| Foreword |
| List of Select Abbreviations |
| Overview |
| Chapter I : Macrofinancial Risks |
| Global Backdrop |
| Macrofinancial Development and Outlook |
| Global Macrofinancial Risks |
| Elevated Public Debt |
| Stretched Asset Valuations |
| Stress in the Commercial Real Estate Sector |
| Geopolitical Risks |
| Risks stemming from Private Credit |
| Cyber Risk |
| Domestic Macrofinancial Risks |
| Domestic Growth and Inflation |
| External Sector |
| Foreign Exchange Market |
| Corporate Sector |
| Government Finance |
| Household Finance |
| Money and Capital Markets |
| Mutual Funds |
| Banking Stability Indicator |
| Banking System |
| Non-Banking Financial Companies |
| Consumer Credit |
| Housing Sector |
| Cyber Risk |
| 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 Initiatives |
| Markets and Financial Stability |
| FinTech and Financial Stability |
| Banking and Financial Stability |
| Climate Finance and Financial Stability |
| Cyber Security and Financial Stability |
| Domestic Regulatory Initiatives |
| Operational Risk Management and Operational Resilience |
| Voluntary Transition of Small Finance Banks to Universal Banks |
| Reserve Bank of India (Government Securities Lending) Directions, 2023 |
| Margining for Non-Centrally Cleared OTC Derivatives |
| Investments in Alternative Investment Funds |
| Omnibus Framework for recognising Self Regulatory Organisations for REs |
| Credit/Investment Concentration Norms – Credit Risk Transfer |
| Framework for dealing with D-SIBs |
| Regulatory Framework for Index Providers in the Indian Securities Market |
| Introduction of Beta version of T+0 Rolling Settlement Cycle on Optional Basis |
| Business Continuity for Clearing Corporations through Software as a Service Model |
| Other Developments |
| Customer Protection |
| Enforcement |
| Deposit Insurance |
| Corporate Insolvency Resolution Process |
| Developments in International Financial Services Centre |
| Insurance |
| Pension Funds |
| Annex 1: Systemic Risk Survey |
| Annex 2: Methodologies |
| Annex 3: Important Domestic 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 Geopolitical Uncertainties: Effect on Portfolio Flows and Exchange Rate Volatility |
| Chapter II |
| 2.1 Banking System Resilience Measured through the Speed of Convergence |
| 2.2 Derivative Portfolio: Determinants of Income |
| LIST OF CHARTS |
| Chapter I |
| 1.1 Global Growth Forecast |
| 1.2 Global Headline Inflation |
| 1.3 Macroeconomic Fundamentals |
| 1.4 Financial System Soundness |
| 1.5 Reserve Adequacy and Banking System Buffers |
| 1.6 Banking Sector Soundness Indicators |
| 1.7 Market Expectations of Policy Rates |
| 1.8 Financial Conditions and Volatility |
| 1.9 Central Bank Reserves and Equity Prices |
| 1.10 Five-year-ahead Global Growth Projections (Real GDP) |
| 1.11 Global Public Debt |
| 1.12 Interest Rate-Growth Rate Differential (G7 countries) |
| 1.13 Debt Dynamics |
| 1.14 Asset Valuations |
| 1.15 Corporate Defaults |
| 1.16 Real Equity Returns in Post-tightening Plateaus |
| 1.17 Change in Major Currencies against USD |
| 1.18 Commodity Prices and the US Dollar |
| 1.19 CRE Exposures |
| 1.20 NBFIs CRE Exposure and Interlinkages with Banks in US |
| 1.21 Geopolitical Risk and Trade Restrictions |
| 1.22 Geopolitical Events and Crude Oil |
| 1.23 Size of Private Credit Market |
| 1.24 Global Cyberattacks |
| 1.25 Impact of Cyberattacks on US Bank Deposits |
| 1.26 Contribution to GDP Growth |
| 1.27 Consumer Price Inflation |
| 1.28 Suez Canal Transit Trade Volumes |
| 1.29 Trade Deficit, Service Exports and Private Transfers |
| 1.30 Balance of Payments |
| 1.31 External Vulnerability Indicators |
| 1.32 Exchange Rate Indicators |
| 1.33 Implied Volatility and Onshore-Offshore Spread |
| 1.34 Non-Financial Corporates – Debt-Equity and Debt-to-GDP Ratios |
| 1.35 Nominal Sales Growth |
| 1.36 Operating Profit Margin – Listed Private Non- Financial Companies |
| 1.37 Corporate Vulnerability Indicators |
| 1.38 Trend in Credit Rating Actions |
| 1.39 Key Fiscal Performance Indicators - Central Government |
| 1.40 Key Fiscal Performance Indicators - State Governments |
| 1.41 India, AEs and EMDEs – Debt and Deficit |
| 1.42 Debt Indicators |
| 1.43 Gross Savings and Household Savings |
| 1.44 Household Financial Savings |
| 1.45 Household Borrowings from Financial Institutions |
| 1.46 Household Debt |
| 1.47 Money Market Rates and System Liquidity |
| 1.48 Money Market Spreads and Mutual Fund Investments |
| 1.49 Daily Change in Government Balance and Banking System Liquidity |
| 1.50 Sovereign Yield Curve and Term Spread |
| 1.51 Corporate Bond Spreads |
| 1.52 Corporate Bond Issuance and Subscription |
| 1.53 Equity Market Performance and P/E Ratios |
| 1.54 Decomposition of Cumulative Nifty Returns |
| 1.55 Equity Market Volatility |
| 1.56 Performance of Nifty Benchmark Indices |
| 1.57 12-month Forward P/E Ratios |
| 1.58 Annual Trends in Net Inflows to Different Schemes of Mutual Funds |
| 1.59 Trend in Net FPI Investments |
| 1.60 Trends in Net Investments – FPIs, DIIs and Individual Investors |
| 1.61 Net Inflows in Open-ended Schemes |
| 1.62 Trends in Monthly SIP Contribution and Outstanding SIP Accounts |
| 1.63 Banking Stability Indicator |
| 1.64 Banking System Capital |
| 1.65 Asset Quality Indicators |
| 1.66 Banking System Profitability and Market Valuation Indicators |
| 1.67 Credit and Deposit Growth |
| 1.68 Credit Deposit Ratio |
| 1.69 GDP Growth and Credit-to-GDP Gap |
| 1.70 Credit and Deposit Growth – Long Term Dynamics |
| 1.71 Credit and Deposit Growth (including and excluding HFC Merger Impact) |
| 1.72 C-D Ratios Across Past High Credit Growth Cycles |
| 1.73 LCR, C-D Ratio and Excess SLR |
| 1.74 Retail Share – Total Loans and Fresh Accretion to NPAs |
| 1.75 Bank Lending to NBFCs |
| 1.76 Impact of Unrealised HTM Losses on CET1 Ratio of Select Banks |
| 1.77 NBFC Lending, Bank Lending to NBFCs and Cost of Funds |
| 1.78 NBFCs – Financial Indicators |
| 1.79 Retail Loans and Share of Unsecured Loans |
| 1.80 Capital Adequacy and Credit Growth |
| 1.81 Solvency Losses of Banks due to Hypothetical Failure of NBFCs |
| 1.82 Inquiry Volumes by Product Category |
| 1.83 Consumer Credit – Asset Quality |
| 1.84 Delinquency Levels – Personal Loans (Below ₹ 50,000) |
| 1.85 House Prices and Rent |
| 1.86 House Sales, Launches and Unsold Inventory |
| 1.87 Residential and CRE Loans |
| 1.88 Cyber Risk |
| 1.89 Cyber Risk Awareness in India |
| 1.90 Categories of Cyber Incidents |
| 1.91 FSSI and its Broad Components |
| 1.92 Components of FSSI |
| 1.93 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 2024-25 |
| 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 |
| 2.19 Equity Price Risk |
| 2.20 Liquidity Risk – Shocks and Outcomes |
| 2.21 Liquidity Risk – Reverse Stress Test Results |
| 2.22 Bottom-up Stress Tests: Credit and Market Risks – Impact on CRAR |
| 2.23 Bottom-up Stress Tests: Liquidity Risk |
| 2.24 MTM of Total Derivatives Portfolio of Select Banks |
| 2.25 Impact of Shocks on Derivatives Portfolio of Select Banks |
| 2.26 Income from the Derivatives Portfolio |
| 2.27 Credit Profile and Asset Quality Indicators of UCBs |
| 2.28 Stress Test of UCBs |
| 2.29 Sectoral Credit Growth of NBFCs |
| 2.30 Activity-based Credit Growth of NBFCs |
| 2.31 Sectoral GNPA Ratio of NBFCs |
| 2.32 Asset Quality of NBFCs |
| 2.33 Capital Adequacy, Profitability and Efficiency |
| 2.34 Liquidity Stock Measures |
| 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 |
| 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) |
| 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 |
| Chapter III |
| 3.1 Summary of Outcomes |
| 3.2 NPS and APY – Subscribers and AUM Trend |
| 3.3 NPS and APY AUM: Asset Class-wise Bifurcation |
| LIST OF TABLES |
| Chapter I |
| 1.1 Capital Flows |
| 1.2 Debt Share of Firms Below/ Above ICR Threshold Values |
| 1.3 Sectoral Share in Sales of Companies with ICR<=1 |
| 1.4 Fiscal Indicators – Central Government |
| 1.5 Central Government Finances – Key Deficit Indicators |
| 1.6 State Government Finances – Key Deficit Indicators |
| 1.7 Autonomous Drivers of Banking System Liquidity |
| 1.8 Returns of Nifty Benchmark Indices |
| 1.9 Summary of Risk Parameters of Midcap and Smallcap Mutual Fund Schemes |
| 1.10 Derivatives to Cash Ratio |
| 1.11 AUMs of the Domestic Mutual Fund Industry |
| 1.12 Credit and Deposit – Divergence and Convergence |
| 1.13 C-D Ratio and Ratio of Loanable Funds |
| 1.14 Growth in Outstanding Balances by Product Type |
| Chapter II |
| 2.1 Decline in System Level CRAR – Sectoral Credit Risk |
| 2.2 PV01 of AFS and HFT Portfolios |
| 2.3 Interest Rate Risk – Bank-groups – Shocks and Impacts |
| 2.4 OOI – (Profit / Loss) on Securities Trading – All Banks |
| 2.5 Earnings at Risk – Traditional Gap Analysis |
| 2.6 Market Value of Equity – Duration Gap Analysis |
| 2.7 NBFCs’ Sources of Funds |
| 2.8 Liquidity Risk in NBFCs |
| 2.9 Solvency Ratio of Life Insurance Sector |
| 2.10 Solvency Ratio of Non-Life Insurance Sector |
| 2.11 Stress Testing of Open-Ended Debt Schemes of Mutual Funds |
| 2.12 Minimum Required Corpus of Core SGF Based on Stress Testing Analysis at Clearing Corporations |
| 2.13 Contagion Losses due to Bank Failure |
| 2.14 Contagion Losses due to NBFC Failure |
| 2.15 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 Corporate Insolvency Resolution Process |
| 3.7 Sectoral Distribution of CIRPs |
| 3.8 Outcome of CIRPs, Initiated Stakeholder-wise |