India’s financial system continues to demonstrate resilience, underpinned by strong balance sheets across banks and non-bank financial institutions (NBFCs), according to the Reserve Bank of India’s June 2025 Financial Stability Report (FSR).
“The domestic financial system is exhibiting resilience, fortified by healthy balance sheets of banks and non-banks,” the central bank said in the report.
The RBI noted that the soundness and resilience of banks are supported by “robust capital buffers, multi-decadal low NPA ratio, and strong earnings.” Most banks were found to have adequate capital buffers under macro stress test scenarios, the report said.
NBFCs, too, remain in good shape. “NBFCs remain healthy with sizeable capital buffers, robust earnings, and improving asset quality,” the RBI observed.
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