India’s financial system remains strong and stable despite global headwinds, according to the Reserve Bank of India’s June 2025 Financial Stability Report.
“The domestic financial system is exhibiting resilience, fortified by healthy balance sheets of banks and non-banks,” the RBI noted.
The report highlighted robust capital buffers, low non-performing asset (NPA) ratios, and strong earnings as key factors behind the banking sector’s resilience. Most banks were found to have adequate capital under stress-test scenarios.
Non-banking financial companies (NBFCs) also remain in good health, with improving asset quality and solid profitability.
The report underscores the overall stability of India’s financial sector in the face of ongoing global uncertainty.
