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 |
External Sector and Foreign Exchange Market |
Corporate Sector |
Government Finance |
Household Finance |
Money and Capital Markets |
Mutual Funds |
Alternative Investment Funds |
Banking Stability Indicator |
Banking System |
Non-Banking Financial Companies (NBFCs) |
Micro, Small and Medium Enterprises (MSME) |
Microfinance |
Consumer Credit |
Housing Sector |
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: 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 |
Crypto-assets and Financial Stability |
Markets and Financial Stability |
Banking Supervision and Financial Stability |
Artificial Intelligence and Financial Stability |
Cyber Risk and Financial Stability |
Climate Related Risks and Financial Stability |
Domestic Regulatory Developments |
Initiatives from Regulators/Authorities |
Regulatory Measures towards Consumer Credit and Bank Credit to NBFCs |
Investments in Alternative Investment Funds (AIFs) |
Master Direction on Classification, Valuation and Operation of Investment Portfolio of Commercial Banks |
Master Direction on Prudential Regulations for All India Financial Institutions (AIFIs) |
Master Direction on Minimum Capital Requirements for Operational Risk |
Regulation of Payment Aggregator – Cross Border (PA - Cross Border) |
Corporate Debt Market Development Fund - the Backstop Facility for Mutual Funds |
Limited Purpose Clearing Corporation to Develop Repo Market in Corporate Bonds |
Customer Protection |
Enforcement |
Other Developments |
Deposit Insurance |
Corporate Insolvency Resolution Process (CIRP) |
NSE IFSC-SGX Connect |
Pension Funds |
Insurance |
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 Household Debt Sustainability |
1.2 Resilience of Banking System to Contagion Risk from NBFC Sector |
LIST OF CHARTS |
Chapter I |
1.1 Global Growth Forecast for 2023 |
1.2 Inflation |
1.3 Inflation and Current Account Deficit |
1.4 Forex Reserves and Banking System Buffers |
1.5 Banking Sector Soundness |
1.6 Financial Conditions and Bond Volatility |
1.7 Movement in Equity Prices and Exchange Rates |
1.8 Corporate Debt Maturity and Spreads |
1.9 Unrealised Losses in US Banks |
1.10 Net Interest Margin |
1.11 Commercial Real Estate Exposures |
1.12 Global Bank Stress Test Results |
1.13 US Dollar Strength and Capital Outflows |
1.14 General Government Debt to GDP |
1.15 General Government Primary Balance (G7 countries) |
1.16 Interest Rate-Growth Rate Differential (G7 countries) |
1.17 Global Public Debt Projections |
1.18 Bond Market and NBFI Growth |
1.19 US Treasury Market and Repo Volume |
1.20 Government Bond Market Liquidity |
1.21 Fragmentation Keywords in Earning Calls |
1.22 Trade Flows Restrictions |
1.23 FDI Flows |
1.24 Trade Intervention in Commodities |
1.25 Signs of Fragmentation in Commodities |
1.26 Climate Investment Needs |
1.27 Private Financing Share in EMDE Climate Investments |
1.28 Green, Social and Sustainability Bond Issuances |
1.29 Bloomberg Commodity Index |
1.30 Global Supply Chain Pressure Index |
1.31 Brent Price - Spot and Futures |
1.32 Oil Prices and Geopolitical Conflicts |
1.33 Initial Changes in Oil Prices under Different Scenarios |
1.34 FAO Food Price Index |
1.35 GDP Growth (Weighted Contribution) |
1.36 Rural Demand |
1.37 Consumer Price Inflation |
1.38 Crude Oil Price and Oil Intensity |
1.39 Current Account |
1.40 Decomposition of India’s Merchandise Trade Deficit |
1.41 Balance of Payments |
1.42 External Debt Vulnerability Indicators |
1.43 Exchange Rate Movement |
1.44 Onshore-Offshore Spread and Implied Volatility |
1.45 Non-financial Corporate Debt to GDP |
1.46 Listed Private Non-financial Corporates: Interest Expense |
1.47 Listed Private Non-financial Corporates: Operating Profit Margin and Interest Coverage Ratio |
1.48 Non-financial Corporate Debt Service Ratio and Leverage |
1.49 Trend in Credit Ratings |
1.50 Sales Growth of Listed Private Non-Financial Corporates |
1.51 Corporate Debt |
1.52 Central Government Debt-to-GDP Ratio and Interest Burden |
1.53 Capital Outlay – Centre and States |
1.54 States’ Debt-to-GDP Ratio and Interest Burden |
1.55 India and World – Debt, Deficit and Interest Burden |
1.56 Household Financial Savings |
1.57 Credit (Core Debt) to Household Sector |
1.58 Money Market Rates and Bond Yields |
1.59 Banking System Liquidity and Policy Corridor |
1.60 Sovereign Yield Curve and Term Spread |
1.61 Foreign Holding of Government Bonds |
1.62 Corporate Bond Spreads |
1.63 Corporate Bond Issuance between April 2023 and November 2023 |
1.64 Corporate Bond Subscription between April 2023 and November 2023 |
1.65 Nifty 50 and Emerging Market Index |
1.66 Stock Market Volatility |
1.67 Trend in Equity Investment |
1.68 Performance of Nifty Benchmark Indices |
1.69 P/E Ratios of Nifty Benchmark Indices |
1.70 Frequency Distribution of P/E Ratios of Mid-cap and Small-Cap Scrips |
1.71 Individual vs Institutional Ownership in Market Capitalisation |
1.72 Flows in Different Schemes of Mutual Funds |
1.73 Mutual Fund Scheme-wise Net Inflows |
1.74 Growth in Systematic Investment Plans |
1.75 Banking Stability Map |
1.76 Banking System Capital |
1.77 Asset Quality Indicators |
1.78 Banking System Profitability Indicators |
1.79 Credit and Deposit Growth |
1.80 Credit and Deposit Growth - Long Term Dynamics |
1.81 Credit-to-GDP Gap |
1.82 Monetary Policy Transmission to Bank Lending and Deposit Rates |
1.83 Interest Rate-wise Outstanding Loans |
1.84 Bank Lending to NBFCs |
1.85 Consumer Credit and Interest Rates |
1.86 Retail Advances and SMA (1+2) Ratio |
1.87 Impact on CRAR due to Increase in Risk Weights |
1.88 Impact of Unrealised HTM Losses on CET1 ratio of Select Banks |
1.89 Alternative Indicators of Banking Vulnerabilities |
1.90 Agriculture Sector Performance and GNPA |
1.91 SFBs - Deposit Profile |
1.92 SFBs - Retail Loans |
1.93 NBFCs - Financial Indicators and Growth |
1.94 NBFC-ICC and NBFC-IFC Lending - Sectoral Distribution |
1.95 MSME Sector Credit Growth |
1.96 ECLGS Sector-wise Distribution (Share in Amount Disbursed and GNPA) |
1.97 Lending to the Microfinance Segment |
1.98 Stress in Microfinance Segment |
1.99 Inquiry Volumes by Product Category |
1.100 Incremental Credit Quality and Delinquency Levels |
1.101 House Prices and House Price Gap |
1.102 House Sales, Launches and Unsold Inventory |
1.103 Residential and CRE Loans |
1.104 FSSI and its Broad Components |
1.105 Components of FSSI |
1.106 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 |
2.8 CRAR Projections |
2.9 Projection of CET1 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 as on September 30, 2023 |
2.19 Equity Price Risk |
2.20 Liquidity Risk – Shocks and Outcomes |
2.21 Liquidity Risk- Reverse Stress Test Results |
2.22 MTM of Total Derivatives Portfolio of Select Banks – September 2023 |
2.23 Income from the Derivatives Portfolio |
2.24 Impact of Shocks on Derivatives Portfolio of Select Banks (change in net MTM on application of a shock) |
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 Credit Growth of NBFCs Classified by Activity |
2.29 Sectoral GNPA Ratio of NBFCs |
2.30 Asset Quality of NBFCs |
2.31 Capital Adequacy, Profitability and Efficiency |
2.32 Liquidity Stock Measures |
2.33 Rating-wise Distribution of NBFCs Resources Mobilised from Banks |
2.34 Asset Size-wise Distribution of NBFCs Resources Mobilised from Banks |
2.35 Credit Risk in NBFCs - System Level |
2.36 Range (Surplus (+)/ Deficit (-)) of LR-RaR Maintained by AMCs over AMFI Prescribed Limits |
2.37 Range (Surplus (+)/ Deficit (-)) of LR-CRaR Maintained by AMCs over AMFI Prescribed Limits |
2.38 Bilateral Exposures between Entities in the Financial System |
2.39 Instrument-wise Exposure among Entities in the Financial System |
2.40 Network Plot of the Financial System - September 2023 |
2.41 Net Receivables (+ve)/ Payables (-ve) by Institutions |
2.42 Inter-Bank Market |
2.43 Share of Different Bank Groups in the Inter-Bank Market |
2.44 Composition of Fund based Inter-Bank Market |
2.45 Network Structure of the Indian Banking System (SCBs + SFBs + SUCBs) – September 2023 |
2.46 Connectivity Statistics of the Banking System (SCBs) |
2.47 Gross Receivables of AMC-MFs from the Financial System |
2.48 Gross Receivables of Insurance Companies from the Financial System |
2.49 Gross Payables of NBFCs to the Financial System |
2.50 Gross Payables of HFCs to the Financial System |
2.51 Gross Payables of AIFIs to the Financial System |
2.52 Contagion Impact of Macroeconomic Shocks (Solvency Contagion) |
Chapter III |
3.1 NPS and APY Subscribers |
3.2 NPS and APY AUM |
3.3 Asset Class-wise bifurcation of AUM under all products |
LIST OF TABLES |
Chapter I |
1.1 Security Incidents Handled by CERT-In |
1.2 Capital Flows |
1.3 Debt Share of Firms Below/ Above ICR Threshold Values |
1.4 Sectoral Share in Sales of Companies with ICR<=1 |
1.5 Central Government - Key Deficit Indicators |
1.6 State Government - Key Deficit Indicators |
1.7 Trailing and Forward P/E Ratios |
1.8 Nifty Benchmark Indices Return |
1.9 Category-wise Scrip Level P/E Ratio |
1.10 Category-wise Stock Holdings by Mutual Funds |
1.11 Margin Requirements for Writing Options at NSE |
1.12 Assets under Management of the Domestic Mutual Fund Industry |
1.13 Sources of Borrowing – NBFCs (excluding CICs) |
1.14 Share of Bank Borrowing – NBFC-ICC and NBFC-IFC |
1.15 NBFC Retail Lending |
Chapter II |
2.1 Decline in System Level CRAR |
2.2 Tenor-wise PV01 Distribution of AFS Portfolio |
2.3 Tenor-wise PV01 Distribution of HFT portfolio |
2.4 Interest Rate Risk – Bank-groups - Shocks and Impacts |
2.5 Curvature of Yield Curve |
2.6 OOI - Profit/ (Loss) on Securities Trading – All Banks |
2.7 Earnings at Risk (EAR) - Traditional Gap Analysis (TGA) |
2.8 Market Value of Equity (MVE)- Duration Gap Analysis (DGA) |
2.9 NBFCs’ Sources of Funds |
2.10 Select Indicators of NBFC – Upper Layer |
2.11 Liquidity Risk in NBFCs |
2.12 Solvency Ratio of Life Insurance Sector |
2.13 Solvency Ratio of Non-Life Insurance Sector |
2.14 Stress Testing of Open-Ended Debt Schemes of Mutual Funds – Summary Findings |
2.15 Minimum Required Corpus of Core SGF Based on Stress Testing Analysis at Clearing Corporations |
2.16 Contagion Losses due to Bank Failure – September 2023 |
2.17 Contagion Losses due to NBFC Failure – September 2023 |
2.18 Contagion Losses due to HFC Failure – September 2023 |
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 CIRP: Status as on September 30, 2023 |
3.7 Sectoral Distribution of CIRPs as on September 30, 2023 |
3.8 Outcome of CIRPs, Initiated Stakeholder-wise, as on September 30, 2023 |
3.9 Performance Trend of the Insolvency and Bankruptcy Code |
3.10 Liquidations where Final Report has been Submitted, till September 30, 2023 |