{"id":321920,"date":"2025-01-02T18:44:53","date_gmt":"2025-01-02T13:14:53","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=321920"},"modified":"2025-01-03T12:23:47","modified_gmt":"2025-01-03T06:53:47","slug":"financial-stability-report","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/financial-stability-report\/","title":{"rendered":"Financial Stability Report"},"content":{"rendered":"<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\" wp-image-322032 aligncenter\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/01\/Financial-Stability-Report.png?resize=750%2C500&#038;ssl=1\" alt=\"Financial Stability Report\" width=\"750\" height=\"500\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/01\/Financial-Stability-Report.png?resize=300%2C200&amp;ssl=1 300w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/01\/Financial-Stability-Report.png?resize=1024%2C682&amp;ssl=1 1024w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/01\/Financial-Stability-Report.png?resize=768%2C512&amp;ssl=1 768w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/01\/Financial-Stability-Report.png?w=1280&amp;ssl=1 1280w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><\/p>\n<p><span data-contrast=\"none\"><strong>News:<\/strong> The Financial Stability Report, December 2024 has highlighted that Indian economy, and financial system remains robust amid global vulnerabilities.<\/span><strong> Financial Stability Report<\/strong><\/p>\n<h2><span data-contrast=\"none\">Key findings of the Financial Stability Report<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335557856&quot;:16777215,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}\">\u00a0<\/span><\/h2>\n<ul>\n<li><span data-contrast=\"none\"><strong>Prospects of Economic Growth:<\/strong> The <em>Gross Domestic Product (GDP)<\/em> is expected to <em>grow at 6.6% in FY25 (2024-25)<\/em>, given the revival in rural consumption, increased government spending and services exports.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335557856&quot;:16777215,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\"><strong>Fiscal Discipline:<\/strong> The <em>union government\u2019s debt to GDP ratio<\/em> is expected to <em>decline from 62.7% (2020-21) to 58.6% by 2024-25.<\/em><\/span><em>\u00a0<\/em>\n<ul>\n<li><span data-contrast=\"none\"><em>States\u2019 outstanding liabilities<\/em> are also expected to <em>decline from 31% to 28.8%<\/em> during the same period.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335557856&quot;:16777215,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}\">\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li><strong>Resilient Financial System: <\/strong><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335557856&quot;:16777215,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}\">\u00a0<\/span>\n<ul>\n<li><strong>Scheduled Commercial Banks (SCBs) <\/strong><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335557856&quot;:16777215,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}\">\u00a0<\/span>\n<ul>\n<li><span data-contrast=\"none\">They display strong profitability, lower non-performing assets and adequate capital and liquidity buffers.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335557856&quot;:16777215,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\"><em>Return on assets<\/em> and <em>return on equity<\/em> are at a decadal high.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335557856&quot;:16777215,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">The <em>Gross Non-Performing Assets (GNPA) Ratio<\/em> has fallen to a multi-year low.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335557856&quot;:16777215,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">Even under adverse scenario, SCBs aggregate capital would remain much higher than the <em>minimum regulatory capital requirement of 9%<\/em> in March 2026.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335557856&quot;:16777215,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}\">\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li><strong>Non-Banking Financial Companies\u00a0<\/strong>\n<ul>\n<li><span data-contrast=\"none\">They are financially healthy with sizable capital buffers, robust interest margins and improved asset quality.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335557856&quot;:16777215,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">Their <em>Capital to Risk-Weighted Assets Ratio (CRAR)<\/em> is expected to remain much above the regulatory minimum level of 15% even under a high-risk scenario.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335557856&quot;:16777215,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}\">\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li><span data-contrast=\"none\"><strong>Retail Inflation:<\/strong> It has <em>come down to 5.5% in November 2024<\/em>, largely due to softening of food prices and favorable base effect.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335557856&quot;:16777215,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}\">\u00a0<\/span><\/li>\n<\/ul>\n<table style=\"width: 100%; border-collapse: collapse; border-style: solid; background-color: #ede1e1;\">\n<tbody>\n<tr>\n<td style=\"width: 100%;\"><span class=\"TextRun SCXW35522532 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW35522532 BCX0\">The Financial Stability Report is released by the RBI every 6 months<\/span><span class=\"NormalTextRun SCXW35522532 BCX0\">. It is based on the collective assessment of the Financial Stability and Developmental Council (FSDC) S<\/span><span class=\"NormalTextRun SCXW35522532 BCX0\">ub-Committee.<\/span><\/span><span class=\"EOP SCXW35522532 BCX0\" data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335557856&quot;:16777215,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}\">\u00a0<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<table style=\"width: 100%; border-collapse: collapse; border-style: solid; background-color: #dfeded;\">\n<tbody>\n<tr>\n<td style=\"width: 100%;\"><strong>Financial Stability and Developmental Council\u00a0<\/strong><\/p>\n<ul>\n<li><span data-contrast=\"none\">It is a non-statutory body formed by the central government in 2010\u00a0<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335557856&quot;:16777215,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">Functions: It deals with issues related to financial stability, financial sector development, financial literacy and supervision etc.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335557856&quot;:16777215,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">Chairperson: Union Finance Minister<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335557856&quot;:16777215,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">Members: Heads of financial sector regulators (RBI, SEBI, PFRDA, IRDA, FMC), Finance Secretary, Chief Economic Advisor etc.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335557856&quot;:16777215,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}\">\u00a0<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>News: The Financial Stability Report, December 2024 has highlighted that Indian economy, and financial system remains robust amid global vulnerabilities. Financial Stability Report Key findings of the Financial Stability Report\u00a0 Prospects of Economic Growth: The Gross Domestic Product (GDP) is expected to grow at 6.6% in FY25 (2024-25), given the revival in rural consumption, increased&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/financial-stability-report\/\">Continue reading <span class=\"screen-reader-text\">Financial Stability Report<\/span><\/a><\/p>\n","protected":false},"author":10384,"featured_media":322032,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,12039],"tags":[11872],"class_list":["post-321920","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-factly-articles","category-economy","category-knolls","tag-9pm-daily-factly","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/01\/Financial-Stability-Report.png?fit=1280%2C853&ssl=1","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/321920","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10384"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=321920"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/321920\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/322032"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=321920"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=321920"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=321920"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}