| Foreword |
| List of Select Abbreviations |
| Overview |
| Chapter I : Macro-Financial Risks |
| Global backdrop |
| Domestic economy |
| Corporate sector |
| Chapter II : Financial Institutions: Soundness and Resilience |
| Scheduled commercial banks |
| Performance |
| Risks |
| Resilience - Stress tests |
| Scheduled urban co-operative banks |
| Performance |
| Resilience - Stress tests |
| Non-banking financial companies |
| Performance |
| Resilience - Stress tests |
| Interconnectedness |
| Chapter III : Financial Sector Regulation |
| Part I : An optimal configuration for the financial system – Banks versus Market |
| Part II : Financial sector in India – Regulation and development |
| The international regulatory reform agenda |
| Domestic financial system |
| Banking sector |
| Financial inclusion |
| Non-banking financial companies |
| Payment and settlement systems |
| Capital markets |
| Agri-commodity market |
| Commodity derivatives market |
| Insurance sector |
| Pension sector |
| Financial Stability and Development Council |
| Annex 1: Systemic Risk Survey |
| Annex 2: Methodologies |
| LIST OF BOXES |
| 1.1 Negative policy rates – Financial stability implications |
| 1.2 Moral hazard and morality |
| 2.1 Stress in Banking Sector - Recent measures taken by the Government |
| 3.i Technology: the agathokakological companion? |
| 3.1 The Insolvency and Bankruptcy Code 2016 |
| 3.2 Regulation of credit guarantee schemes |
| 3.3 Major recommendations of the committee on medium-term path on financial inclusion |
| LIST OF CHARTS |
| 1.1 Global growth outlook and macro indicators for the US |
| 1.2 Trends in gold and brent crude prices, commodity and USD indices |
| 1.3 Historic trend in implied probability for Fed interest rates |
| 1.4 Trends in 10 year break-even inflation rates |
| 1.5 Trends in equity and house price indices and inflation in the US |
| 1.6 Trends in emerging market bond and currency indices |
| 1.7 Growth trends in world trade and USD index |
| 1.8 Global current account balances and gross capital flows |
| 1.9 Trends in growth of real GDP and composition of GDP at market prices |
| 1.10 Capacity utilisation and industrial production |
| 1.11 Indicative trends in business activity and composition of savings |
| 1.12 Central government’s revenue and expenditure |
| 1.13 Trends in major subsidies and total subsidies |
| 1.14 External sector indicators, crude prices and trade deficit |
| 1.15 Crude oil prices and private transfers |
| 1.16 Rainfall, agricultural growth, food production and inflation |
| 1.17 Bank credit to agriculture |
| 1.18 Trends in stock indices |
| 1.19 Trend in house prices |
| 1.20 NGNF listed companies: ‘Weak’ companies – current trend |
| 1.21 Risk profile of select industries (March 2016) |
| 1.22 Corporate sector stability indicator and map |
| 1.23 Indicators of corporate sector performance: Size-wise classification |
| 1.24 Indicators of corporate sector performance: Select Industries: 2014-15 |
| 1.25 NGNF ‘weak’ companies |
| 1.26 NGNF ‘weak’ companies: Select Industries: 2014-15 |
| 2.1 Credit and deposit growth: y-o-y basis |
| 2.2 Capital adequacy and leverage ratio |
| 2.3 RWAs density |
| 2.4 Asset quality of SCBs |
| 2.5 NNPAs of SCBs |
| 2.6 Y-o-Y growth of GNPA |
| 2.7 Probability density function of asset quality |
| 2.8 Asset quality in major sectors |
| 2.9 Stressed advances ratios of major sub-sectors within industry |
| 2.10 Annual slippage of standard accounts to NPA category-Sector wise |
| 2.11 Slippage of standard accounts to NPA category –Loan size wise |
| 2.12 Share of large borrowers in SCBs’ loan portfolio |
| 2.13 Percentage change in the asset quality of large borrowers between Sep-15 and March-16 |
| 2.14 GNPA and SMA-2 of large borrowers |
| 2.15 Components of income: y-o-y growth |
| 2.16 Distribution of SCBs based on RoAs (annual) |
| 2.17 Probability density function of RoAs |
| 2.18 Banking stability indicator |
| 2.19 Banking stability map |
| 2.20 Projection of system level GNPA ratios and CRAR of SCBs |
| 2.21 Projection of bank-group wise GNPA ratio and CRAR |
| 2.22 Projected sectoral GNPAs under various scenarios |
| 2.23 Credit risk - shocks and impacts |
| 2.24 CRAR-wise distribution of banks |
| 2.25 Credit concentration risk: Individual borrowers – Exposure |
| 2.26 Credit concentration risk: Individual borrowers – Stressed advances |
| 2.27 Bottom-up stress tests - Credit and market risks – Impact on CRAR |
| 2.28 Bottom-up stress tests - Liquidity risk |
| 2.29 MTM of total derivatives portfolio - Select banks - March 2016 |
| 2.30 Stress tests - Impact of shocks on derivatives portfolio of select banks |
| 2.31 Asset quality and capital adequacy of the NBFC sector |
| 2.32 Size (turnover) of the interbank market |
| 2.33 Share of different bank groups in the interbank market |
| 2.34 Share of long-term and short-term exposures in the fund-based interbank market |
| 2.35 Composition of short-term fund-based interbank market |
| 2.36 Network structure of the Indian banking system – March 2016 |
| 2.37 Connectivity statistics of the banking system |
| 2.38 Network plot of the financial system |
| 2.39 Impacted banks for the same trigger bank (i.e. Bank 3) |
| 3.i Flow of resources from banks and non-bank sources to commercial sector |
| 3.1 Trends in capital ratios and risk-weighted assets of major global banks |
| 3.2 Trends in banking index relative to market index |
| 3.3 Share of credit to small industries in total bank advances |
| 3.4 Progress under financial inclusion programmes of banks |
| 3.5 Payment system indicators |
| 3.6 Growth in volumes in IMPS |
| 3.7 Trends in public issuances of equity and debt |
| 3.8 Primary market activity |
| 3.9 Corporate bond issuances |
| 3.10 Share of top stocks and members in total turnover |
| 3.11 Proportion of algorithmic orders and trade at NSE |
| 3.12 Share of B-15 cities in mutual fund assets |
| 3.13 Debt mutual funds’ AUM and exposure to corporate bonds |
| 3.14 Ownership patterns in NSE Nifty companies |
| 3.15 Proportion of promoters’ pledged shares for top NSE listed companies |
| 3.16 Offshore derivatives instruments and AUC of FPIs |
| 3.17 Trading volumes in agri-commodity derivatives |
| 3.18 Trends in subscription and AUM under National Pension System |
| LIST OF TABLES |
| 1.1 Select financial ratios of performance of NGNF listed companies |
| 1.2 NGNF listed companies: Tail risk in corporate leverage |
| 1.3 Impact of weakness in debt servicing capacity of NGNF companies on bank credit |
| 2.1 Exposure of SCBs to large borrowers |
| 2.2 Profitability of SCBs |
| 2.3 Macroeconomic scenario assumptions (2016-17) |
| 2.4 Credit concentration risk: Group borrowers – Exposure |
| 2.5 Sectoral credit risk : Industry - shocks and impacts |
| 2.6 Sectoral credit risk : Infrastructure - shocks and impacts |
| 2.7 Sectoral credit risk: Select industries |
| 2.8 Interest rate risk – bank groups - shocks and impacts |
| 2.9 Liquidity risk – Shocks and impacts |
| 2.10 Liquidity risk – Shocks and impacts – LCR regime |
| 2.11 Consolidated balance sheet of the NBFC sector: y-o-y growth |
| 2.12 Financial performance of the NBFC sector |
| 2.13 Inter-sector assets and liabilities |
| 2.14 Pattern of AMC-MFs’ and insurance companies’ exposure to banks |
| 2.15 Exposure of SCBs, AMC-MFs and insurance companies to NBFCs |
| 2.16 Contagion triggered by net borrower banks |
| 2.17 Contagion triggered by net lender banks |