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India Financial System Stability Assessment 2025
March 12 , 2025
8 hrs 0 min
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- It was the International Monetary Fund report titled as “India Financial System Stability Assessment”.
- It found that 63% of the power sector loans were from three largest Infrastructure Financing Companies, a type of an NBFC in fiscal 2024.
- This increased from 55% in 2019-20.
- Moreover, 56% of their lending was financed by market instruments and only rest alone by bank borrowings.
- Public sector banks (PSBs) may have difficulties maintaining a capital adequacy ratio (CAR)of barely 9%.
- The CAR is the ratio of capital to risk weighted assets, used to measure the bank’s ability to absorb losses.
- The RBI mandates a 12% and 9% CAR for PSB and Scheduled commercial banks respectively.
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