Financial Stability Report

Yield curve steepens due to heavy sovereign issues; long-end demand weakens

RBI's FSR says higher G-Sec and SGS supply and softer demand from insurers and pension funds are keeping long-term yields elevated even as short rates fall on easing and liquidity

External uncertainties may trigger outflows, Fx rate volatility: RBI

RBI flags risks from global shocks, including a sharp US equity correction, that could spur foreign portfolio outflows and rupee volatility, though it says buffers remain adequate

Up to four banks may tap capital buffers in adverse scenarios: RBI

RBI stress tests suggest some banks may need to draw on capital conservation buffers under adverse macro conditions, though minimum capital norms are likely to remain intact

Growing external borrowings make NBFCs more vulnerable to rupee swings: RBI

RBI says NBFCs' higher foreign currency borrowing has helped steady funding costs, but it raises vulnerability to exchange rate volatility even with most exposure hedged

Indian scheduled commercial banks' gross NPA ratio at 15-year low

Private sector banks' gross NPA ratio was stable at 2.8 per cent while foreign banks saw a decline to 0.9 per cent from 1.2 per cent

Healthy balance sheets augur well for economy: RBI Governor Sanjay Malhotra

In the Financial Stability Report, RBI Governor Sanjay Malhotra says domestic resilience is strong but global tariffs, geopolitics and climate risks could impact growth

Signs bright for MSME sector as lending and financial stability improve

Issues like corporate governance, expertise in international trade and digital transformation fester

IndusInd Bank 'stable': RBI assures depositors, dismisses mkt speculation

The Reserve Bank of India issued a statement, assuring the depositors that the bank is well-capitalised and financially stable, and that there is no reason to react to speculative reports

It would help if MFIs were to get better funding: Sa-Dhan ED & CEO

The Ordinance has excluded Reserve Bank of India (RBI)-regulated entities (REs) which are in this business

Managing multiple loans: Lower interest cost via debt consolidation

Borrowers with multiple loans-such as credit card, personal, and home loan-can pool them into one large loan with a lower interest rate

Indian banks' gross bad loan ratio may edge up by March 2026: RBI report

The bad loan ratio could rise to 5 per cent and 5.3 per cent under two separate high-risk scenarios

NHAI ordered to do stability check of new Kali river bridge post collapse

Authorities in neighbouring Karnataka on Wednesday ordered the National Highways Authority of India (NHAI) to check stability of the new Kali river bridge after an old bridge on the water body collapsed. The old bridge on the river collapsed at around 1.30 am on Wednesday, resulted in heavy traffic on national highway no. 66 connecting Goa to Karnataka, officials said. A truck crossing the bridge at the time fell into the river. Local fishermen later rescued its driver, a police official from Karwar in Uttar Kannada district of Karnataka told PTI. The old bridge which collapsed was used for Goa-bound traffic after the construction of a new one a decade back, the official said. Uttar Kannada District Magistrate Lakshmi Priya K said it has been brought to the notice that the old Kali river bridge connecting Karwar and Sadashivgad collapsed at 1.30 am on Wednesday. She ordered the NHAI officials concerned to verify and report stability of the new Kali river bridge connecting Karwar a

Fresh concerns for systemic stability must be monitored

The RBI is moving to implement changes in guidelines on Liquidity Coverage Ratio with higher runoff rates and haircuts

MSMEs get a helping hand in Budget but challenges in financing remain

According to CRISIL Ratings' bi-annual 'MSME Report' (June 2023), the debt need of the sector is more than Rs 100 trillion. Of this, 70% is for working capital requirements alone

Fintechs' lending biz is growing but industry must mind the warning signals

FY24 sees record loan surge and customer growth

Improving financial stability

Some areas of concern remain

RBI red flags NBFC consumer credit, calls for close monitoring of a few

Says need to monitor NBFCs growing fast clip pace with low capital buffers

RBI's action against regulated entities rises even as amounts fall

According to Financial Stability Report, the enforcement action by the banking regulator increased to 161 entities in December 2023 - May 2024 from 146 entities in June 2023 - November 2023

Cyber risk to stability

Financial regulators need to be vigilant

Let's get real about rates

Given myriad cross currents across inflation, growth and financial stability, monetary policy in 2024 will have to cross the river by feeling the stones