MUMBAI: The Reserve Bank of India (RBI) on Thursday said that the Indian economy is on a recovery track even as inflationary pressures and geopolitical risks keep the situation carefully and closely monitored. reserve Bank of IndiaThe 25th Financial Stability Report (FSR) of 2014 also stated that banks as well as non-banking financial institutions have adequate capital buffers to withstand the shocks.
“Despite challenges from global spillovers, the Indian economy remains on a recovery path, although inflationary pressures, external spillovers and geopolitical risks warrant careful handling and close monitoring,” the report said.
The outlook for the global economy is covered with considerable uncertainty due to war in Europe, persistent high inflation and front-loaded monetary policy normalization by central banks in response to multiple waves of the coronavirus pandemic, the report said.
Regarding the banking sector, it said that the capital to risk weighted asset ratio (CRAR) of scheduled commercial banks (SCBs) reached a new high of 16.7 per cent, while their gross non-performing assets (GNPA) ratio reached a six-year low. But fell. 5.9 percent in March 2022.
The Macro Stress Test for Credit Risk shows that SCBs will be able to adhere to the minimum capital requirements even in severe stress scenarios.
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