RBI's Financial Stability Report: A bag of surprises

Credit should go to the RBI and banks for managing the situation. The plan of giving moratorium during tough times and rolling back the same has helped to keep things under check

Reserve Bank of India's Financial Stability Report is an eagerly awaited report to gauge the health of the banking system in particular and the likely stress situation. The readings from the report are encouraging just like the downward movement of the Covid curve in the country. Contrary to all expectations of NPAs increasing due to the pandemic, the report reveals that they were pretty much under control at 7.5% in March 2021. This should come as a relief to the market as earlier conjectures were in the region of 12-15%. 

The other encouraging revelation is that the stress tests indicate