RBI Financial Stability Report

Lenders set to meet minimum capital need even under severe stress

The RBI report says that banks' efficiency indicators weakened due to rising staff costs and increased cost-to-income ratio

The report noted that rise in interest rates has benefited banks by improving their net interest margins, with a faster transmission to yield on assets compared to the cost of funds

According to RBI's financial stability report, the total of SMA-0, SMA-1 and SMA-2 in the retail advances in the public sector banks was 9.4% as of March 31

In absolute terms, the insured deposits amounted to Rs 83.89 trillion as of March 31, 2023

The Reserve Bank bulletin has released some of its key findings on the state of the economy, weather events, Opec oil supply, financial literacy, and retail credit trends

The RBI, according to bankers, is concerned that the sharp rise in interest rates could trigger defaults and pose more risk. The RBI did not reply to an email requesting comment

200 staff, bio bubble, three data centres among over 100 measures taken to preserve financial stability

Stress test show banks capable of absorbing shocks without capital infusion

According to RBI's Financial Stability Report, June 22, share of large borrowers, those having aggregate fund and non-fund based exposure of Rs 5 crore and above, has been declining in recent years

Big techs can scale up rapidly and pose risk to financial stability, which can arise from increased disintermediation of incumbent institutions, it noted.

"The asset quality of banks has improved and the gross NPAs and net NPAs of the banks have improved from the pre-pandemic levels," Rao said

The first is an increase in delinquencies in the consumer finance portfolio.

Here are the best of Business Standard's opinion pieces for Friday

The ferocity of the second wave of Covid-19 has dented economic activity, but monetary, regulatory and fiscal policy measures have helped stabilise markets, and maintain financial stability, says FSR

RBI report suggests banks weathering pandemic

More than banks, most of which have the balance sheet strength to stomach bad loans, it is the borrowers who will suffer once they are branded as defaulters since no lender will give them fresh money

With the Supreme Court vacating the one-year breather on the filing of insolvency proceedings, it's back to the grind on the bad-loans front

The Reserve Bank of India's (RBI's) Financial Stability Report indicates an escalation of gross non-performing assets to 14.8 per cent

Inadequately capitalised banks will face problems in increasing their credit portfolios. A credit squeeze on account of banks' balance-sheet constraints would also have larger macroeconomic dimensions