RBI Financial Stability Report

Das said that India's GDP growth rate in FY23 may come out to be more than earlier predictions of 7%

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

Bad bank will only kick the can down the road

Little leeway on pricing and asset quality at a tricky level could places both segments in a tight spot

Banks will have to brace for a rollback of regulatory forbearance that was announced in the wake of Covid-19, and enhance their capital positions, the RBI said

Different stance on NPAs will be the discussion point; report was slated to release on Wednesday

It has the potential to heighten the liquidity risks the sector is already facing after the IL&FS debacle, FSR said

"Operational creditors triggered as much as 49.65 per cent of the bankruptcy petitions, followed by 43.61 per cent by financial creditors and the remaining by corporate debtors," the report said