| 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 |