The Reserve Bank of India released its Financial Stability Report, which analyses the macro-financial risks facing the Indian economy, on Thursday. The RBI’s opinion on financial risks, particularly to the banking sector, is important at a time in which the Indian and global economy is still suffering through the effects of Covid-19. Some sectors were brought to a standstill and the pandemic had a very uneven effect across industries and geographies. In this context, the FSR has some relatively good headline news. In particular, the RBI’s stress tests suggest that the health of the banking sector might in fact be