Financial system stable; dud assets fall sharply to 9.3% in FY19: RBI

RBI's Financial Stability Report says financial system remains stable despite slowing economy.

The Reserve Bank of India (RBI) on Thursday said the proportion of commercial lenders' non-performing assets (NPAs) may fall slightly to 9% by March, but recommended that the vigil on non-banking finance companies (NBFCs) continues.

"The financial system remains stable despite some dislocation of late," said the RBI in its bi-annual Financial Stability Report (FSR).

"As the banks, especially the state-run ones, are on the mend, the structure of non-banking credit intermediation should focus on developing on more prudent lines," said RBI governor Shaktikanta Das in his foreword to the report.

He also pitched for better coordination between the government and the monetary