| Foreword |
| List of Select Abbreviations |
| Overview |
| Chapter I : Macrofinancial Risks |
| Global Backdrop |
| Macrofinancial Development and Outlook |
| Other Global Macrofinancial Risks |
| Domestic Macrofinancial Risks |
| Domestic Growth and Inflation |
| Corporate Sector |
| Money, Government Securities and Corporate Bonds Markets |
| Government Finance |
| External Sector and Foreign Exchange Market |
| Equity Markets |
| Mutual Funds |
| Banking Stability Indicator |
| Banking System |
| Non-Banking Financial Companies (NBFCs) |
| Micro, Small and Medium Enterprises (MSME) Sector |
| Microfinance |
| Consumer Credit |
| Housing Market |
| Financial System Stress Indicator |
| Systemic Risk Survey |
| Chapter II : Financial Institutions: Soundness and Resilience |
| Scheduled Commercial Banks (SCBs) |
| Asset Quality |
| Sectoral Asset Quality |
| Credit Quality of Large Borrowers |
| Capital Adequacy |
| Earnings and Profitability |
| Resilience – Macro Stress Tests |
| Sensitivity Analysis |
| Bottom-up stress tests - Credit, Market and Liquidity Risk |
| Bottom-up Stress Tests: Derivatives Portfolio |
| Primary (Urban) Cooperative Banks |
| Stress Testing |
| Non-Banking Financial Companies (NBFCs) |
| Stress Test - Credit Risk |
| Stress Test - Liquidity Risk |
| Insurance Sector |
| Stress Testing of Mutual Funds |
| Stress Testing Analysis at Clearing Corporations |
| Interconnectedness |
| Financial System Network |
| Contagion Analysis |
| Chapter III : Regulatory Initiatives in the Financial Sector |
| Global Regulatory Developments and Assessments |
| Deposit Stability |
| Markets and Financial Stability |
| Decentralised Finance and Financial Stability |
| Financial Stability Implications of Stablecoins – An EMDE Perspective |
| Cyber Risk and Financial Stability |
| Domestic Regulatory Developments |
| Initiatives by Regulators/Authorities |
| Climate Risk and Sustainable Finance |
| Governance, Measurement and Management of Interest Rate Risk in Banking Book (IRRBB) - Final Guidelines |
| Guidelines on Default Loss Guarantee (DLG) in Digital Lending |
| Master Direction on Outsourcing of Information Technology (IT) Services |
| Master Direction on Acquisition and Holding of Shares or Voting rights in Banking Companies |
| Framework for Compromise Settlements and Technical Write-offs |
| Applicability of State Money Lenders Acts and State Microfinance Acts on NBFCs |
| Single Settlement for Three Cheque Truncation System Grids |
| Ringfencing India’s Payment Systems |
| Customer Protection |
| Enforcement |
| Other Developments |
| Deposit Insurance |
| Corporate Insolvency Resolution Process (CIRP) |
| Cybersecurity Risks and their potential impact on Financial Stability |
| Developments in International Financial Services Centres (IFSC) |
| Climate Change Initiatives by SEBI |
| Insurance |
| Pension Funds |
| Annex 1: Systemic Risk Survey |
| Annex 2: Methodologies |
| Annex 3: Important Regulatory Measures |
| Reserve Bank of India (RBI) |
| Securities and Exchange Board of India (SEBI) |
| Insurance Regulatory and Development Authority of India (IRDAI) |
| Pension Fund Regulatory and Development Authority (PFRDA) |
| Insolvency and Bankruptcy Board of India (IBBI) |
| International Financial Services Centres Authority (IFSCA) |
| LIST OF BOXES |
| Chapter I |
| 1.1 Volatility Spillovers across Markets in India |
| Chapter II |
| 2.1 Financial Margin Framework for the Household Sector |
| LIST OF CHARTS |
| Chapter I |
| 1.1 Global Growth Forecasts |
| 1.2 Inflation |
| 1.3 Banking Sector Soundness Indicators |
| 1.4 Financial Conditions Index |
| 1.5 Bond Market |
| 1.6 Impact of Banking Turmoil on Equity and Funding Markets |
| 1.7 Global Potential Growth |
| 1.8 Valuation Losses |
| 1.9 Peak 1-day Withdrawal Rates for Runs on the Largest Banks, by Inflation-Adjusted Total Assets |
| 1.10 Social Media Impact on SVB |
| 1.11 Non-financial Sector Debt |
| 1.12 Emerging Market Debt and Capital Flows |
| 1.13 NBFI Leverage |
| 1.14 NBFI Liquidity-related Vulnerabilities |
| 1.15 Financial Linkages of NBFIs |
| 1.16 Impact of Economic and Financial Fragmentation |
| 1.17 Carbon Emission and Climate Finance |
| 1.18 Estimated Effects of Climate-related Disaster Episodes on NPLs |
| 1.19 Crypto Fall and Spillover to Banks |
| 1.20 Google Trend of Emerging Technologies |
| 1.21 Commodity Index and Brent Prices |
| 1.22 Base and Precious Metals |
| 1.23 Food Prices (FAO Food Price Index) |
| 1.24 Commodity Price Indices and Forecast |
| 1.25 GDP Growth (Weighted Contribution) |
| 1.26 Private Investment |
| 1.27 Stagnant Real Wages |
| 1.28 Merchandise Trade Performance |
| 1.29 Inflation – Trends and Drivers |
| 1.30 Operating Profit Margin - Listed Private Non-Financial Companies |
| 1.31 Select Ratios of Listed Private Manufacturing Companies |
| 1.32 ICR of Listed Private Non-Financial Companies |
| 1.33 Moderation in Global VC Fund Raising |
| 1.34 PE/VC Investments in India |
| 1.35 Financial Conditions |
| 1.36 Monetary Policy Operations |
| 1.37 Sovereign Yield Curve and Term Spread |
| 1.38 Corporate Bond Spreads |
| 1.39 Corporate Bond Issuance and Subscription in 2022-23 |
| 1.40 Central Government Finances |
| 1.41 Market Borrowing of Central Government |
| 1.42 States’ Outstanding Debt and Interest Payments |
| 1.43 Exports, Imports and Trade Deficit |
| 1.44 Sources of Current Account Balance |
| 1.45 Balance of Payments |
| 1.46 Services Exports |
| 1.47 External Vulnerability Indicators |
| 1.48 Foreign Exchange Market |
| 1.49 Equity Market Performance |
| 1.50 Net FII and DII Equity Flows - Monthly |
| 1.51 Stock Market Volatility |
| 1.52 Banking Stocks and Broader Index |
| 1.53 Trailing and Forward P/E Ratio |
| 1.54 Monthly Net Flows of Open-Ended Debt Oriented Schemes |
| 1.55 Banking Stability Map |
| 1.56 Banking Stability Indicator - Contribution of Individual Risk Factors |
| 1.57 Asset Quality Indicators – All SCBs |
| 1.58 Capital Adequacy and Bank Performance |
| 1.59 Bank Credit |
| 1.60 Credit to GDP Gap |
| 1.61 Deposit Growth and Credit-Deposit Ratio |
| 1.62 Monetary Policy Transmission to Bank Lending and Deposit Rates |
| 1.63 Interest Rate Tightening and Corporate Debt |
| 1.64 Debt-to-Equity Ratio of Private Non-Financial Companies |
| 1.65 Investment Portfolio of All SCBs |
| 1.66 Sovereign Yield Curve |
| 1.67 Impact of Unrealised HTM Losses on CET1 of Select Banks |
| 1.68 Distribution of CET1 Ratios of Select Indian Banks |
| 1.69 Movement in Stable Deposits as a Share of Total Deposits |
| 1.70 Share of Uninsured Deposits vis-a-vis CET1 Ratios after Unrealised HTM Losses |
| 1.71 Capital Buffers |
| 1.72 Profitability and Capital Position of Banks in Select Jurisdictions |
| 1.73 Bank Credit to NBFCs |
| 1.74 NBFCs Borrowing Repayment Pattern |
| 1.75 MSME Sector Credit Growth |
| 1.76 Unit Type-wise NPA |
| 1.77 ECLGS Sector-wise Share of NPA |
| 1.78 Lending to the Microfinance Segment |
| 1.79 Stress in the Microfinance Segment |
| 1.80 Inquiry Volumes by Product Category |
| 1.81 Origination by Risk Tier |
| 1.82 House Price Gap |
| 1.83 House Sales, Launches and Inventory Overhang |
| 1.84 Residential Housing and Commercial Real Estate Sector |
| 1.85 FSSI and its Broad Components |
| 1.86 Components of FSSI |
| 1.87 Potential Risks to Financial Stability |
| Chapter II |
| 2.1 Deposit and Credit Profile of SCBs |
| 2.2 Select Asset Quality Indicators |
| 2.3 Sectoral Asset Quality Indicators |
| 2.4 Select Asset Quality Indicators of Large borrowers |
| 2.5 Capital Adequacy |
| 2.6 Select Performance Indicators of SCBs |
| 2.7 Macro Scenario Assumptions for 2023-24 |
| 2.8 CRAR Projections |
| 2.9 Projection of CET1 Capital Ratio |
| 2.10 Projection of SCBs’ GNPA Ratios |
| 2.11 Credit Risk - Shocks and Outcomes |
| 2.12 Credit Concentration Risk: Individual Borrowers – Exposure |
| 2.13 Credit Concentration Risk: Group Borrowers – Exposure |
| 2.14 Credit Concentration Risk: Individual Borrowers – Stressed Advances |
| 2.15 Trading Book Portfolio: Bank-group wise |
| 2.16 Yield Curves and Shift in Yields across Tenors |
| 2.17 HTM Portfolio – Composition |
| 2.18 HTM Portfolio – Unrealised Gain / Loss |
| 2.19 Equity Price Risk |
| 2.20 Liquidity Risk – Shocks and Outcomes |
| 2.21 Bottom-up stress tests: Credit and Market Risks – Impact on CRAR |
| 2.22 Bottom-up stress tests – Liquidity risk |
| 2.23 MTM of Total Derivatives Portfolio of Select Banks |
| 2.24 Impact of Shocks on Derivatives Portfolio of Select Banks |
| 2.25 Credit Profile and Asset Quality Indicators of UCBs |
| 2.26 Stress Test of UCBs |
| 2.27 Sectoral Credit Growth of NBFCs |
| 2.28 Sectoral GNPA ratio of NBFCs |
| 2.29 Asset Quality of NBFCs |
| 2.30 Capital Adequacy and Profitability |
| 2.31 Credit Risk Stress Test for NBFCs - System Level |
| 2.32 Stress Testing of Mutual Funds- Distribution of AUM according to risk category |
| 2.33 Range (Surplus (+)/ Deficit (-)) of LR-RaR Maintained by AMCs over AMFI Prescribed Limits |
| 2.34 Range (Surplus (+)/ Deficit (-)) of LR-CRaR Maintained by AMCs over AMFI Prescribed Limits |
| 2.35 Bilateral Exposures between Entities in the Financial System |
| 2.36 Network Plot of the Financial System |
| 2.37 Net Receivables (+ve) / Payables (-ve) by Institutions |
| 2.38 Inter-Bank Market |
| 2.39 Different Bank Groups in the Inter-Bank Market |
| 2.40 Composition of Fund based Inter-Bank Market |
| 2.41 Network Structure of the Indian Banking System (SCBs + SFBs + SUCBs) |
| 2.42 Connectivity Statistics of the Banking System (SCBs) |
| 2.43 Gross Receivables of AMC-MFs from the Financial System |
| 2.44 Gross Receivables of Insurance Companies from the Financial System |
| 2.45 Gross Payables of NBFCs to the Financial System |
| 2.46 Gross Payables of HFCs to the Financial System |
| 2.47 Gross Payables of AIFIs to the Financial System |
| 2.48 Contagion Impact of Macroeconomic Shocks (Solvency Contagion) |
| Chapter III |
| 3.1 NPS and APY Subscribers – Sector-wise |
| 3.2 NPS and APY AUM – Sector-wise |
| LIST OF TABLES |
| Chapter I |
| 1.1 Investment Requirement to reach Net Zero by 2050 |
| 1.2 Share of Debt held by Listed Private Non-Financial Companies by ICR Categories |
| 1.3 Central Government Finances - Key Deficit Indicators |
| 1.4 State Government Finances - Key Fiscal Indicators |
| 1.5 Net Capital Flows |
| 1.6 Hedging of ECB loans |
| 1.7 AUM of the Domestic Mutual Fund Industry |
| 1.8 Trends in Resource Mobilisation by Mutual Funds |
| 1.9 Share of Floating Rate Loans |
| 1.10 Housing Loans – Floating Rate |
| 1.11 SMA Share of Retail Advances |
| 1.12 Asset Quality across NBFC Categories |
| 1.13 Asset Quality of Large Borrowers |
| 1.14 Sources of Borrowing |
| 1.15 MSME Asset Quality Profile |
| 1.16 Consumer Distribution by Risk Tier and Lender Category |
| 1.17 Transition Matrix - Personal Loans (Unsecured) |
| 1.18 Delinquency Levels in Aggregate Consumer Credit across all Product Categories |
| Chapter II |
| 2.1 Growth in New Loans by SCBs: Economic Sectors, Organisations and Account type |
| 2.2 Decline in System Level CRAR |
| 2.3 Tenor-wise PV01 Distribution of AFS Portfolio |
| 2.4 Tenor-wise PV01 Distribution of HFT portfolio |
| 2.5 Interest Rate Risk – Bank-groups - Shocks and Impacts |
| 2.6 Curvature of Yield Curve |
| 2.7 OOI - Profit/(Loss) on Securities Trading -All Banks |
| 2.8 Earnings at Risk - Traditional Gap Analysis -All Banks |
| 2.9 Market Value of Equity - Duration Gap Analysis- All Banks |
| 2.10 NBFCs’ Sources of Funds |
| 2.11 Select Indicators of NBFC-Upper Layer |
| 2.12 Liquidity Risk in NBFCs |
| 2.13 Solvency Ratio of Life Insurance Sector |
| 2.14 Solvency Ratio of Non-Life Insurance Sector |
| 2.15 Stress Testing of Open-Ended Debt Schemes of Mutual Funds – Summary Findings |
| 2.16 Minimum Required Corpus of Core SGF Based on Stress Testing Analysis at a major Clearing Corporation |
| 2.17 Contagion Losses due to Bank Failure |
| 2.18 Contagion Losses due to NBFC Failure |
| 2.19 Contagion Losses due to HFC Failure |
| Chapter III |
| 3.1 Category of Complaints Received under the RB-IOS, 2021 |
| 3.2 Coverage of Deposits |
| 3.3 Bank Group-wise Deposit Protection Coverage |
| 3.4 Deposit Insurance Premium |
| 3.5 Deposit Insurance Fund and Reserve Ratio |
| 3.6 Deposit Insurance Claims and Recovery |
| 3.7 Corporate Insolvency Resolution Process |
| 3.8 Sectoral Distribution of CIRPs |
| 3.9 Outcome of CIRPs, Initiated Stakeholder-wise |
| 3.10 CIRPs Ending with Orders for Liquidation |