"With the suspension of construction activities across the country from mid-March, completion of under-construction projects is likely to be delayed, constraining new demand," the FSR said
In March, the RBI had announced a moratorium on repayment of term loans till May 31. It was later extended for another three months.
Higher growth also improves tax-GDP ratio which enhances the resource availability with Government to undertake social and infrastructure expenditure
The rupee started at 69.44 a dollar, and on December 27, closed at 71.32 a dollar.
On the profitability front, public sector banks profitability ratios were muted because of weak credit growth as well as slow resolution of bad assets.
Over the past four years, total financing to real estate companies nearly doubled to Rs 2.01 trillion, shows the FSR released on Friday
State-owned banks have been grappling with stressed loans and limited capacity to absorb further rise in slippages expected due to prolonged economic slowdown
The credit growth of commercial banks has improved between March 2018 and September 2018, driven largely by the private sector, said the RBI in its Financial Stability Report for December.
NBFCs have to maintain a minimum in tiers-I and II capital of not less than 15 per cent of aggregate risk-weighted assets
More than 85 per cent of the frauds happened with public sector banks, which significantly exceeded their relative business share in credit of around 65 per cent
RBI's financial stability report points to worsening NPAs
According to the RBI's Financial Stability Report, new investment proposals have declined significantly in Q2FY18
Report says there seems to be some risk migration from the banks to the mutual funds
PSBs registered GNPA ratio at 13.5% and stressed advances ratio at 16.2% in September