{"id":52884,"date":"2025-07-01T14:11:47","date_gmt":"2025-07-01T08:41:47","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=52884"},"modified":"2025-07-01T14:11:47","modified_gmt":"2025-07-01T08:41:47","slug":"financial-stability-report-2025","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/financial-stability-report-2025\/","title":{"rendered":"Financial Stability Report 2025"},"content":{"rendered":"<h2 style=\"text-align: justify;\"><b>Financial Stability Report Latest News<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The Reserve Bank of India (RBI) recently released the Financial Stability Report for June 2025.<\/span><\/p>\n<h2 style=\"text-align: justify;\"><b>About Financial Stability Report\u00a0<\/b><\/h2>\n<ul>\n<li><span style=\"font-weight: 400;\">It is a<\/span><b> biannual report<\/b><span style=\"font-weight: 400;\"> released by the <\/span><b>Reserve Bank of India (RBI).<\/b><\/li>\n<li><span style=\"font-weight: 400;\">It reflects the collective <\/span><b>assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) <\/b><span style=\"font-weight: 400;\">on the resilience of the Indian financial system and risks to financial stability.<\/span><\/li>\n<\/ul>\n<h2><b>Highlights of <\/b><b>Financial Stability Report\u00a0<\/b><b>for June 2025<\/b><\/h2>\n<ul>\n<li><span style=\"font-weight: 400;\">The I<\/span><b>ndian economy<\/b><span style=\"font-weight: 400;\"> remains a <\/span><b>key driver of global growth<\/b><span style=\"font-weight: 400;\"> on the back of sound macroeconomic fundamentals and prudent policies.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The headwinds from <\/span><b>protracted geopolitical tensions<\/b><span style=\"font-weight: 400;\">, elevated uncertainty and <\/span><b>trade disruptions,<\/b><span style=\"font-weight: 400;\"> and <\/span><b>weather-related uncertainty pose downside risks to growth.<\/b><\/li>\n<li><span style=\"font-weight: 400;\">The non-performing loans ratio is currently at a <\/span><b>multi-decadal low,<\/b><span style=\"font-weight: 400;\"> and the economy and financial system are relatively well positioned to bear the tariff-induced shocks.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The report said that the <\/span><b>gross non-performing asset (GNPA),<\/b><span style=\"font-weight: 400;\"> which is currently <\/span><b>as of March 2025 at 2.3% levels<\/b><span style=\"font-weight: 400;\">, <\/span><b>in the baseline scenario, could increase to 2.5% level.<\/b><\/li>\n<li><b>GNPAs for 46 banks<\/b> <b>accounting for 98 percent<\/b><span style=\"font-weight: 400;\"> of the total <\/span><b>assets of scheduled commercial banks (SCBs<\/b><span style=\"font-weight: 400;\">),<\/span><b> may rise to 2.6 percent<\/b><span style=\"font-weight: 400;\"> by March 2027.<\/span><\/li>\n<li><b>Capital adequacy across <\/b><span style=\"font-weight: 400;\">the <\/span><b>banking sector remains well above regulatory thresholds,<\/b><span style=\"font-weight: 400;\"> giving banks sufficient buffers to withstand adverse scenarios.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Even under severe stress<\/span><b> test conditions,<\/b><span style=\"font-weight: 400;\"> the c<\/span><b>apital adequacy ratios<\/b><span style=\"font-weight: 400;\"> of banks <\/span><b>would stay comfortably above minimum requirements<\/b><span style=\"font-weight: 400;\">, a strong signal of the sector\u2019s preparedness to absorb economic shocks.<\/span><\/li>\n<li><b>India&#8217;s growth <\/b><span style=\"font-weight: 400;\">is <\/span><b>largely dependent on domestic demand, <\/b><span style=\"font-weight: 400;\">and the <\/span><b>outlook for food inflation remains favorable<\/b><span style=\"font-weight: 400;\"> as the prices have started to soften and the crop production is at a record level.<\/span><\/li>\n<li><b>On the domestic front,<\/b><span style=\"font-weight: 400;\"> the <\/span><b>financial system remains stable,<\/b><span style=\"font-weight: 400;\"> with <\/span><b>healthy balance sheets of both banks and non-banking financial institutions. <\/b><\/li>\n<li><b style=\"font-size: inherit;\">NBFCs <\/b><span style=\"font-weight: 400;\">remain <\/span><b style=\"font-size: inherit;\">healthy with good capital buffers, robust earnings,<\/b><span style=\"font-weight: 400;\"> and improving asset quality.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><b>Source:<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><a href=\"https:\/\/www.livemint.com\/opinion\/online-views\/rbi-financial-stability-report-systemic-risk-india-corporate-balance-sheets-non-performing-loans-capital-sanjay-malhotra\/amp-11751292518773.html\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\"><strong>LIVEM<\/strong><\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Financial Stability Report is a biannual publication by the Reserve Bank of India (RBI) that assesses risks, resilience, and stability of India\u2019s financial system.<\/p>\n","protected":false},"author":23,"featured_media":52908,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[1238,21,23],"class_list":{"0":"post-52884","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"tag-financial-stability-report","9":"tag-prelims-pointers","10":"tag-upsc-prelims-current-affairs","11":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/52884","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=52884"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/52884\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/52908"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=52884"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=52884"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=52884"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}