TestCloud
Prep • Practice • Perform
Log In

RBI releases Financial Stability Report for December 2024.

Banking & Finance | Dated: 03 Jan 2025

In December 2024, the Reserve Bank of India (RBI) published the half-yearly edition of the ‘Financial Stability Report (FSR), December 2024’, providing a comprehensive assessment by the sub-committee of the Financial Stability and Development Council (FSDC) on potential risks to financial stability and the resilience of India’s financial system.

🎯 Key Highlights:

  • - The report analyzed international and domestic economic conditions, the performance of Scheduled Commercial Banks (SCBs) and Non-Banking Financial Companies (NBFCs), and the solvency of the insurance sector.
  • - It highlighted that SCBs have strengthened their position with robust profitability, declining Non-Performing Assets (NPAs), and adequate capital and liquidity buffers.
  • - According to RBI's Financial Stability Report (FSR), the Indian economy showcases robust strength and resilience, with a projected Gross Domestic Product (GDP) growth rate of 6.6% for the Financial Year 2024-25 (FY25).

💡 Other Important Facts:

  • (i) As per the RBI's FSR, the asset quality of SCBs improved further with their Gross Non- Performing Assets (GNPA) ratio declined to 12-year low of 2.6% in September 2024.
  • (ii) The stress test analysis predicts that the Gross Non-Performing Assets (GNPA) ratio for 46 banks could rise to 3% by the end of March 2026 under the baseline scenario. Under two separate high-risk scenarios, the GNPA ratio may escalate further to 5% and 5.35%, respectively.

📚 Test Your Knowledge:

Which organization recently published the 'Financial Stability Report (FSR), December 2024'?

Correct Answer: RBI

🚀 Quick Recap:

About RBI

  • Governor : Sanjay Malhotra
  • Headquarter : Mumbai