios. The NBFC sector remained robust with an improvement in asset quality alongside healthy capital and profitability ratios. Interconnectedness among different categories of financial entities, in terms of outstanding bilateral exposures, continued to grow. Despite repeated shocks, the global financial system has thus far demonstrated notable resilience, with markets remaining orderly after an initial bout of volatility following the outbreak of the West Asia conflict, said the Financial Stability Report (FSR). India's sound macroeconomic fundamentals place it in a stronger position than many of its peers and provide greater resilience to external shocks than in past crisis episodes, said the half-yearly publication, with contributions from all financial sector regulators.

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