India's economy is on stable high growth path backed by stronger banks: RBI
Amidst a challenging global macroeconomic environment, the Indian economy is exhibiting “a quickening growth momentum,” with resilience and financial stability, according to the RBI's Financial Stability report released on Thursday.
Amidst a challenging global macroeconomic environment, the Indian economy is exhibiting “a quickening growth momentum,” with resilience and financial stability, according to the RBI's Financial Stability report released on Thursday.
The report said that bolstered by strong capital buffers and robust earnings, financial institutions are supporting durable credit growth.
“At the same time, higher profits and lower leverage are contributing to sound corporate financials,” the report said.
It said that 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.
“Proactive and prudent policy actions and availability of policy buffers are steering the economy on a rising growth trajectory with stability,” the report said.
The report highlights the fact that the gross non-performing assets (GNPA) ratio of banks 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 indicating the stronger position of lenders.
Highlighting the strength of the banking sector, the report states that the capital to risk-weighted assets ratio (CRAR) and the common equity tier 1 (CET1) ratio of scheduled commercial banks (SCBs) stood at healthy 16.8 per cent and 13.7 per cent, respectively, in September 2023.
The report said that the macro stress tests for credit risk reveal that the country's banks 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.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Tata Power Q4 Results Preview: Tata group electricity generator likely to clock 22% PAT jump, 193 bps margin improvement
Gold and Silver rate today (May 7, 2024): Precious metals subdued; yellow metal above Rs 71,300; white metal above Rs 82,850
Aadhar Housing Finance IPO: Check Anil Singhvi's view on Rs 3,000 crore issue | Subscription, allotment dates and other details
5 investment schemes that provide monthly pension to senior citizens fixed deposit fds savings scss guaranteed return atal pension yojana post office monthly income swps mutual fund
05:39 PM IST