India's economy and financial system remain robust with a multi-year low GNPA ratio of 2.8% by end-March 2024.
Despite global financial challenges, India's economy and financial system remain robust and resilient, with the Reserve Bank of India (RBI) reporting a multi-year low Gross Non-Performing Assets (GNPA) ratio of 2.8% by end-March 2024. Scheduled Commercial Banks experienced a drop in their GNPA ratio to 2.8% and their Net Non-Performing Assets (NNPA) ratio to 0.6% during the same period. The RBI's June Financial Stability Report also highlighted that the capital to risk-weighted assets ratio (CRAR) and common equity tier 1 (CET1) ratio of SCBs stood at 16.8% and 13.9% respectively, demonstrating banks' capacity to withstand financial stress. Despite ongoing geopolitical tensions and economic difficulties, the global financial system has remained stable and resilient.