Indian economy poised for strong growth: RBI report
Health of commercial banks remains sound with strong capital and liquidity buffers, says RBI’s Financial Stability Report
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Mumbai: The Indian economy is likely to maintain strong growth, underpinned by robust domestic demand, benign inflation, and prudent macroeconomic policies despite an uncertain and challenging global economic backdrop, the Reserve Bank said in a report on Wednesday.
The health of commercial banks (SCBs) remains sound with strong capital and liquidity buffers, improved asset quality and robust profitability, the Reserve Bank said in its Financial Stability Report (FSR).
“Maintaining financial stability and strengthening the financial system remains our north star,” RBI Governor Sanjay Malhotra in his foreword in the latest edition of the RBI Financial Stability Report.
According to him, financial sector regulators recognise that financial stability is not an end in itself and promoting innovation and growth, protecting consumers, a pragmatic approach to regulation and supervision that improves financial system efficiency are equally important. “The most important contribution the policymakers can make is to foster a financial system that is robust and resilient to shocks, efficient in providing financial services and promotes responsible innovation,” he said
The report reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on the resilience of the Indian financial system and risks to financial stability. “The domestic financial system remains robust and resilient, bolstered by strong balance sheets, easy financial conditions, and low financial market volatility. Nonetheless, there are near-term risks from external uncertainties - geopolitical and trade-related,” it said.
