Page 4 - Financial Stability Report

RBI to flag bad loan issues with Finance Ministry in pre-Budget meet

Fresh provisioning and telco loans to figure in pre-Budget meet. Inability to find resolution may put Rs 3.8 trn loans at risk

Finance ministry counters RBI, says stress in banking sector declining

According to the FSR, the regulator conducted macro stress tests for credit risks to assess the banking system's resilience to macroeconomic shocks under baseline conditions

Credit portfolio of large borrowers shrinks, GNPAs decline: FSR report

For majority of the sectors, average risk weight (loan exposure of banks) has declined between March and September 2019

Frauds reported in H1 rise to Rs 1.13 trillion, 97% happened earlier

Also, during the first half of FY20, banks reported 398 cases of large-value frauds (above Rs 50 crore) worth Rs 1.05 trillion and 21 cases of frauds above Rs 1,000 cr, worth a cumulative Rs 44,951 cr

RBI raises concerns about companies shopping around for favourable ratings

Non-disclosure of indicative ratings by agencies makes it difficult to identify such instances, according to the FSR

Grappling with stress, PSBs need to build buffers to absorb shocks: Report

State-owned banks have been grappling with stressed loans and limited capacity to absorb further rise in slippages expected due to prolonged economic slowdown

Fixed maturity plans of mutual funds face risk of concentration: RBI report

The report also pointed out that the nature of recent FMP defaults had primarily involved debt obligations backed by pledging of shares of group companies

Stressed banking sector might drag down growth: RBI report

FSR a 6-monthly report issued by the RBI says investment demand remains weak

Stressed firms coming back on track: RBI

However, risks to the banking system remain

Silver lining to AQR exercise: Bank valuation to get boost

AQR has resulted in unprecedented pressure on the profitability of some banks in the short term

Debt MFs' exposure to downgraded-corporate bonds up 20 bps

Debt MFs' exposure up 4% in FY16; do enough homework on risk, RBI advises in Financial Stability Report

30 of 50 banks may not meet capital adequacy norms: RBI

Financial Stability Report says NBFCs perform better than banks

Private placements continue to dominate corporate bond issuance: FSDC Report

Private placements are usually offered to a select few investors like qualified institutional buyers, high net worth individuals or through bilateral negotiation over telephone

Assess resilience of reinsurers for risk concentration: RBI

Apart from this, the report also suggested offering green insurance as a cover to help in internalisation of environmental costs by the companies