India’s financial system remains stable despite some challenges: RBI
MUMBAI: The Reserve Bank said that India’s financial system remains stable despite some challenges in the banking sector, global uncertainties and transiting geopolitical risks.
RBI’s June 2016 Financial Stability Report states that India stands out in terms of growth and investment potential in view of government’s commitment to fiscal discipline, efforts to improve the ‘ease of doing business’ and rationalising subsidies. According to RBI, prediction of a normal monsoon augurs well for growth of agriculture sector in 2016-17.
On the other hand, RBI has cautioned against the recent increase in India’s oil import in terms of volume. The report informs that gross non-performing assets of public-sector banks rose to 7.6 percent in March 2016 and net NPAs by 4.6 percent. The report says that the rise in NPAs largely reflect reclassification of restructured loans as non-performing due to asset quality review.
