RBI raises red flag on bad loans

Risks remain elevated, says Financial Stability Report

Stress on banking sector significant, says RBI

The Financial Stability Report (FSR) published by the Reserve Bank of India (RBI) on Thursday raised red flags about the health of the banking sector as lenders struggle with rapid deterioration in asset quality at a time of lower business growth. Overall, India’s financial system remains stable, but the stress on banking sector, particularly on the public sector banks (PSBs) “remain significant”, the central bank noted.  “The risks to the banking sector remained elevated due to continuous deterioration in asset quality, low profitability and ...