RBI FINANCIAL STABILITY REPORT
Central banks should have independence to deliver on price stability: John C Williams
Central banks ought to own up for delivering on price stability and must be given the independence to act for achieving it, a top official from the Federal Reserve Bank of New York said on Friday.
Banks well capitalised to handle macro shocks
"Under the baseline scenario, the aggregate CRAR (capital to risk weighted asset ratio) of 46 major banks is projected to slip from 16.7% in March 2024 to 16.1% by March 2025," the RBI said in its June 2024 Financial Stability Report.
Household debt needs to be kept under watch
"With overall household savings declining to 18.4% of GDP (gross domestic product) in FY23 from an average of 20% of GDP over 2013-2022, and coupled with an increasing trend in financial liabilities, household debt warrants close monitoring from a financial stability perspective," the Reserve Bank of India (RBI) said in its latest Financial Stability Report released on Wednesday.
Savings down, financial liabilities up: RBI says household debt warrants close monitoring
The Reserve Bank of India highlighted rising household financial liabilities post-Covid, with overall savings dropping to 18.4% of GDP in FY23 from an average of 20% between 2013-22. Household debt, driven by increased retail loans, is mostly held by prime credit quality borrowers. Savings are now shifting towards physical assets and non-bank investments.
Fall in Household Financial Savings actually a worry
The Reserve Bank of India has warned that household debt needs close monitoring due to a decline in overall household savings to 18.4% of GDP in FY2022-23, and an increasing trend in financial liabilities. The share of net financial savings in total household savings has been declining, with 28.5 per cent in 2022-23.
RBI cautions against surge in private credit between corporates and non-banks
The Reserve Bank of India (RBI) warns of systemic risks from the rapid growth of private credit, which has quadrupled in the past decade, especially due to its opacity and interconnectedness with banks and non-banks. The RBI highlights potential vulnerabilities in this segment, including the risk of sharp losses during a credit cycle downturn and challenges posed by complex structures and liquidity risks.
- Go To Page 1
Fintech lenders have high delinquency levels in small value loans says RBI
The RBI has highlighted concerns over consumer loans, noting that over half of borrowers have three or more loans simultaneously. The Financial Stability Report flags high delinquency rates, especially among personal loans under ₹50,000 and loans from fintech lenders. Despite overall improvements in credit quality, stress in retail loans remains significant, particularly for private sector banks.
RBI warns of risks from rapid rise in derivative trading volumes
A rapid rise in derivative trading volumes in India could pose several challenges, India's central bank said in its Financial Stability Report released on Thursday.
Indian banks' gross NPA ratio at multi-year low of 2.8%, net NPA down to 0.6% in FY24: RBI Fin Stability Report
The Reserve Bank of India reported that Indian banks' gross NPA ratio reached a multi-year low of 2.8%, with net NPA at 0.6% by March 2024. The global economy faces risks from geopolitical tensions and high public debt, but India's financial system remains robust, supporting economic growth through sustained credit expansion, the RBI said.
Bandhan investors cautious ahead of leadership change
Analysts view the central bank move as administrative in nature to ensure a smooth leadership transition in the Kolkata-based lender, but concerns over Bandhan Bank's asset quality perhaps kept investors anxious.
Beware... 800 online financial frauds a day
Furthermore, if all the cases from the National Cyber Crime Reporting Portal are included, the surge is even higher. Many frauds reported on the portal are not recorded as banking frauds because the money is transferred voluntarily to a third party masquerading as a merchant or service provider.
RBI's timely action reduced vulnerabilities in unsecured loans: Shaktikanta Das
The Reserve Bank of India (RBI) Governor Shaktikanta Das announced on Thursday that timely actions by the central bank have helped in moderating vulnerabilities related to unsecured loans. This statement was made during the Second Global Conference on Financial Resilience organized by the College of Supervisors.
India's non-banking financial sector grew by 10%; declined globally by 3 %
India's non-banking financial sector grew by 10% as per an SBI report, while the global sector saw a 3% decline. NBFI entities focus on lending and financing without public deposits. The report noted India as the third-largest in the sector, highlighting the banking system's resilience, improved asset quality, macroeconomic fundamentals, and government initiatives for a level playing field. RBI's proactive measures ensured stability, growth, innovation, and advancements in digital banking.
RBI's proposed digital payments intelligence platform will mitigate frauds, say experts
The Reserve Bank's proposal to establish a digital payments intelligence platform aims to combat fraud and enhance consumer trust. A committee led by A P Hota will assess the creation of this platform, leveraging advanced technologies to mitigate payment fraud risks.
RBI cautions micro finance lenders against usurious interest rates
The Reserve Bank of India (RBI) has warned lenders, particularly in the microfinance sector, against charging "usurious" interest rates by exploiting the regulator's freedom. While most lenders follow guidelines on the Key Facts Statement (KFS), some continue to impose undisclosed fees and high interest rates, particularly on small-value loans provided by microfinance institutions (MFIs) and non-banking financial companies (NBFCs).
RBI MPC Meeting: Das & Co may look at food bills to keep its stance, rate unchanged
RBI Policy Meeting: The Reserve Bank of India (RBI) is expected to maintain the repo rate at 6.5% with a focus on withdrawing accommodation, marking the eighth consecutive time it remains unchanged. Economists predict the unchanged stance, citing persistent inflation in food prices and global commodity price risks. RBI Governor's decision is crucial post-elections.
Electoral shock dashes hopes of rate cut
Food inflation challenges RBI, impacting rate cuts. Elections, populist spending, and fiscal landscape influence rate cut decisions.
Don't see any material changes in policies going ahead: Rajeev Thakkar
And if we step back what does the election outcome mean for the markets? So, barring the pre-election and post-election for a week, 10 days, people will move on.
Will NBFCs drive India's next growth wave? Manish Singh answers
What will this third term bring? Now I do not know any better than you from the announcements so far, but for me, I think that has to come through. If that does not come through, then high valuations will not be sustainable.
IBA chief explains what bank frauds really are, stresses on critical 'golden hour'
As per the RBI's recent annual report, fraud cases surged to 36,075 in FY24, marking a significant rise from 13,564 reported in the previous fiscal year. The report highlighted that a majority of these frauds, in terms of volume, were related to digital payments, including card and internet transactions.
FPIs take out Rs 25,586 cr from equities in May on poll jitters, attractive valuations in China
GDP growth numbers released on Friday painted a very optimistic picture. Q4FY24 GDP growth came in at 7.8 per cent surpassing the 6.7 per cent expectation, while the full-year FY24 growth stood at 8.2 per cent
FIIs follow 'sell in May and go away' mantra ahead of election results with Rs 25,600 crore sell-off
In May, foreign institutional investors (FIIs) sold Indian stocks worth Rs 25,600 crore, aligning with the 'Sell in May and go away' adage. Increased net shorts in index futures, outperformance of Chinese stocks, and concerns about high valuations contributed to the sell-off.
Financial frauds declined by 46.7 per cent during 2023-24: RBI annual report
The Reserve Bank of India (RBI) reported a 46.7% drop in fraud value for 2023-24 compared to the previous year. Private-sector banks reported the most frauds, mainly small digital payment frauds, while public-sector banks had the highest fraud value, primarily in loans. The report highlights a focus on regulation, supervision, and financial stability for 2024-25, including enhancing cyber response and using AI to prevent fraud. It also notes India's robust economic growth, with strong macroeconomic fundamentals and significant capital expenditure planned. The Pradhan Mantri Garib Kalyan Anna Yojana extension will bolster food security.
RBI projects real GDP growth at 7% in FY25, says outlook for Indian economy remains bright
The Reserve Bank of India's annual report projects a 7% growth for the Indian economy in the current fiscal year. It highlights the economy's resilience and sustained strengthening of macroeconomic fundamentals. The report notes a robust expansion in the previous fiscal year, with real GDP growth reaching 7.6%. Despite headwinds, the outlook remains positive due to government investments and consumer optimism.
Capital and asset quality of banks, NBFCs remain healthy, says RBI in its annual report
The Reserve Bank of India (RBI) released its annual report on Thursday. It highlighted that the capital and asset quality of banks and Non-Banking Financial Companies (NBFCs) have stayed robust. This has fostered growth in bank credit and domestic activity for the financial year 2024.
67% startup employees prefer moving to established firms: CIEL HR survey
According to the findings of a survey on hiring and recruitment trends by Ciel HR Services, about 67% of the workforce is open to transition to established firms. The report is based on the data and analysis of 130,896 employees across 70 startups in India, along with 8746 job postings sourced from various job portals.
Indians lost over ₹1,750 crore to cyber fraud in first four months of 2024
According to Indian Cyber Crime Coordination Centre (I4C), on an average 7,000 cybercrime complaints were registered per day in May 2024, a jump of 113.7% between 2021-2023 and 60.9% from 2022-2023, and 85%of them were financial online frauds.
RBI's record dividend invites mixed reactions from economists
The Reserve Bank of India's (RBI) decision to declare its highest-ever dividend of Rs 2.11 lakh crore has sparked mixed reactions from economists. Noted economist Suman Mukherjee views it as a sign of economic strength, attributing the windfall to various factors such as a surge in foreign exchange reserves and proactive government management. Mukherjee believes that maintaining low interest rates will counter potential recessionary effects.
Can a collaborative approach break the credit rating impasse?
The GSDR report sheds light on ongoing discussions with Credit Rating Agencies (CRAs) regarding their approach to various debt restructuring options. It underscores the need to find ways to better integrate CRAs into the debt relief process paving the way for sustainable solutions for LMICs.
Load More
