RBI Financial Stability Report warns of rising global risks

Business Jun 30, 2026

The Reserve Bank of India (RBI) just dropped its latest Financial Stability Report, and the big takeaway is that global risks are rising: think ongoing conflicts, supply chain hiccups, inflation, and even the fast pace of AI.
RBI Governor Sanjay Malhotra noted that the risk of adverse external shocks has increased.

Indian banks resilient with 1.8% NPA

Even with all this turbulence, India's banking sector is showing real resilience.
The report highlights strong growth and low inflation at home.
Bank asset quality is actually at its best in decades; nonperforming assets hit just 1.8% in March 2026.
There's a slight uptick expected over the next couple of years (possibly reaching 1.9% by March 2028).
Stress tests show banks have solid buffers to handle tough times ahead.